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Education

Made-in-Wales investment model avoids ‘crippling’ PFI trap, says Drakeford

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A “CREATIVE WORKAROUND” to limited borrowing powers has delivered an extra £1.1bn for Wales while avoiding the same “crippling” pitfalls as PFI, the finance secretary has claimed.

Speaking in the Senedd, Mark Drakeford explained £1.14bn for projects including the new Velindre cancer centre and A465 works “simply would not have happened” otherwise.

The Welsh Government designed the mutual investment model (MIM) – an alternative to the controversial UK private finance initiative (PFI) policy – as a way to leverage private finance due to a scarcity of funding for longer-term infrastructure.

Prof Drakeford told Senedd Members the Welsh Government’s capital budget has totalled around £15bn this term, so the model has bolstered spending by 7.5%.

Arguing the government’s decision to reject PFI has been vindicated, he said: “Wales suffers neither from the stranded assets that have occurred in England nor do we face the ongoing disputes that surround the return to public ownership of facilities from PFI stewardship.

“Most of all, we have not faced the crippling impacts on resource budgets that PFI repayments have caused and continue to cause elsewhere.”

Prof Drakeford said the additional £1.14bn includes £590m to complete the dualling of the A465 and £312m for 21st-century cancer care at the Velindre NHS trust.

He told the Senedd the “made-in-Wales” approach is different from earlier PFI models because the Welsh Government takes a stake of up to 20% in each MIM scheme.

This ensures the public interest is represented on boards and enables the public sector to earn a return on investment in infrastructure that can be recycled, he said.

Addressing concerns about long-term costs, the former First Minister explained repayments will equate to a “manageable” 0.4% of the day-to-day budget even at the peak.

He said: “In this year, we are providing £50m in revenue to support the borrowing through the mutual investment model. At the moment, that will rise to £100m in the most expensive year of the scheme and that’s in 2028/29.”

During Tuesday’s (October 7) statement, he added that modelling suggests every £1 invested as public equity in a MIM project will earn more than £3 in return.

Conservative MS Sam Rowlands
Conservative MS Sam Rowlands

The Conservatives’ Sam Rowlands supported the “innovative” way of investing in modern schools, hospitals and roads though he pointed out that public bodies in Wales did use PFI.

He warned that PFI models were “supercharged” under Tony Blair’s UK Government after being launched by John Major, saddling future taxpayers with a £215bn commitment.

Plaid Cymru’s Heledd Fychan expressed concerns about constraints on Welsh Government borrowing, with councils having greater flexibility, leading to the creative workaround.

Plaid Cymru MS Heledd Fychan
Plaid Cymru MS Heledd Fychan

Rhys ab Owen, who sits as an independent, similarly criticised “pitiful” borrowing limitations, with Cardiff and Swansea councils’ combined powers exceeding the Welsh Government’s.

Labour’s Mike Hedges asked: “Is the mutual investment model PFI-lite? While the worst excesses of PFI – … such as the £20 to change a light bulb – will not occur, it is still a long-term commitment that will have an effect on revenue budgets for a long time.”

Prof Drakeford said the Welsh Government always seeks to exhaust the cheapest money first and MIM is the last form of borrowing ministers turn to. But he stressed: “This is a choice between using this form of investment or not being able to invest at all.”

 

Education

Two more rural schools face closure as statutory notices issued

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TWO MORE rural schools in west Wales could close by the end of the year after Carmarthenshire County Council published statutory notices proposing the closure of Ysgol Meidrim and Ysgol y Fro.

The move follows growing concern over the future of small rural schools across the region, after The Herald reported yesterday on separate school closure proposals in Pembrokeshire.

Carmarthenshire County Council confirmed on Tuesday (Jun 16) that statutory notices had been issued under the School Standards and Organisation Act 2013.

Members of the public now have 28 days to object, with the deadline set for July 14, 2026.

Objections can be submitted through the council’s online surveys for Ysgol Meidrim and Ysgol y Fro, by emailing [email protected], or in writing to Owain Lloyd, Director of Education and Leisure, County Hall, Carmarthen, SA31 1JP.

Cabinet decision

The decision to issue the statutory notices was agreed by Carmarthenshire County Council’s Cabinet on Monday, June 1.

