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WG settles ‘scandalous’ land sale case

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THE WELSH GOVERNMENT has settled a claim against its former advisors about land sales which took place under a purported regeneration scheme.

The Regeneration Investment Fund for Wales (RIFW) had issued proceedings against Amber Fund Management and Lambert Smith Hampton concerning the portfolio sale of 15 properties in 2012.

The settlement has been reached on a commercial basis and without any admission of liability by any party.

The detailed terms have been incorporated into a confidential settlement agreement between the parties.

The Welsh Government Minister for Local Government, Julie James, said the £40.7 million tied up in the Fund can now be made available to support future investments across Wales.

RIFW was set up as an arms-length body by the Welsh Government to allow the Welsh Government to raise money which could then be used to fund regeneration and investments in Welsh businesses.

It was a complete shambles.

One of the advisors appointed had previous connections with one of the parties which bought some of the land at an undervalue.

Vital information was not relayed to the RIFW’s board by the Welsh Government and Board members were kept in the dark about transactions carried out in their name.

Under the oversight of their appointed agents and Welsh Government civil servants, RIFW sold publicly owned assets by private treaty and without prior valuation at a price that reflected the assets’ existing use, under sale terms that provided only limited protection to the public interest in their significant future development values, and via a negotiation process that left RIFW lumbered with undesirable assets.

The Chair of the Senedd Public Accounts Committee, Nick Ramsay MS, said: “The out of court settlement between the Welsh Government and the former advisors of RIFW effectively brings a curtain down on a very sorry and lamentable episode.

“The hasty sell-off of publicly-owned land at bargain-basement prices effectively deprived Welsh taxpayers of tens of millions of pounds which could’ve been used for essential services.

“We look forward to examining matters further with the Permanent Secretary and Head of the Welsh Government Civil Service, Shan Morgan, at our next meeting on Monday, November 23.

“We will be asking what robust steps have been taken to avoid history repeating.”

RIFW was set up as an arms-length body by the Welsh Government to sell off land around Wales including in north Wales, Monmouthshire and Cardiff, and use the money, in conjunction with European funding, to reinvest in areas in need of regeneration.

But the Public Accounts Committee found that the body was poorly managed, poorly overseen by the government, and that, because of a change in the direction of RIFW, from one of regeneration to property asset disposals, some of the Board members felt they lacked the necessary knowledge and expertise to fulfil their roles.

It also learned that the Board was not presented with key information regarding the value of the land in its portfolio, or of expressions of interest from potential buyers.

Fifteen plots of land, originally supposed to be sold separately, were instead sold as a single portfolio at a price which did not take into account potential use of the land in the future. This decision resulted in Welsh taxpayers missing out on tens of millions of pounds of funding.

The Committee learned that one of the organisations charged with offering expert advice to the Board, Lambert Smith Hampton Ltd, had previously acted on behalf of a director of the buyer of the land, South Wales Land Developments Ltd (SWLD), and signed an agreement to do so again one day after the sales went through.

The Committee concluded that the RIFW Board had been poorly served by its own expert advisors.

Angela Burns MS – Shadow Minister for Government Resilience and Efficiency – said: “The Fund was established to sell valuable packages of Welsh Government land, with the money used to support regeneration schemes. However, evidence has since emerged that shows that the sale of RIFW’s assets was undertaken at a loss of tens of millions of pounds. A loss which was borne ultimately by the Welsh Taxpayer and yet another example of the complete inability of this Labour Government to be fiscally prudent.

“Millions of pounds have been squandered, millions that could have been invested in our education and health systems or spent building Wales’ economy or supporting some of our more vulnerable citizens. It’s an absolute scandal and the real scandal is the Welsh Government can slide out of their responsibility for this debacle”

Included in the scandal are:

  • Fifteen sites sold for £21 million; with the taxpayer missing out on staggering sums of money
  • A site in Rhoose purchased from RIFW for less than £3m – sold on for almost £10.5m South Wales Land Developments Ltd. Taxpayers losing out
  • An Abergele site purchased from RIFW for £100,000, without overage, and sold for £1.9million. Taxpayers losing out
  • Land in Lisvane sold for £1.8million – worth £39million.

 

Welsh Conservatives also claim the Welsh Government has squandered £1 billion on other projects, including:

  • £221m on uncompetitive Enterprise Zones
  • £9.3m on flawed initial funding of the Circuit of Wales
  • £97.9m on delays and overspend on the A465 Heads of the Valleys Road
  • £157m on the M4 relief road inquiry
  • Over £100m propping up Cardiff Airport

News

New rules proposed for fairer council tax collection

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THERE are potential changes on the way to help people who are struggling to pay their council tax bill on time.

The changes aim to help prevent people from becoming trapped in cycles of persistent debts by improving engagement between councils and residents and making the collection process clearer.

At the moment, missing a council tax payment means people can become liable for the full annual bill if they don’t pay within seven days of receiving a reminder, and the requirements on councils for sending reminders and final notices are too complex.

The changes, which are under consultation, will give people more time to recover from unexpected financial setbacks, the chance to get advice and allow for improved communication between councils and residents.

Council tax provides essential funding of over £2.8 billion for local services including schools and social care. The current system successfully collects over 96% of council tax routinely year after year, and help is available for people to meet their tax obligations.

People struggling to pay council tax should contact their council and free advice services, available through the Welsh Government’s Single Advice Fund and Claim What’s Yours campaign, as early as possible to prevent spiralling debts.

The 12-week consultation is now underway.

