News
Is financial ignorance bliss for councillors?
THE COUNCIL’S budget is essentially the same as our household budget: we get a salary and/or pension/benefits out of which we pay our expenses, and with a bit of luck, have some disposable income for non-essential ‘luxuries’ such as holidays, and if we are really fortunate, are able to set aside some savings. The Council gets its income from a variety of sources: Rate Support Grant (our income taxes), Non Domestic or Business Rates (paid by local businesses), Council tax paid by us, and direct charges from “customers” of Council services, for example Car Parking and some Adult Services, e.g. Day Centres and Meals on Wheels. The Council can also receive direct grants for providing specified services. It can increase its income yields by putting up the Council Tax and direct charges. From this collective income, the Council budgets and prioritises how much it can spend on providing our services. Much in the same way that we may be fortunate enough to build up a savings pot, the Council can build up reserves, which are required to even out peaks and troughs of expenditure over a number of years, or to put by for specific purposes or projects. Like us, the Council can also borrow money to fund projects that have a ‘life’ over a number of years. However, unlike us, it is not allowed to finance expenditure in the current year from borrowing.
Leaving it to officers
It is impossible for Councillors to authorise every payment the Council makes. For day to day operational purposes, the Cabinet therefore authorises or delegates spending powers to unelected officers to incur expenditure during the year on services within the Council, approved Budget allocations. The Cabinet has delegated wider powers to the Director of Finance for the allocation and use of reserves, both Capital and Revenue. Every three months, throughout the year, officers are required to report the financial position to Cabinet and Scrutiny Committees, plus a final outturn monitoring report at the 12 months stage. In theory, these reports enable financial performance to be monitored, by elected Councillors, against the approved annual budget. Any corrective action considered necessary as proposed by officers should be considered and agreed by Cabinet. However, these reports are focussed at Net expenditure level, which masks the true level of services provided and expenditure incurred at Gross Expenditure level. Any specific remedial action necessary is therefore not fully reported for approval. While the position on spending against the Council’s approved budget must be reported to Cabinet and Scrutiny Committees on a three monthly basis, the position on reserves is only reported to Cabinet/Council at Annual Budget time, and annually to the Corporate Governance Committee as Draft Accounts pre-audit, and then as the Final Audited Accounts.
Revealing Reserves
On September 29, the Council’s Corporate Governance Committee received a report on the Audited 2013/14 Accounts, which included, a table of Usable Reserves on page 64. Page 63 provides description of the individual reserves for those interested. This is the only comprehensive presentation where all reserves are reported on one page. Categories of reserves are subject to different controls. The Council is required to carry annual Working Balances, and the Auditor comments on the adequacy of these reserves, provided specifically in order to meet urgent, unforeseen contingencies or circumstances. The Education Reserves are primarily under the control of individual schools. The Children and Families Overview and Scrutiny Committee November 10, received a comprehensive report providing information on the amount of balances held by schools over the last three years with a commentary on future prospects. The Table shows that the Council had a total Earmarked Capital and Revenue reserve balance of about £50m under its direct control at 1 April 2013, rising to £56million at 31 March 2014, allocated for the purposes shown. To set these amounts in some sort of context: the Council sought to raise £40.5m from Council Tax in 2014/15 (an increase of £1.5million over 2013/14) and £13.4million from its Discretionary Direct Fees and charges, (an increase of £1.6million over 2013/14). Of particular note and significance, is the trail of money movements between The Pay and Grading Reserve and 21st Century Schools Reserve during 2013/14: all happening without councillors being informed but within the delegated authority of the Director of Finance.
