News

Is financial ignorance bliss for councillors?

Published

12 years ago

January 5, 2015

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.

Business

Here is a sharper, more news-led version, leading on the scale of the sector and the commercial opportunities being generated at the show.

Published

2 minutes ago

July 22, 2026

Tom Sinclair

Welsh food and drink sector takes centre stage at Royal Welsh Show

MORE than 300 Welsh businesses, 2,500 products and over 100 new product launches are being showcased as producers seek new buyers and markets.

Wales’ food and drink industry is taking centre stage at this year’s Royal Welsh Show, with hundreds of businesses using the event to secure new customers, launch products and explore opportunities for growth.

More than 60 companies are exhibiting in the show’s Food Hall, while the Food & Drink Wales Trade Business Lounge is representing over 300 Welsh businesses and around 2,500 products.

Organisers say more than 100 new products are being launched during the week, making the show one of the largest showcases of Welsh food and drink in the UK.

The programme brings together producers, retailers, wholesalers, hospitality businesses, public sector buyers and industry experts.

Last year, activity within the Business Lounge generated more than £3 million in confirmed sales. More than 300 trade buyers have registered to attend this year, including representatives from major retailers, foodservice operators and independent businesses.

Llyr Gruffydd MS, Cabinet Minister for Rural Resilience and Sustainability, said the show provided an opportunity to celebrate the quality and diversity of Welsh produce while helping businesses build valuable commercial relationships.

He said: “The Royal Welsh Show provides a unique opportunity to celebrate the exceptional quality, innovation and diversity of Welsh food and drink.

“Bringing together producers, buyers, industry experts and support organisations, it showcases the strength of a sector that makes a significant contribution to communities and economies across Wales and supports thousands of jobs throughout the food supply chain.”

The minister said activity at the Food Hall, Business Lounge and International Pavilion demonstrated the Welsh Government’s commitment to supporting an ambitious and growing industry.

He added: “The activity also reflects our ambitions for Wales’ National Food Strategy, which will help strengthen local production, local processing and local procurement, creating a more resilient and sustainable food system for future generations.”

Businesses exhibiting in the Food Hall represent sectors ranging from dairy, meat and bakery products to alcoholic drinks, soft drinks and preserves.

Among them is Welsh Lady Preserves, whose managing director Carol Jones said the event allowed producers to meet customers and buyers while promoting Welsh products to a wider audience.

She said: “The Royal Welsh Show is a fantastic platform for Welsh food and drink businesses.

“It gives us an opportunity to showcase our products, meet customers and connect with buyers, while championing the very best of Welsh food and drink.”

This year’s displays also highlight companies working on carbon-reduction plans, achieving B Corp certification and taking part in Blas Cymru, also known as Taste Wales.

New attractions include a Fresh and Welsh food-to-go display, a Design Your Own Canapé tasting experience and an exhibition highlighting Welsh products with protected Geographical Indication status.

The International Pavilion is hosting meetings, launches and industry events throughout the week.

These include the launch of the Dairy Sheep Wales Cluster, presentations for local authority caterers and NHS procurement officers, and activities aimed at encouraging young people to pursue careers in the food and drink industry.

Welsh Government support programmes are also being promoted at the show, covering innovation, technical development, exports, sustainability, skills and business collaboration.

Figures from the latest annual report for the government-backed HELIX programme show that it generated an estimated economic impact of more than £103 million during 2025–26.

The programme supported 159 companies and helped businesses develop more than 300 new food and drink products during the year.

With thousands of products on display and buyers attending from across the UK and overseas, industry leaders hope the Royal Welsh Show will provide a platform for further investment, sales and expansion across the Welsh food and drink sector.

This could also take a stronger business headline, such as: “Royal Welsh Show puts 2,500 Welsh food and drink products before buyers”.

Community

Ten-day countdown begins for Eisteddfod y Garreg Las

Published

6 minutes ago

July 22, 2026

Tom Sinclair

Communities across north Pembrokeshire are preparing to welcome thousands of visitors for eight days of Welsh language, music, literature and culture

THERE are now just ten days to go until Eisteddfod y Garreg Las opens its gates for an eight-day celebration of the Welsh language, creativity and culture.

The National Eisteddfod will be held at Llantwd, in north Pembrokeshire, from Saturday, August 1, until Saturday, August 8.

