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Politics

Support for £27bn spending plans amid uneasy compromise

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THE SENEDD has backed the Welsh Government’s “imperfect” £27bn draft budget following a late deal to prevent a “catastrophe” for public finances.

The 2026/27 spending plans passed with 24 in favour, 13 against and Plaid Cymru’s 13 members abstaining as part of a near-£300m deal with the Welsh Government. Ministers will unveil the final budget in the new year before a further crunch vote on January 27.

But scrutiny committees warned inflation based on “outdated” forecasts could see real-terms cuts, criticising a lack of preventative spending and “business as usual” funding for culture.

Leading scrutiny on December 16, Peredur Owen Griffiths, who chairs the Senedd’s finance committee, sounded the alarm about inflation figures underpinning the draft budget.

He warned that while health and councils would receive uplifts, these were based on forecasts from March that are already outdated.

Calling on ministers to publish an assessment of inflationary pressures alongside the final budget, he said: “Some areas face real-terms cuts unless funding increases.”

The Plaid Cymru politician also urged the Welsh Government to develop a plan to close a “persistent productivity gap” compared with the UK average.

Peter Fox, the Conservative chair of the health committee, said the NHS initially faced a “historically low” uplift of only 0.5% in real terms before the deal was struck.

Mr Fox made a compelling case for extra funding for “vital” palliative and end-of-life care services as well as more money for respite care for unpaid carers.

Conservative MS Peter Fox
Conservative MS Peter Fox

While welcoming an extra £180m for health and social care, he warned of a system buckling under pressures in relation to waiting times, staffing and an ageing estate.

“It’s essential to balance these short-term demands with longer-term transformation,” he said, calling for assurances funding for prevention is not lost to immediate firefighting.

This sentiment was echoed by Delyth Jewell, the Plaid Cymru chair of the culture committee, who lamented that the arts sector faces another year of “more of the same” real-terms cuts.

She pointed out that spending on culture in Wales ranks among the lowest in Europe.

Llŷr Gruffydd, chair of the climate change committee, raised concerns about infrastructure, pointing to the transport secretary’s admission that Wales has the UK’s oldest bus fleet.

Mr Gruffydd also criticised cuts to biodiversity, noting a 3.9% fall in day-to-day resource spending and an 8% reduction in longer-term capital funding amid a “nature emergency”.

Meanwhile, John Griffiths, who chairs the local government committee, welcomed a minimum 4% increase for councils but warned “frustrations continue” over the funding formula, which relies on data from the 1991 census.

Labour MS John Griffiths
Labour MS John Griffiths

He said: “We remain concerned that local authorities are still in a vulnerable position and continue to face the prospect of council tax rises, service cuts and job losses.”

His Labour colleague Buffy Williams, chair of the education committee, warned ministers failed to publish a specific children’s rights impact assessment for the 12th year in a row.

Heledd Fychan, Plaid Cymru’s shadow finance secretary, defended her party’s decision to abstain, arguing rejecting the budget could have led to thousands of job losses, council tax rises of 22% and the “very real prospect of bankruptcy for some of our councils”.

“This was a budget that, if it was left unamended, would have proved catastrophic for Wales,” she said, dismissing suggestions Plaid Cymru was “propping up” Labour.

But her Conservative counterpart Sam Rowlands criticised the budget as a failure that “does nothing” to get Wales’ economy moving nor get to grips with long NHS waiting lists.

Reform UK’s Laura Anne Jones added that the “cosy arrangement” between Labour and “their little helpers” Plaid Cymru “smacks of a government that has run out of ideas.”

Reform UK's South Wales East MS Laura Anne Jones
Reform UK’s South Wales East MS Laura Anne Jones

Closing the debate, finance secretary Mark Drakeford insisted the budget deal was “good news for Welsh citizens” because the “catastrophe” of a failed budget has been avoided.

“We have secured that more ambitious set of outcomes,” he said, pointing to the £180m extra for health and social care as well as a £112m for councils as part of the deal.

 

Business

Bid to convert office space into chocolate factory, salon and laundrette

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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.

 

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Politics

Ceredigion council tax expected to rise by 4.7 per cent

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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.

 

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international news

Mandelson quits Lords amid police probe over Epstein links

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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

LONDON, ENGLAND – JANUARY 19: Prime Minister Sir Keir Starmer delivers a statement in the media briefing room of 9 Downing Street in central London, after US president Donald Trump’s threats to ramp up tariffs until a deal is reached for the US to buy Greenland, at Downing Street on January 19, 2026 in London, England. (Photo by Jordan Pettitt – WPA Pool/Getty Images)

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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