Politics
Senedd’s speaker issues dire warning over £22m ‘black hole’
THE SENEDD could face a £22m funding gap and run out of money to pay staff, politicians and contractors by January 2027, the Welsh Parliament’s speaker has revealed.
Elin Jones, the presiding officer or Llywydd, warned of dire knock-on effects for the Senedd of a failure to agree the Welsh Government’s 2026/27 budget.
Labour lacks a majority and needs opposition support to pass its spending plans. If the deadlock is not broken, the Senedd – like the government – would be forced to operate on 75%, and subsequently 95%, of this year’s budget in the next financial year from April.
Ms Jones said such a scenario would present a significant financial challenge, resulting in the Senedd effectively running out of cash after only nine months in January 2027.
She told the Senedd’s finance committee that expansion from 60 politicians to 96 at the May 2026 election will cost about an extra £13m in pay and allowances.
Ms Jones, who chairs the Senedd commission, which manages the estate and support services, wrote: “This represents the principal factor behind a potential funding gap of around £22m.
“Such a shortfall could not be managed by simply reallocating resources, as the majority of the commission’s budget is committed to staff costs and contractual payments.
“Any reduction in these areas would likely incur further costs, such as redundancy payments or early termination penalties, thus intensifying budgetary pressures and significantly limiting the resources available to support the parliament at the outset of the new Senedd.
“If the Senedd were in this position, the budget would run out after month nine. This would mean an inability to pay staff, contractors, members and their support staff from this point.”
Ms Jones, who will stand down after two terms as Llywydd next year, suggested the Senedd would try to bridge the gap through a supplementary budget motion following the election.
The finance committee, chaired by Plaid Cymru’s Peredur Owen Griffiths, was concerned by a lack of contingency planning being undertaken by the commission.

In a letter, Ms Jones accepted all the committee’s recommendations following scrutiny of the commission’s £102m draft budget for 2026/27 – an £18m or 21% increase on 2025/26.
In an update on plans for the Pierhead in Cardiff Bay, Ms Jones said the grade one-listed building will primarily be retained for use by the Senedd. But she confirmed the commission will explore commercial interests but the process is unlikely to conclude before May 2026.
She also offered an update on the “Bay 2032” project, which is looking at options for office space with the lease on Tŷ Hywel – the red-brick building behind the Senedd – set to expire.