If the proposals are approved, both closures would take effect from December 31, 2026.

From January 1, 2027, pupils currently attending Ysgol Meidrim would be expected to attend either Ysgol Griffith Jones or Ysgol Hafodwenog, depending on parental preference and the council’s admissions arrangements.

The catchment area of Ysgol Gynradd Meidrim would also be re-designated and absorbed into the existing catchment areas of Ysgol Griffith Jones and Ysgol Bancyfelin.

Under the proposals for Ysgol y Fro, pupils would attend Ysgol y Dderwen from January 1, 2027, again subject to parental preference and admissions arrangements.

Its catchment area would be re-designated and included within the existing catchments of Llangunnor Primary School, Llanddarog VC Primary School, Ferryside VC Primary School, Gwynfryn Primary School, Ysgol Gymraeg Gwenllian, Ysgol Gynradd Mynyddygarreg and Ysgol y Castell.

Rural school concern

The council says both schools have been identified under viability criteria set out in its Modernising Education Programme, which was approved by Cabinet on November 18, 2024.

The publication of statutory notices marks a formal stage in the closure process and gives parents, residents, governors and other interested parties the opportunity to object before a final decision is made.

The proposals come amid wider concern about the future of small rural schools, with communities across west Wales warning that closures can have a lasting impact on village life, Welsh-language education, transport arrangements and young families.

The council has said objections received during the statutory notice period will be considered before any final decision is taken.

 

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Community

Eleventh hour call to save Manorbier school ends, final closure backed

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THE FINAL decision to close fire-ravaged Manorbier school has been given the go-ahead, despite a heartfelt last-minute plea by local councillor Phil Kidney to keep it open.

Back in March, Pembrokeshire County Council members backed a recommendation that the Director of Education at Pembrokeshire County Council be authorised to publish a statutory notice to discontinue Manorbier Church in Wales voluntary controlled school.

Manorbier Church in Wales VC School and its adjoining schoolhouse was severely damaged by a fire in October 2022, which broke out in the school roof space.

After that, a ‘school from school’ was set up in Jameston Village Hall.

It had been hoped the school would be rebuilt, but last year councillors backed a report of the School Modernisation Working Group which, amongst other recommendations, included a statutory consultation on proposals to discontinue Manorbier Church in Wales Voluntary Controlled School.

The decision attracted strong local opposition, with more than 1,500 people signing a petition on the council’s own website calling for the school to be rebuilt.

The formal consultation for the discontinuation of Manorbier closed last December.

However, many of the council’s figures, especially on the level of surplus places at the school, have been strongly disputed.

At a special extraordinary council meeting held on June 15, members were asked to consider a report on a summary of 62 objections received in respect of the proposal to discontinue Manorbier VC school, which included options to end that discontinuation or to launch a fresh consultation.

However, it was recommended, in a report present by deputy leader Cllr Paul Miller, who now also has responsibility for education, for the discontinuation be proceeded with.

At the meeting, local councillor Phil Kidney, who has been a staunch supporter of the keeping the school open, thanked the campaigners who fought for it and the dedication of the staff, including headteacher Sharon Davies.

Cllr Kidney said: “The way this authority has treated her and the staff is quite frankly amazing; we have all let these good people down.

“We’ve all let these people down, the way this council has handled this situation is appalling; from day one not one of the executives came up to see these children, no-one came out; if that was Haverfordwest or Tenby they’d be all over the place.”

He said the wording of the consultation had seen more mentions of St Florence [ the alternative school for pupils in the event of a discontinuation] than Manorbier, describing it as “like a brochure for St Florence”.

He also warned the Diocese of St Davids, which had always pressed for the school to be rebuilt, would not allow the council to “walk away from our liabilities lightly”.

“We’ve been promised by two leaders and the chief executive: ‘Don’t worry we’ll rebuild,’ sometimes you’ve got to be big enough an honour your promises; do the right thing today, vote for Manorbier and keep it open.”

Members later heard the diocese had, in a letter received by councillors, made “damning accusations the council is being biased against voluntary controlled schools,” with Cllr Jamie Adams saying the council administration should be “ashamed of this debacle”.

