Politics
Reeves under pressure as leaked OBR papers cast doubt on Budget ‘black hole’ claim
Chancellor faces calls for investigation after surplus revealed weeks before tax rises
RACHEL REEVES is facing mounting pressure tonight after leaked documents suggested the Treasury may have overstated the scale of Britain’s financial problems ahead of last week’s Budget.
The Chancellor repeatedly warned of a “black hole” in the public finances during a series of interviews in November, arguing the UK needed “fiscal headroom” to protect against economic shocks. The claim was central to the Government’s justification for around £26 billion in tax rises, including changes to capital gains, business taxation, and duties on property.
Leak reveals £4.2bn surplus
However, a leak from the Office for Budget Responsibility (OBR), first reported over the weekend, shows the UK was actually running a £4.2 billion surplus as recently as late October – weeks before Reeves delivered her Budget.
The revelation has triggered a storm at Westminster, with opposition parties accusing the Chancellor of misleading the public and Parliament. Critics say Reeves used the prospect of a large deficit to lay the groundwork for tax rises that may not have been necessary.
Ministers and civil servants have told national outlets they were not informed about the surplus ahead of the Budget, leading to tensions inside Government.
Reeves denies lying
Speaking to broadcasters on Monday, Reeves insisted she had not lied, saying she had been “honest and frank” about the need to rebuild the nation’s fiscal resilience.
She argued that an OBR downgrade in productivity forecasts meant expected tax receipts were weaker, making it “prudent” to increase fiscal headroom now. “We cannot gamble with the economy,” she said.
Labour sources have also pointed to expected rises in welfare costs and public-sector spending pressures.
Ministerial code questions
Opposition figures are now calling for an investigation into whether the Chancellor breached the ministerial code, which requires ministers to give accurate information.
Some have gone further, suggesting the Financial Conduct Authority may need to consider the impact of potentially misleading statements on markets. The Government has dismissed those suggestions as “political theatre”.
The row intensified after the head of the OBR resigned on Sunday, describing the leak as a “technical but serious” breach of confidentiality. The timing has raised fresh questions about who knew what – and when.
Storm not over
The Prime Minister has publicly backed his Chancellor, insisting the Budget was based on the best information available at the time.
But with senior economists warning that public confidence in fiscal transparency has been damaged, and with several Cabinet ministers privately expressing frustration over communication inside the Treasury, the controversy shows no sign of fading.
Parliament is expected to press for further answers when Reeves appears before the Treasury Select Committee later this week.
News
Welsh politicians call for pension fund divestment over Israel links
Cross-party Senedd members and councillors say Welsh public money must not be invested in firms linked to alleged war crimes and apartheid
POLITICIANS from across Wales have called for local government pension funds to stop investing in companies they say are complicit in Israel’s actions against Palestinians.
In a cross-party letter coordinated by Palestine Solidarity Campaign Cymru, Senedd members and councillors from Plaid Cymru, the Greens, Labour and the Liberal Democrats urged the Wales Pensions Partnership to end investments they describe as supporting “genocide and apartheid”.
The Wales Pensions Partnership manages Welsh local government pension funds worth an estimated £26 billion.
In their letter, the politicians said ensuring public investments “are not contributing to grave violations of international law must be an urgent priority”.
The intervention comes as the Wales Pensions Partnership develops an Exclusion Framework, which campaigners say is intended to prevent investments that conflict with climate, human rights and international law commitments.
However, those behind the letter argue that the framework risks falling short of what they describe as a clear democratic mandate from councils across Wales.
According to PSC Cymru, many councils have already passed motions calling for divestment from companies alleged to be complicit in war crimes, apartheid and other breaches of international law. The group says 11 councils in Wales — half of all councils in the country — have now backed such motions.
Research cited by the campaign claims that Local Government Pension Scheme funds in Wales have more than £1.1 billion invested in companies said to be linked to Israel’s actions against Palestinians.
As one example, the campaign says Rhondda Cynon Taf Pension Fund has invested more than £12 million in BAE Systems, which it describes as an arms manufacturer making parts for fighter jets used by Israel in Gaza.
The letter calls on the Wales Pensions Partnership to ensure its Exclusion Framework explicitly excludes all companies said to be enabling grave violations of international law by Israel, and to produce a clear, time-bound plan for divestment.
Bethan Sayed, co-chair of PSC Cymru, said: “Today’s letter sends an unmistakable message: Welsh politicians from across the political spectrum will not allow public money to fund genocide and apartheid.
“The Wales Pension Partnership manages £26 billion on behalf of Welsh workers and communities — not a single penny of it should be profiting from the massacre of Palestinian men, women and children.
“Six out of seven people in Wales support divestment. Eleven councils have passed motions. The democratic mandate could not be clearer. The WPP must act — and it must act now.”
PSC Cymru said the letter reflected growing pressure across Wales for public bodies to review investments linked to the conflict.