The speaker wrote: “This process has demonstrated that simply rolling-over the existing lease would not necessarily satisfy the accommodation requirements of the commission nor provide best value for money to the taxpayer.
“There are, it is now clear, alternative options that may provide better value.”
Other options are thought to include buying Tŷ Hywel, taking up a nearby building, or building new offices but a final decision is expected to be pushed beyond the next election.
The Senedd will debate a motion on the commission budget on Wednesday November 19 but pivotal votes on the Welsh Government’s spending plans will follow in the new year.
Business
Bid to convert office space into chocolate factory, salon and laundrette
A CALL for the retrospective conversion of office space previously connected to a Pembrokeshire car hire business to a chocolate factory, a beauty salon and a laundrette has been submitted to county planners
In an application to Pembrokeshire County Council, Mr M Williams, through agent Preseli Planning Ltd, sought retrospective permission for the subdivision of an office on land off Scotchwell Cottage, Cartlett, Haverfordwest into three units forming a chocolate manufacturing, a beauty salon, and a launderette, along with associated works.
A supporting statement said planning history at the site saw a 2018 application for the refurbishment of an existing office building and a change of use from oil depot offices to a hire car office and car/van storage yard, approved back in 2019.
For the chocolate manufacturing by ‘Pembrokeshire Chocolate company,’ as part of the latest scheme it said: “The operation comprises of manufacturing of handmade bespoke flavoured chocolate bars. Historically there was an element of counter sales but this has now ceased. The business sales comprise of online orders and the delivery of produce to local stockist. There are no counter sales from the premises.”
It said the beauty salon “offers treatments, nail services and hairdressing,” operating “on an appointment only basis, with the hairdresser element also offering a mobile service”. It said the third unit of the building functions as a commercial laundrette and ironing services known as ‘West Coast Laundry,’ which “predominantly provides services to holiday cottages, hotels and care homes”.
The statement added: “Beyond the unchanged access the site has parking provision for at least 12 vehicles and a turning area. The building now forms three units which employ two persons per unit. The 12 parking spaces, therefore, provide sufficient provision for staff.
“In terms of visiting members of the public the beauty salon operates on an appointment only basis and based on its small scale can only accommodate two customers at any one time. Therefore, ample parking provision exists to visitors.
“With regard to the chocolate manufacturing and commercial laundrette service these enterprises do not attract visitors but do attract the dropping off laundry and delivery of associated inputs. Drop off and collections associated with the laundry services tend to fall in line with holiday accommodation changeover days, for example Tuesday drop off and collections on the Thursday.
“With regard to the chocolate manufacturing ingredients are delivered by couriers and movements associated with this is also estimated at 10 vehicular movements per week.”
The application will be considered by county planners at a later date.
Politics
Ceredigion council tax expected to rise by 4.7 per cent
A BETTER financial settlement for Ceredigion from the Welsh Government along with a fresh grant is expected to see council tax bills in the county rising by less than five per cent this year, far below previous fears of a rise as high as nearly nine.
Last year, for the 2025-’26 budget, Ceredigion saw a council tax rise of 9.3 per cent.
While council tax makes up a proportion of the council’s annual revenue, a crucial area of funding is the Aggregate External Finance (AEF) rate from Welsh Government.
Ceredigion was to receive a 2.3 per cent increase on its settlement, some £3,388,000 for a total of £150,670,000, placing it at joint 13th of the 22 local authorities in Wales.
Following a later Welsh Government and Plaid Cymru agreement additional funding for local government was secured, giving Ceredigion additional funding.
Back in November, before the increased settlement was announced, Ceredigion Leader Cllr Bryan Davies said that early estimates indicated that an 8.9 per cent increase in council tax would be necessary, but an improved position of 6.9 per cent had been indicated as a result of a further modelling of service cost pressures and operational savings.
Following the improved settlement, members at the January meeting of Cabinet heard from Cabinet Member for Finance and Procurement Services Cllr Gareth Davies a recommendation for a 4.75 per cent council tax increase as part of a draft budget requirement of £221.493m was being mooted.
That position has improved again, following financial support towards the Mid and West Wales Fire Service Levy, members of the February 3 meeting of the council’s corporate resources overview and scrutiny committee heard, the funding now dropping the expected council tax increase to 4.7 per cent, equivalent to an extra £7.39 per month for the average Band D property for the next financial year.
Members of the committee agreed to note the 4.7 per cent figure, with the final council tax recommendation being considered by Cabinet on February 10; the final decision on the budget being made by full council on March 2.
international news
Mandelson quits Lords amid police probe over Epstein links
Peter Mandelson has announced he will retire from the House of Lords with immediate effect, as mounting political and legal pressure grows over claims he shared sensitive government information with convicted sex offender Jeffrey Epstein.
Parliamentary officials confirmed that Peter Mandelson formally notified the Clerk of the Parliaments of his decision, ending his membership of the upper chamber from Tuesday (Feb 4).
The move follows reports that the Metropolitan Police Service is reviewing allegations of possible misconduct in public office connected to emails said to have been forwarded to Epstein while Mandelson was business secretary during the 2008–09 financial crisis.
Downing Street has confirmed that material has been passed to police after an initial Cabinet Office review.
Government fury

Prime Minister Keir Starmer told cabinet colleagues Mandelson had “let his country down”, according to No 10, and officials are now drafting legislation that could strip him of his peerage entirely.


Removing a life peer is rare and would require an Act of Parliament.
If passed, Mandelson would lose the title “Lord” altogether — an extraordinary step that has only been considered in the most serious cases.
Senior ministers have described the alleged passing-on of market-sensitive government discussions as “disgraceful” and a “betrayal of trust”.
What police are examining
Misconduct in public office is a centuries-old common law offence that applies where someone in a position of public trust wilfully abuses that role. It carries a maximum sentence of life imprisonment.
Investigators will assess whether confidential information — particularly relating to government financial policy during the crash — was shared without justification and whether safeguards were breached.
At this stage, no charges have been brought.
Mandelson has previously apologised for maintaining contact with Epstein after the financier’s conviction, saying he regrets “ever having known him”, but he has disputed some of the latest claims and has not commented directly on the police review.
Political shockwaves
Opposition parties are pushing for further disclosure of documents relating to Mandelson’s vetting and his past roles.
Conservatives are expected to force a Commons vote demanding more information, while Liberal Democrats have called for a public inquiry.
Several MPs have also suggested Mandelson should be removed from the Privy Council.
The developments mark a dramatic fall for one of Labour’s most influential political figures of the past three decades, who only months ago was serving as the UK’s ambassador to Washington.
Now, with police examining evidence and legislation being prepared to remove his title, his public career appears effectively over.
More updates are expected as the investigation continues.
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