Excitement is already building throughout the area, with communities decorating villages, roadsides and public spaces ahead of the festival’s arrival. Construction of the Maes, the main Eisteddfod site, is also gathering pace as organisers prepare the stages, pavilions, exhibition areas and other facilities needed for one of Wales’ largest cultural events.

Although the festival is being staged in Pembrokeshire, the official catchment area stretches beyond the county boundary and includes communities in south Ceredigion and west Carmarthenshire.

Months of community events, concerts, sponsored activities and fundraising drives have helped build momentum ahead of the Eisteddfod.

Local committees have raised more than £528,000, believed to be the largest amount ever collected by a local fund for a National Eisteddfod.

John Davies, chairman of the Garreg Las National Eisteddfod Executive Committee, described the fundraising campaign as historic.

He said: “More than £528,000 has been raised so far, the largest amount ever raised by a local fund for a National Eisteddfod.”

Volunteers who have supported the fundraising effort will be recognised during a special Celebrating Our Champions ceremony at 10:00am on the festival’s opening day. Representatives from local committees will be invited onto the stage to receive public recognition for their work.

Pembrokeshire on display

Pembrokeshire County Council and its partners will have their own dedicated area on the Maes, known as Pentre’r Garreg Las.

The area will celebrate the people, culture, communities and organisations of Pembrokeshire and the wider Eisteddfod region.

A full programme of discussions, performances, demonstrations and community activities will be held in Pabell Pawb throughout the week.

The programme is expected to feature local performers, community organisations, schools, businesses and projects, giving visitors an opportunity to discover more about the area and the people who live and work here.

Organisers hope the Eisteddfod will not only provide a major economic and cultural boost during festival week, but will also leave a lasting legacy by encouraging greater use of the Welsh language and strengthening links between communities.

Full programme available through festival app

The National Eisteddfod’s official app is now live and includes details of events taking place across the Maes each day.

Visitors can use the app to explore the full festival programme, check competition times and create their own schedules before travelling.

It also contains the programme for Pentre’r Garreg Las, helping visitors plan which talks, performances and demonstrations they would like to attend.

With activities taking place simultaneously in venues across the Maes, organisers are encouraging visitors to download the app in advance so they do not miss their preferred competitions, concerts or appearances.

Extra buses serving the Maes

Additional public transport services are being provided during Eisteddfod week to help visitors reach the site.

The TrawsCymru T5 service will travel directly to the Maes from Haverfordwest, Fishguard and Cardigan, with more frequent journeys and late-evening services operating between Fishguard and Cardigan.

The 430 service, which connects Narberth, Crymych and Cardigan, will operate every day during the festival. An additional late bus will leave the Maes at 11:15pm.

Visitors travelling through Cardigan will also be able to use Bws yr Arglwydd Rhys, a free shuttle service running from Finch Square to the Maes every hour between 7:00am and midnight.

Travel will remain free for holders of an All Wales Concessionary Bus Pass, while eligible passengers aged 21 and under can travel for £1 per journey, subject to a maximum daily fare of £3.

Celebrating 850 years of Eisteddfod tradition

This year’s festival carries particular historical significance, marking 850 years since the gathering widely regarded as the first recorded Eisteddfod.

That event was held by Lord Rhys at Cardigan Castle in 1176, only a few miles from the site of this year’s festival.

According to historical accounts, poets and musicians were invited to Cardigan to compete for prizes, establishing a tradition of artistic competition that has continued in different forms for centuries.

The modern National Eisteddfod remains one of the most important events in the Welsh cultural calendar. It brings together poets, musicians, writers, artists, choirs, dancers, actors and competitors from across Wales and beyond.

Alongside the traditional competitions and ceremonies, visitors can expect concerts, exhibitions, discussions, food, family activities and opportunities to learn and use Welsh.

The Eisteddfod is open to Welsh speakers, learners and people with no previous knowledge of the language, with organisers presenting it as an opportunity for everyone to experience Welsh culture.

As the final preparations continue, communities across north Pembrokeshire, south Ceredigion and west Carmarthenshire are preparing to welcome visitors for what is expected to be one of the most significant cultural events held in the region for many years.

