News
Why is Pembrokeshire looking at a massive council tax hike?
SENIOR Pembrokeshire councillors are expected to call for council tax increase as high as 21 per cent next week against a backdrop of the council facing its worst-ever financial position.
Pembrokeshire is currently facing a projected funding gap of £31.9m, by far the largest funding gap ever seen by the council.
This figure is even bleaker in the next few years; the projected funding gap for the Medium Term Financial Plan 2024-25 to 2027-28 is £82.2m.
A report before Pembrokeshire County Council’s Cabinet, meeting on February 12 says: “This projected funding gap will need to be bridged through a combination of an increase in council tax, use of council tax premiums and budget savings.
“Any use of reserve funding will only be considered where there is a clear plan in place to reduce base budgets by the levels required for 2025-26 onwards and to replenish the reserve balances over the term of the Medium Term Financial Plan, in line with the Strategy for Holding and Utilising Reserves.”
In total, Pembrokeshire is facing financial pressures totalling £41.3m, partly offset by funding – some of which is yet to be fully confirmed – bringing that figure down to £31.9m.
Simple options to address this gap are
- to cut expenditure, which would require £31.9m in savings
- increase funding through a council tax rise alone, which would need an eye-watering 42 per cent rise
- a combination of the two, which is proposed.
Cabinet members are asked to recommend one of three options for a council tax increase, along with large budget savings.
The increases range from 16.31 per cent, 18.94 per cent, to a 20.98 per cent increase.
These increases would raise the annual council tax bill by £219.02, £254.34, and £281.73 respectively for the average Band D property.
Associated savings needed for the three levels would be £12.8m, £10.9m, and £9.3m.
A report for members stated: “Any Band D Council Tax increase below 16.31 per cent will have very significant impact, including statutory failure in some service areas and so is not considered to be a financially sustainable option.”
The report said options for a 15 and 12.5 per cent council tax increase were modelled, but “this would have resulted in very significant budget savings being required and some services no longer being able to meet their statutory requirements”.
One of the reasons for the financial situation in Pembrokeshire – and in neighbouring Ceredigion – is a lower-than-expected Provisional Local Government Settlement from Welsh Government.
Every year the Welsh Government allocates funding for each local authority, and for 2024-25 Pembrokeshire will only receive a 2.5 per cent increase in that funding against a 14.4 per cent increase in service costs.
This equates to £5.3m additional Aggregate External Finance (AEF) funding for Pembrokeshire County Council, £1.3m lower than assumptions of a 3.1 per cent increase.
This lower than-expected settlement is part of a general decline in central government support for councils, council Leader David Simpson has said.
“During the past decade, funding levels from UK Government to Welsh Government and on to councils have not kept pace with the ever-increasing pressures.
“Due to this, we have had to make significant budget savings of £96.7 million over this time, supported by your suggestions in our annual budget consultation. We have always endeavoured to minimise the impact to service users, especially the most vulnerable in our communities.”
Council Tax accounts for 26.05 per cent of the council’s general funding, with more reliance on council tax funding due to AEF reductions during the austerity period whilst council tax increased.
Council tax accounted for only 18.4 per cent in 2013-14.
Pembrokeshire is also facing an “unprecedented” increase in demand for both adult and children’s social care that has added more than £23m in pressures.
In five years, children’s social care costs have risen from six per cent of the budget to 10.3 per cent.
Social care and education costs now make up 78 per cent of overall pressures with social care costs exceeding education costs for the first time this year, Council Leader David Simpson has said.
In 2024/25 the budget for social care will be more than all other services combined, excluding schools.
There has also been a huge increase in the number of people needing temporary accommodation, from 78 in March 2019 to 507 in March 2023, leading to a £1.145m pressure for 2024/25.
Another issue in Pembrokeshire has been historically low levels of council tax, the county still having the lowest rate in Wales, despite having increases of 12.5%, 9.92%, 5.00%, 3.75%, 5.00% and 7.50% since 2018-19.
