Politics
14,000 job losses or 22% tax hike: The stark choice facing Welsh councils
WELSH councils have warned plugging a £436m budget gap for next year would require an average council tax increase of 22% or the loss of 14,000 jobs.
The Welsh Local Government Association (WLGA), which represents Wales’ 22 councils, said local authorities face £560m of pressures in 2026/27 – £100m more than expected.
Councils warned a 2% settlement in the Welsh Government’s “roll-over” draft budget would be “extremely damaging” for services and leave a £436m shortfall. Ministers have proposed an average 2.5% increase, with a funding floor to ensure no council receives less than 2.3%.
Bridging the £436m gap would require “unconscionably high” council tax rises of about 22% or the equivalent of around 14,000 job cuts across Wales, according to the WLGA.
The stark warning was echoed by Wales’ outgoing auditor general who said some councils are “very close” to having to issue a formal section 114 (effective bankruptcy) notice.
Adrian Crompton told the Senedd’s finance committee that councils – which are forecasting a £184m overspend in 2025/26 – are struggling to balance their books.
He said: “There are undoubtedly a few authorities that are very close to having to issue a section 114. Our assessment at the time of publishing our report was that none were about to, so they all had sufficient grip on their in-year position, so it wasn’t imminent.
“But some are right at the edge and they are all facing some very significant demand-led pressures in areas like children’s services, additional learning needs, temporary accommodation, which are very hard to predict.”
Mr Crompton, whose eight-year term as auditor general ends in July, added: “When you’re right at the edge of financial sustainability, if you get hit with a couple of significant cases that you have to deliver against, that could be sufficient to tip authorities over the edge.”
He warned their fragile financial state means councils would be the “most immediately and severely hit” sector if the Welsh Government’s budget fails to pass.
The financial pressures facing councils were detailed in the WLGA’s written evidence on the draft budget which showed how demand-led services are spiralling.
For example, the net cost of homelessness and temporary accommodation has exploded nearly eight-fold in a decade – from £12.8m in 2016/17 to £100.8m budgeted for this year.
The WLGA also warned of “unsustainable” pressures on school finances, with children’s care and education accounting for the majority of the forecasted £184m overspend.
One council said 33 primary and six secondary schools – nearly 70% of all schools in its area – were projecting a deficit budget.
Another reported its schools had “completely eroded a £15m surplus balance into a £2m deficit” and projected a £9m in-year overspend. Others warned of job losses, reserves running dry and class sizes rising above legal limits.
The financial strain is so severe councils are failing at their basic accounting duties, with many missing deadlines to file their accounts – a situation Mr Crompton described as a “slippery slope” for bodies “so close to financial sustainability”.
He argued spiralling demands are a symptom of a wider failure to shift spending to prevention. The auditor general said his recommendation for the Welsh Government to “embed prevention into the budget-setting process” had been rejected.
“It’s disappointing that it’s been rejected because it seems so fundamental,” said the auditor general, who added: “I don’t fully understand why.”
Councils’ evidence echoed this, stating while policy “increasingly references the importance of prevention, this is not often reflected” in funding. The WLGA said this has forced councils to cut non-statutory services such as leisure, transport and community facilities.
Mr Crompton’s warning about councils was part of a wider assessment that Wales’ entire model of public service delivery is “unsustainable on its current trajectory”.
Giving evidence on November 5, he told Senedd Members demand is “outstripping” funding and critical areas have been “hollowed out” after two decades of tight budgets.
Mr Crompton warned this “unsustainable” model was not unique to local government, with all seven health boards in Wales breaching their statutory duty to break even over three years. The finance committee heard the NHS is forecasting a £191m deficit this year.
News
Council unveils plans for new state-of-the-art secondary school in Milford Haven
PEMBROKESHIRE COUNTY COUNCIL has revealed plans for a new state-of-the-art school in Milford Haven, promising modern, inspiring learning spaces for children and young people across the community.
