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Welsh Conservatives condemn £38m cut in new ‘Local Growth Fund’ for Wales

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THE WELSH CONSERVATIVES have launched a strong attack on the UK Government’s new funding scheme for Wales, accusing ministers of breaking promises and delivering a real-terms cut to investment.

Under the previous post-Brexit replacement for EU regional funding — the Shared Prosperity Fund — Wales received around £585 million over three years. Under the newly introduced Local Growth Fund, that allocation falls to £547 million over the same period — a reduction of £38 million.

The announcement has triggered political controversy in both Cardiff Bay and Westminster, as parties debate whether the change represents a meaningful cut or a technical adjustment within the post-EU funding regime.

Funding framework and government response

The UK and Welsh Governments have jointly agreed a framework for the Local Growth Fund, with decisions on its deployment devolved to Cardiff.

According to the Welsh Government, the fund will support growth, productivity, and local priorities — including infrastructure, skills, innovation, and investment in key sectors such as artificial intelligence and biotechnology.

First Minister Eluned Morgan acknowledged the settlement is “slightly smaller” than before, but stressed that Wales would still receive about 22 per cent of the UK-wide fund. She said funding would “reach all parts of Wales” and that devolved decision-making would ensure investment matched local priorities.

UK Secretary of State for Wales Jo Stevens said the new approach reflected “a commitment to local democracy,” adding: “Decisions are best made by people in Wales.”

Despite those assurances, opposition politicians say the reduction amounts to a broken promise and a warning sign of tighter budgets ahead.

Tory outcry over ‘broken promises and vanity projects’

Samuel Kurtz MS, Welsh Conservative Shadow Cabinet Secretary for Economy and Energy, issued a stinging statement accusing Labour of giving Wales “tens of millions of pounds less” than under the previous scheme.

“The Welsh Labour Government getting to hold the purse strings does not fill me with hope,” he said. “They routinely waste taxpayers’ money on vanity projects — or on non-devolved areas like their pointless overseas embassies and Ugandan tree planting.”

Mr Kurtz said the reduced funding would harm Welsh businesses already under pressure from what he called “higher taxes imposed by Labour Governments at both ends of the M4.”

Impact and unanswered questions

Local authorities and development agencies are now assessing how the lower funding total will affect projects. Key questions remain over how much will be allocated to capital works — such as roads, broadband and premises — versus revenue funding for skills and business support.

There is also uncertainty over how funds will be distributed across regions and whether inflation and rising public-service costs will further erode the real value of the grant.

With Labour holding only 29 of 60 Senedd seats, ministers will need opposition support to pass next year’s budget — making the Local Growth Fund a likely flashpoint in the coming financial debates.

Long-term tensions over regional funding

The dispute highlights long-running tensions about how regional development money is shared across the UK.

Under the EU’s structural funds, Wales received billions in direct investment via Brussels. The Shared Prosperity Fund was meant to replicate that model domestically, but the shift to a “Local Growth Fund” marks a move towards centralised, outcome-based competition.

Critics warn the new system could disadvantage smaller or rural areas, particularly given delays and underspending in earlier “Levelling Up” schemes. With Wales’ economy heavily reliant on infrastructure investment, many warn that even modest cuts could have outsized effects.

Some Plaid Cymru and Welsh Labour backbenchers have already called for full devolution of replacement-fund control, arguing that decisions about Welsh priorities should rest entirely in Wales.

What happens next

The Welsh Government says it will launch a public consultation later this month to shape how the Local Growth Fund is spent. Local authorities, businesses and community groups will be invited to submit proposals for regional investment.

As the Senedd begins its 2026-27 budget process, attention will focus on whether the smaller funding pot can sustain existing projects — or whether Wales will face another round of spending squeezes.

For now, the £38 million reduction has ignited a wider debate over who really controls Wales’s economic destiny — and whether devolution of the purse strings will empower communities or simply shift the blame for austerity closer to home.

Crime

Swansea man dies weeks after release from troubled HMP Parc: Investigation launched

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A SWANSEA man has died just weeks after being released from HMP Parc, the Bridgend prison now at the centre of a national crisis over inmate deaths and post-release failures.

Darren Thomas, aged 52, died on 13 November 2025 — less than a month after leaving custody. The Prisons and Probation Ombudsman (PPO) has confirmed an independent investigation into his death, which is currently listed as “in progress”.

Born on 9 April 1973, Mr Thomas had been under post-release supervision following a period at HMP/YOI Parc, the G4S-run prison that recorded seventeen deaths in custody in 2024 — the highest in the UK.