Cllr Miller said his only consideration was “the future welfare of the children,” adding: “I do not think 20 children educated in a welfare centre in Jameston is the best for them.”

He said that no pupils would have to travel more than 2.1 miles for their education as a result of a closure, Cllr Kidney disputing that figure more like 3.5 miles.

Cllr Miller said the wording in from the letter from the diocese “which had a dog in the fight” was a one-sided legal argument, adding the council had actually opened VC schools.

Cllr Aled Thomas, chair of the working group which had presented the proposals in the first place, said: “The whole thing is an omnishambles, a total mess of how it’s been handled, but we are where we are.

“The important thing to remember is the future for these children, there will be kids in that school that have never been taught in a classroom setting. Tough decisions are never going to be easy; not a single one of us got elected wanting to be in this position.

“I’m no friend of the administration but we need to look at it holistically.”

Members, by 30 votes to 23, with four abstentions, supported the final steps to close the school.

Posting after the decision, the Friends of Manorbier School said: “Today is a difficult day, as the final decision to close Manorbier Primary School has now been made.

“There were some heartfelt comments and statements during the council meeting. The children, staff, parents and wider community have been waiting far too long for a decision. While this outcome was not unexpected, it is still hard to hear those final words spoken aloud.”

It added: “There are still questions that need to be asked, but the fight to keep the school open has come to an end. Our focus must now be on supporting the children and their families as they prepare for the transition ahead. The staff, too, finally have an answer.”

 

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Education

Closure of Ysgol Clydau approved after emotional council debate

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COUNCILLORS WARNED RURAL COMMUNITIES WILL REMEMBER DECISION

PEMBROKESHIRE councillors have voted to close Ysgol Clydau following an emotional debate over the future of rural education and Welsh-language provision in the county.

The recommendation was carried by 32 votes to 21, with one abstention.

The decision followed strong appeals from several councillors, who warned that closing the school would damage village life, weaken rural communities and risk pushing some families towards home schooling.

Cllr Iwan Ward, the local member, opened the debate by urging councillors to reject the proposal.

He questioned whether the views of local people had genuinely been listened to during the consultation process.

“If the overwhelming concerns of local people have not been listened to, then what was the point of it?” he said.

“This was not a box-ticking exercise. It was a chance to listen.”

Cllr Ward said the people of Clydau had spoken “passionately and clearly” about the importance of the school.

“The school is not just a building,” he said. “It is the heart of the community, where families come together and where the Welsh language is passed on to future generations.”

He warned that closure would affect the viability of young families living in the area and said alternatives, including federation and other collaborative arrangements, had not been properly explored.

“As councillors, we have a responsibility not just to look at budgets, but at the people behind them,” he said.

Cllr Ward added that “local democracy does not end when this meeting closes,” warning that people would remember “who stood up for their communities and who chose to protect the heart of rural Pembrokeshire.”

He said the decision would affect communities “long after we have ended our terms, long after we leave this chamber.”

“Today, we have the opportunity to send a message that rural communities matter, Welsh education matters, and local people matter,” he said.

Happier times, pupils at Ysgol Clydau

Rural schools ‘lost forever’

Cllr Anji Tinley also spoke against the recommendation, claiming there had been a wider policy of “starving” rural schools in order to support larger ones.

She warned that once rural schools closed, they were “lost forever”.

Cllr Tinley said she had “never known any other school” bring forward so many options publicly in an attempt to avoid closure.

She told councillors: “When are we going to wake up and listen?”

She said the issue was not simply about pupil numbers or finance.

“Children are more than a spreadsheet number on a desktop,” she said.

Her comments were met with applause from the public gallery.

Welsh language concerns

Cllr Huw Murphy, speaking in Welsh, reminded councillors that he had already made his position clear during a previous council meeting.

“Back in March, I said I would not support closing a school where the Welsh language is strong,” he said.

Referring to the upcoming National Eisteddfod in Pembrokeshire, Cllr Murphy added: “The National Eisteddfod is being held here soon, and I cannot support closing a school that can be seen from the Maes.”

He argued that pupil numbers alone should not determine whether a school remained open.

“Numbers are not the only reason for closing a school,” he said. “If that were true, we could close many schools.”

