COUNCIL chiefs called for a minimum 4% increase in funding for each local authority and three-year settlements to avert the risk of a Welsh council going bust.

Andrew Morgan, leader of Rhondda Cynon Taf council, warned of “extreme” budget pressures as he appeared before the Senedd’s finance committee on January 15.

He welcomed a £253m uplift in the overall settlement from the Welsh Government but contrasted the increase against a £559m funding gap in the 12 months from April.

He said: “Clearly, the figures show it actually only meets about half of the actual demand for the coming 12 months, so there is going to be significant pressure on local authorities.”

Cllr Morgan, who is leader of the Welsh Local Government Association, the collective voice of Wales’ 22 councils, added: “It is increasingly difficult to be able to explain to the public that we’ve put council tax up while still reducing services.”

He told the committee: “When it comes to council tax, most local authorities are in the range of 5% or upwards for budget planning at least at this stage.

“We are acutely aware of the pressure on local residents in terms of the cost of living, so it is a real dilemma for local authorities.”

Pressed on whether any councils in Wales could issue section 114 (bankruptcy) notices, Cllr Morgan said: “I certainly don’t think there will be any risk of 114 notices in the coming year but that’s not to say that there isn’t a risk there in the medium to long term.”

Asked about Audit Wales’ warning that councils are financially unsustainable, Cllr Morgan called for a three-year settlement to allow planning beyond a 12-month cycle.

He said: “Welsh Government comes out with a provisional settlement in December, that only gives us ten or 12 weeks for us to line up all our ducks in terms of making budgets add up – that’s what’s not sustainable, I would suggest.”

Anthony Hunt, leader of Torfaen council, described the challenge next year as “orders of magnitude different” due to a better-than-expected settlement from the Welsh Government.

He said: “There will be schools that retain staff, there will be services that can be maintained.”

Cllr Hunt told the committee a flat budget or 1% increase, as first feared, would have had “unthinkable” consequences, with “massive” service cuts and redundancies across Wales.

With councils receiving increases ranging from 2.6% to 5.6%, he made the case for a 4% floor which would be funded from outside the settlement at a cost of about £13m.

He emphasised that the 22 principal councils will never be happy with the wider funding formula because there will always be winners and losers.

Lis Burnett, leader of Vale of Glamorgan council, raised the example of hospital discharges.

She said: “I think we’re probably one of the best in Wales now that we can actually get a care package sorted out for people to go home within approximately three days.

“That has been of great benefit to the health board but it basically means that we’re £10m overspent in our social care.”

Turning to education, Cllr Burnett said: “We’re having to be very, very careful in terms of how we rationalise spending for education. The demands, and the complexity of demand, have gone up exponentially – particularly since the pandemic.”

She said her council was “lowest funded by a long way” in terms of education, adding that there is an appetite for reform of the funding formula.

Nia Jeffreys, leader of Gwynedd council, said her local authority has cut £74m over the past decade, nearly a quarter of its day-to-day revenue budget.

Warning of no easy choices, Cllr Jeffreys told the committee: “The efficiency savings have been made already and we’re in a situation now where we’re looking at real-terms cuts … that means stopping doing things and halting services that people rely upon.”

She said Gwynedd and other councils in north Wales are looking at increasing council tax by 8% to 9%, placing a burden on families already struggling with a cost-of-living crisis.

Cllr Jeffreys echoed calls for an “absolutely vital” funding floor, pointing to additional costs of delivering public services in more rural areas.

Asked about increases in employer national insurance contributions, she put the cost to Gwynedd council at about £4.5m.

Cllr Hunt said councils have been assured that they will be given money towards the cost of the rise for directly employed staff.

He stressed: “That national insurance rise is one of the reasons why there’s more money now for public service organisations. And I think we need to be a bit careful not to welcome funding but complain about where it’s come from – it needs to come from somewhere.”

Cllr Morgan said the biggest concern is the money to cover the cost being “Barnettised” (i.e. based on spending in England) which could leave Welsh councils short.

He told the committee education and social care now make up about 70% of all council budgets, suggesting only so much “tinkering” can be done within the other 30%.

He raised concerns about the “eye-watering” costs of children’s care to councils, with some specialist placements costing a five-figure sum each week for every child.

SENEDD Members called for social housing standards to be extended to the private rented sector amid widespread concerns about poor quality homes.

John Griffiths, who chairs the local government committee, led a debate in the Senedd following an inquiry on the private rented sector in Wales.

Setting out the recommendations of the committee’s report, he said much of the evidence heard focused on the quality of accommodation, with damp and disrepair the main issues.

Mr Griffiths told the Senedd: “We know living in such conditions can have a detrimental impact on people’s health and wellbeing. It was concerning to hear of many instances of poor quality housing – tackling this must be a priority for the Welsh Government.”

He supported expanding the Welsh housing quality standard to cover the private sector, saying it is difficult to justify why some tenants should be entitled to any less quality.

Mr Griffiths acknowledged the challenge in extending the standard beyond social housing and the Welsh Government was non-committal in its formal response to the report.

Leading a debate in the Senedd on January 15, he said: “Our recommendations relating to housing quality were accepted in principle but we are disappointed the Welsh Government’s response does not indicate any immediate actions to remedy the concerns we heard.”

Mr Griffiths, who represents Newport East, added: “We recommended the development of a property MOT for fitness for human habitation and … the cabinet secretary referred to the consultation that’s under way on introducing an annual property condition record.

“This could be a step forward, but there’s no certainty of that yet.

“Propertymark, which represents letting agents, has voiced support … we note that landlords would self-certify but I’m not sure whether that goes far enough to address our concerns.”

Mr Griffiths said another theme from the inquiry was the continuing existence of no-fault evictions in Wales despite a ban in Scotland since 2017 and similar proposals in England.

