A WELL-INTENTIONED policy to restrict profits in children’s care in Wales has backfired, allowing remaining providers to “make hay” and double their costs, a committee has heard.

Jake Berriman, leader of Powys Council, warned an “unforeseen” consequence has left councils with no choice but to cough up because other providers have fled the sector.

In February, the Senedd passed a law aimed at “eliminating” private profit – with looked-after children only cared for by the public sector, charitable or not-for-profit organisations in future.

Cllr Berriman said the Welsh Government’s phased move to restrict profit has seen private providers leave the sector and others have simply doubled their costs.

“We have to pay because there is no choice within the market,” he warned. “I think they are making hay while it is there to be made and the sun is shining.

“We’re paying the price for that and that was unforeseen.”

Giving evidence on the Welsh draft budget to the Senedd’s local government committee on November 13, councils pointed to the increasing demand and complexity of social care.

Jane Gebbie, the deputy leader of Bridgend Council, said: “We’ve got one placement for one young person across Wales at the minute, that’s £20,000 per week – that is excessive.”

Mary Ann Brocklesby, the Labour leader of Monmouthshire Council, added: “We’d all like to say that’s unusual – it’s not, it’s becoming standard. I don’t think there is a local authority across Wales that is not facing that kind of singular cost pressure.”

Cllr Gebbie said people are rightly angry about council tax rises amid a cost-of-living crisis, with poverty increasing demand for public services across the board.

The Labour councillor warned funding for prevention and early intervention has been cut over the years, with councils forced to focus on statutory services.

Cllr Berriman said: “There’s a great deal of nervousness around the potential of a roll-over budget of around 2%. Even at the 2.5% that has been modelled, that is opening a gulf – a shortfall in budget projections due to in-year pressures.”

He warned of £560m of pressures, “which clearly won’t be covered” by the 2.5% average increase for councils proposed in the Welsh Government’s draft budget.

Cllr Berriman added: “We’re looking nervously across the border at authorities in England which have had section 114 notices [effective bankruptcy] on them and we’ve seen the devastating effects that has as those authorities lose control over their budgets.”

The Liberal Democrat stressed: “We want to avoid that at all costs.”

He called for a “meaningful” funding floor to ensure no council receives an increase less than a certain amount, “reducing the impact of winners and losers out of the settlement”. Ministers have proposed a 2.3% funding floor in the 2026/27 draft budget.

Calling for an increase of at least 4%, Cllr Brocklesby told the committee council tax makes up nearly 40% of Monmouthshire council’s revenue and “we cannot keep increasing it”.

She said councils are expecting no let-up in constraints before the 2027 local elections.

The councillor told Senedd Members: “A roll-over budget, with a 2.5% increase, doesn’t give us confidence that we will be able to collectively meet all the challenges.”

The Welsh Local Government Association (WLGA) has warned of a funding gap of £436m based on a 2% increase, the equivalent of 14,000 jobs or a 22% average council tax hike. Adjusted for the proposed 2.5% increase, the budget shortfall would be about £400m.

Cllr Brocklesby also expressed concerns about increasing national insurance costs, which the Labour Welsh and UK Governments have only partially covered.

She told the committee: “It does mean we have to consider various cost savings across the board, including looking at our workforce. For some councils, that will lead to redundancies… in others it will result in reduced services.”

Cllr Berriman added: “Those frontline services, as ever, are suffering this year and will be suffering next year as a result of this unexpected cost and other cost pressures.”

He warned of a “painful picture”, with every 1% less in the settlement from central government resulting in a 3% council tax increase in Powys.

The council leader told the committee: “The cost pressures… are such that we are diminishing the local government offer and we just can’t carry on on that basis.”

Asked how councils will bridge the estimated £400m gap, Cllr Gebbie bluntly said: “I think the Welsh Government needs to tell us what they don’t want us to do.”

