Local Government
Pembrokeshire and Ceredigion to receive lower than average funding from Welsh Government
PEMBROKESHIRE and Ceredigion are set to receive a lower-than-average funding settlement from the Welsh Government, placing them both at 13th out of the 22 local authorities.
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.
Welsh Government Cabinet Secretary for Housing and Local Government, Jayne Bryant, has announced that local authorities will next year receive £6.4bn from the Welsh Government to spend on delivering key services.
The investment, which comes from the Revenue Support Grant and non-domestic rates, means that Welsh councils will receive an average 2.7 per cent funding increase, with a fully funded floor will ensure that no council receives less than a 2.3 per cent increase.
In addition to the core settlement, there will also be grants for local government amounting to over £1.3bn for revenue purposes and over £1.08bn for capital investment.
Pembrokeshire is to receive a 2.3 per cent increase on its settlement, a total of £244,318,000, amounting to an extra £5,493,000, placing it at 13th of the 22 local authorities in Wales.
Neighbouring Ceredigion, also jointly on 13th place, receives a 2.3 per cent increase, some £3,388,000 for a total of £150,670,000.
2024 saw Pembrokeshire receive a higher-than-expected settlement increase of 3.6 per cent from Welsh Government – amounting to just over £8.1m – against a predicted two per cent.
Of the 22 authorities in Wales, in 2024 Pembrokeshire ranked 15th in its rate of settlement, neighbouring Ceredigion also receiving 3.6 per cent, to rank 17th, and Carmarthenshire receiving 4.1 per cent, ranking 12th.
Of the latest settlement, Jayne Bryant said: “We have been listening to local government, and we fully recognise the challenges that they face.
“This provisional settlement is the beginning of the budget process, our priority has been to provide councils with the stability they need to set budgets which protect and deliver core frontline services.
“We will continue to work closely with the Welsh Local Government Association and council leaders to see where we can provide additional flexibility when managing their budgets.
“We are committed to working with all parties to develop a budget which ensures our public services can continue to operate effectively and which can be passed by the Senedd in the final months of this term.”
The final budget will be published in January following consultation with local authorities and stakeholders.
Pembrokeshire Cabinet Member for Corporate Finance Efficiencies Cllr Alistair Cameron said: “This is very disappointing for Pembrokeshire as it is well below the current UK inflation rate of 3.6 percent.
“It also fails to take account of the needs of providing services in a rural authority and the need to provide social services for an ageing population in the county. I will be appealing against this provisional settlement.
“I see that some of the urban councils such as Newport and Swansea have had a more generous provisional settlement. We therefore need to appeal for a better and more realistic settlement which takes account of our demographics and geography.”
Ceredigion council has also been contacted for its reaction to the announcement.
Farming
‘Poor decision’ New Creamston housing condition overturned
A “POOR DECISION” agricultural worker-only imposed nearly 40 years ago has been removed from a Pembrokeshire property by county planners.
In an application recommended to be approved at the December meeting of Pembrokeshire County council’s planning committee, Tim and Cathy Arthur sought permission for the removal of an agricultural worker-only condition at New Creamson, Creamston Road, near Haverfordwest.
An officer report for members said the agricultural condition was imposed when the dwelling was built in 1988/89, with a later certificate of lawful development granted this year after it was proven the site had been occupied for more than 10 years on breach of that condition.
An application for a certificate of lawfulness allows an applicant to stay at a development if they can provide proof of occupancy over a prolonged period.
Speaking at the meeting, agent Andrew Vaughan-Harries of Hayston Developments & Planning Ltd told members the original agriculture-only condition was a poor decision by planners back nearly four decades ago.
“When this application was made in 1988-89 we go back to the Preseli District Council – I was still in school – it was only a 50-acre farm, it should never have been approved as it shouldn’t have been viable.
“The current applicants have owned it for the last 20 years; they’ve tried to grow apples but couldn’t make a go of it and then went in to holiday lets. We can’t enforce redundant conditions from bad decisions made years ago.”
Approval was moved by Cllr Brian Hall and unanimously supported by committee members.
Local Government
Sewage leak at Pembroke Commons prompts urgent clean-up works
Council pollution officers say they have no enforcement powers over Welsh Water infrastructure
SEWAGE contamination on the Commons in Pembroke has prompted an urgent response from pollution officers, after a leak was reported by a member of the public on Tuesday.
Pembrokeshire County Council’s Pollution Control Team confirmed they were alerted yesterday afternoon to sewage surrounding a manhole cover on the site. The Herald understands that officers immediately notified Welsh Water (DCWW) network technicians to investigate the incident “as a matter of urgency”.
County councillor Jonathan Grimes, who represents Pembroke St Mary South and Monkton, said the authority had been clear that it holds no enforcement powers over Welsh Water assets.
“Whilst we work constructively with Welsh Water, we have no authority to intervene on their apparatus or to carry out enforcement action against them for such pollution incidents,” the Pollution Control Team said in a statement shared with the councillor.