His last known legal appearance was at Swansea Crown Court in October 2024, where he stood trial accused of making a threatening phone call and two counts of criminal damage. During the hearing, reported by The Pembrokeshire Herald at the time, the court heard he made threats during a heated call on 5 October 2023.

Mr Thomas denied the allegations but was found guilty on all counts. He was sentenced to a custodial term, which led to his imprisonment at HMP Parc.

Parc: A prison in breakdown

HMP Parc has faced sustained criticism throughout 2024 and 2025. A damning unannounced inspection in January found:

  • Severe self-harm incidents up 190%
  • Violence against staff up 109%
  • Synthetic drugs “easily accessible” across wings
  • Overcrowding at 108% capacity

In the first three months of 2024 alone, ten men died at Parc — part of a wider cluster of twenty PPO-investigated deaths since 2022. Six occurred within three weeks, all linked to synthetic drug use.

Leaked staff messages in 2025 exposed a culture of indifference, including one officer writing: “Let’s push him to go tomorrow so we can drop him.”

Six G4S employees have been arrested since 2023 in connection with alleged assaults and misconduct.

The danger after release

Deaths shortly after release from custody are a growing national concern. Ministry of Justice data shows 620 people died while under community supervision in 2024–2025, with 62 deaths occurring within 14 days of release.

Short sentences — common at Parc — leave little time for effective rehabilitation or release planning. Homelessness, loss of drug tolerance and untreated mental-health conditions create a high-risk environment for those newly released.

The PPO investigates all such deaths to determine whether prisons or probation failed in their duties. Reports often take 6–12 months and can lead to recommendations.

A system at breaking point

The crisis at Parc reflects wider failures across UK prisons and probation. A July 2025 House of Lords report described the service as “not fit for purpose”. More than 500 people die in custody annually, with campaigners warning that private prisons such as Parc prioritise cost-cutting over care.

The PPO investigation into the death of Darren Thomas continues.

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Crime

Woman stabbed partner in Haverfordwest before handing herself in

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A WOMAN who stabbed her partner during a drug-fuelled episode walked straight into Haverfordwest Police Station and told officers what she had done, Swansea Crown Court has heard.

Amy Woolston, 22, of Dartmouth Street in Milford Haven, arrived at the station at around 8:00pm on June 13 and said: “I stabbed my ex-partner earlier… he’s alright and he let me walk off,” prosecutor Tom Scapens told the court.

The pair had taken acid together earlier in the day, and Woolston claimed she believed she could feel “stab marks in her back” before the incident.

Police find victim with four wounds

Officers went to the victim’s home to check on him. He was not there at first, but returned shortly afterwards. He appeared sober and told police: “Just a couple of things,” before pointing to injuries on his back.

He had three stab or puncture wounds to his back and another to his bicep.

The victim said that when he arrived home from the shop, Woolston was acting “a bit shifty”. After asking if she was alright, she grabbed something from the windowsill — described as either a knife or a shard of glass — and stabbed him.

He told officers he had “had worse from her before”, did not support a prosecution, and refused to go to hospital.

Defendant has long history of violence

Woolston pleaded guilty to unlawful wounding. The court heard she had amassed 20 previous convictions from 10 court appearances, including assaults, battery, and offences against emergency workers.

Defending, Dyfed Thomas said Woolston had longstanding mental health problems and had been off medication prescribed for paranoid schizophrenia at the time.
“She’s had a difficult upbringing,” he added, saying she was remorseful and now compliant with treatment.

Woolston was jailed for 12 months, but the court heard she has already served the equivalent time on remand and will be released imminently on a 12-month licence.

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News

BBC apologises to Herald’s editor for inaccurate story

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THE BBC has issued a formal apology and amended a six-year-old article written by BBC Wales Business Correspondent Huw Thomas after its Executive Complaints Unit ruled that the original headline and wording gave an “incorrect impression” that Herald editor Tom Sinclair was personally liable for tens of thousands of pounds in debt.

The 2019 report, originally headlined “Herald newspaper editor Tom Sinclair has £70,000 debts”, has now been changed.

The ECU found: “The wording of the article and its headline could have led readers to form the incorrect impression that the debt was Mr Sinclair’s personal responsibility… In that respect the article failed to meet the BBC’s standards of due accuracy.”

Mr Sinclair said: “I’m grateful to the ECU for the apology and for correcting the personal-liability impression that caused real harm for six years. However, the article still links the debts to ‘the group which publishes The Herald’ when in fact they related to printing companies that were dissolved two years before the Herald was founded in 2013. I have asked the BBC to add that final clarification so the record is completely accurate.”

A formal apology and correction of this kind from the BBC is extremely rare, especially for a story more than six years old. 

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