News
Budget is good news for Pembrokeshire
AS PART of a series of payments made from the Westminster Government’s ‘Levelling Up’ Fund, the regeneration of Haverfordwest’s town centre got a massive shot in the arm.
Preseli Pembrokeshire MP Stephen Crabb has welcomed the announcement that £17.7m has been secured from the UK Government Levelling Up Fund for Pembrokeshire.
Pembrokeshire is in the first tier of areas eligible for the Levelling Up Fund created by the UK Government to replace EU funding. The funds are being financed directly by the Westminster Government. Today, local Councils across the UK are finding out which bids have been successful.
Mr Crabb has been working with Pembrokeshire County Council on the bid to the Levelling Up Fund to support the ongoing regeneration of Haverfordwest town centre. The bid focused on the need to make the historic town centre a more attractive place for visitors.
Now that this money has been secured, it will enable the restoration of the 900-year-old historic castle into a high-quality all-weather visitor attraction and develop the river’s potential as a feature of the town centre.
Commenting, Mr Crabb said: “I have worked hard to support Pembrokeshire County Council in their bid to the Levelling Up Fund and make the case to the Treasury about why Pembrokeshire should be put at the front of the queue for this funding.”
“I am delighted that the Chancellor has listened.
“It means that the money I have secured for Pembrokeshire can turn these plans and aspirations for Haverfordwest town centre into reality. It is now up to Pembrokeshire County Council to use this money to support traders and boost local economic activity.”
MINIMUM WAGE RISE
The headline takeaway from a Budget long on levelling up and short of detail on what it would like is a hike in the UK’s minimum wage.
From April 1, 2022, workers over 23 will get a minimum wage rise from £8.91per hour to £9.50.
While the increase is welcome, it is counterbalanced by increased personal taxation on income, rising prices, and the accompanying cut in entitlement to Tax Credits for those who get the rise.
However, the Chancellor took the chance to change a system that perversely punishes working extra hours or earning more by a loss in Tax Credit payments and/or Universal Credit.
Before the Budget, for every £1 earned over the Tax Credit limit, Universal Credit recipients lost 63p in what the Chancellor described as “a tax on work”. Mr Sunak cut that to 55p/£1. Setting the level at that originally intended when the taper in Tax Credits was originally proposed by Iain Duncan-Smith.
While that sort of measure would usually only come into effect at the start of a new tax year (in this case, next April), the Chancellor told the Commons the cut will come into effect no later than December 1.
That means earnings by those affected by the current arrangements will rise in the run-up to Christmas.
An increase in the National Minimum Wage will be affected by an increase in inflation, especially as the rise in the former will not come in until next year.
On top of that, the Chancellor announced a £500 increase in the threshold for the basic income tax rate.
Mr Sunak claimed a single mother with one child earning the National Minimum Wage would be better off by over £1,100 per year.
DUTIES CUT AND FROZEN
In what’s bound to be a popular move with pub-goers, the Chancellor announced an overhaul of duties on alcohol.
Describing the system as ‘outdated’ and ‘complex’, Mr Runak slashed the number of different duties from sixteen to five.
The strongest drinks (for example, white cider) will see their prices rise. However, beers, ciders, and fruit ciders will see a significant reduction in duty for on-licensed sales.
Fruit ciders, subject to their own duty, will see the largest cut in duty, while beer and cider will fall in price by an average of around 3p/pint.
There will be no increase in excise duty on whiskies. At the same time, sparkling wines had a massive duty cut, reducing their price to reflect their increased popularity and lower alcohol content.
The Chancellor combined those announcements with an extension of rates relief for licensed premises and specific relief on draught beer sales.
Mr Sunak also announced a freeze on fuel duty.
NOT SO NEW MONEY
A Raft of spending pledges made by Chancellor Rishi Sunak in his Budget speech on Wednesday (October 26) consisted of repackaged spending commitments already made.
A large announcement that England’s city regions would get £6.9bn to spend on new transport infrastructure contained £1.5bn of new funding. The balance consisted of £4.2bn committed in 2019 under Theresa May’s Government and further funding for public transport, which the PM announced in 2020.
Similarly, £5.9bn of NHS funding for England is extra cash plus old spending commitments put in new wrappers.
MORE MONEY FOR WALES
Wales will receive extra funding through the Barnett formula – a mechanism the UK government uses to allocate additional money to the devolved nations when it spends more in England.
However, Mr Sunak said Wales would benefit by £2.5bn over the Barnett formula over the term of the three-year spending review.
The most contentious uses of Westminster’s powers, the levelling up and shared prosperity funds, are added to that funding. Money from them will be paid directly to those commissioning eligible projects and not to the Welsh Government.