PUPILS at a leaking Pembrokeshire school, built just nine years ago, which now has more than 500 props holding up parts of its roof, are likely to be forced to relocate while a new roof is put on.

Tenby VC School, a 3–11 English-medium primary school with an additional Learning Resource Centre (LRC) provision, was built in 2016.

Just a few years after its build, there were reports of water ingress.

Initial investigations in 2023 identified the requirement for repairs to the flat roof areas, and in 2024 its solar PV array was removed to reduce the load on the roof following engineer advice.

Last November, a £75,000 feasibility budget to look at ways of tackling roof leaks at Tenby’s VC school, including a complete new roof, was backed by members of Pembrokeshire County Council’s Cabinet.

At the time, Cabinet Member for Education and Welsh Language Cllr Guy Woodham, said: “A number of [areas of water ingress] have been repaired, but unfortunately a number of leaks have resulted in a weakening of the structure and components within the roof construction.”

In response to the findings of the feasibility study, the council has implemented a series of urgent health and safety measures to mitigate immediate risks, a report for members at the November 2025 Cabinet meeting said.

These include the installation of 510 ‘acro’ props to support vulnerable roof areas and the full closure of the Early Years/Playgroup wing, along with regular inspections.

At the meeting, members received a report detailing the findings of the feasibility study, presented by Cllr Woodham, with a favoured option of the replacement of entire roof.

It said: “Considering the recommendation to proceed with [full roof replacement] a comprehensive decant strategy needs to be developed with all stakeholders and the community to ensure educational continuity, meet health and safety requirements and safeguard the wellbeing of pupils and staff throughout the construction period and following information needs to be considered in relation to any decant strategy.”

Cllr Woodham said he was “totally aware of the concern in relation to how this progresses,” adding: “The priority is the wellbeing of the learners and staff at the school, we’ll do everything to move as quickly as we can.”

Members backed recommendations that the School Modernisation Working Group be requested to determine the final preferred outcomes in relation to the Tenby Area, and that those recommendations be presented to full council in December.

They also backed tenders for the works being sought, with a further report to Cabinet, and a comprehensive decant strategy be produced; a report returning to Cabinet by January at the latest.

A CALL for Pembrokeshire to back a multi-millionaire wealth tax to support public services submitted by a former councillor, once accused of being the covert graffiti artist ‘Banksy,’ has not gained enough support for it to be debated.

An e-petition on Pembrokeshire County Council’s own website, by William Gannon, a former Pembroke Dock town councillor, said: “We call upon Pembrokeshire County Council to lobby the Welsh and Westminster Governments to demand an increase in funding for all county councils to be paid for by a UK wealth tax of two per cent on individual assets over £10 million.

“This increased revenue should then be spent by PCC on supporting both working and vulnerable people and services throughout Pembrokeshire.

“Pembrokeshire County Council are struggling to maintain services in the face of rising costs and inadequate funding from the Welsh and UK Governments. Two solutions that PCC have identified for this problem are a rise in council tax and/or cuts to the services provided by PCC.
“These cuts are being felt throughout Pembrokeshire and have already resulted in, for example, the closure of an adult day care facility and the community art gallery in Pembroke Dock and are threatening the survival of Pembroke Dock Public Library.”

It added: “Tax Justice have estimated that the introduction of a wealth tax of two per cent on individual assets over £10 million could raise an estimated £24 billion each year in the UK.

“According to Tax Justice: ‘Setting this tax at a high threshold of £10 million in assets would ensure that only a tiny proportion of the population are impacted – just 20,000 people – yet would raise significant funds for our public services’.”

If a petition gets 500 signatures, the creator will have an opportunity to debate it at a future full council meeting; more than 100 will trigger a debate at a council overview and scrutiny committee.

The e-petition, which closed a few days ago, generated 91 signatures.

Back in 2022 the-then Cllr Gannon resigned from the town council saying the allegations he was the cult artist were undermining his ability to represent his ward.