Politics

HS2 funding – will Wales get a share?

Published

9 years ago

December 23, 2015

Carwyn Jones: Wales will receive HS2 consequentials

PLAID CYMRU has accused the Welsh Government of ‘doing nothing’ for three years to secure a share of funding for Wales from the HS2 rail project. However, the Welsh Government has claimed that this is ‘nonsense’ and that Wales will receive hundreds of millions of pounds as a direct result of HS2 spending. Plaid Cymru’s Westminster Treasury spokesman Jonathan Edwards wrote to the first ministers of Wales, Scotland and Northern Ireland asking them to consider opposing the project if the devolved nations did not receive financial compensation. In his letter of response on June 2, First Minister Carwyn Jones said the Welsh Government had “made representations to the UK Treasury previously about High Speed Rail funding.”
The First Minister concluded that his government would ‘continue to press Wales’ case on this issue of High Speed Rail… aiming to ensure that all parts of the UK receive full consequentials arising from decisions about High Speed Rail.” However, Mr Edwards claims that, following a series of Parliamentary questions and an FoI request, it has been revealed that the Welsh Government has made no formal representations to any UK Government Minister or Department on the matter in the last three years.
In response to one question, asked in Parliament in October, Robert Goodwill MP said that ‘Ministers have not received representations from the Welsh Government regarding HS2 and Barnett consequentials.’ Following a written question to the Chancellor of the Exchequer in which Mr Edwards asked what representations had been received from the Welsh Government concerning Barnett consequential from HS2, he received the reply that ‘Treasury Ministers are in regular contact with Welsh Government Ministers on a variety of matters.’
Jonathan Edwards said: “In the Assembly chamber, on television interviews and in newspaper articles Labour elected members and spokespeople from Wales are misleading the public on their support for our nation getting a fair share of this enormous rail investment project in England.
“It’s bad enough that Labour MPs from Wales supported the project despite being fully aware that it will suck hundreds of millions of pounds out of the Welsh economy each and every year. Now, however, the First Minister and his party have been exposed as having done nothing to back up their rhetoric. Indeed, I would say that the First Minister, including in his letter to me, has tried to pull the wool over our eyes.
“With every week that passes more and more people recognise that there will be a huge injustice unless Wales has full fairness from HS2. It was growing public pressure that saw the Labour Party u-turn in the first place. But just like so many other occasions, the Welsh Government will play to the gallery but never follow through with actions. “The reality is that the Labour party supports HS2 and the Welsh branch office will always put the interests of the Labour party before the interests of Wales.”
In Parliament this week the Secretary of State for Transport said Wales would benefit from the high speed rail project, but avoided answering the direct question from Mr Edwards who wanted to know why Wales was being unfairly treated in relation to HS2 expenditure. Mr Edwards asked the Transport Secretary: “Given that, unlike Network Rail, HS2 Ltd is not devolved to any part of the United Kingdom, will the Secretary of State explain why the statement of funding policy for the devolved institutions, which was published along with last week’s comprehensive spending review, provides for a 100% Barnett consequential from HS2 to Scotland and Northern Ireland, and one of 0% to Wales?”
The Transport Secretary said “I believe that Wales will benefit from what I have announced today, because it will be very important to the north Wales economy.” Speaking after his question, Mr Edwards said: “The way HS2 has been handled stinks to high heaven. An independent report says the Welsh economy will lose over £200million a year yet Labour and Tory politicians are blissfully content to see a generation’s worth of transport investment swallowed up, with our nation paying for transport improvements in English cities, and then have the audacity to tell us we should be grateful.
“As has been shown, the First Minister, his government and Labour party in Wales have done nothing more to secure funds from HS2 than issue a press release over three years ago. “The people of Wales deserve a government that will always act in the Welsh national interest as opposed to the interests of their London bosses.”
However, a spokesman for First Minister Carwyn Jones rejected these claims: “Plaid Cymru have fallen asleep on this issue – they are way behind the curve,” he claimed. “Their propensity for getting things wrong on funding just shows they can’t be trusted with the Welsh economy. “These particular claims are, again, nonsense. “Welsh Ministers have made representations to the UK Government to ensure Wales gets its fair share of additional funding as a result of HS2.
“As a result, Wales will receive a Barnett consequential of more than £755m over the next five years because of increased UK Department for Transport budgets, a consequence of the investment being made in HS2. “However, we have long been of the view that the Barnett Formula itself does Wales no favours and have repeatedly called for fair funding. “We welcome the UK Government’s commitment to a ‘funding floor’ to deliver fair funding for Wales as part of the Spending Review, and await the details.”