News

Neil Kinnock hails son’s promotion to Welsh Secretary

Published

14 minutes ago

July 22, 2026

Tom Sinclair

Stephen Kinnock enters Cabinet promising to champion Wales as pressure grows for further devolution

FORMER Labour leader Lord Neil Kinnock has spoken of his pride after his son, Stephen Kinnock, was appointed Secretary of State for Wales.

The Aberafan Maesteg MP was promoted to the Cabinet by new Prime Minister Andy Burnham on Monday (July 20), replacing Cardiff East MP Jo Stevens.

It is Mr Kinnock’s first Cabinet position, having previously served as a health minister in the UK Government.

Lord Kinnock, who led Labour between 1983 and 1992, said his son was “thrilled to bits” when they spoke late on Monday night.

He told BBC Radio Wales Breakfast: “We had our midnight conversation, not the first in our lives it has to be said, and usually that was because he came home late.

“It was a delight.”

Lord Kinnock, 84, said his son had earned the appointment through “a lifetime of action and service” and would now be able to influence UK Government decisions affecting Wales directly.

Stephen Kinnock described becoming Welsh Secretary as “the privilege of my life” and promised to provide a strong voice for Wales around the Cabinet table.

He said he would work with the Welsh Government, councils and institutions across the country to secure better outcomes for Welsh communities.

Mr Kinnock added: “Wales succeeds when we all pull in the same direction.

“As Welsh Secretary, I will ensure that the Wales Office continues to champion Wales within the UK Government and that the needs of the Welsh people are prioritised.”

He said his ambition was to help build “a strong Wales within a strong United Kingdom”, with economic growth reaching communities across the country.

The appointment comes at a politically important time for Labour following the party’s heavy defeat in the Senedd election in May.

Plaid Cymru now leads the Welsh Government under First Minister Rhun ap Iorwerth, while Welsh Labour is attempting to rebuild under its new leader, Ken Skates.

Gower MP Tonia Antoniazzi described the Cabinet reshuffle as a “brutal 24 hours” for some Labour colleagues.

She said Mr Burnham and Mr Kinnock faced the task of winning back voters who had switched from Labour to Plaid Cymru or Reform UK.

The new Welsh Secretary is also likely to face immediate pressure over further devolution.

During his first conversation with Mr Burnham as Prime Minister, Mr ap Iorwerth called for powers over policing, justice, rail infrastructure and the Crown Estate to be transferred to Wales.

The First Minister said the change of leadership at Westminster presented an opportunity to redefine relations between the UK and Welsh governments.

He urged Mr Burnham to turn his support for devolution into action by strengthening the Senedd rather than bypassing it.

Downing Street said the Prime Minister wanted a “collaborative, practical and pragmatic” relationship with the devolved administrations.

Plaid Cymru’s Westminster leader, Liz Saville Roberts, congratulated Mr Kinnock but repeated her party’s view that the position of Welsh Secretary had become an “anachronism” following devolution.

She said Plaid would nevertheless seek a constructive working relationship with him and press the UK Government over rail funding, the Crown Estate, justice and policing.

Ms Saville Roberts said Plaid’s Senedd election victory had given it a clear mandate which Westminster should respect.

Jo Stevens held the Welsh Secretary post from July 2024 until Mr Burnham’s reshuffle.

She said serving in the role had been “a privilege and an honour” and pointed to what she described as major achievements during her time in office.

These included a record devolution-era funding settlement for Welsh public services, support for the steel industry, investment in a proposed new nuclear development at Wylfa and a £14bn commitment for Welsh railways.

Ms Stevens wished both the new Prime Minister and her successor well, saying she believed they would work with Ken Skates to deliver for Wales.

Who is Stephen Kinnock?

Stephen Kinnock was born in Tredegar in 1970 and is the son of Neil Kinnock and the late Glenys Kinnock, who served as an MEP, government minister and member of the House of Lords.

He is married to former Danish prime minister Helle Thorning-Schmidt, with whom he has two children.

Before entering Parliament, he worked for the British Council and held senior roles in international business and public affairs.

He was first elected as MP for Aberavon in 2015 and continued to represent the area when the constituency became Aberafan Maesteg following boundary changes.

Mr Kinnock served as a junior health minister after Labour returned to power at Westminster in 2024.

He now takes charge of the Wales Office and becomes Wales’ principal representative within the new Prime Minister’s Cabinet.