Part of Westminster’s rationale is that the Welsh Government does not target spending on priorities it identifies as UK-wide.
For example, if the Westminster Government said it would invest £6bn in the NHS in England, Wales would get £300m. However, that money could be spent where the Welsh Government saw fit and not necessarily where Westminster intended it to go.
The Welsh Government’s position is straightforward; all money spent in Wales on matters over which it exercises control should be allocated to the priorities it identifies. It will not or cannot separate specific funding from Westminster’s overall spending grant.
The Chancellor’s announcement of extra funding for specific projects in Wales, bypassing Cardiff Bay, will increase tensions between Westminster and the Welsh Government.
RAISING REVENUE
The Chancellor cannot long put off dealing with two specific problems affecting government funding.
The first is well-known, but action has so far been avoided: the shrinking tax base.
The UK government raises around £800 billion a year in receipts – income from taxes and other sources – equivalent to around 37% of the size of the UK economy, as measured by GDP.
The majority are from three main sources: income tax, National Insurance contributions (NICs) and value-added tax (VAT). Together these raise over £460 billion.
The UK’s working-age population is rapidly contracting. That means less money raised from direct taxation. The effects of the contraction on public finances are already being felt.
What the UK’s current workforce pays in National Insurance now doesn’t pay for or contribute to their pensions but their parents’ and grandparents’.
As people live longer and in worse health, workers now and in the future face paying more of their wages in tax to support the retired and elderly ill.
The weight of the pensions bill was £101bn in the last financial year, approximately two and a half times the total defence budget.
As a point of comparison, the total amount paid out in working-age unemployment benefits was a fraction under £2bn.
Taxes on consumption fall proportionately most heavily on those with the lowest incomes.
Imposing increased taxes on consumption would effectively cut the incomes of the lowest earners. It would also hit those voters in post-industrial marginal seats upon whom the Government depends for its majority.
REPLACING DUTY
The second issue is less acknowledged but no less challenging.
Fuel Duty raises £21bn a year.
Increased fuel efficiency in motor vehicles means they need to refuel less often. That means less fuel duty coming into the Treasury.
The Government aims to decrease reliance on cars for commuting, which will cut the amount of fuel duty even further.
Ultra-Low Emission Vehicles pay little or no Vehicle Excise Duty, and purely electric vehicles pay no fuel duty, either.
Unless there’s a significant change in tack, the Treasury will lose both fuel duty and Vehicle Excise Duty from its annual tax take in pretty short order.
Fuel duty alone amounts to £28bn of revenue each year, and Vehicle Excise Duty is another £6.5bn a year.
Planning to replace that revenue cannot be delayed.
News
Labour’s leaders enjoy Llandudno love-in
LABOUR’S conference in Llandudno last weekend was an opportunity for the Party’s great and good to come together and tell each other how wonderfully things are going.
The key message was that, while the Labour Government in Cardiff Bay was nothing less than a roaring success, things could only get better with Labour governments at either end of the M4. Labour in Wales must hope that this last phrase sticks in the electorate’s consciousness and glosses over Welsh Labour’s problems.
There are plenty of those problems, although you’d be hard-pressed to identify any of them from the keynote speeches delivered to the faithful.
Speakers hit all the important notes:
- Labour was delivering more money to the Welsh Government to spend (big cheer).
- There would be money to spend on the NHS (bigger cheer).
- There were no more Conservative MPs from Wales in Westminster (ecstatic rapture).
And so on and so forth in all the key speeches.
PREACHING TO THE CHOIR
It’s only fair to begin with the big cheese himself, Sir Keir Starmer. Cheese is the right word. The Prime Minister recapped his October speech at Labour’s national conference, and he laid on added Welsh schtick with a trowel. Nye Bevan, the NHS, the Industrial Revolution, the sense of community. All his speech lacked was the Morriston Orpheus Choir humming “A Hyd a Nos” in the background.
Thankfully, as is the way things are nowadays, there were no big announcements in Keir Starmer’s speech. Its content had been well-trailed. Bashing the Tories while taking credit for their policies and adding the odd million here and there is enough for a Labour leader in Wales to get a rapturous reception. And he got one.
Eluned Morgan was more old school: “There’s a new Wales on the horizon, and I intend to lead us there,” the First Minister began.
She continued to explain that: “The people’s priorities are my priorities.
Improved health and social care, delivering future-proofed jobs and growth, higher standards in our schools and more social housing because your postcode should never determine your prospects, improving transport and keeping people in touch. New trains, a new bus bill, better roads.”
Nobody could disagree with those objectives. Nobody casting a more critical eye over them could help but wonder why it’s taken 25 years for the penny to drop.
