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Politics

Sweeping cuts loom as Drakeford unveils £27bn spending plans

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THE WELSH Government has unveiled its £27bn spending plans as a high-stakes budget showdown looms, with billions of pounds for public services teetering on a knife edge.

Mark Drakeford has today (October 14) outlined the draft 2026/27 budget which funds everything from health and education to culture, councils and the environment in Wales. His draft budget includes an extra £800m compared with last year’s spending plans.

Prof Drakeford will be guiding his ninth and final budget through the Senedd as finance secretary or formerly first minister – and next year’s promises to be the most difficult yet.

Labour holds 29 of the Senedd’s 60 seats and needs the support of at least one opposition member – and likely two – to pass the spending plans for the 12 months from April.

Last year’s budget was voted through after ministers cut a £100m deal with Jane Dodds, the Liberal Democrats’ Welsh leader and the party’s sole Senedd member.

But a similar deal would leave ministers one vote short this year unless Labour holds the Caerphilly seat in next week’s by-election triggered by the death of Hefin David.

If not passed in the Senedd by April, spending plans would revert to 75% of last year’s budget which would rise to 95% if still not agreed by the end of July. This would also impact directly funded bodies such as the Senedd commission and Wales Audit Office.

Last year, it was estimated that failing to pass motions on the budget and Welsh rates of income tax could potentially see Wales lose around £7bn.

The parliamentary arithmetic suggests ministers would either need to win over Plaid Cymru, the Conservatives, Rhys ab Owen or Russell George – who sit as independents – or Tory-turned-Reform UK Senedd member Laura Anne Jones to escape such a scenario.

parliament visualization

Plaid Cymru has helped ministers pass budgets in recent years before the agreement between the two collapsed in 2024. Rhun ap Iorwerth has not ruled out a deal though his party would be loath to lend its support with an election on the horizon in May.

But the Conservatives have extended an olive branch, saying a deal may be possible. Darren Millar, the leader of the opposition, suggested his party could help pass the budget if the Welsh Government scrapped land transaction tax – Wales’ equivalent of stamp duty.

In a letter to first minister Eluned Morgan, he wrote: “While we disagree fundamentally with the Labour Welsh Government on many issues, and on many of your spending priorities, we also accept that it would be irresponsible not to offer to engage with you on this issue.”

Plaid Cymru and the Conservatives voted against last year’s budget.

Prof Drakeford published a “business-as-usual” draft budget, rising in line with inflation, in an effort to minimise political rows and avoid tying the next Welsh Government’s hands. The draft budget allocates 98.6% of available funds, leaving around £380 million unallocated.

He warned of “damage to Wales” if the draft budget – which includes about £13bn for health and social care as well as nearly £7bn for housing and councils – cannot be agreed.

Welsh rates of income tax and the main rates for land transaction tax rates would remain unchanged under current budget plans but the rates for landfill disposal tax would increase.

Prof Drakeford said: “My door remains firmly open to working with other political parties in the Senedd who share my conviction that we have a collective responsibility to pass the Welsh budget and believe a more ambitious budget could be agreed.”

The former first minister will give a statement in the debating chamber or Siambr this afternoon before unveiling a more detailed draft budget on November 3.

Prof Drakeford will also appear before the finance committee to give evidence on Thursday (October 16), kicking off weeks of Senedd scrutiny on the outline draft budget.

Chancellor Rachel Reeves will announce the UK’s autumn budget, detailing funding for Wales, on November 26. The final Welsh budget is then set to be published on January 20, with a key vote in the Senedd pencilled in for January 27 although further votes could follow.

 

Community

Cilgerran Church in Wales school petition to be heard

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A PETITION opposing proposed changes for a north Pembrokeshire school is to be heard by councillors later this week.

At last May’s meeting, Pembrokeshire County Council considered a report of the School Modernisation Working Group which outlined the findings of a review of education provision in the Preseli area.

A later July meeting backed a general consultation to discontinue Cilgerran Church in Wales Voluntary Controlled School, and to establish it as a 3-11 community school.

“In particular, the review considered the extent of surplus school places in the area, set against a significant decline in the pupil population,” the council in its consultation has said.

The consultation closed on January 30.

Hundreds have opposed the proposed changes, with a petition, on the council’s own website opposing the changes recently closing after gaining 391 signatures.

Any petition of more than 100 signatures triggers a debate at one of the council’s scrutiny committees, in the case of Cilgerran that debate taking place at Pembrokeshire County Council’s February 5 schools and learning overview and scrutiny committee.

The Cilgerran e-petition, created by Louise Williams, raised concerns including the school could become part of a federation, a loss of permanent head teacher on site, a shared head teacher would have to oversee several schools, loss of funding control and the ability to maintain the school’s current healthy and stable funding, and a loss of commitment to the church, in turn could impact on the school’s and pupils values, beliefs and cultural beliefs.   

It said: “Ysgol Cilgerran VC school has strong links with the Church community in Cilgerran and we believe this will have a negative impact on the children who attend the school, the community of Cilgerran and the links between the two.
“We are proud of our school ethos and values which are strengthened by our links with the church. The school has close and strong relationships with our Church in Wales federation governors one of which is also our safeguarding governor.