Urgent works underway
Council officers visited the site on Wednesday morning alongside contractors and Welsh Water technicians to assess clean-up options. According to the team, works will include cleaning the contaminated ground in and around the manhole cover and fencing off the affected area “until safe”.
Cllr Grimes said officers would return to the scene on Thursday to check on progress and ensure the area is properly secured.
Residents who notice any further issues have been urged to contact the Pollution Control Team directly.
Further updates are expected later this week.
Local Government
Pembrokeshire Council faces backlash over £3.5m housing ‘buying spree’
Critics say policy inflates numbers while new-build programme stalls
PEMBROKESHIRE COUNTY COUNCIL is under growing pressure over its multi-million-pound programme of buying back former council houses, with critics warning that the strategy gives the illusion of progress while long-promised new-builds remain stuck on the drawing board.
The latest criticism comes from Milford Haven councillor Mike Stoddart, who has accused the authority of “standing still” by funnelling Housing Revenue Account (HRA) cash into purchasing properties that were once part of the council’s own stock.
Stoddart said the council’s approach “doesn’t increase the housing stock – it merely moves people from the private sector into the public sector”.
He added: “It would be much better if the money was spent on building anew.”
A temporary fix that became permanent
The buy-back scheme began in 2017 when the council adopted a new inflation-linked rent regime that delivered sizeable HRA surpluses. At the time, officers described buying ex-council homes on the open market as a “stop-gap” measure until the new-build programme ramped up.
But that programme has repeatedly faltered. Major schemes in Johnston and Tiers Cross have been hit by cost overruns of around 66%. In Milford Haven, new flats on Charles Street are costing close to £300,000 each for a one- or two-bed unit, before adding land costs, architects’ fees and planning expenses.

Stoddart said the pattern amounted to a “disaster”, arguing that buying existing homes had become the authority’s default option. “It gives the impression of making progress while actually standing still,” he said.
Brownfield sites left idle
In Stoddart’s own ward, three former school sites have stood empty since 2018. Their redevelopment is not expected to begin until 2027 or 2028. Meanwhile, the council’s purchasing programme has accelerated.
A Cabinet report for late 2025 shows more than £3.5 million spent on acquisitions in just the first half of the year.
The most striking deal was a bulk purchase of five homes in Harcourt Close, Hook, for £1.851 million — almost £400,000 each. Stoddart said the developer would think “all his birthdays have come at once”, with the council avoiding estate agents’ fees, reducing legal costs and allowing the seller to immediately stop paying interest to the bank.
Thirteen high-value purchases
All properties were bought for over £100,000 and moved into the council’s HRA stock:
| Address | Location | Price | Completion |
|---|---|---|---|
| 32 Southdown Close | Pembroke | £115,000 | 29/07/2025 |
| 8 Hyfrydle | Letterston | £115,000 | 01/08/2025 |
| 6 Precelly Place | Milford Haven | £120,000 | 22/09/2025 |
| 50 Heywood Court | Tenby | £125,000 | 02/10/2025 |
| 33 Croft Avenue | Hakin, Milford Haven | £130,000 | 20/10/2025 |
| 7 Hyfrydle | Letterston | £135,000 | 05/09/2025 |
| 18 St Clements Park | Freystrop | £140,000 | 14/07/2025 |
| 55 College Park | Neyland | £140,000 | 28/10/2025 |
| 26 Baring Gould Way | Haverfordwest | £146,000 | 15/08/2025 |
| 25 Station Road | Letterston | £170,000 | 10/10/2025 |
| 16 Woodlands Crescent | Milford Haven | £283,000 | 31/10/2025 |
| 26 & 27 Harcourt Close | Hook | £744,000 | 22/10/2025 |
| 23, 24 & 25 Harcourt Close | Hook | £1,107,000 | 30/07/2025 |
All purchases were made from HRA reserves with no borrowing, a point the council highlights as prudent financial management.
Fears over market distortion
Stoddart also warned that the authority’s deep pockets may be pricing out young families by outbidding first-time buyers for entry-level homes. “If classical economic theory is to be believed, it’s forcing up the price,” he said.
House prices in Pembrokeshire have risen around 15% in the past year, according to recent ONS data. Local estate agents, speaking anonymously, told this newspaper that council intervention “definitely nudges prices upward” in hotspots like Hook, Neyland and Milford Haven.
Council defends strategy
A council spokesperson said the approach was necessary to deliver homes “immediately” amid chronic shortages.
“Acquiring existing properties allows us to respond quickly to housing need,” they said. “New-builds remain a priority, but delays in planning, construction and funding mean we must use all available tools to meet demand. All purchases represent value for money and are compliant with our HRA strategy.”
Housing charity Shelter Cymru took a different view, arguing that “recycling stock is not a substitute for expansion”. The charity says Pembrokeshire needs around 500 new affordable homes a year to meet demand.
‘Residents deserve homes, not headaches’
Social housing waiting lists in Pembrokeshire now exceed 2,000 applicants. With another Cabinet briefing due later this month, Stoddart says he will push for a fundamental rethink.
“It’s time to stop standing still,” he told this newspaper. “Our residents deserve homes, not headaches.”
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