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Wales set to ‘lose out’ on more than £1bn in transport funding

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Lib Dems accuse UK Government of “deliberately depriving Welsh communities”, but Labour insists investment plans remain fair

WALES is set to lose out on more than £1 billion in transport funding over the coming years after the Welsh Liberal Democrats highlighted that the UK Labour Government has confirmed Northern Powerhouse Rail will proceed as an “England and Wales” project – despite the scheme not touching a single centimetre of Welsh soil.

Northern Powerhouse Rail – sometimes described informally as High Speed 3 – aims to improve rail connections between Liverpool, Manchester, Leeds and other major cities across northern England. But by designating it as an “England and Wales” scheme, the Treasury avoids triggering Barnett consequentials that would otherwise flow to the Welsh Government.

Sixth-billion shortfall

According to figures released by the Lib Dems, the decision could deprive Wales of between £1.34bn and £1.59bn over the project’s lifetime. This is in addition to the estimated £4bn in lost funding when HS2 was similarly classified, and a further £306m–£363m linked to East–West Rail between Oxford and Cambridge.

In total, Wales could be missing out on around £6bn across the three projects.

By contrast, Scotland is expected to receive £2.7bn in consequentials from Northern Powerhouse Rail, while Northern Ireland is set to receive just under £1bn.

Lib Dem criticism of Labour stance

The Welsh Liberal Democrats say the figures undermine Labour’s claim that Wales is receiving fair transport funding. Labour has pledged £445m for rail in Wales over ten years – an amount the Lib Dems described as “an absolute joke” when set against the billions flowing elsewhere.

The party has again called for heavy rail to be devolved to Wales, as it is in Scotland and Northern Ireland, arguing this would prevent future funding disputes. They also point out that the UK Government could choose to classify such schemes as “England only” – as was done with Crossrail – which would automatically provide Wales with consequential funding.

Welsh rail projects still awaiting decisions

Critics also note that several Wales-specific rail improvements, including electrification of the North and South Wales Mainlines, have not yet been committed to by Labour, despite being previously supported while in opposition.

‘Wales left behind’ – Chadwick

Welsh Liberal Democrat Westminster spokesperson David Chadwick MP said: “This Labour Government is deliberately depriving Welsh communities of billions of pounds in transport funding, whilst expecting a pat on the back for delivering crumbs.

“Labour has the power to change the system and stop these funding scandals, but has made its position clear – they are happy for Wales to be left behind, paying for megaprojects in England whilst our own rail and transport infrastructure collapses.

“The Welsh Liberal Democrats will continue to fight for fair transport funding that delivers for our communities and businesses.”

Labour response

A UK Labour Government spokesperson has previously said that its investment plans will deliver “a fair and balanced package for every part of the UK”, and that decisions on rail funding are being taken “in line with long-standing Treasury processes”. The Government maintains that its £445m investment commitment demonstrates its intent to improve Wales’s rail network.

The Welsh Government has also been approached for further comment.

News

Support grows for profit-free social care model, says UNISON

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Union calls for National Care Service as survey highlights public backing

UNISON CYMRU has said there is “overwhelming support” for removing profit from social care in Wales, following the publication of a TUC Cymru survey indicating strong public backing for services delivered directly by the public sector.

The survey, published on Thursday (Dec 4), asked respondents whether they believed social care should be publicly run and non-profit. According to the trade union body, the majority were in favour of ending the current mixed-model system, where many services are commissioned from private providers.

Mark Turner, UNISON Cymru’s head of social care, said care workers across Wales were “stretched to breaking point” as they support older and disabled people every day.

“Families see the strain too, with services struggling to provide all the help that’s needed,” Mr Turner said. “Removing profit from social care would make a big difference. It would mean more money is focused on consistent, high-quality support for every community and better pay and conditions for staff, rather than dividends for investors.

“There’s clearly a huge public appetite for change. The next Welsh government must seize this moment, build a National Care Service and deliver the fair, reliable system people in Wales have deserved for far too long.”

Background and wider debate

Calls for a National Care Service have been raised repeatedly in Wales in recent years, with campaigners arguing that the current system is fragmented and places too much financial burden on families.

However, private and independent care providers have previously warned that removing profit entirely from the sector could lead to instability, home closures, and reduced capacity, as many services rely on private investment to remain viable.

They argue that local authorities – already facing budget pressures – may struggle to deliver all care in-house without significant long-term funding from the Welsh Government.

Several organisations in the sector have also pointed out that profit levels vary widely and that many small and medium-sized providers do not generate large profits, instead reinvesting income to cover rising staffing and operational costs.

Welsh Government position

The Welsh Government has committed in principle to exploring a “National Care Service for Wales,” but has acknowledged that any major restructuring would require “substantial and sustained funding” over multiple parliamentary terms.

A spokesperson has previously said ministers are reviewing the evidence from trade unions, councils, providers and service users as part of ongoing reform discussions.

