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Jeremy Hunt sets new direction for government as Truss’s credibility trashed by u-turn

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ON MONDAY, Jeremy Hunt unpicked virtually every element of Kwasi Kwarteng’s mini-budget to calm financial markets and restore order to chaos.

The new Chancellor’s statement was a sobering reminder that although Prime Ministers serve with their colleagues’ consent, governments cannot survive without market confidence.

Mr Hunt said every Government’s core responsibility was to deliver economic stability.

“No government can control the markets. But every Government can give certainty about the sustainability of the public finances.”

His words were a damning implied indictment of the PM’s economic policy.

FULL REVERSE GEAR

The Chancellor’s words had an immediate effect on markets: the pound strengthened, and UK government bond yields fell to reduce the cost of government borrowing.

The statement might reduce the amount of a projected mortgage interest rise in November.

But make no mistake: the statement is a humiliation for the PM.

Every policy she’s trailed, trumpeted, and brought in has been chucked on the bin fire of her Government’s reputation.

Liz Truss sacked Mr Kwarteng because she did as she said and pursued a policy she endorsed enthusiastically.

The PM’s campaign slogan was “Trusted to Deliver”.

Her detractors pointed out that Liz Truss was pushed by the political winds and could not set her own course.

She’s tried setting her course and crashed the economy into an iceberg.

Moreover, her Cabinet colleagues must wonder whether they can trust the PM to stand behind them when they pursue a government policy she supports.

This is a government living hour-to-hour, in office but not in power, and with its key policies made by financial markets instead of ministers.

Separate lives:  Truss and Kwarteng part ways

GOVERNMENT AIMS TO “REGAIN TRUST”

The Chancellor’s statement pulled no punches about the size of Ms Truss’s and Mr Kwarteng’s miscalculation and overconfidence.

Mr Hunt said: “The government is prepared to act decisively and at scale to regain the country’s confidence and trust.”

The painful use of the word “regain” underlines what the Government lost after September 23.

The Chancellor stated there would be “more difficult decisions” on tax and spending.

Mr Hunt is focused on lowering debt in the medium term and putting public finances on “a sustainable footing”.

Using the word “sustainable” implies the previous plan was unsustainable.

In light of this, government departments will be asked to find efficiencies within their budgets. The Chancellor is expected to announce further changes to its fiscal policy on October 31 to put the public finances on a sustainable footing.

Reversal of fortunes: Pound rebounded on announcement of U-turn

TAX CUTS SCRAPPED

The Chancellor announced a reversal of almost all of the tax measures set out in the Growth Plan that have not been legislated for in parliament.

The following tax policies will no longer be taken forward:

Cutting the basic rate of income tax to 19% from April 2023. While the Government aims to proceed with the cut in due course, this will only happen “when economic conditions allow for it, and a change is affordable”. The basic rate of income tax will therefore remain at 20% indefinitely. This is worth around £6 billion a year.
Cutting dividends tax by 1.25 percentage points from April 2023. The 1.25 percentage points increase, which took effect in April 2022, will remain in place. This is valued at around £1 billion a year.
Repealing the 2017 and 2021 reforms to the off-payroll working rules (also known as IR35) from April 2023. This will cut the Government’s growth plan’s cost by around £2 billion a year.
Introducing a new VAT-free shopping scheme for non-UK visitors to Great Britain. Not proceeding with this scheme is worth around £2 billion a year.
Freezing alcohol duty rates from February 1 2023, for a year. Not proceeding with the freeze is worth approximately £600 million a year.
This follows from the previously announced decisions not to proceed with the Growth Plan proposals to remove the additional income tax rate and to cancel the planned increase in the corporation tax rate.

The changes are estimated to be worth around £32 billion a year.

That still leaves the Government with a lot to find to plug the hole in its finances, which indicates more pain will follow in public spending.

The Government’s reversal of the National Insurance increase, the Health and Social Care Levy, and the Stamp Duty Land Tax cuts will continue to benefit millions of people and businesses.

The £1 million Annual Investment Allowance, the Seed Enterprise Investment Scheme and the Company Share Options Plan will continue supporting business investment further.

ENERGY BILL SUPPORT TO CHANGE

In September, the Government announced massive financial support to protect households and businesses from high energy prices.

The Energy Price Guarantee and the Energy Bill Relief Scheme support millions of households and businesses with rising energy costs.

The Chancellor made clear they will continue to do so from now until April next year.

However, looking beyond April, the Prime Minister and the Chancellor have agreed that it would be irresponsible for the Government to continue exposing the public finances to unlimited volatility in international gas prices.

