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Natural Resources Wales hit with £14.6m tax bill over IR35 failings

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Welsh Government confirms settlement following HMRC investigation

NATURAL Resources Wales has agreed to pay more than £14.6 million to HM Revenue & Customs after an investigation found historic failures to comply with off-payroll working rules, known as IR35.

Deputy First Minister Huw Irranca-Davies confirmed the settlement in a written statement issued on Friday (Oct 24). It brings to a close a year-long HMRC probe into how the environmental body managed contracts with freelance and agency workers.

The total liability of £14.6 million includes interest, while HMRC has also imposed a £2.9 million penalty, suspended for twelve months on the condition that Natural Resources Wales meets new compliance requirements.

The Welsh Government provided interim funding to cover an earlier “Payment on Account” to HMRC in 2024, ensuring the public body could meet its obligations while the investigation continued. Officials have now agreed a budget reduction plan to recoup the money from Natural Resources Wales over time.

Mr Irranca-Davies said: “These arrangements have been carefully developed to ensure they are affordable and minimise any impact on Natural Resources Wales’ ability to deliver its core functions and statutory responsibilities.”

The IR35 rules were designed to stop public bodies and companies avoiding National Insurance and income-tax liabilities by paying contractors through intermediaries when, in effect, they worked as employees.

Natural Resources Wales admitted in its own statement that “some aspects had been misinterpreted” and that “errors were made in how the employment status of some contractors was assessed.”

The organisation said it has since strengthened internal checks and “reviewed all processes to ensure ongoing compliance.”

The case highlights one of the largest known IR35 settlements in the Welsh public sector. The Herald understands that the issue dates back several years and relates to how consultants were engaged across multiple departments, including environmental regulation, flood management and forestry operations.

A Welsh Government source told The Herald the penalty “reflects the seriousness of the failings” but emphasised that HMRC accepted NRW’s full cooperation and commitment to reform.

The controversy adds to growing scrutiny over the financial management of arms-length bodies funded by the Welsh Government. It follows earlier questions raised by Senedd committees about governance standards and contractor oversight across devolved agencies.

While ministers insist the new settlement will not affect frontline environmental protection work, opposition parties have already demanded greater transparency over public-sector IR35 compliance.

Plaid Cymru’s finance spokesperson said the scale of the liability “shows how easily taxpayers can end up footing the bill for administrative mistakes.”

Natural Resources Wales employs more than 1,900 staff and manages forests, water quality, flood defences and environmental permits across Wales. In Pembrokeshire, the agency is responsible for key environmental assets including the Cleddau catchment, Milford Haven waterway, and Preseli forestry operations, meaning any financial pressure could have a direct impact on local conservation and flood-risk management work.

IR35 rules were first introduced in 2000 and tightened across the public sector in 2017. They require organisations to determine whether contractors should be treated as employees for tax purposes.

 

Local Government

Mayor and deputy mayor appointed in Milford Haven

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MILFORD HAVEN TOWN COUNCIL has congratulated Cllr Mark Woodward after he was inaugurated as the town’s new Mayor and First Citizen.

Cllr Woodward was formally appointed on Monday evening, with Cllr Kathy Gray confirmed as Deputy Mayor.

Following the ceremony, Cllr Woodward said it was a “true honour and privilege” to take on the role, adding that it was something he had “never in my wildest dreams imagined would happen to me.”

He thanked his fellow councillors for their trust, as well as residents who had sent messages of congratulations.

Cllr Woodward also paid tribute to his wife Eva, who now becomes Mayoress, saying her support had helped make the moment possible.

He said: “I promise I will do my absolute best and fight hard and passionately for my beloved adopted town.”

With Cllr Gray serving as Deputy Mayor, Cllr Woodward added that residents could “rest assured it will not be a quiet year.”

 

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Pembrokeshire Coast National Park chief to be honoured by Gorsedd Cymru

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PARK CHIEF RECOGNISED

PEMBROKESHIRE Coast National Park Authority Chief Executive Tegryn Jones is to be honoured by Gorsedd Cymru at this year’s National Eisteddfod.

Mr Jones has been named among those who will be admitted to the Gorsedd in recognition of their achievements and contribution to Wales, the Welsh language and local communities.

He will be admitted in the Blue robes, which are awarded to people who have given distinguished service in areas including public life, local and national activity, journalism, media, sport, science and law.

Originally from Lampeter and a fluent Welsh speaker, Mr Jones has played a prominent role in Welsh public life through a career spanning environmental, educational and community leadership.

Before joining Pembrokeshire Coast National Park Authority, he served as Chief Executive of Keep Wales Tidy and also worked for the General Teaching Council for Wales.