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Business

RM Training and Security recognised for work creating opportunities for local people

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Certificate from PeoplePlus highlights growing role of Milford Haven firm

RM TRAINING and Security has been recognised for its contribution to helping people into work, after receiving a Certificate of Achievement from PeoplePlus Cymru.

The award was presented on Wednesday (Dec 3). It acknowledges RM’s “valuable support and commitment to creating local opportunities for local people” and its role in helping individuals build brighter futures through meaningful employment.

PeoplePlus is a national organisation working with jobseekers, employers and training providers. Its recognition is typically reserved for businesses that consistently demonstrate community impact and a strong commitment to employability.

A spokesperson for RM Training and Security said the team was proud to be acknowledged for the work it does with learners across Pembrokeshire and Wales.

“We are passionate about giving people the skills and confidence they need to succeed in the workplace. To be recognised for that work means a great deal to the whole team,” the spokesperson said.

RM delivers a range of accredited courses including door supervision, security training, conflict management and emergency first aid. The company has expanded significantly in recent years, supporting both new entrants to the sector and those looking to progress in their careers.

The award was presented on site, where representatives from PeoplePlus met the RM team and congratulated them on their contribution to the local skills agenda.

The company said it will continue to work with partners to strengthen opportunities for those seeking employment in the security industry and beyond.

Photo caption:

RM Training and Security staff receiving the Certificate of Achievement from PeoplePlus Cymru at their Milford Haven base (Pic: Supplied).

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Business

Manorbier Castle Inn warns colossal rates hikes will ‘push venues to the brink’

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Local inn among many facing dramatic increases from April 2026

MANORBIER Castle Inn has warned that its business rates are set to soar from £13,500 to £33,750 when the next revaluation takes effect on 1 April 2026, calling the increase “beyond justification” and a direct threat to local jobs and the rural economy.

The jump, published on the Valuation Office Agency website, represents a rise of more than 150%. The Inn says that even with any relief applied, the scale of the bill will be impossible to absorb.

In a statement, the venue said: “This is not just another attack on independent hospitality businesses – it’s an attack on everything they hold up: employees, suppliers, other businesses, tourism, artists, musicians, the entire community. Even with relief, we and many other businesses will not be able to meet this hike.”

The Inn added that the likely consequences will be severe:
“This scale of increase will force venues to cut jobs, raise prices, and in many cases close entirely. The impact on youth employment, already fragile, will be severe.”

Local residents reacted swiftly on social media, calling the increase “utterly unreasonable” and urging elected representatives to step in.

Widespread rises across Pembrokeshire — and government action following local concern

Manorbier Castle Inn is one of many hospitality and tourism businesses in Pembrokeshire facing substantial rateable value increases. Some premises have reported valuations doubling, tripling or worse.

The Herald has reported extensively on the emerging pattern in recent weeks, prompting significant public debate. Following this scrutiny — and concerns raised by businesses, councillors and industry bodies — the Welsh Government moved to introduce a new support package.

On 3 December 2025, ministers announced a £116 million transitional relief scheme designed to soften the impact of next year’s revaluation. Under the plans:

  • Any business whose bill rises by more than £300 due to revaluation will have that increase phased in over two years, instead of being applied immediately.
  • For the first time since 2010, ministers will reduce the standard business rates multiplier, lowering bills for some smaller premises.

However, the multiplier cut is expected to benefit mainly small retail outlets — not pubs, cafés or restaurants, which are among the hardest hit by soaring valuations.

Cllr Huw Carnhuan Murphy, leader of the Independent Group on Pembrokeshire County Council, publicly thanked local media — including The Herald — for helping to raise the alarm. He said the coverage had “pushed the issue up the agenda” and confirmed the group would continue lobbying for support for tourism and agriculture.

Industry bodies have welcomed the relief but warn that it does not counteract the central issue: large increases in rateable values and the loss of previous reliefs that many hospitality venues relied on to survive.

What it means for Manorbier Castle Inn — and the sector

While the Welsh Government’s intervention offers some breathing space, many independent venues say the measures fall far short of what is needed to prevent closures.

Manorbier Castle Inn says the phased-in increase will still undermine the business’s long-term viability, adding that just as trading conditions were beginning to stabilise, “another round of firefighting lands at your feet.”

Across Wales, operators warn that without more comprehensive reform, the sector could see widespread job losses, reduced opening hours and further closures — particularly in rural counties where tourism-dependent businesses sustain local economies.

Outlook

The introduction of transitional relief and a reduced rates multiplier marks a shift in government policy, and follows significant pressure from businesses and media coverage across Pembrokeshire. But for venues facing unprecedented revaluations, including Manorbier Castle Inn, the question remains whether the support will be enough.

With many independent pubs and inns already on the edge, Pembrokeshire’s hospitality sector says the coming months will determine whether cherished local venues can survive into 2026 — or whether the rates rises will finally push them over the brink.

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