Business

Private care providers ‘making hay’ as plan to restrict profits ‘backfires’

Published

4 months ago

November 15, 2025

A WELL-INTENTIONED policy to restrict profits in children’s care in Wales has backfired, allowing remaining providers to “make hay” and double their costs, a committee has heard.

Jake Berriman, leader of Powys Council, warned an “unforeseen” consequence has left councils with no choice but to cough up because other providers have fled the sector.

In February, the Senedd passed a law aimed at “eliminating” private profit – with looked-after children only cared for by the public sector, charitable or not-for-profit organisations in future.

Cllr Berriman said the Welsh Government’s phased move to restrict profit has seen private providers leave the sector and others have simply doubled their costs.

“We have to pay because there is no choice within the market,” he warned. “I think they are making hay while it is there to be made and the sun is shining.

“We’re paying the price for that and that was unforeseen.”

Giving evidence on the Welsh draft budget to the Senedd’s local government committee on November 13, councils pointed to the increasing demand and complexity of social care.

Jane Gebbie, the deputy leader of Bridgend Council, said: “We’ve got one placement for one young person across Wales at the minute, that’s £20,000 per week – that is excessive.”

Mary Ann Brocklesby, the Labour leader of Monmouthshire Council, added: “We’d all like to say that’s unusual – it’s not, it’s becoming standard. I don’t think there is a local authority across Wales that is not facing that kind of singular cost pressure.”

Cllr Gebbie said people are rightly angry about council tax rises amid a cost-of-living crisis, with poverty increasing demand for public services across the board.

The Labour councillor warned funding for prevention and early intervention has been cut over the years, with councils forced to focus on statutory services.

Cllr Berriman said: “There’s a great deal of nervousness around the potential of a roll-over budget of around 2%. Even at the 2.5% that has been modelled, that is opening a gulf – a shortfall in budget projections due to in-year pressures.”

He warned of £560m of pressures, “which clearly won’t be covered” by the 2.5% average increase for councils proposed in the Welsh Government’s draft budget.

Cllr Berriman added: “We’re looking nervously across the border at authorities in England which have had section 114 notices [effective bankruptcy] on them and we’ve seen the devastating effects that has as those authorities lose control over their budgets.”

The Liberal Democrat stressed: “We want to avoid that at all costs.”

He called for a “meaningful” funding floor to ensure no council receives an increase less than a certain amount, “reducing the impact of winners and losers out of the settlement”. Ministers have proposed a 2.3% funding floor in the 2026/27 draft budget.

Calling for an increase of at least 4%, Cllr Brocklesby told the committee council tax makes up nearly 40% of Monmouthshire council’s revenue and “we cannot keep increasing it”.

She said councils are expecting no let-up in constraints before the 2027 local elections.

The councillor told Senedd Members: “A roll-over budget, with a 2.5% increase, doesn’t give us confidence that we will be able to collectively meet all the challenges.”

The Welsh Local Government Association (WLGA) has warned of a funding gap of £436m based on a 2% increase, the equivalent of 14,000 jobs or a 22% average council tax hike. Adjusted for the proposed 2.5% increase, the budget shortfall would be about £400m.

Cllr Brocklesby also expressed concerns about increasing national insurance costs, which the Labour Welsh and UK Governments have only partially covered.

She told the committee: “It does mean we have to consider various cost savings across the board, including looking at our workforce. For some councils, that will lead to redundancies… in others it will result in reduced services.”

Cllr Berriman added: “Those frontline services, as ever, are suffering this year and will be suffering next year as a result of this unexpected cost and other cost pressures.”

He warned of a “painful picture”, with every 1% less in the settlement from central government resulting in a 3% council tax increase in Powys.

The council leader told the committee: “The cost pressures… are such that we are diminishing the local government offer and we just can’t carry on on that basis.”

Asked how councils will bridge the estimated £400m gap, Cllr Gebbie bluntly said: “I think the Welsh Government needs to tell us what they don’t want us to do.”

Business

Oil firm praised for putting customers first during price surge

Published

1 day ago

March 14, 2026

Tom Sinclair

A PEMBROKESHIRE heating oil supplier has been praised by a local customer after choosing to honour its original prices despite a sharp rise in fuel costs.

Sarah Maling contacted The Herald after receiving a delivery from J E Lawrence & Son Ltd, saying the company had prioritised fairness to customers during a period of intense demand.

The customer had ordered around 800 litres of heating oil on March 2 after her tank began running low. However, due to extremely high demand, the company was unable to deliver until Friday (Mar 13). Despite heating oil prices increasing rapidly since the order was placed, the firm honoured the original quoted price and delivered 500 litres instead, ensuring more households could receive some oil.

Sarah said the delivery driver arrived at her home at around 11:30am after already completing 27 deliveries that day.

She said: “Prices have gone insane since I ordered yet they stuck with the quoted price and delivered 500 litres and explained why in the letter.

“This is putting the customer before profit and making sure everyone who needs oil will hopefully get oil at a more affordable price.

“I just wanted it acknowledged that not all delivery companies are out to make a profit but care about their customers – the people of Pembrokeshire.”

