News
Further interest rates cuts to hit savers
SAVERS face further misery as the Bank of England slashed interest rates to 0.25% yesterday (Aug 4) in an attempt to stimulate the struggling economy in the wake of the Brexit vote.
Retirees and the semi-retired reliant on savings in ‘safe’ bank and building society accounts face a double whammy as record low interest rates combine with rising inflation caused by a weakened pound.
The Bank of Scotland pre-empted this move last week when it wrote to 1.3 million business customers warning that they could start imposing charges on credit balances; effectively imposing negative interest rates.
This would follow moves by banks in Switzerland and Sweden. Even if negative interest rates are not introduced for individual savers, interest rates of practically zero will see hard-earned nest eggs shrink in real terms as the the cost of living rises.
This will be a huge blow to thrifty pensioners who did though they had done ‘the right thing’ throughout their working lives by putting money aside for retirement. The over 65s form a disproportionately high percentage of the west Wales population, and as they are forced to further tighten their belts, this will pile more pressure onto struggling local businesses in one of the most deprived areas of the UK.
Mrs Alice Hughes from Pembroke Dock, who relies on a small nest egg to top up her state pension, told the Herald: “I’ve always been careful and put money away in the building society. With interest rates the way they are now, I’m wondering whether I’d be better off keeping it under the mattress.”
Mr Ronald Edwards from Cardigan, who is due to retire in six months time said: “I’ve been looking at annuities online, and the amounts being offered are so low, I might as well cash in my pension pot and buy a classic car. At least there’s a chance of it increasing in value.”
In further moves, the Bank of England announced further printing of money to prop up the economy, and revised the growth forecast for 2017 from 2.3% to 0.8%.
With pressure on company pension pots creating difficult decisions for managers about whether to invest in wage increases or filling the pension deficit, workers in west Wales could see their already low wages stagnate for the foreseeable future.
Mark Carney, the Canadian Govener of the Bank of England said that this was a necessary step to adjust to the new reality post-Brexit, in which the economic outlook has changed.
There may be some positive news for those with savings in stocks and shares, which receive a boost when interest rates are cut.
There is more positive news for mortgage holders and home-buyers on variable interest rate mortgages, who will see a drop in their monthly payments.
As the pound continues to slide against the dollar, holidaying in the UK may become a more attractive option to families feeling the squeeze, providing a boost to the west Wales tourist industry.
How are you being affected by the record low interest rates? Email [email protected].
Business
Plaid energy policy challenged by Labour after Adam Price interview
LABOUR SAYS MINISTERS MUST EXPLAIN COST AND TIMETABLE FOR PYLON PLANS
PLAID CYMRU’S approach to energy infrastructure has come under scrutiny after Energy Minister Adam Price was challenged over plans to reduce the use of overhead pylons in Wales.
Mr Price defended the Welsh Government’s position during an appearance on BBC Radio Wales’ Sunday Supplement, arguing that communities must have greater confidence in how major grid projects are handled.
Plaid Cymru has pledged to give communities a stronger voice over energy developments and to look more closely at alternatives to overhead transmission lines, including underground cabling where possible.
The issue has become increasingly sensitive in rural parts of Wales, where proposed pylon routes linked to renewable energy schemes have raised concerns about landscape impact, tourism and local consultation.
However, Welsh Labour said the minister had failed to explain when any restriction on pylons would take effect, or who would pay the additional cost of placing cables underground.
A Welsh Labour spokesperson said: “Adam Price keeps saying how clear their manifesto was and yet he won’t say when they’re banning pylons. They won’t say who is paying for the extra cost of undergrounding cables.
“Without certainty, companies won’t invest. That’s thousands of clean, green energy jobs at risk. Plaid need more than a plan to have a plan.”
Labour said the Welsh Government must now set out how its policy would work in practice, including whether it amounts to an outright ban, what exemptions would apply, and how any extra costs would be funded.
The debate highlights the challenge facing ministers as Wales seeks to expand renewable energy generation while addressing public opposition to large-scale grid infrastructure.
Community
Pembroke Fair praised as well-organised community event
HORSES, STALLS AND FAMILY CROWDS RETURN TO MONKTON
FAMILIES, horse owners and visitors turned out in force for Pembroke Fair on Saturday (May 23), with many praising the event as one of the best organised in recent years.
Held at the Community Centre Field in Monkton, the annual fair brought together horse owners, traders and local families for a traditional day centred around horses, ponies, stalls and socialising.
Coloured cobs, heavy horses, ponies and horse-drawn traps attracted attention throughout the day, with many visitors gathering around the field to watch the animals being shown and led around the site.



A variety of stalls selling everything from clothing and ornaments to tack and second-hand goods helped create a lively market atmosphere, while food vendors kept visitors fed throughout the day.
Despite overcast conditions at times, the event remained busy, with many attendees staying for several hours to enjoy the traditional fair atmosphere.
Community members later took to social media to praise the smooth running of the event, with several publicly thanking organiser Charlie Price for his efforts in bringing the fair together.
Comments described the day as “well organised” and praised the welcoming atmosphere, with many saying it was encouraging to see a long-standing local tradition continuing to thrive.
The fair once again brought together members of the travelling community, local residents and horse enthusiasts from across west Wales.






A horse drive was also due to take place on Sunday (May 24), continuing the weekend’s celebrations.
Photo captions:
Traditional gathering: Horses, ponies, horse-drawn carts and market stalls drew crowds to Pembroke Fair in Monkton on Saturday (Pic: Herald).
News
Watchdog criticises health board over £10m GP contract checks
A HEALTH board has been criticised by Audit Wales after GP contracts worth more than £10m were awarded without sufficient due diligence checks.
Aneurin Bevan University Health Board allowed a GP partnership associated with eHarley Street Primary Care Solutions to take on eight GP contracts in south-east Wales, with a combined annual value of around £10.1m.
Audit Wales said the board should have carried out greater scrutiny before approving the arrangements, including checks on financial resilience, workforce plans, business risks and the partnership’s ability to manage several practices at once.
However, the watchdog found no evidence of fraud and noted the board was dealing with significant pressure in general practice, including vacant contracts and limited interest from other bidders.
The report said weaknesses in governance and scrutiny contributed to later disruption and uncertainty for patients and staff when problems emerged.
Concerns included financial and workforce pressures, unpaid invoices, and issues relating to tax and pension payments. Some contracts were later handed back, requiring the health board to step in to protect services.
Natasha Asghar MS, Welsh Conservative Shadow Cabinet Minister for Health and Social Care, said the findings were “deeply concerning”.
She said: “Patients and staff were left facing disruption and uncertainty because proper scrutiny was not carried out before these contracts were awarded.
“The Welsh Conservatives believe lessons must be learned to ensure robust checks are in place, protect frontline services and restore confidence in primary care across Wales.”
Aneurin Bevan University Health Board accepted the recommendations and said it had already strengthened its processes.
Audit Wales said the case highlighted the need for stronger checks before GP contracts are transferred, particularly when a single partnership is taking on multiple practices in a short period.
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