A newly released video accompanying the announcement features the First Minister, the local authority’s Deputy Leader, the Cabinet Member for Education and the headteacher, outlining what the development will deliver. The plans include specialist teaching areas, improved accessibility, and high-quality outdoor learning and play spaces.
The project places a strong emphasis on sustainability, incorporating energy-efficient features and modern building standards designed to reduce environmental impact while delivering long-term value.
The scheme forms part of a Strategic Outline Case approval. Any final funding commitment will depend on the project successfully progressing through the full business case process.
Cllr Guy Woodham, Cabinet Member for Education, said: “This project represents a major investment in our children’s future. The new school will offer a safe, modern and inclusive environment where pupils can thrive, and we are delighted to share this vision with the community as we move towards the next stage of this exciting process.”
First Minister Eluned Morgan added: “This is fantastic news for pupils, parents, teachers and the whole community. Modern learning environments can make a real difference to pupils and staff alike. The Welsh Government has shown its commitment to new schools in Pembrokeshire as part of our wider programme of improving schools and colleges across Wales.”
Speaking on behalf of staff, pupils and governors, Deputy Headteacher Daryl John said the school community was excited by the plans.
He said: “Milford Haven School recently welcomed a visit from the First Minister, along with the Deputy Leader and Cabinet Member for Education, to mark initial progress on proposals for a new, aspirational school building.
“The development will provide inspirational learning and teaching spaces, offering high-quality, ambitious and equitable opportunities for all pupils. It aims to support our young people to thrive, develop their talents and grow into confident, successful individuals, supported by dedicated staff and the wider school community.”
Stephen Thomas, Headteacher at Milford Haven Primary School, said the project had been long awaited.
He said: “This new school building has been long awaited, and I know how much it will mean to our children, staff and the community as a whole in Milford Haven.
“For many years, our community has hoped for facilities that truly reflect the potential, pride and ambition of our children, and now that vision is becoming a reality.
“This is more than just a new building. It is a statement of belief in our young people and in the future of Milford Haven. It will provide modern, high-quality learning environments, improved spaces for wellbeing and inclusion, and facilities that will open up wider opportunities for our pupils and families.
“As Headteacher, I feel incredibly proud and grateful to see this investment in our community. Our children deserve the very best, and this new school will help us continue raising aspirations, strengthening community links and ensuring every child can thrive.”
The council will now begin a period of consultation and engagement with pupils, staff, parents and local residents to ensure the new school reflects the needs and ambitions of the whole community.
News
Welsh steel communities at heart of tariff debate as unions warn strategy still lacking
Port Talbot jobs and future of UK steel industry in focus despite government move to curb cheap imports
WELSH steelworkers could be among the biggest beneficiaries of new UK tariffs on imported steel — but unions have warned that without a long-term plan, the industry will continue to face uncertainty.
The UK Government has confirmed it will strengthen its tariff regime from June to prevent the dumping of cheap foreign steel on the domestic market, a move welcomed by trade union Unite.
However, the union says the decision highlights a wider problem — a reactive approach that has left critical industries like steel “lurching from crisis to crisis.”
The issue is particularly significant for Wales, where the steel industry remains a cornerstone of the economy, with communities such as Port Talbot heavily reliant on the sector for jobs and investment.
Unite general secretary Sharon Graham said: “Unite welcomes the strengthening of the UK’s tariff regime to prevent the dumping of cheap foreign steel onto the domestic market from June.
“But this last minute situation is just another reminder that the reactive approach to UK steel that sees it lurch from crisis to crisis needs to be overhauled.”
She added: “Ministers must introduce a long-term strategy that secures the future of the industry, which is vital to the UK’s economy and national security, without delay.”
The Herald understands that concerns remain across the Welsh steel sector about the pace and direction of change, particularly following the transition away from traditional blast furnace steelmaking at Port Talbot.
Unions and industry figures have repeatedly warned that the shift towards electric arc furnaces, while more environmentally sustainable, could reduce the UK’s ability to produce so-called “virgin steel” — a key material for major infrastructure and defence projects.
Unite has called on the government to go further by legislating to ensure that all major UK infrastructure developments use domestically produced steel.