The average Band D base council tax for Pembrokeshire is £1,342.86, compared to Ceredigion and Carmarthenshire at £1,553.60 and £1,490.97 respectively.
If the council had Ceredigion’s level of council tax for 2023-24, it would have had an additional £11.758m income and if it had Carmarthenshire’s it would have had an additional £8.264m.
Ceredigion County Council Cabinet’s has proposed a 13.9 per cent increase in council tax, which would take a Band D property to £1,769.55 per year; if Pembrokeshire increased its Band D rate to £1,769.55 it would generate an additional £23.902m.
The final decision on the council tax level – and any savings – will be made by full council when it sets the annual budget on March 7.
Neighbouring Ceredigion will make its final decision on February 29.
Entertainment
Gavin & Stacey stars reunite for Christmas advert
GAVIN & STACEY favourites Joanna Page and Mathew Horne have reunited on screen for a Christmas special – though not the one fans might have hoped for. Instead of returning to Barry or Billericay, the duo appear together in a new festive advert for Waitrose, sharing a turkey pie while responding to a fan’s heartfelt letter about expressing love through food.
The short film marks their appearance in How to Say It With Food, a six-part series in which Page and Horne tackle some of the nation’s most common Christmas food dilemmas. The clip opens with Page teasingly nodding to their iconic sitcom: “Oh, you didn’t think we’d let Christmas roll around without showing up again, did you?”
Horne quickly follows with his own playful line: “Us? Miss Christmas? Not a chance. But this time we’re here to help you say it with food.”
The pair are then handed an envelope “from Santa”, containing a letter from a viewer asking how he can show his “leading lady” he loves her through food. Mathew quips: “First time saying it, you want a statement. Sixteenth time, you want a statement that doesn’t involve socks.”
He then introduces Waitrose’s new Christmas advert starring Keira Knightley and Joe Wilkinson. The main campaign follows an unlikely festive romance sparked by Sussex Charmer cheese and culminating in Wilkinson presenting Knightley with a turkey pie decorated with the words “I love you”. Watching the moment unfold, Page smiles at Horne and mirrors another classic Gavin & Stacey reference: “Oh, that’s so romantic.”
The duo are soon given their own turkey pie to try. Horne eagerly tucks in before cutting Page a slice, prompting laughter from his co-star. The advert ends with the pair wishing viewers a Merry Christmas as Knightley and Wilkinson share a warm festive kiss on screen.
The reunion comes almost a year after audiences tuned in to the BBC sitcom’s much-anticipated finale, which drew an impressive 12.3 million viewers on Christmas Day. The episode wrapped up storylines including Gwen’s blossoming romance with Dave Coaches, Smithy’s near-wedding to Sonia, and the moment fans had long debated – Smithy and Nessa tying the knot.
Reflecting on the new project, Page said: “You thought you’d seen the last of us! Well, we’re back and what fun we had.” She added: “It was such a treat working with Mat… food is what brings people together over the festive season.”
Horne described the experience as “brilliant”, calling their on-screen reunion “a Christmas tradition”.
Health
Government orders clinical review amid sharp rise in mental health diagnoses
4.4 million working-age people now claiming sickness or incapacity benefit, up by 1.2 million since 2019, many because of a mental health condition
A CLINICAL review into how mental health conditions are diagnosed across the UK is expected to begin this week, following concerns within government over rapidly rising sickness-benefit claims linked to conditions such as autism, ADHD and anxiety.
Health Secretary Wes Streeting has commissioned leading clinical experts to examine whether ordinary emotional distress is being “over-pathologised” and to assess why the number of people receiving sickness and incapacity benefits has grown to 4.4 million – an increase of 1.2 million since 2019.
According to reports in The Times, ministers are particularly alarmed by the surge in the number of 16- to 34-year-olds now out of work because of long-term mental health conditions.
Streeting said he recognised “from personal experience how devastating it can be for people who face poor mental health, have ADHD or autism and can’t get a diagnosis or the right support,” but added that he had also heard from clinicians who say diagnoses are “sharply rising”.
