DEMANDS FOR REFORM AS COUNCIL’S £83 MILLION RESERVES REVEALED

PEMBROKESHIRE residents are bracing for a 9.35% council tax rise, despite local authorities across Wales holding more than £2 billion in reserves. The increase, among the highest in Wales, comes as families struggle with soaring living costs and a series of consecutive tax hikes.

Local Senedd Member Paul Davies has called for urgent reform, criticising the Welsh Government’s Local Government Funding Formula and urging councils to use their reserves to ease the burden on taxpayers.

‘UNFAIR AND UNSUSTAINABLE’

Mr Davies said: “Under the Welsh Government, the Local Government Funding Formula remains broken.

“It cannot be right that people in Pembrokeshire face such a huge increase in their council tax while councils across Wales are sitting on over £2 billion in usable reserves.

“The Welsh Government must do more to keep council tax as low as possible by encouraging the use of reserves, improving efficiency within councils, and promoting the sharing of resources across council boundaries.”

CALLS FOR CHANGE

The Welsh Conservatives have consistently opposed large council tax increases, calling for an independent review of the Local Government Funding Formula. They argue that councils should:

• Use reserves to reduce tax rises.
• Improve efficiency by cutting unnecessary spending.
• Increase cooperation between councils to share services and lower costs.

RISING RESERVES, RISING BILLS

For years, Pembrokeshire had the lowest council tax in Wales, but after a 12.5% rise in 2024-25, it has surged significantly. Despite this, Pembrokeshire County Council holds £82.6 million in usable reserves, equivalent to 28.4% of its annual service expenditure.

In 2016-17, the council held just £47 million in reserves, rising to £83 million in 2021-22. Critics argue that this surplus should be used to relieve financial pressures rather than imposing further tax hikes.

With councils under fire for hoarding cash while demanding more from residents, pressure is mounting on the Welsh Government to overhaul funding and prevent further unaffordable rises.

SENEDD Members urged ministers to press ahead with urgently needed reforms of the Welsh tribunal system or risk leaving the courts unable to cope with demand.

Adam Price, Plaid Cymru’s shadow justice minister, warned the clock is ticking on the Welsh Government’s proposals to modernise and unify Wales’ tribunal system.

The proposals followed 2021 recommendations for reform from the Law Commission, which warned the devolved tribunals evolved haphazardly and “it is difficult to call them a ‘system’”.

But, with only a year to go until the next Senedd election, the Welsh Government has rejected calls to commit to bringing forward a tribunal bill before the end of term.

Mr Price, whose partner is a judge in the non-devolved tribunal system, described ministers’ refusal to commit to the “absolutely crucial” legislation as deeply troubling.

“We need this legislation now,” he said. “It’s essential to resolve the significant operational, financial and administrative challenges facing Welsh tribunals today.

“Delaying this essential legislation is not prudent governance. It’s negligence, actually.

“It risks leaving our tribunals unable to cope with current demands, let alone future responsibilities, such as youth justice or education appeals. It weakens Wales’ justice infrastructure and compromises our commitment to fair and accessible justice.”

Contributing to a debate on the Welsh tribunal president’s annual report, Mr Price called for full transparency around plans to devolve further parts of the justice system to Wales.

He said: “Anything less, in our view, would be an abdication of responsibility – leaving Wales’ justice system underserved, undervalued and ill-prepared for the challenges ahead.”

Labour’s Mike Hedges, who chairs the Senedd’s justice committee, similarly stressed the importance of introducing legislation on tribunals as soon as possible.

The Tories’ Paul Davies echoed this position. He also raised concerns about training, with the judicial college having no remit to train devolved tribunal members.

“My concern is this mirrors slow progress with the reform of the Welsh tribunals,” he said.

He added that use of the Welsh language remains low in the legal system.

Mr ab Owen warned: “If it doesn’t happen before the 2026 election, there is no guarantee that it will happen at all. I think it’s quite something how strongly in favour the president of the Welsh tribunals was for reform in his report – that cannot be ignored.”

Responding to the debate on March 11, Julie James said the First Minister will make a statement on the Welsh Government’s legislative plans shortly after Easter.

Ms James, who is counsel general, the Welsh Government’s chief legal adviser, said: “We’re still fully committed to reforming the devolved tribunals.

“But I’m not in a position to say yet whether the tribunals Bill will make it into that programme. There is much competition for space in year five.”

Ms James told the Senedd the Welsh tribunals budget has increased from £4.1m to £6m.

“That’s a real commitment to making sure our tribunals have the resources they need,” she said. “We’ve reinstated pay parity for tribunal members, with an 8% uplift, bringing their pay in line with those in the reserved system.”

SAMUEL KURTZ Member of the Senedd for Carmarthen West and South Pembrokeshire, delivered the closing address at the Empower Cymru 2025 conference this week.

The event, held at Techniquest in Cardiff, brought together industry professionals from wind and solar energy, oil and gas, education providers, and other key stakeholders to discuss the future of Wales’ energy sector.

Closing the conference, the Shadow Cabinet Secretary for Economy and Energy highlighted the prosperity that energy production can bring to communities that have long felt left behind.

He reaffirmed his commitment to advocating for pragmatic policies that encourage investment in renewable energy, including hydrogen production and carbon captur, while being realistic about Wales’ need for oil and gas for the foreseeable future.

Speaking after the event, he said: “It was fantastic to see so many people from across the energy sector come together to discuss Wales’ future. We have talked at length about our country’s incredible potential for renewables, thanks in part to our extensive coastline and access to the Celtic Sea, but now is the time for action.

“If we can demonstrate that Wales is open for business, we can attract investment in infrastructure and education, ensuring secure energy supplies, creating green jobs, and generating prosperity for our local communities.

“For too long, industrial decline has led to fewer job opportunities and economic stagnation in parts of Wales. By embracing energy production, we have the chance to reverse that trend, revitalise our economy, and safeguard our economic and energy security during these turbulent times.”