“Our Church Federation governors work closely with the school and are regular visitors to the school and the children. They provide vital support and guidance to the school and have a positive impact on the Children’s education. We believe these links will be weakened by this proposal to remove our VC status and we believe this is an un-necessary action.”

The proposals for Cilgerran are part of a wide range of potential education changes in the county.

Two petitions, opposing the potential closures of Manorbier and Ysgol Clydau schools, were recently heard at full council and a further petition opposing the potential closure of Stepaside School has recently been launched, which has generated enough support to be heard at a future council meeting.

 

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Crime

Welsh Lib Dems urge ministers to rethink rates relief for struggling pubs and cafés

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Calls grow for Welsh Government to match support offered to English venues

THE WELSH LIBERAL DEMOCRATS have urged the Welsh Government to review its business rates policy, warning that scaling back support for pubs and hospitality risks further closures across towns and villages.

Party leader Jane Dodds, who represents Mid and West Wales in the Senedd Cymru, said ministers should act quickly to protect local venues after additional support for pubs and music venues was announced for England by the UK Government.

The measures announced by the Chancellor do not automatically apply in Wales, leaving uncertainty over whether similar help will be introduced here.

Hospitality businesses across Pembrokeshire and Carmarthenshire have already reported rising energy bills, higher wage costs and reduced footfall since the pandemic. From April, current business rates relief is expected to be reduced, a move the Liberal Democrats say could place Welsh firms at a disadvantage compared with competitors over the border.

Dodds said that pubs, cafés and restaurants form “the heart of our communities” and warned that withdrawing relief now would be “a serious mistake”.

She told the Senedd that support “cannot stop at pubs alone” and should extend to the wider hospitality sector, including restaurants and family venues that rely heavily on seasonal trade and tourism.

“When questioned, the First Minister said she needed to examine the details of the English package before committing to anything similar for Wales,” Dodds said. “Without urgent action, we risk losing viable, well-loved businesses that communities simply cannot afford to lose.”

The party is also calling for UK-wide action, including a temporary reduction in VAT for hospitality and tourism, funded by a windfall tax on large banks.

However, Welsh Government sources have previously argued that decisions on rates relief must be balanced against pressures on public finances, with ministers required to prioritise health, education and other frontline services within a fixed budget. They have said any additional support would need to be affordable and targeted.

Industry bodies have echoed concerns about the challenges facing the sector. Trade groups say many independent pubs and cafés continue to operate on tight margins, particularly in rural areas where they serve as community hubs as well as businesses.

Local operators say clarity is now key, with decisions on staffing, stock and opening hours often planned months in advance.

With the next financial year approaching, hospitality owners will be watching closely to see whether Wales mirrors England’s support – or leaves businesses to absorb the extra costs alone.

 

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international news

Mandelson quits Labour over Epstein controversy

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Former cabinet minister says stepping down is ‘in best interests of the party’ as questions raised over historic payments

LORD MANDLESON has resigned his membership of the Labour Party, saying he does not want to cause “further embarrassment” following renewed controversy over his past links to convicted sex offender Jeffrey Epstein.

The former cabinet minister and one-time UK ambassador to the United States confirmed his decision in a letter to Labour’s general secretary after fresh documents released by the US Department of Justice appeared to reference him in connection with Epstein’s finances.

The files suggest that three payments of $25,000 — totalling $75,000, about £55,000 at today’s exchange rates — were allegedly made to Peter Mandelson in 2003 and 2004.

Lord Mandelson said he had “no record or recollection” of the transactions and believes the allegations may be false, but intends to investigate the matter himself.

In his resignation letter, he wrote that he felt “regretful and sorry” to be linked again to what he described as the “understandable furore” surrounding Epstein.

He added that stepping down from party membership was the responsible course of action while he reviewed the claims.

“I do not wish to cause further embarrassment to the Labour Party,” he said. “I have dedicated my life to the values and success of the party and believe I am acting in its best interests.”

Ambassador role ended

Lord Mandelson had been appointed the UK’s ambassador to Washington by Prime Minister Keir Starmer in December 2024.

However, he was removed from the post last year after earlier revelations about his past friendship and contact with Epstein, including emails showing communication after the financier’s 2008 conviction.

The latest release of files has also included photographs said to show Lord Mandelson alongside an unidentified woman. He said he could not place the location or circumstances of the images.

There is no suggestion that appearing in the documents or photographs indicates criminal wrongdoing.

‘Deep regret’

Earlier this weekend, Lord Mandelson reiterated his regret for ever having known Epstein and apologised “unequivocally” to the women and girls who suffered abuse.

“I want to repeat my apology to the women and girls whose voices should have been heard long before now,” he said.

Epstein died in prison in 2019 while awaiting trial on sex trafficking charges, but investigations into his network of associates continue to generate political fallout on both sides of the Atlantic.

Labour has not yet issued a detailed statement beyond confirming it had received Lord Mandelson’s resignation.

 

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