Moving money
Some years ago, in common with other Councils, grants were made by the Welsh Government, staged over a number of years, to fund the likely cost of the Equal Pay/Pay and Grading reviews. In total, by March 31, 2012, our Council had received around £11.5m by grant, which was not hypothecated, and therefore did not have to be used for the purpose for which it was given. During 2012/13, £4.5million was charged against this provision in settlement of Pay Awards, leaving a balance of £7.0million – £5.6m of which was allocated to the Pay and Grading Earmarked Reserve on March 31, 2013 (let’s leave the unallocated amount of £1.4m ‘floating’ for the moment, I have yet to follow this through, suffice it to say that there is another ‘hidden’ category of reserve or Provision). The £5.6million can be picked up on the accompanying table, where the line shows a further contribution of £0.5m coming from revenue accounts, providing a total available Pay and grading reserve of £6.1m. From this sum, a contribution of £2.335million to revenue accounts was made in 2013/14 to meet the cost of further settlement of awards, leaving a balance of £3.765million at 31 3 2014 available for Pay and Grading. In total, an amount of £7.3million has been paid in pay settlements out of the total grant of £11.5million, leaving a balance of Pay and Grading Grant money of £4.2million. We have been told by officers and councillors that the Council could not afford to pay out more. While it may be true that the Pay and Grading Review was conducted fairly, an Appeals process was instigated at the behest of indignant Councillors. I understand that Appeals are still being considered and settled. I am not aware that the financial position on Pay and Grading has ever been explicitly reported or that appropriate questions have been asked by Councillors. I am sure that if I have got this wrong, the Council would be only too pleased to clarify the position.
21st Century Schools
The table reveals that £2.861million was allocated out of the Pay and Grading Reserve into the 21st Century Schools Reserve, leaving £0.9million available on March 31, 2014 to settle Future Pay and Grading appeal awards. The 21st Century Schools programme represents a significant investment by the Council and has been agreed as a priority. Turning to the 21st Century Schools Reserve, an initial £8.514million reallocation of balances out of other earmarked reserves in order to prime the 21st Century Reserve was approved by Council in February 2011, as part of the 2011/12 Budget. Starting with the £8.514million pump priming, further contributions from revenue service accounts of £4.526million in 2011/12, £0.174m in 2012/13 and £3,519m in 2013/14, which, with the addition of the transfer during 2013/14 of £2.861million from the Pay and Grading reserve, leaves the 21st Century Schools balance on March 31, 2014 standing at £19.594million. With services being under such financial pressure, the intention is to fund the Council’s share of this significant programme from Capital Receipts (proceeds from the sale of Assets) and Borrowing.
No questions asked
The Council, when setting its budget, rarely, if ever, considers the allocation and level of reserves. With an apparent ability to increase reserves by a total of £6.0million during £2013/14, at a time when targeted budget cuts of £1.6million were also achieved, it is perhaps time that councillors took an interest in the allocation and level of reserves. Perhaps more to the point is the question of how service budgets, under pressure, can make contributions into earmarked reserves. By amending the Council’s Constitution it is possible for the Council to redefine the terms of delegations given to Directors and the Director of Finance, and regain a measure of financial control for themselves. There may well be good arguments for doing this, in the light of the severe financial constraints the Council faces, for the sake of openness and transparency and democracy.
Community
Puffin found 110 miles inland released back into the wild in Pembrokeshire