A Treasury-led review will therefore be launched to consider how to support households and businesses with energy bills after April 2023. The review’s objective is to design a new approach that will cost the taxpayer significantly less than planned whilst ensuring enough support for those in need.

The Chancellor also said in his statement that any support for businesses will be targeted to those most affected and that the new approach will better incentivise energy efficiency.

“CHAOS AT THE HEART OF GOVERNMENT”

Rebecca Evans, Wales’s Finance Minister, responded: “The complete unravelling of the mini-budget shows the chaos at the heart of the UK Government.
“In six short weeks, the UK Government’s reckless and flawed economic policy has caused mayhem in the financial markets, pushed up mortgage costs and stretched household budgets even further.
“Now the UK Government is rolling back on its energy price support scheme for households, which will only add to the uncertainty people face as they worry about paying their bills.
“The new Chancellor has signalled a new era of austerity to start to fill the hole in public finances.
“We will all pay for the Government’s mistakes. But this is a crisis made in Downing Street and one it needs to address.
“The Chancellor needs to use his next financial statement to provide reassurance we will not see the deep spending cuts that will affect jobs, services and our economy – and to provide support to vulnerable households who have been ignored today.”

Crime

Whitland father acquitted of child cruelty but faces family court proceedings

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A 45-YEAR-OLD father from Whitland has been found not guilty of child cruelty following a decision by the Crown Prosecution Service (CPS) to discontinue the case.

The man, who cannot be named to protect the identity of his children, had been charged with assaulting, ill-treating, neglecting, or abandoning a child in a way that could cause unnecessary suffering or injury. He had denied the allegations and was set to stand trial on June 16.

The case was reviewed at Swansea Crown Court on Wednesday (Mar 5), where prosecutor Dean Pulling confirmed that the CPS had decided not to proceed with a criminal trial. He explained that subjecting the children to the process was not deemed to be in the public interest.

“The matter will be addressed in the family court,” Mr Pulling stated, adding that the decision did not diminish the statements provided by the children.

With no evidence presented by the prosecution, Judge Catherine Richards formally recorded a not guilty verdict. She noted that the CPS had carefully considered its decision, clarifying that while the criminal case had concluded, it had no impact on the separate family court proceedings.

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Campaign against US military radar in Pembrokeshire gains political backing

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CAMPAIGNERS from Pembrokeshire-based PARC Against DARC visited the Senedd on Wednesday (March 5) to present their opposition to the proposed Deep Space Advanced Radar Concept (DARC) at Brawdy. The group argues the AUKUS-backed military proposal, supported by US President Donald Trump, could escalate tensions in space with China.

Twelve Members of the Senedd (MSs) from various political parties have endorsed a Statement of Opinion recognising widespread opposition to the project. The statement highlights concerns over DARC’s visual impact, potential health risks, and regional security implications. A petition against the proposal has gathered nearly 17,000 signatures, with campaigners calling for a Welsh Government commission to assess the issue.

Political support growing

A spokesperson for PARC Against DARC said: “Today marks a significant shift in the political impact of our campaign. We now have cross-party backing, including from Welsh Labour MSs, strong support from Plaid Cymru, and support from the Welsh Liberal Democrats’ Senedd representative, Jane Dodds.

“For the many people opposing DARC in Pembrokeshire, this shows the Senedd at its best—reflecting the views of the people who elect it. We urge all MSs to heed our community’s concerns and support the Statement of Opinion.”

The spokesperson continued: “The proposal to construct a 27-dish radar array on the skyline of the St Davids peninsula—a natural treasure and a key attraction for Welsh tourism—has been ill-conceived from the outset. The Senedd Members we met today are standing on the right side of history by opposing it.”

Concerns over militarisation

Sioned Williams MS attended the event, stating: “Plaid Cymru has a proud tradition of promoting peace, and this US militaristic project has no place in Wales.”

The campaigners argue that the DARC radar would serve Trump’s agenda for US space dominance and support Elon Musk’s rapidly expanding SpaceX network. They said: “Local opposition to this project is strong, with Pembrokeshire having a long history of resisting such proposals.

“With ‘untrustable Trump’ in the White House and Keir Starmer acting as a subordinate UK partner, we cannot assume the US will remain a reliable ally by the time DARC is completed. If this goes ahead, we risk inviting the enemy inside the gate.”