The First Minister’s attempt to create some pithy soundbites was undermined by how she introduced them: “They offer soundbites – and we deliver sound policies. They sow division – we build unity. They promise walls – we build bridges. They complain – while we campaign.
And while they look backwards – we move forwards.”
It was a bit like Tony Blair. “Now is not the time for soundbites, but the hand of history is on out shoulders.”
STEVENS STANDS OUT
Jo Stevens, the Secretary of State for Wales, hit an altogether stronger note.
She announced £13 million to provide support for workers, families and businesses affected by the closure of the Tata Steel blast furnaces in her first address to the Welsh Labour Conference since Labour won a landslide General Election result in July.
The investment from the Transition Board, which will provide non-repayable grants of up to £10,000 to help workers and their families set up their own businesses, is part of a wider £26.5 million package committed by the UK Labour Government since taking office, and part of an £80 million commitment to fully fund the Transition Board and to support workers that came out of Labour’s Autumn Budget.
Jo Stevens developed her theme by attacking the Conservatives’ failure to bankroll a scheme they’d announced: “In October last year, the Tories had promised £80m to support workers and businesses in Port Talbot. Nine months later, they hadn’t delivered a single penny.
“Now we know why – the £80 million was never there. It was one of a long list of unfunded spending commitments.
“Today, I am announcing a £13 million fund to support existing and new businesses in Port Talbot and across our steel communities. And Labour’s first Budget confirmed that £80 million in full.”
The conference loved it all. But apart from Jo Stevens repeating an attack line that Labour had already developed in the preceding weeks, it was rather thin gruel, albeit enthusiastically delivered.
THE PARTY OF GOVERNMENT
Wales’s Transport Minister, Ken Skates, announced a “new” Bus Bill to re-regulate bus services and integrate train and bus timetables, tickets and routes. The inverted commas around the word “new” are advisable as this is a Bill that’s long been out for consultation. Councils have already outlined their responses to it, and it was one of his predecessor’s major pieces of legislation. When the Bill is finally published next March, it will be only four years since the commitment appeared in the 2021 Manifesto and seven years since the Welsh Government announced its intention to legislate.
Having announced £22m to cut waiting times just over a fortnight before the Labour conference, Health Minister Jeremy Miles announced a further £28m, which included £3m to shorten waiting lists for children awaiting neurodevelopmental assessments.
Remarkably, the entirely nonpartisan Welsh Government press office was on hand to announce these initiatives in almost identical terms to the Labour Party’s press releases on the same subjects and as they were made to the Party faithful. There is a separation between the party political activities of Welsh Government ministers on the one hand and Welsh Government actions on the other. While the lines have blurred over recent years, it is not the business of Welsh Government employees to assist Ministers with campaigning activities, such as a conference speech.
Labour is the Party of government in Wales, but it is not the Party of the Welsh Government.
LABOUR’S WELSH PROBLEM
In Westminster opposition, Labour made many of the right noises about doing right by Wales. Chief among those noises was sending Wales “£4bn” as a consequential payment for the HS2 project that the Conservatives (boo!) had denied Wales. There were other promises, too:
- Rejigging the basis upon which Westminster allocated money to the devolved governments.
- Making sure the Welsh Government regained control over the funding that had replaced the European Union’s money.
- Devolving more powers to the Welsh Government.
Big promises, all of them.
In the thrill of victory and delivering and taking the credit for projects launched by the Conservatives (boo!), those promises have vanished into talking shops and the language of “hard choices”.
And so, to make up for the fact that the Westminster Labour Government has left its Cardiff comrades in the same position as the Emperor wearing his new clothes, Labour’s conference speeches were long on triumphalism and mood without any sign of much that was new.
Turnout in Wales on July 4 was down over 10.5%, and Labour’s share of the vote fell by 3.9%. Labour’s share of the General Election vote in Wales has only twice slipped below July’s level (in 2010 and 2015). Even in 2019, Labour polled better. In 1997, when Tony Blair’s New Labour swept the Conservatives from power almost as dramatically as in July, Labour won almost 55% of the vote in Wales.
Labour’s polling for the next Senedd election is even more dire than July’s outcome, with some polls showing support hovering around 30%. In 2026, the low turnout and divided vote that skewed General Election outcomes in Welsh constituencies could cause a very different outcome. Turnout in Welsh elections is often pitiful, and the new voting system could erode Labour’s dependable “red rosette on a donkey” vote.
Between now and May 2026, Labour must not only say what it wants to deliver but also get on with it. The lack of urgency about its previous Manifesto commitments and the ongoing omnishambles that is the Welsh NHS leave Eluned Morgan little room for manoeuvre.