The letter included with the delivery explained that distributors across the sector had cancelled existing orders as prices surged last week.

However, the company said it had chosen not to cancel earlier orders and instead decided to limit deliveries so that more customers would receive some fuel.

The letter stated: “We have experienced huge volumes of orders and deliveries are now taking two to three weeks.

“Most distributors cancelled existing orders when prices increased rapidly last week, and those customers had to go to the back of a very long queue with another supplier.

“We have chosen not to do that and your original price has been honoured.”

The company added that limiting deliveries was the only way to ensure all customers could receive oil during the current supply pressures.

It apologised for the inconvenience caused but said the situation was being driven by “a very uncertain climate which is outside our control”.

Business

Legal action backed in case over development at Dinas Cross

Published

1 day ago

March 14, 2026

Bruce Sinclair - Local Democracy Reporter

LEGAL action against a landowner, who repeatedly failed to comply with an enforcement notice served back in 2023, has been backed by Pembrokeshire’s national park.

Members of Pembrokeshire Coast National Park’s March development management committee meeting were asked to back delegated authority for prosecution proceedings in the magistrates’ court for failure to comply with steps required to be taken by an enforcement notice on land to the south of Parc Yr Eglwys, Brynhenllan, Dinas Cross.

A report for the committee said that, in May 2023, the park received a complaint that a green field in the open countryside had been stripped of its vegetation and turned into a mobile home park by the new landowners.

Following a site inspection, a planning contravention notice was served in relation to the removal of hedgebanks/hedgerows, widening of the existing access, alterations to ground levels, construction of a track and the siting of a storage container.

After that, a 2024 retrospective planning application was received by the park seeking retention of the hardstanding area, siting of storage container and additional landscape works, which was refused that May.

“As no voluntary steps were taken to remedy the breach of planning control and no appeal made against the refusal of planning permission, the Authority considered it expedient to issue and serve an Enforcement Notice as the development and use of the land resulted in an unnecessary incursion into the rural countryside which causes a significant visual intrusion to the detriment of the special qualities of the National Park,” the report said.

An enforcement notice was service in January 2025, but, the following month, the landowner lodged an appeal with Planning & Environment Decisions Wales, which was dismissed that June; the enforcement notice taking effect.

A further application, seeking permission for a small-scale seasonal campsite on the land was received in June 2025, subsequently refused that October; officers confirming to the landowner the enforcement notice remained in effect, running through to January 3 of this year.

A site inspection undertaken by officers on January 6 confirmed the breach of planning control continued, the report added.

This was followed by a further planning application seeking to regularise the development on January 21.

That application was refused on March 9.

The report concluded: “The landowner has had multiple opportunities to regularise the development through both retrospective applications and an appeal against the enforcement notice. Those processes have not resulted in permission being granted nor compliance being achieved.

“The continued failure to comply with the enforcement notice undermines the integrity of the planning system and public confidence in its proper operation.

“It also results in an unnecessary incursion into the rural countryside which causes a significant visual intrusion to the detriment of the special qualities of the National Park.

“Officers therefore consider it expedient and in the public interest to pursue prosecution proceedings should the breach remain unresolved.”

Members backed the recommendation.

Business

Tesco B&Q Haverfordwest click and collect pod approved

Published

2 days ago

March 14, 2026

Bruce Sinclair - Local Democracy Reporter

PLANS for a B&Q ‘click and collect’ pod at a Pembrokeshire supermarket, to save customers having a make a round trip of nearly 60 miles to the nearest home improvement store, have been approved.

In an application to Pembrokeshire County Council, B&Q Ltd, through agent Pyrke Planning, sought permission to install a modular ‘Click and Collect’ pod, with associated livery and signage, on the access road to Haverfordwest’s Portfield Road Tesco Extra superstore.

The application included a related scheme for signage for the proposal.

A supporting statement said: “This planning application seeks permission for the installation of a Click and Collect pod to be operated by B&Q Limited within the car park of the Tesco Extra store at Portfield Road, Haverfordwest.

“It does not involve any construction but simply the placing of a modular unit within the car park which, together with dedicated collection spaces, will take up 12 parking spaces and be situated within the customer car park.

“B&Q Limited (B&Q) is the UK’s largest home improvement retailer, serving both the general public and tradespeople. It supplies a wide range of DIY, home improvement and garden products, primarily from its stores across the UK but also through its online website.

“The trial of a new fulfilment service – B&Q Collect – in partnership with Tesco, is another step forward in their evolution. It gives customers greater choice over how they collect and return their items and helps make it easier to do their home improvement projects.

“B&Q does not have a store in Haverfordwest, with the nearest outlets being situated in Carmarthen (28 miles), Llanelli (37 miles) and Swansea (46 miles).

“It is consequently proposed to introduce a click and collect option for DIY customers and local tradespeople to allow next day collection of products which it is inconvenient for people to have delivered at home and to remove the need for a minimum c.50-mile plus round trip to one of the established stores.”

No objections to the proposal were raised by Haverfordwest Town Council.

The application, and the related signage scheme, were conditionally approved by county planners.