“We must look at this through a strictly clinical lens to get an evidence-based understanding of what we know, what we don’t know, and what these patterns tell us about our mental health system, autism and ADHD services,” he told the newspaper. “That’s the only way we can ensure everyone gets timely access to accurate diagnosis and effective support.”
The review is expected to be chaired by Prof Peter Fonagy, a clinical psychologist at University College London specialising in child mental health, with Sir Simon Wessely, former president of the Royal College of Psychiatrists, acting as vice-chair.
Prof Fonagy said the panel would “examine the evidence with care – from research, from people with lived experience and from clinicians working at the frontline of mental health, autism and ADHD services – to understand, in a grounded way, what is driving rising demand.”
The move comes as the UK Government faces mounting pressure over the rising welfare bill. Ministers earlier this year pulled back from proposed changes to disability benefits, including those affecting people with mental health conditions, after opposition from Labour backbenchers.
Speaking on Monday, the Prime Minister said a fresh round of welfare reform was needed.
Keir Starmer said: “We’ve got to transform it; we also have to confront the reality that our welfare state is trapping people, not just in poverty, but out of work.”
Business
Welsh Govt shifts stance on business rates after pressure from S4C and Herald
Ministers release unexpected statement 48 hours after widespread concern highlighted in Welsh media
THE WELSH GOVERNMENT has announced a new package of tapered business rates relief for 2026-27, in a move that follows sustained pressure from Welsh media — including S4C Newyddion and The Pembrokeshire Herald — over the impact of revaluation on small businesses.
In Milford Haven, the hard-pressed pub sector is already feeling the impact: the annual bill for The Lord Kitchener is rising from £5,000 to £15,000, while rates at the Kimberley Public House have nearly doubled from £10,500 to £19,500. The Imperial Hall’s rates are increasing from £5,800 to £9,200, prompting director Lee Bridges to question why businesses “are being asked to pay more when we use less services”. In Haverfordwest, the annual rates bill for Eddie’s Nightclub is increasing from £57,000 to £61,500.
A written statement, issued suddenly on Wednesday afternoon, confirms that ministers will introduce a transitional “tapering mechanism” to soften steep increases for tourism, hospitality and small independent operators. Full details will be published with the draft Budget later this month.
The announcement comes less than two days after The Herald’s in-depth reporting brought forward direct concerns from Pembrokeshire business owners and councillors, highlighting the uncertainty facing one of Wales’ most important local industries.
Herald reporting credited by senior councillor

Pembrokeshire County Council Independent Group Leader Cllr Huw Carnhuan Murphy publicly thanked The Herald for pushing the issue into the spotlight.
In a statement shared on Wednesday, Cllr Murphy said: “Welcome news from Welsh Government. Thanks to Tom Sinclair for running this important item in the Herald in relation to the revaluation of businesses and the consequences it will have for many.
He added: “Newyddion S4C hefyd am redeg y stori pwysig yma ynghylch trethi busnes.,” which in English is “and thanks to S4C Newyddion as well for running this important story about business taxes.”
He added that the Independent Group “will always campaign to support our tourism and agriculture industry, on which so many residents rely within Pembrokeshire”.
Media spotlight increased pressure on Cardiff Bay
On Monday, ministers said business rates plans would be outlined “within the next two weeks”.
By Wednesday afternoon — following prominent coverage on S4C and continued pressure from The Herald — Welsh Government released an early written statement outlining new support.
Industry sources told The Herald they believed the level of public concern, amplified by the media, “forced the issue up the agenda much faster than expected”.
A cautious welcome for ‘better than nothing’
Cllr Murphy welcomed the partial support, though he stressed it fell short of what many businesses had hoped for.
“This isn’t the level of support many were hoping for,” he said, “but it is certainly much better than nothing.”
Draft Budget expected soon
The full tapered support scheme will be detailed in the Welsh Government draft Budget, expected within a fortnight.
Tourism and hospitality representatives have reserved final judgment until the figures are published, but many have expressed relief that some support will continue, following weeks of uncertainty.
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