Rare rescue sees seabird named Oona nursed back to health after landing in Herefordshire garden
A PUFFIN that somehow found its way more than 100 miles inland has been returned to the sea in Pembrokeshire after being rescued in a Herefordshire garden.
The bird, affectionately named Oona after a children’s book character, was discovered in June in the landlocked county — some 110 miles from the coast — and taken to Vets for Pets in Hereford. At just 218g, around half the normal weight for an adult puffin, she was underweight but otherwise alert.

Wildlife vet David Couper from the RSPCA provided guidance on her initial care, and once stabilised, Oona was transferred to the charity’s specialist West Hatch Wildlife Centre in Somerset. Staff there say puffin patients are extremely rare — only six have been treated at the centre in the past ten years.
Ryan Walker, Wildlife Supervisor at West Hatch, said: “Finding a puffin that far inland is extraordinary. She quickly became a bit of a star here. Our team gave her a good clean-up, helped her regain strength, and she did really well during her stay with us.”
Following her rehabilitation, which included nutritious fish meals and time in a recovery pool, Oona was returned to the sea off the coast of Pembrokeshire — home to Wales’ best-known puffin colonies, particularly on Skomer Island.

Puffins typically breed in coastal colonies, raising their chicks in burrows during spring and summer before spending the rest of the year out at sea. It’s rare for them to be found inland unless blown off course or affected by illness or exhaustion.
Oona’s story is just one of thousands seen by the RSPCA each year. In 2024, the charity took in over 10,000 wild animals across its four dedicated wildlife centres, with many found injured, orphaned or sick in people’s gardens.
The RSPCA is urging the public to act quickly if they find an animal in distress. Where safe, they should take the animal directly to a vet or consult advice on the charity’s website: www.rspca.org.uk/reportcruelty
Crime
Youth, 19, appears in court over Tenby stabbing incident

A YOUNG man accused of stabbing a teenager in a Tenby housing estate on Monday (July 14) has been remanded in custody after appearing before magistrates.
OLIVER DOWLING, aged 19, of Newell Hill, Tenby, appeared at Haverfordwest Magistrates’ Court on Thursday (July 17) charged with three offences — including wounding with intent, possessing a knife in a public place, and possession of cannabis.
The charges relate to a serious incident on Hafalnod estate, where Dyfed-Powys Police confirmed a man was taken to hospital after being stabbed with a knife. The victim, named in court as JOSH ALLEN, is recovering from his injuries, which are not believed to be life-threatening.
Dowling faces the following charges:
Wounding with intent to cause grievous bodily harm (contrary to section 18 of the Offences Against the Person Act 1861),
Possession of a bladed article in a public place, namely a kitchen knife, on Hafalnod estate,
Possession of a quantity of cannabis, a Class B drug.
No pleas were entered, and magistrates declined bail on the grounds that Dowling was likely to reoffend and could interfere with witnesses. He was remanded in custody ahead of a plea and trial preparation hearing at Swansea Crown Court on August 18 at 9:00am.
Dyfed-Powys Police confirmed a 20-year-old man had been arrested shortly after the incident and that no other individuals are being sought in connection with the matter.
A police spokesperson said: “There continues to be an increased police presence within the area, and if anyone has any concerns please speak to those officers.”
Farming
Farming future at a crossroads as final Welsh support scheme unveiled

Unions, politicians and sector leaders respond to ‘once-in-a-generation’ changes in land policy
THE FINAL version of the Welsh Government’s Sustainable Farming Scheme (SFS) has been published—sparking a fierce national debate over the future of food production, land management and the economic survival of rural communities across Wales.
Due to come into force on 1 January 2026, the scheme will replace the European Union’s Basic Payment Scheme (BPS), marking the end of a decade-long post-Brexit transition. It introduces a new three-tier model of support—Universal, Optional and Collaborative—with all participating farmers required to undertake twelve baseline actions such as maintaining hedgerows, improving soil health, and managing wildlife habitats.
The Welsh Government has framed the move as a bold shift towards sustainable land stewardship. But farming unions, opposition parties and rural campaigners have expressed serious concerns about the timing, funding, and long-term consequences of the proposals.

FUW: ‘A generational milestone—but not perfect’
The Farmers’ Union of Wales (FUW) described the publication of the final scheme as a “generational milestone,” representing the culmination of years of intense discussions between the sector and Welsh Government.
FUW President IAN RICKMAN said: “We have left no stone unturned in our ambition to secure a viable post-Brexit farm support framework. This is a watershed moment for Welsh agriculture.”
The FUW welcomed several major concessions, including:
- A combined £238 million budget for Universal payments and BPS tapering;
- A reduction in Universal Actions from 17 to 12;
- Exemptions for tenant farmers;
- Removal of the controversial 10% tree cover requirement.
However, the union remains deeply concerned about the scheme’s remaining obligations, particularly the 10% habitat requirement, which many believe will reduce the amount of productive farmland available. Mr Rickman also criticised the “disappointing” tapering schedule for existing BPS payments—set to fall to 60% in 2026 and drop by 20% each subsequent year.
“We urged a gentler five-step reduction starting at 80%. Despite this milestone, we will continue to push for practical improvements as implementation begins.”
NSA: ‘Stark choice for farmers’