The ‘Highlighting Militarism in Wales’ event featured speeches from local PARC campaigners Roy Jones and Jim Scott, along with presentations from Academi Heddwch, Cymdeithas y Cymod, Quakers Wales, the Cardiff UN Association, and Stop the War Cardiff.

Peace vigil held at Senedd

Following the presentations, a televised Vigil for Peace took place on the steps of the Senedd. Ali Lochhead from CND Cymru spoke about the group’s vision for a peaceful Wales. The event concluded with a performance by Côr Cochion Choir and the symbolic release of two peace doves.

Heledd Fychan MS, who sponsored the event, said: “On this UN International Day for Disarmament and Non-Proliferation Awareness, I am proud to support this event highlighting militarism in Wales.

“Plaid Cymru has a long-standing history of opposing militarism and advocating for peace. We remain committed to supporting Pembrokeshire residents in their fight against the DARC project. Today’s discussions were insightful and provided Senedd Members with a deeper understanding of the strength of opposition.”

Call to reduce military spending

Campaigners also criticised the global arms race, stating: “While Trump’s erratic realignment of global power is dangerous and unpredictable, we support his suggestion that all superpowers should reduce military spending.

“Scrapping unnecessary AUKUS infrastructure like DARC would be a meaningful step towards ending the cycle of militarisation. We, along with other campaigners in the Senedd today, believe public resources should be invested in developing future technologies and improving lives, rather than continuing outdated and unaffordable military standoffs.”

PARC Against DARC is urging Welsh residents to sign their petition and email Senedd Members to oppose the project. A template for lobbying is available on the campaign’s website: www.parcagainstdarc.com/lobbying.

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Pembrokeshire Council Tax rise for residents at 9.35% agreed

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PEMBROKEHIRE taxpayers are to see their bills increase by 9.35 percent after “political tribalism was set aside,” but an alternative lower proposal by the Conservative group was defeated.

Today’s March 6 meeting of full council was to consider three potential increases in council tax, 9.85 percent previously recommended by Cabinet, a 9.35 percent rise proposed by the Independent group led by Cllr Huw Murphy, which was later supported by the ruling coalition, and a 7.5 percent rate proposed by the Conservative group.

The council was to decide the annual budget, which includes the council tax element, on February 20 but that meeting was deferred until March 6, in part awaiting the final Welsh government local government settlement, which saw the county gain a small amount of extra money, worth roughly an extra £500,000, reducing its funding gap to £26.9m.

At the March 6 meeting, Cabinet member for finance Cllr Joshua Beynon moved the Independent-proposed budget be adopted rather than the previous 9.85 percent council tax rise one, seconded by Independent group member Cllr Alan Dennison.

The 9.35 percent increase adds £141.25 to the average bill over last year’s rate.

The Conservatives’ alternate budget of 7.5 percent was proposed by group leader Cllr Di Clements, saying there was a need to make “tough choices” with “a limited pot,” adding last year’s council tax increase of 12.5 percent was “one of the highest in the UK,” with “a significant rise” again proposed this year.

The Conservative proposals included addressing deficits in council leisure services by partnering with a national leisure trust, along with increasing the education budget by £6.6 million in the next financial year.

Cllr Clements added: “The budget choices will get harder and harder, we believe we cannot keep doing the same thing, slicing services until there is nothing left, that is why we are looking at alternate ways of providing services.”

She was joined by group spokesman for finance Cllr Aled Thomas who said people were “sick and tired of the status quo,” adding: “Taxpayers shouldn’t be burdened with failures of this local authority, whether vanity projects or failures to make efficiency savings; it is the taxpayer that pays for this, we owe it to them to be responsible.”

Cllr Alec Cormack, the former Cabinet member for finance, said he sympathised and supported some elements of the Conservative proposals but felt some parts were “not fully developed,” with “a very serious risk that many  of these measures would not really deliver savings in 2025-’26,” adding: “I do not feel this really leads us to a balanced budget”.

After lengthy debate, the Conservative proposal was defeated by 45 votes to 13.

Leader Cllr Jon Harvey quoted from his speech when he was elected leader, saying he was happy to work on cross-party consensus politics, adding: “Cllr Huw Murphy shared a budget proposal, which we’re grateful for, not too dissimilar to the one proposed by Cabinet, considered to be a proposal we could jointly put forward, a pragmatic approach rather than an adversarial approach.”

He told members the 9.35 percent increase would lead to a county council part of the overall tax bill for the average Band D property would now be £1,651.97 in Pembrokeshire against Ceredigion’s £1,886.57 for the forthcoming financial year.