Business

Welsh Government rejects Council’s tourism tax plea

Published

18 hours ago

December 6, 2024

Tom Sinclair

THE WELSH GOVERNMENT has rejected a request from Pembrokeshire County Council to reconsider its 182-night rule on holiday letting.

In a letter to the local authority from Wales’s Finance Secretary, Mark Drakeford, the Welsh Government said it would not reconsider its approach until it had two years’ data on its effects.

The Labour government introduced the 182-night rule to target property owners who casually rent properties and pay neither the increased Council Tax premium on second homes nor Small Business Rates. By encouraging owners to release properties onto the for-sale market, the government wants to increase the availability of homes in Wales’s holiday hotspots. It’s a blunt tool, and there have been predictable but unforeseen consequences (at least by the Welsh Government). The rule’s introduction has reduced the number of properties upon which owners pay either the enhanced rate of Council Tax for second homes or pay business rates.

A LETTER TO MARK

On October 17, Pembrokeshire’s county councillors instructed the Council leader to write to the Welsh Government asking for a reduction in the 182-night rule.

Although councillors agreed an increase in the previous threshold was welcome, many felt the letting target was too high for many viable businesses.

The letter to the Welsh Government said: “Whilst 182 days is certainly achievable in some of our main tourist towns such as Tenby, Saundersfoot, and Newport, it was very difficult to achieve this in other parts of the county, particularly away from the sea.”

The letter said the rule is having a detrimental effect on Pembrokeshire’s vital tourism industry.

Council Leader Jon Harvey’s letter also said: “We do not wish to implement any local policy decisions that would conflict with Welsh Government, and, as such, I am formally writing to you to ask the Welsh Government to consider reducing the 182 days let threshold for self-catering properties to qualify for Non-Domestic Rates.”

DRAKEFORD SAYS “NO”

In a reply from Mark Drakeford, which was circulated to all Council members, the Welsh Government refused to reconsider its position ahead of the next tourism season.

Mr Drakeford said: “The primary aims of our changes to local taxes are to ensure property owners are making a fair contribution and to maximise the use of property to the benefit of local communities. This could include benefits arising from increased occupancy for short-term letting or the release of some properties for sale or rent as permanent homes for local people.

“As a consequence of the changes, self-catering properties are classed as non-domestic only if they are being used for business purposes for the majority of the year. This provides a clearer demonstration that the properties concerned are being let regularly and are making a substantial contribution to the local economy.”

Mr Drakeford claimed that information from businesses engaged in holiday letting showed the Welsh Government’s approach was having the effects Cardiff Bay desired. That seems contrary to data provided by the Wales Tourism Alliance and the figures produced for Pembrokeshire County Council’s budget.

Confirming the Welsh Government has no plans to reconsider its position, Mark Drakeford said: “We understand that there may be a period of adjustment, as some property owners consider their options and determine how to respond. It will be important to allow time for the changes to embed before drawing any firm conclusions.

“The initial impact on the number of self-catering properties classified as non-domestic will be known after April 2025, when two years will have elapsed since the changes took effect. This is when the Valuation Office Agency is expected to have completed a full round of routine compliance checks.”

Claiming that reconsidering the position would cause “uncertainty” in the private letting sector, Mr Drakeford wrote: “There are no plans to undertake a formal review in the short-term, nor in isolation from the broader package of measures within our three-pronged approach to tackling the impact that large numbers of second homes and holiday lets can have on communities and the Welsh language.”