News
Local defence ties strengthened as Shadow Defence Secretary visits Castlemartin
James Cartlidge MP highlights strategic role of training area in national security and local economy
JAMES CARTLIDGE, the UK Shadow Secretary of State for Defence, has visited Castlemartin Training Area on Thursday (Apr 16) to meet personnel and discuss the site’s importance to both UK defence capability and the Pembrokeshire economy.
Castlemartin Training Area has a long-established role in the community, having been established in 1938 for tank training by the Royal Armoured Corps. The range was temporarily abandoned following the Second World War but reopened in 1951. From 1961 to 1996 it was also used by German Bundeswehr armoured units under NATO agreements. Today, it is regarded as one of the UK’s premier live-fire armoured training facilities, regularly used to prepare troops for operational deployment.
During the visit, the Shadow Defence Secretary was joined by Paul Davies and Samuel Kurtz, both former Pembrokeshire MSs and Conservative candidates for the Ceredigion Penfro constituency in the upcoming Senedd election on May 7. They highlighted the training area’s role in sustaining skilled local employment, supporting the wider supply chain, and underpinning the presence of the Armed Forces in West Wales.
Discussions also focused on the importance of maintaining strong defence capability amid global instability, alongside the contribution made by defence infrastructure to local communities and businesses across Pembrokeshire.
James Cartlidge MP, Conservative Shadow Defence Secretary, said: “Our Armed Forces rely on world-class training facilities like Castlemartin to ensure they are prepared for the challenges they face.
“It is clear this site plays a crucial role not only in UK national defence but also in supporting local jobs and the wider economy here in Pembrokeshire.”
Paul Davies said: “Castlemartin is an incredibly important asset for Pembrokeshire and for the UK as a whole.
“It supports skilled jobs locally and brings significant economic benefits to the area, as well as playing a key role in training our Armed Forces. We have a proud military history here, with many veterans living in the community.
“We also made clear during the visit that it was the Welsh Conservatives who fought to secure the extension of the 14th Signal Regiment at Cawdor Barracks, protecting jobs and ensuring a continued military presence in the county.”
Samuel Kurtz added: “We are proud of the role Pembrokeshire plays in supporting our Armed Forces. As a former MS with Castlemartin within my constituency, I have worked to build relationships and champion this important military site.
“Facilities like Castlemartin are vital. It is essential they continue to receive the support and investment needed to remain world-leading, and not be repurposed for any other use.”
The visit also underlined Conservative commitments to defence, including increasing defence spending, strengthening the Armed Forces, and ensuring the UK remains secure in an increasingly uncertain world.
It further provided an opportunity to highlight the importance of the defence industry supply chain and the range of businesses across the region that contribute to the sector.
Business
Narberth Kadinsky gallery to dental surgery refused
PLANS to convert a former art gallery to a dental surgery on the edge of a Pembrokeshire town have been refused.
In an application to Pembrokeshire County Council, Ahmed Abouserwel, through agent A.D Architectural Design Consultants LTD, sought permission for a change of use of the former Kadinsky gallery, Redstone Road, Narberth, to a dental surgery, along with associated works.
A supporting statement said: “The existing open plan gallery space will be transformed into the main dentist area, with a glazed internal lobby, leading directly into the open reception / waiting area. There will be five treatment rooms accessed directly off the reception, with a private archive room behind the reception desk.
“The rear lean-to projection will be extended to the north to accommodate a proposed decontamination room and to re-model the Staff area and W.C provision (number to remain as existing).”
It said the proposal would create 10 full and three part-time jobs.
An officer report recommending refusal said concerns were raised by the county Highways authority, who having assessed the application on safety, capacity and policy considerations, recommended the application be REFUSED on the grounds of insufficient evidence provided.
“The submitted design and access statement and block plan indicate on-site parking provision for 16 vehicles, located to the north and west of the building. The application form states that the site will employ 10 full-time staff and three part-time staff. However, the submission does not differentiate between practitioners and ancillary/support staff.”
It said, on planning guidance, health centres require three spaces per practitioner; and one space per three ancillary staff, adding: “As the applicant has not provided a breakdown of staff roles, the Highway Authority is unable to assess whether the proposed parking provision is adequate.”
It stressed: “Whist there is no in-principle objection to the redevelopment of this established site for a dental surgery, insufficient information has been provided to fully assess the proposal.”
It was refused on the grounds including it would lead “to the unjustified loss of an employment premises in a location which contributes to the local supply of employment land and buildings,” adding: “Insufficient evidence has been submitted to demonstrate that the building is no longer suitable or viable for continued employment use, nor that there is overriding community need to justify its loss.”
It was also refused on the grounds that “Insufficient information has been submitted to demonstrate that the development would operate without giving rise to unacceptable highway safety impacts or on street parking pressure”.
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