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Politics

Senedd unites to call for fairer funding

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SENEDD Members unanimously called for a fairer funding formula for Wales.

Rhun ap Iorwerth led a debate calling for the “outdated and unfair” Barnett formula to be scrapped, warning Wales gets a “poor deal”.

The population-based Barnett formula – which was devised as a temporary measure in the late 1970s by Labour’s Joel Barnett – is used by the Treasury in Westminster to set public spending in Wales, Scotland and Northern Ireland.

Mr ap Iorwerth told the Senedd: “The inadequacy of the Barnett formula has been apparent ever since its inception, which, of course, way predates the devolution era.”

The Plaid Cymru leader pointed out Wales faced a £72m shortfall from Westminster to cover the increased cost of national insurance in the public sector due to the “flawed” formula.

Mr ap Iorwerth argued Wales is owed around £5bn from rail projects across the border being classified as “England-and-Wales”, denying the Welsh Government consequential funding.

He criticised Darren Jones, chief secretary to the Treasury, for telling a Welsh MP he should be “more grateful” for rail cash,  which “typifies the contempt shown by the UK Government”.

The former broadcast journalist described the Welsh Government’s approach as trying to squeeze fairness from a fundamentally unfair system.

Sam Rowlands, for the Conservatives, called for a review of the fiscal framework – a 2016 agreement between the Welsh and UK Governments on funding and tax powers.

Conservative MS Sam Rowlands speaking in the Senedd
Conservative MS Sam Rowlands

He said: “In simple terms, the Welsh Government receives £1.20 from the UK Government for every £1 spent on public services in England.”

Mr Rowlands said Scotland has had two such reviews since 2015, increasing a cap on borrowing powers which now rises in line with inflation unlike in Wales.

He added: “Our friends in Northern Ireland have benefited from recent reviews too. Their most recent review, published in 2024, provides a Barnett needs assessment of a 24% increase against Wales’ 20%. So, it doesn’t seem right to me.”

Labour’s Mike Hedges said the Barnett formula evolved from the Goschen formula, which was used to allocate funds to Scotland and Ireland relative to England and Wales.

Labour MS Mike Hedges
Labour MS Mike Hedges

“The formula was thus never designed with Wales in mind,” he told the Senedd.

Rhys ab Owen, an independent, warned that the Barnett formula works on an annual basis, making it difficult to plan for the longer term.

Calling for a needs-based formula, he said: “Funding is linked to specific changes in public spending in England and is fundamentally responsive to English… rather than Welsh need.”

Pointing out that Scotland and Northern Ireland can borrow £3bn compared with £1bn in Wales, Mr ab Owen said: “County councils, in proportion to the population they represent, also have more borrowing powers than the Welsh Government.”

Responding to the debate on June 25, Mark Drakeford backed the motion which is “nothing more than a restatement of the long-standing policy of successive Welsh Governments”.

Finance secretary Mark Drakeford

He agreed with Lord Barnett who himself described the formula as grossly unfair in 2003.

Warning that the formula is often bypassed, Wales’ finance secretary told the Senedd: “Funding is not allocated fairly and systematically across the devolved countries.

“A good example is the Theresa May bung of £1bn to Northern Ireland following the 2017 election, purely driven by the need to prop up a minority Conservative UK Government.”

The former First Minister vowed to make the case for replacement of the Barnett formula at a meeting of finance ministers from the four nations in London the following day.

 

Politics

Ceredigion council tax expected to rise by 4.7 per cent

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A BETTER financial settlement for Ceredigion from the Welsh Government along with a fresh grant is expected to see council tax bills in the county rising by less than five per cent this year, far below previous fears of a rise as high as nearly nine.

Last year, for the 2025-’26 budget, Ceredigion saw a council tax rise of 9.3 per cent.

While council tax makes up a proportion of the council’s annual revenue, a crucial area of funding is the Aggregate External Finance (AEF) rate from Welsh Government.

Ceredigion was to receive a 2.3 per cent increase on its settlement, some £3,388,000 for a total of £150,670,000, placing it at joint 13th of the 22 local authorities in Wales.

Following a later Welsh Government and Plaid Cymru agreement additional funding for local government was secured, giving Ceredigion additional funding.

Back in November, before the increased settlement was announced, Ceredigion Leader Cllr Bryan Davies said that early estimates indicated that an 8.9 per cent increase in council tax would be necessary, but an improved position of 6.9 per cent had been indicated as a result of a further modelling of service cost pressures and operational savings.

Following the improved settlement, members at the January meeting of Cabinet heard from Cabinet Member for Finance and Procurement Services Cllr Gareth Davies a recommendation for a 4.75 per cent council tax increase as part of a draft budget requirement of £221.493m was being mooted.

That position has improved again, following financial support towards the Mid and West Wales Fire Service Levy, members of the February 3 meeting of the council’s corporate resources overview and scrutiny committee heard, the funding now dropping the expected council tax increase to 4.7 per cent, equivalent to an extra £7.39 per month for the average Band D property for the next financial year.