Peter Fox, for the Conservatives, said statistics for October 2023 show private rental prices have risen by 6.9%, higher than in England and Scotland.

He told the Senedd: “The simple fact is that successive Labour governments in Wales have failed to build enough homes, resulting in increased competition for tenants.”

Mr Fox, who led Monmouthshire council for a decade before being elected to the Senedd in 2021, claimed anti-landlord policies have led to an “exodus” from the market.

Plaid Cymru’s Siân Gwenllian emphasised the need for timely action, warning Wales could fall behind England following the introduction of the UK Government’s renters’ rights bill.

Labour’s Carolyn Thomas raised concerns about no-pet policies, with a survey showing only 8% of rented properties in Wales advertised as pet friendly.

She said the committee heard people are becoming homeless after opting to stay with their pets rather than give up their companion to take shelter.

Jayne Bryant, who was appointed housing secretary in September, said ministers would take the same insurance cover approach to renting with pets as proposed in England.

She pointed to protections for private tenants under the Renting Homes (Wales) Act 2016 and Rent Smart Wales data showing a steady increase in property registrations.

Ms Bryant said many of the committee’s calls are covered in the Welsh Government’s white paper on housing, with a consultation on the proposals set to close on January 31.

A dramatic turn of events has seen the survey vessel KMS Terramare redirected to Broad Haven, where it is set to be intentionally beached this morning (Jan 15) on the outgoing tide. Pollution experts are on alert as concerns mount over potential environmental risks.

The vessel, which was stranded at Newgale Beach on Tuesday (Jan 14), was successfully refloated last night and towed west of Skomer Island. However, its attempt to enter the Port of Milford Haven was reportedly denied, forcing it to return towards Broad Haven.

Vodafone connection

It has emerged that the KMS Terramare was conducting operations on behalf of Vodafone, reportedly surveying subsea cables to connect high-speed fibre optic services from Ireland to Brawdy Business Park. While Vodafone confirmed the vessel was managed by a licensed subcontractor, the company declined to provide further details, citing “commercial sensitivity.”

A spokesperson for Vodafone commented: “We can confirm that a licensed subsea cable survey ship being managed by a subcontractor experienced some technical difficulties when seeking to leave Newgale beach in Pembrokeshire at high tide yesterday. We expect the issue to be resolved soon.”

Timeline of events

The vessel’s troubles began when it suffered engine failure at Newgale, leaving it broadside on the beach and battered by high tides. Efforts by St Davids RNLI Lifeboat to tow the 100-tonne vessel and load salvage pumps were abandoned on Tuesday due to challenging conditions.

On Wednesday evening (Jan 15), St Davids Lifeboat was called out again at 7:59pm to provide salvage pumps and escort the vessel towards Milford Haven. Despite assistance from Angle RNLI and local Coastguard teams, the vessel failed to reach the port, instead anchoring off Broad Haven. St Davids Lifeboat returned to station at 4:10am.

However, the drama continued just hours later when lifeboats were called out for a third time at 10:35am to assist the KMS Terramare near Broad Haven.

Community response

Local photographers and onlookers, including Gareth Davies of Hidden Pembrokeshire, have captured the unfolding drama, which has drawn significant attention in the area. The vessel’s connection to a major fibre optic project has added another layer of intrigue to an already complex situation.

A vessel in distress

The 24.5-metre, 100-tonne KMS Terramare first became stranded on Newgale Beach after experiencing engine failure, leaving it unable to maintain its position and forcing it broadside onto the pebbles. High tides and pounding waves inundated the deck, creating a precarious situation for the vessel and its crew.

HM Coastguard requested assistance from St Davids RNLI at 6:28pm on Tuesday. The all-weather lifeboat Norah Wortley launched swiftly into challenging conditions, with three-to-five-foot surf waves crashing against the shingle ridge at high tide. Despite best efforts, salvaging the vessel proved impossible.

RNLI Coxswain Will Chant explained: “The RNLI mission is to save lives at sea, and we endeavour to save boats if possible. However, it is beyond our remit to salvage. In this instance, the size of the vessel and its position broadside to the beach compromised a tow. Once assured the crew were safe ashore, there was nothing further our lifeboats could do.”

The crew of the KMS Terramare safely disembarked onto the beach, while the vessel remained grounded at Newgale until it was refloated late on Tuesday night.

Pollution concerns

Authorities are closely monitoring the situation as the vessel approaches Broad Haven. While no immediate pollution has been reported, the prolonged ordeal raises concerns about fuel leaks or other environmental damage. Pollution response teams are on stand-by to mitigate any potential hazards.

Refused entry to Milford Haven

Questions remain about the vessel’s future. The vessel is now off Broad Haven having been refused entry into Milford Haven for the time-being. Maritime experts will assess the vessel for damage and potential environmental risks before deciding the next steps.

Harbourmaster at the Port of Milford Haven, Mike Ryan, said: “The Port is aware of and engaged with all relevant agencies, including owners, salvors, MCA, and HMCG, regarding a situation with a survey vessel.

“Due to there being no risk to life but potential for a damaged vessel to present a navigational and/or pollution hazard to the Milford Haven Waterway’s marine environment and its core energy cargo operations, permission to enter was refused.

“This will remain the case until a clearer understanding of the position is obtained.

“As the UK’s leading energy port, operating in a Special Area of Conservation, we must do all we reasonably can to protect the sensitive marine environment and ensure the safe continuity of the country’s energy supplies.

“We are working with all parties to support a successful outcome for the vessel.”

The Herald will continue to provide updates on this evolving story.

Community watches: Residents and authorities alike are bracing for the vessel’s beaching and its potential implications.

Cover photo: Carrie Garner