That’s not only a “no”, it’s a “no” with knobs on.

YOU ALREADY HAVE ALL THE TOOLS YOU NEED

Mark Drakeford doubled down on his “no” by claiming Pembrokeshire County Council already had all the tools it needed to address the problems caused by the tourism tax.

He said: “We have extended the exceptions to council tax premiums to include properties with a planning condition which specifies that the property may only be used as a holiday let or prevents its permanent occupation as a person’s sole or main residence. We have also provided

guidance for local authorities on the use of discretion to tailor their arrangements to reflect local circumstances.”

Quite how designating a property for a holiday let allows its release onto the local housing market where homes for local families are in short supply is unaddressed.

The Finance Secretary continues: “Where a self-catering property does not meet the letting criteria and is not subject to a planning condition, the Welsh Government has provided local authorities with as much discretion as possible to consider the approach to take for the benefit of your communities.

“We consider our local taxation regime will help local authorities to incentivise the right balance between capacity within the self-catering tourism sector, and [its[ economic benefits and supporting viable communities of local residents to live and work in these areas.”

If, as Mark Drakeford claims, Pembrokeshire County Council has all the powers and options it needs to address the issue, there will, no doubt, be a flood of information coming from the Council’s Cabinet Member for Finance, Joshua Beynon, to show members precisely where the rabbit that should be in the hat is hidden.

News

Pembrokeshire County Council prepares for severe weather impact

Published

19 hours ago

December 6, 2024

Tom Sinclair

THE COUNCIL says it has initiated emergency preparedness plans as the county braces for severe weather conditions this weekend. Additional staff are on standby to tackle potential issues across the highways network and in local communities.

Key measures announced include:

Facility closures: All council-operated facilities, including leisure centres, libraries, parkland, and Waste and Recycling Centres, will remain closed on Saturday, December 7.
Public transport suspension: Bus services will be halted, and Transport for Wales has been informed of the disruption.
Cleddau Bridge restrictions: High-sided vehicles are advised to avoid the Cleddau Bridge, which may face a full closure overnight and throughout Saturday due to high winds.
Emergency shelter: An emergency night shelter has been opened and will remain operational until Monday, December 9, to support those in need.
Community support: Care providers and care homes have implemented contingency plans to safeguard Pembrokeshire’s most vulnerable residents.

The council urges residents to remain vigilant and stay updated via Pembrokeshire County Council’s social media channels over the weekend.

For more information and updates, monitor local news outlets.

News

Welsh Conservatives elect new leader

Published

19 hours ago

December 6, 2024

Tom Sinclair

CLWYD WEST Member of the Senedd (MS) Darren Millar has been elected unopposed as the new leader of the Welsh Conservative Group in the Senedd.

Millar’s appointment follows unanimous public endorsements from all 15 of his colleagues in the Welsh Parliament. The nomination period for the leadership role closed at 5:00pm today.

Commenting on the election, Bernard Gentry, Chairman of the Welsh Conservative Party, said:
“I am pleased to announce that Darren Millar MS has been elected unopposed as the new Leader of the Welsh Conservative Group in the Welsh Parliament.

“In recent months, we’ve been winning numerous local government by-elections across Wales, and our action days have recruited hundreds of new volunteers and activists. Working together as one united party under Darren, Mims, and myself, I am confident we can achieve further success at the Senedd elections in 2026 and bring to an end the quarter of a century of Labour rule.

“I wish Darren every success as he takes the helm.”

The newly elected leader, Darren Millar MS, expressed gratitude for the support he has received:
“I am humbled by the incredible support of my colleagues in the Senedd and the kind messages I have received from Conservative Party members and members of the public across the country.

“Andrew RT Davies will be a difficult act to follow, but I am determined to build on his legacy as we take the fight to our political opponents in the run-up to the Senedd elections in 2026.

“After 25 years of Labour failure, Wales is crying out for hope and change. I look forward to setting out our plans to deliver just that in the weeks and months to come.”