The final bill is calculated by adding the police precept, set at £360.68 for a Band D property, and individual town and community council precepts.

He warned there were still elements in the budget that were “a risk,” with challenging efficiency savings needed.

The 9.35 percent rise was backed by 46 members, with 13 against.

Speaking after the meeting, Independent group Leader Cllr Murphy said their supported proposal was “about doing what’s right by our most vulnerable, not doing what’s necessarily popular”.

He reiterated his party being “critical friends to the Administration” who would not “oppose for the sake of opposition,” welcoming the Cabinet support his party’s proposal, where “political tribalism was set aside for the good of our residents,” welcoming it as “progressive and mature politics on a very difficult subject, namely council tax”.

“In life it’s about making the difficult decisions not about making popular decisions that we are measured against.

“No tax rise is welcomed but today was a balance of offering the lowest council tax that was realistically possible versus the services we provide, much of it statutory.”

Cllr Aled Thomas of the Conservative group reacted to the vote, saying: “It’s disappointing that the Independent Group and Cabinet came together today to vote for the continued tax and spend mindset, at the expense of Pembrokeshire residents.

“The Conservative group proposed an ambitious budget with innovative ideas signalling change, and it was great to hear members across the chamber agree that change can’t come quick enough.

“Despite today’s result, the Welsh Conservative group will continue to fight for the best value for money for the hardworking Pembrokeshire taxpayers.”

‘Your needs and priorities at the forefront’

After the meeting Cabinet Member for Corporate Finance and Efficiencies Cllr Joshua Beynon, said: “I want to reassure residents that this budget has been set with your needs and priorities at the forefront.

“Pembrokeshire, like all local authorities, faces significant challenges and increasing demands on key service areas. But we are determined to navigate them in a way that safeguards our communities and ensures we continue to deliver for Pembrokeshire.”

Leader of the Council, Cllr Jon Harvey said: “Setting a balanced budget is a legal requirement and is the responsibility of Council, not Cabinet. When I was elected to the role of Leader last May, I made reference to the fact that I wished to build as much consensus as possible within the Chamber.

“This budget highlights that by working together to identify common aims and objectives, we can achieve an agreed outcome.

“As we are all too aware, the pressures across Welsh local government services are immense.

“In light of the challenges we’ve faced in recent years and continue to face, this budget will help us to avoid devastating, deeply unpopular cuts to services. It’s the only way we can protect the vital services our community relies on, while laying the groundwork for a sustainable, thriving future for Pembrokeshire.

In approving this budget we have sought to find a delicate balance between safeguarding our future and recognising the very real cost-of-living pressures faced by families in Pembrokeshire every single day.

“I became a Councillor to improve peoples lives, to help those in need and to support those who are struggling.

“Those of us that represent wards with high levels of social deprivation will only know too well how much our residents rely upon the services provided by the Council. This budget will support those in our communities that need our services most, whether this is our school children, vulnerable children and our elderly residents.

“Finally, I would like to thank the Finance Team and the Cabinet Member for Finance for all the hard work they have put in over many months on the budget proposals, to ensure we are best positioned to face the challenges ahead.”

Cllr Huw Murphy added: “On becoming Independent Group leader with Cllr Anji Tinley elected Deputy we released a statement that as a Group of Independent Councillors we would be critical friends to the Administration, and neither would we “oppose for the sake of opposition” and this can be clearly evidenced over the last 10 months within Council. 

“We also stated that the Independent Group would challenge decisions which might have a negative impact on residents and where possible present alternative options. The recent budget setting is a testament to the integrity of the Independent Group where on Feb 20th we prevented a possible Council Tax of 9.85% by adjourning a meeting of Council to await a final financial settlement from WG.

“The Independent Group then prepared & submitted an alternative budget offering a lower Council Tax of 9.35% along with fewer cuts in services, which passed today (at Full Council). The decision of Cabinet in supporting the alternative budget rather than opposing it is to be welcomed where the (vast) majority of Councillors accepted the need to discharge their statutory duties where political tribalism was set aside for the good of our residents is welcomed as progressive and mature politics on a very difficult subject, namely Council Tax.

“No Tax rise is welcomed but today was a balance of offering a lower Council Tax whilst recognising the need to find appropriate reductions in certain service areas.

“Moving forward there is much work to be done within Pembrokeshire and further afield in Cardiff & London to secure adequate funding to provide services Pembrokeshire residents deserve. As a Group of Independent Councillors, we will continue to work hard for all Pembrokeshire residents in raising their concerns and holding the Administration to account.”

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