The proposal would have clear implications for Wales, potentially boosting demand for steel produced at Welsh sites and helping to safeguard jobs.
Unite regional secretary Peter Hughes said: “The steel strategy must be a first step in backing the UK steel industry and steelworkers.
“Steel is a foundation industry and is critical to the success of our economy. The government must also back the production of virgin green steel as we can’t simply rely on electric arc furnaces to produce all the steel we need.”
The debate comes at a crucial time for Welsh steelmaking, with significant public investment already committed to supporting the industry’s transition to greener production methods.
While ministers have framed the tariffs as a necessary step to protect domestic producers, critics argue that without a comprehensive industrial strategy, the measures risk being a short-term fix.
For communities in south Wales, the stakes remain high. Steel is not only a major employer but a defining part of the region’s identity — and decisions made in Westminster will have lasting consequences on the ground.
As global competition intensifies and energy costs remain volatile, pressure is mounting on the UK Government to move beyond emergency interventions and set out a clear, long-term vision for the future of steel — one that secures both jobs and production capacity in Wales.
Local Government
Pembrokeshire parking charge increases backed by Cabinet
PARKING charge increases in Pembrokeshire, which include part of Tenby’s multi-storey and the new Haverfordwest interchange moving to a 24-hour charging model, have been backed by senior councillors.
At the March meeting of Pembrokeshire County Council’s Cabinet, members were asked to back a number of amendments to the current Pembrokeshire County Council parking charges.
For parking permits the changes proposed, to take effect from April 1, were: Y Penfro, parking across any long stay car park all year, from £240 a year to £300; The Puffin, which allows non-vehicle specific parking in a specific named car park all year round, from £180 to £240; Coastal, a transferable permit to allow a vehicle to park in specific seasonal car parks, up from £120 season to £160; Parking Permit Passport, a weekly permit transferable across all long stay car parks, from £35 to £40 a week.
These changes are expected to net an extra £25,000 a year.
At the Haverfordwest Interchange, changes, moving from a 9am-7pm charging to 24 hours, include the first hour now being free, with additional charges to the current rates of 10 hrs at £3.50 and 24 hrs at £4.50, along with a new dedicated motorcycle bay charge of £1 per 24 hours.
At Tenby multi-storey, to take effect from May 1, the proposal is to introduce 24 hours charging on floors 1–3. The ground floor would remain as charging between 9am and 7pm, this floor is short stay only, maximum stay two hours.
The main additional summer charges are: 10 hours £6, 24 hours £10, and weekly £50, up from the current £30; winter rates see 10 hours £3, 24 hours £5, and weekly £25, the latter up from £15.
From March 2027, Tenby Harbour Resident Permits see no cost changes, but a maximum of two vehicle registrations allowed, but a Tenby Harbour visitors permit will be introduced at a cost of £60 per vehicle.
These would be via a Variation Order which involves consultation. It is proposed to bring back any comments to Cabinet prior to implementing.
In Haverfordwest, a new four-hour charge, at £3, for Perrots Road is proposed alongside the current one and two-hour stay charges.
The town’s Hole in the Wall Car park is proposed to be revoked.
Two sites at Gelliswick Seafront currently have no enforceable parking restrictions. Due to recurring issues including overnight camping, it is proposed to introduce: Gelliswick Seafront – free parking, and Gelliswick – free parking.
Many of these changes will be require variation orders.
Other general cincreases proposed included: on street resident permit, £46 a year (to £48); on street visitor permit £52.50 (£60); compound £200 a week (£250); charity £50 (£65) free if all funds to charity; events, on a sliding scale dependent on the percentage capacity of the car park used from less than 50 per cent £100 (£150), 50-75 per cent £175 (£225) and over 75 per cent £225 (£275).
Members backed the changes, also agreeing to undertake a full review of parking services operations to include parking charges, charging periods, seasonal charges, license opportunities, in line with full cost recovery, with a report back to Cabinet in June 2027 – any changes to be implemented from September 2027.
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