In opposition, parties abuse the government of the day. In government, parties abuse the preceding government. In Wales, where Labour’s been in power for twenty-five years, the problem goes without saying.
Business
Ascona wins at the 2024 Allica Bank Vreat British Entrepreneur Awards
PEMBROKESHIRE businessman Darren Briggs, founder of petrol station operator Ascona, has been named a winner of the prestigious Allica Bank Great British Entrepreneur Awards in the ‘Scale-Up Entrepreneur of the Year – Wales’ and the inaugural ‘Randal Foundation Entrepreneur of the Year – Wales’ categories.
Now in its 12th year, the Great British Entrepreneur Awards shine a spotlight on the individuals and businesses driving innovation, creating jobs, and shaping the future of the UK economy.
This year, the brand new ‘Randal Foundation Entrepreneur of the Year’ award celebrated entrepreneurs whose business embodied The Randal Foundation’s core mission – to save lives, improve life chances, and contribute positively to local communities.
Ascona has been committed to supporting local communities since its inception, having established The Ascona Foundation in 2020. The success of the Group over the years has enabled Darren and the team to support many charities in the areas in which it operates, with the Company donating over £400,000 to local, national and community organisations since 2017.
Darren Briggs, Founder and Chief Executive Officer of Ascona Group, commented: “It is a great honour to be recognised for such prestigious awards at this year’s Great British Entrepreneur Awards.
“I am incredibly proud of Ascona and everything we have achieved over the years. This is another milestone for our business and the recognition is a testament to everyone’s hard work, commitment, and ‘Team Ascona’s’ ethos over the years.
“However, I am most proud of our charitable endeavors and the team’s commitment to giving back. It is something that is very close to my heart. We’re committed to supporting our various charity partnerships, including the Wales Air Ambulance this year, as we continue our extensive fundraising initiatives across the Group.”
Health
NHS staff at risk during pandemic due to PPE issues, Covid Inquiry hears
NHS staff in Wales may have put their health at risk during the Covid-19 pandemic by treating patients without adequate personal protective equipment (PPE), former health minister Vaughan Gething has admitted.
Giving evidence to the Covid inquiry, Gething acknowledged significant challenges in distributing PPE despite assurances that national-level supplies were maintained. He revealed that stocks of key items ran out far quicker than anticipated, with some equipment deemed unfit for purpose and discarded.
“There were some very real challenges,” Gething said, noting that gloves, expected to last 15 weeks, were depleted within 11 days. Aprons and other essentials soon became critical concerns. He also condemned opportunistic profiteering during the crisis, calling some suppliers “shysters” who exploited global demand to sell inadequate equipment.
The Welsh Conservatives described the revelations as “completely unacceptable” for NHS staff, while Plaid Cymru accused the Labour-led Welsh Government of “significantly letting down” frontline workers.
The inquiry also heard of chaotic conditions in some hospitals. An email from a consultant at Prince Charles Hospital in March 2020 described a dire situation, with staff lacking protection, low morale, and masks unavailable.
In some instances, healthcare workers resorted to makeshift solutions, including wearing bin bags or purchasing their own safety gear. Trade unions highlighted that schools even stepped in to produce masks and hand sanitiser for local health services.
When asked whether healthcare workers treated Covid-19 patients with inadequate PPE during the first wave, Gething replied, “I’m afraid that’s possible.”
Decisions under pressure
The session also addressed difficult decisions made during the pandemic. Evidence was presented that some patients with little chance of survival were not admitted to critical care due to limited space.
“It’s very upsetting to read,” Gething said, acknowledging the heartbreaking choices faced by medical teams, though he claimed to be unaware of specific instances.
Gething, who served as health minister until May 2021, conceded that delays in tackling hospital-acquired infections could have contributed to the challenges. He admitted he might have acted earlier in forming a task group to address the issue, which worsened during the second wave.
First Minister reflects on birthing partner rules
Current First Minister Eluned Morgan also testified, reflecting on delayed decisions to allow birthing partners in hospitals during the pandemic.
Morgan, who succeeded Gething as health minister in May 2021, acknowledged that guidance was not updated until May 2022, more than a year after England implemented similar changes.
“If I had my time again, that’s one of the things I definitely would have changed,” Morgan said, calling the delay regrettable for new parents.
She also defended the decision not to launch a national investigation into hospital-acquired infections, citing extensive reviews conducted by health boards. However, Morgan acknowledged shortcomings in resuming routine surgery and criticised poor management at some facilities.
The inquiry continues to examine decisions made by Welsh ministers and NHS leaders during the pandemic, focusing on lessons learned to prevent similar issues in future crises.
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