The National Sheep Association (NSA) acknowledged progress but warned that many producers now face a stark decision.
NSA Chief Executive PHIL STOCKER said: “Farmers must now ask themselves—do they work with government and adopt environmental delivery, or do they walk away and farm independently without public support?”
NSA Cymru’s HELEN ROBERTS noted the omission of sheep from the Welsh Government’s press release as troubling: “There will be winners and losers. Some of the actions reflect existing good practice, but we’re worried about increased red tape and a lack of clarity on long-term outcomes. The steep cut to 60% BPS is harsher than expected and creates uncertainty.”
Paul Davies MS: ‘Another blow to farmers’
Preseli Pembrokeshire MS PAUL DAVIES described the final SFS as yet another blow to farmers already struggling under government pressure.
“This is dressed up as a new approach, but it’s another blow to Welsh farmers already reeling from devastating government policies. The cut to 60% is cruel and unjustified.”
Mr Davies criticised the absence of a published economic impact assessment, accusing both the Welsh and UK governments of abandoning the rural economy.
“From inheritance tax changes to bovine TB inaction and new hoops for farmers to jump through, it’s clear that governments on both ends of the M4 have failed to support our producers.”
Samuel Kurtz MS: ‘Still no answers on funding or impact’

Welsh Conservative Shadow Rural Affairs Secretary SAMUEL KURTZ accused the Welsh Government of publishing the final SFS without full transparency or accountability.
“After seven long years, farmers still don’t know what this scheme will really cost their businesses. Labour’s relationship with rural Wales is broken,” he said.
Mr Kurtz also criticised the Cabinet Secretary for failing to release the impact assessment, which, he claims, ministers have already seen.
“I stood shoulder to shoulder with farmers on the Senedd steps last year—and I continue to stand with them against any policy that threatens food security and rural livelihoods.”
Plaid Cymru: ‘A step forward—but not far enough’
Plaid Cymru’s Agriculture and Rural Affairs spokesperson, LLYR GRUFFYDD MS, acknowledged that the final scheme had improved following sector engagement—but said serious funding questions remained unanswered.
“It’s clear that this scheme has evolved from its initial form. As the farming unions and others have rightly pointed out, the scheme is an improvement on the one originally proposed,” he said.
“While we welcome the £238 million funding for the year ahead, a one-year pledge is simply not enough. A Plaid Cymru government would guarantee that level of support in real terms as a minimum and introduce a multi-year funding cycle.”
Mr Gruffydd also raised concerns about balance across the scheme’s tiers, the structure of the transition period, and the still-undefined “social value” payment.
“We trust these issues will be addressed swiftly, because, as ever, the devil will be in the detail.”
Labour blocks call for Senedd vote
Amid mounting pressure, Welsh Labour MSs voted down a motion in the Senedd this week which would have required a binding vote on the scheme’s implementation before it came into effect.
“By voting against this, Labour has dismissed farmers’ concerns once again,” said Mr Kurtz. “Trust is at an all-time low.”
Looking ahead
The Welsh Government has pledged to publish a “ready reckoner” tool in the coming weeks to help farmers estimate the financial value of their participation in the new scheme.
The BPS tapering will begin in 2026, with recipients receiving 60% of their previous payments, and reductions of 20% annually thereafter.
An economic impact assessment—originally expected to be published alongside the final scheme—is now due in September 2025, just months before the scheme is set to begin.
Farming unions have said they will continue to work constructively with ministers, but warned that ongoing engagement will be crucial as technical guidance and implementation plans are finalised.
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