He was nominated for his work in education, youth work and the environment, as well as for developing environmental initiatives at both local and national level.

In Pembrokeshire, he is also closely associated with the development of Welsh-medium education through his long-standing involvement with Ysgol Caer Elen in Haverfordwest, where he was the first Chair of Governors.

Mr Jones said: “It is a great honour to be recognised by Gorsedd Cymru, particularly in a year when the National Eisteddfod returns to Pembrokeshire for Eisteddfod y Garreg Las.

“The Welsh language belongs to all our communities, and I have been very fortunate to work with so many people who care deeply about its future, whether through education, culture, the environment or public service.

“The Pembrokeshire Coast National Park is one of the jewels of Wales and provides an outstanding landscape that contributes to the environmental, social and economic goals that are essential to Wales’ future.

“I am very fortunate to lead the National Park Authority and extremely proud that this work has been recognised by the Gorsedd.”

This year’s National Eisteddfod, Eisteddfod y Garreg Las, will be held in Llantwd, North Pembrokeshire, from August 1-8, 2026.

The event will be especially significant as it marks 850 years since the first recorded Eisteddfod was held in Cardigan in 1176, just across the river from this year’s Maes.

 

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New RSPCA poll shows opposition to badger culling in Wales

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PUBLIC SUPPORT FOR CULLING ‘NOT THERE’, CHARITY SAYS

NEW polling from RSPCA Cymru suggests there is no clear public support in Wales for badger culling as a way of tackling bovine TB.

The charity says the new Welsh Government must “listen to people’s love of wildlife” after a survey found that just over a quarter of people in Wales actively support the culling of badgers.

The polling, released today (May 13), comes as 96 Members of the Senedd prepare to take their seats in the newly-expanded Welsh Parliament, with bovine TB expected to become one of the major animal welfare and farming issues facing the next administration.

RSPCA Cymru said only 27% of those surveyed supported badger culling, while 46% were opposed. A further 28% said they did not know.

The charity is calling on Plaid Cymru, which is seeking to form a minority government following the appointment of Rhun ap Iorwerth MS as First Minister, and on MSs from all parties, to reject culling and focus instead on what it describes as a science-led, cattle-focused approach.

The survey of 1,033 adults in Wales found that 63% of respondents were uncomfortable with badger culling being carried out using lethal methods approved by government authorities.

More than two-thirds, 68%, said they were uncomfortable with public money being used to fund the culling of badgers.

The polling also suggested that the issue could affect political support. More than half of those surveyed, 52%, said they would be less likely to support a political party that backed badger culling, while only 7% said they would be more likely to do so.

RSPCA Cymru said the figures showed that badger culling was “unsupported by a clear majority” of the Welsh public.

Billie-Jade Thomas, senior public affairs manager for RSPCA Cymru, said: “How the new Welsh Government approaches bovine TB will be one of the biggest talking points concerning animals in Wales in the coming years.

“This polling should remind all newly-elected Senedd Members that the Welsh public cares about how badgers are treated, and politicians must listen to people’s love of wildlife.

“There is a clear lack of public support for badger culling in Wales, and those supporting such action could see their support wane among their constituents.”

She added: “Wildlife control and badgers were featured in several parties’ Senedd manifestos, including Plaid Cymru, Wales’ new biggest party.

“We now hope MSs from all political groups recognise that badger culling is unsupported by a clear majority of the Welsh public, and they should instead prioritise a science-led, cattle-focused approach to combatting bovine TB.”

The polling also found that almost 98% of people in Wales consider protecting Welsh wildlife to be important, with 69% saying it is very important.

Badgers were among the most popular species named in the survey, with 73% of respondents choosing them as one of the species they were most concerned about when asked to select their top three.

RSPCA Cymru said badgers remain one of Britain’s most distinctive and misunderstood wild mammals.

Ms Thomas said: “Badgers are such wonderful creatures and, like all wildlife, deserve to be treated with kindness and respect.

“A growing body of evidence suggests that the majority of bovine TB infection occurs between cattle, with scientific evidence suggesting that badger culling is not an effective way to reduce the disease in cattle.

“The new administration must always tackle bTB in a way which does not needlessly pose a threat to one of our most distinctive, well-loved yet misunderstood species of wildlife.”

RSPCA Cymru’s manifesto for the seventh Senedd, Securing A Better Future For Animal Welfare in Wales, calls for badger culling to be rejected, describing it as ineffective and inhumane.

The poll was carried out online by Savanta between April 24 and May 12, 2026. Figures were weighted to be representative of adults in Wales.

 

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