Members of the committee agreed to note the 4.7 per cent figure, with the final council tax recommendation being considered by Cabinet on February 10; the final decision on the budget being made by full council on March 2.

 

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international news

Mandelson quits Lords amid police probe over Epstein links

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Peter Mandelson has announced he will retire from the House of Lords with immediate effect, as mounting political and legal pressure grows over claims he shared sensitive government information with convicted sex offender Jeffrey Epstein.

Parliamentary officials confirmed that Peter Mandelson formally notified the Clerk of the Parliaments of his decision, ending his membership of the upper chamber from Tuesday (Feb 4).

The move follows reports that the Metropolitan Police Service is reviewing allegations of possible misconduct in public office connected to emails said to have been forwarded to Epstein while Mandelson was business secretary during the 2008–09 financial crisis.

Downing Street has confirmed that material has been passed to police after an initial Cabinet Office review.

Government fury

LONDON, ENGLAND – JANUARY 19: Prime Minister Sir Keir Starmer delivers a statement in the media briefing room of 9 Downing Street in central London, after US president Donald Trump’s threats to ramp up tariffs until a deal is reached for the US to buy Greenland, at Downing Street on January 19, 2026 in London, England. (Photo by Jordan Pettitt – WPA Pool/Getty Images)

Prime Minister Keir Starmer told cabinet colleagues Mandelson had “let his country down”, according to No 10, and officials are now drafting legislation that could strip him of his peerage entirely.

Removing a life peer is rare and would require an Act of Parliament.

If passed, Mandelson would lose the title “Lord” altogether — an extraordinary step that has only been considered in the most serious cases.

Senior ministers have described the alleged passing-on of market-sensitive government discussions as “disgraceful” and a “betrayal of trust”.

What police are examining

Misconduct in public office is a centuries-old common law offence that applies where someone in a position of public trust wilfully abuses that role. It carries a maximum sentence of life imprisonment.

Investigators will assess whether confidential information — particularly relating to government financial policy during the crash — was shared without justification and whether safeguards were breached.

At this stage, no charges have been brought.

Mandelson has previously apologised for maintaining contact with Epstein after the financier’s conviction, saying he regrets “ever having known him”, but he has disputed some of the latest claims and has not commented directly on the police review.

Political shockwaves

Opposition parties are pushing for further disclosure of documents relating to Mandelson’s vetting and his past roles.

Conservatives are expected to force a Commons vote demanding more information, while Liberal Democrats have called for a public inquiry.

Several MPs have also suggested Mandelson should be removed from the Privy Council.

The developments mark a dramatic fall for one of Labour’s most influential political figures of the past three decades, who only months ago was serving as the UK’s ambassador to Washington.

Now, with police examining evidence and legislation being prepared to remove his title, his public career appears effectively over.

More updates are expected as the investigation continues.

 

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Community

Cilgerran Church in Wales school petition to be heard

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A PETITION opposing proposed changes for a north Pembrokeshire school is to be heard by councillors later this week.

At last May’s meeting, Pembrokeshire County Council considered a report of the School Modernisation Working Group which outlined the findings of a review of education provision in the Preseli area.

A later July meeting backed a general consultation to discontinue Cilgerran Church in Wales Voluntary Controlled School, and to establish it as a 3-11 community school.

“In particular, the review considered the extent of surplus school places in the area, set against a significant decline in the pupil population,” the council in its consultation has said.

The consultation closed on January 30.

Hundreds have opposed the proposed changes, with a petition, on the council’s own website opposing the changes recently closing after gaining 391 signatures.

Any petition of more than 100 signatures triggers a debate at one of the council’s scrutiny committees, in the case of Cilgerran that debate taking place at Pembrokeshire County Council’s February 5 schools and learning overview and scrutiny committee.

The Cilgerran e-petition, created by Louise Williams, raised concerns including the school could become part of a federation, a loss of permanent head teacher on site, a shared head teacher would have to oversee several schools, loss of funding control and the ability to maintain the school’s current healthy and stable funding, and a loss of commitment to the church, in turn could impact on the school’s and pupils values, beliefs and cultural beliefs.   

It said: “Ysgol Cilgerran VC school has strong links with the Church community in Cilgerran and we believe this will have a negative impact on the children who attend the school, the community of Cilgerran and the links between the two.
“We are proud of our school ethos and values which are strengthened by our links with the church. The school has close and strong relationships with our Church in Wales federation governors one of which is also our safeguarding governor.

“Our Church Federation governors work closely with the school and are regular visitors to the school and the children. They provide vital support and guidance to the school and have a positive impact on the Children’s education. We believe these links will be weakened by this proposal to remove our VC status and we believe this is an un-necessary action.”

The proposals for Cilgerran are part of a wide range of potential education changes in the county.

Two petitions, opposing the potential closures of Manorbier and Ysgol Clydau schools, were recently heard at full council and a further petition opposing the potential closure of Stepaside School has recently been launched, which has generated enough support to be heard at a future council meeting.

 

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