Cllr Murphy also rejected cost as a justification, saying it was inevitable that providing education in rural communities would cost more than in urban areas.

He pointed to Welsh Government ambitions to reach one million Welsh speakers by 2050, questioning whether any future administration would abandon that aim.

In an emotional intervention, he referenced the Manic Street Preachers song If You Tolerate This Your Children Will Be Next.

“If we close this school, more will follow,” he warned.

‘Duty beyond politics’

Speaking in favour of closure, Cllr John Davies said the issue was not confined to Pembrokeshire, pointing to councils across Wales also considering school closures.

He said Conwy, Gwynedd, Carmarthenshire and Ceredigion were all facing similar pressures.

“Forget the parties in administration,” he said. “We have a duty beyond politics to all children in the county.”

Cllr Davies said there were around 2,000 fewer children in Pembrokeshire than a decade ago, and described the proposed closure of Ysgol Clydau as “extremely sad”.

He said the school itself had been created by combining two other schools, and recalled that when an extension was built there were 71 pupils on roll.

Cllr Davies said the decline reflected wider changes in rural life, including depopulation and changes in farming, with fewer but larger farms.

He added that the council had also closed schools in towns, and said members had a responsibility to all children in Pembrokeshire.

Recalling his own experience, he said he had been a pupil at Eglwyswrw when it closed in 1972, moving from a school of around 30 pupils to one with about 90.

He described that experience as positive and said this was what the council would seek to offer affected pupils.

Cllr Davies said only 14 pupils came from the school’s catchment area, adding that some parents had already “voted with their feet”.

“It is not councils that close schools,” he said. “It is parents who vote with their feet. There is some truth in that saying.”

He concluded by saying that, after 27 years on the council, he would “sadly” vote for closure because he did not believe the school was sustainable in the 21st century.

‘Soul of a community’

Cllr Phil Kidney said he could not support the recommendation, warning that some children would struggle if moved into larger schools.

He asked: “Are we setting these kids up to fail? Are we forcing parents down the home-schooling route?”

Cllr Kidney said he would be voting against the proposal.

Referring to a previous school closure in Penally, he said the local vicar had told him that when the school shut, children stopped playing in the village.

“It rips the soul out of a community,” he said.

Cllr Bethan Price praised the school’s social media campaign and said it had helped highlight the strength of local feeling.

She told the meeting: “We need to keep the Welsh language going.”

Cllr Price said she was there to support both the school and the Welsh language.

Her comments were also met with applause from the public gallery.

Support for closure

Cllr Paul Miller spoke in favour of the closure proposal, saying alternative Welsh-language provision remained available to families in the area.

He told members: “Alternative Welsh language provision is available.”

Cllr Miller added that he believed closure was in the best long-term interests of children living within the catchment area.

“I believe that closing the school is in the best long-term interests of pupils in that catchment,” he said.

Home schooling warning

Cllr Ward later responded by saying travel times were not the only issue, warning that many parents were now considering home schooling.

He said he had spoken to parents and believed as many as 50% of children could be home schooled if the closure went ahead.

Cllr Ward said: “I am not a fan of home schooling. It is not right. They need a school background and they need to be in school with other children.”

He warned the closure would have far-reaching consequences beyond the school itself.

“This will be devastating for Pembrokeshire and our local communities,” he said.

Several councillors warned the decision would be remembered by rural communities and could have political consequences at future elections.

Despite the objections, councillors voted 32 in favour of the recommendation, 21 against, with one abstention.

The recommendation was therefore carried.

Reaction

Following the decision of Pembrokeshire County Council to close Ysgol Clydau, Bethan Williams on behalf of Cymdeithas yr Iaith said: “One of the councillors said that closing rural schools is a symptom of the wider problem of depopulation. It is true that the decline in pupil numbers is a symptom, and one that is common to several counties, but rather than addressing the wider problem, the council decided to close the school today.

“Similarly, maintaining and developing rural schools is not the only solution to this, but it is a fundamental part of the solution. There are plans to build more affordable housing in the village of Tegryn, but what is the point of those houses without schools for children?

“There is an opportunity for the new government to give new hope to our Welsh-speaking rural communities, and we will be pressing them to make use of that opportunity.”

 

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