Cabinet Secretary for Finance and Welsh Language, Mark Drakeford, said: “We have delivered a number of improvements to council tax in Wales to make it fairer. Our latest proposed changes focus on the prevention of escalating debts, by providing local councils with more time to engage with people who have missed a payment, to understand their circumstances and offer support before going ahead with recovery action.

“I know councils want to help wherever possible, and we will spread the best practice we have seen through this fairer framework. This will help councils differentiate between people who are struggling and those who are persistently disengaging. A longer timeframe also allows households to recover from unexpected events or circumstances that may have contributed to their financial struggles

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News

MP says steelworkers ‘disgracefully treated’ under Tata deal

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A LIB DEM MP has slammed the UK Labour Government over its handling of the Tata Steel transition deal, accusing ministers of letting down workers in Port Talbot.

David Chadwick, MP for Brecon, Radnor and Cwm Tawe, challenged Welsh Secretary Jo Stevens in Parliament on Tuesday (Apr 29), saying Labour’s claims that it had secured a better deal for Welsh workers than the Conservatives did not reflect the reality on the ground.

Since Tata announced nearly 3,000 redundancies last year, a series of issues have emerged with the redundancy and retraining deal offered to staff.

Among the problems raised by Mr Chadwick were:

  • Long-serving employees – some with over 25 years’ service – not having their full service recognised.
  • Staff on job-share contracts having redundancy based on part-time hours, despite previously working full-time for decades.
  • Workers being denied the chance to return to full-time roles to improve their payout.
  • A lack of clear finishing dates, making it impossible to secure new jobs without forfeiting redundancy.
  • Some workers leaving early to start new jobs, losing out on redundancy payments while saving Tata millions.

Mr Chadwick also criticised the retraining scheme offered under the Employment and Skills Flexible Fund. In February, whistleblowers told Nation.Cymru that just three former employees had accessed the fund.

One key issue cited was that workers who remained in retraining for over a month would not receive the full enhanced redundancy package.

The enhanced package offered 2.8 weeks’ pay per year of service (up to 25 years), a minimum payout of £15,000, and an additional £5,000 ex gratia payment based on attendance. The standard package was just 2.1 weeks per year.

Tata did not deny the claim that only three workers accessed the scheme when approached by the media.

Despite repeated questioning, Welsh Secretary Jo Stevens was unable to respond to the concerns raised by the Lib Dem MP.

Mr Chadwick said Labour’s decision to nationalise British Steel in Scunthorpe but not act similarly in Wales had been justified by ministers on the basis of a “better deal” with Tata — a claim he said does not hold up.

Speaking after the debate, Mr Chadwick said:
“Since this Labour Government announced it was acting to save jobs in Scunthorpe, but not Port Talbot, it has claimed it secured a good deal for workers losing their jobs at Tata — yet conversations I’ve had with workers directly contradict this.

“With those workers having served over 25 years not having that service recognised, and only a handful of people accessing retraining courses due to the threat of receiving a worse redundancy package, this does not sound like a good deal.

“The way workers and the wider community in Port Talbot have been treated by this new Labour Government and the previous Conservative Government has been disgraceful.

“The Welsh Liberal Democrats will continue to highlight their failures and fight for immediate investments to replace the jobs that have been lost as a result of this mismanagement.”

The UK Government has said previously that it could claw back investment if Tata fails to honour the deal.

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News

New £1m fund to boost Welsh tourism come rain or shine

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A NEW £1 million fund will help ensure that tourism attractions across Wales can welcome visitors whatever the weather.

The ‘Year of Croeso Weather-Proofing Fund’ is being launched as Visit Wales celebrates the unique Welsh welcome that draws visitors back time and again.

The fund will provide grants of between £5,000 and £20,000 to eligible businesses, supporting them to implement weather-proofing measures.

Tourism is a major contributor to the Welsh economy, injecting £3.8 billion each year, and showcasing the wide range of experiences Wales has to offer — come rain or shine.

However, recent data from Visit Wales showed that poor weather was cited by 55% of businesses as the main reason for fewer visitors during summer 2024, ranking even ahead of cost-of-living pressures. Similarly, the Domestic Sentiment Tracker survey identified poor UK weather as the top factor discouraging domestic breaks.

Grants could be used for a variety of improvements, including canopies, sustainable drainage systems, covered seating areas, visitor shelters, and enhanced pathways and car park surfaces.

Announcing the fund, Cabinet Secretary for Tourism, Rebecca Evans said: “Wales has an incredibly strong tourism offer and visitors can always be guaranteed a warm croeso.

But the weather — which has shaped our stunning landscapes — is becoming increasingly unpredictable and is now identified as the single biggest factor affecting visitor numbers to Welsh attractions.

Poor weather can impact normal operations, harm visitor experience, and even discourage visits altogether.

That’s why we have listened to the concerns of the tourism sector and launched this fund — to help attractions prepare for increasingly variable weather patterns.”

The Welsh Government’s tourism strategy, ‘Welcome to Wales: Priorities for the Visitor Economy 2020–25’, highlights the importance of tackling seasonality by promoting Wales as a year-round destination.

Welsh Government support for the sector in the coming financial year includes:

  • Visit Wales: Over £9 million revenue budget and £6 million capital budget
  • A £50 million Wales Tourism Investment Fund
  • A £5 million Brilliant Basics Fund

The Cabinet Secretary added: “All visitors, wherever they come from, will find a destination delivering an outstanding experience — and we are always working to build on and improve Wales’ tourism offer.

These grants will help tourism attractions become more resilient, extend their seasons, and enhance the visitor experience — benefiting both businesses and the wider Welsh economy.”

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