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.
international news
Mandelson quits Lords amid police probe over Epstein links
Peter Mandelson has announced he will retire from the House of Lords with immediate effect, as mounting political and legal pressure grows over claims he shared sensitive government information with convicted sex offender Jeffrey Epstein.
Parliamentary officials confirmed that Peter Mandelson formally notified the Clerk of the Parliaments of his decision, ending his membership of the upper chamber from Tuesday (Feb 4).
The move follows reports that the Metropolitan Police Service is reviewing allegations of possible misconduct in public office connected to emails said to have been forwarded to Epstein while Mandelson was business secretary during the 2008–09 financial crisis.
Downing Street has confirmed that material has been passed to police after an initial Cabinet Office review.
Government fury

Prime Minister Keir Starmer told cabinet colleagues Mandelson had “let his country down”, according to No 10, and officials are now drafting legislation that could strip him of his peerage entirely.


Removing a life peer is rare and would require an Act of Parliament.
If passed, Mandelson would lose the title “Lord” altogether — an extraordinary step that has only been considered in the most serious cases.
Senior ministers have described the alleged passing-on of market-sensitive government discussions as “disgraceful” and a “betrayal of trust”.
What police are examining
Misconduct in public office is a centuries-old common law offence that applies where someone in a position of public trust wilfully abuses that role. It carries a maximum sentence of life imprisonment.
Investigators will assess whether confidential information — particularly relating to government financial policy during the crash — was shared without justification and whether safeguards were breached.
At this stage, no charges have been brought.
Mandelson has previously apologised for maintaining contact with Epstein after the financier’s conviction, saying he regrets “ever having known him”, but he has disputed some of the latest claims and has not commented directly on the police review.
Political shockwaves
Opposition parties are pushing for further disclosure of documents relating to Mandelson’s vetting and his past roles.
Conservatives are expected to force a Commons vote demanding more information, while Liberal Democrats have called for a public inquiry.
Several MPs have also suggested Mandelson should be removed from the Privy Council.
The developments mark a dramatic fall for one of Labour’s most influential political figures of the past three decades, who only months ago was serving as the UK’s ambassador to Washington.
Now, with police examining evidence and legislation being prepared to remove his title, his public career appears effectively over.
More updates are expected as the investigation continues.
Community
Cleddau at heart of major water reforms as ministers promise ‘fundamental reset’
New regulation plan aims to tackle pollution, sewage spills and ageing infrastructure
COMMUNITIES along the River Cleddau could see tighter controls on pollution and stronger oversight of water companies after ministers unveiled what they describe as a once-in-a-generation shake-up of how Wales’ water system is run.
The Welsh Government this week published a Green Paper promising cleaner rivers, tougher enforcement and a new Welsh economic regulator dedicated solely to the water sector.
Deputy First Minister Huw Irranca-Davies said it was time for a “fundamental reset” to rebuild public trust, warning that ageing infrastructure, climate pressures and growing concern about water quality meant the current system was no longer fit for purpose.
For Pembrokeshire residents, those words land close to home.

Local frustration growing
From Haverfordwest down to Milford Haven, the Cleddau is both a working waterway and a natural asset, supporting wildlife, leisure users, anglers and tourism businesses.
But in recent years there have been repeated complaints about sewage overflows, murky water after heavy rain and nutrient pollution washing in from across the catchment.
Storm discharges and wastewater treatment are the responsibility of Dŵr Cymru Welsh Water, while environmental enforcement sits with national regulators. Many locals say neither has acted quickly enough when problems arise.

Residents and river users have told The Herald they feel the estuary is “worse than it used to be”, particularly after periods of wet weather when combined sewer overflows can activate.
Concerns range from the impact on fish stocks and birds to whether the water is safe for paddleboarding, sailing and wild swimming.
What ministers are proposing
The consultation sets out plans to:
- create a new Welsh regulator focused on water
- strengthen monitoring and enforcement
- drive investment in ageing pipes and treatment works
- improve transparency and accountability
- support long-term environmental protection
Since 2022, the government says it has invested more than £56 million tackling water quality through enforcement, monitoring and nature-based solutions. A further £5 million has been earmarked next year specifically for river and coastal improvements.
Ministers say the changes should make it easier to fine or sanction poor performance and force faster upgrades where infrastructure is failing.

Why the Cleddau matters
The Cleddau catchment is one of west Wales’ most important waterways.
It feeds into the Milford Haven Waterway, a key centre for industry, energy, fishing and recreation, while also providing habitat for protected wildlife and drawing thousands of visitors each year.
Any decline in water quality has knock-on effects not just for nature but for jobs and the local economy.
Campaigners argue that without tougher oversight and sustained investment, the river risks long-term damage.
Consultation open
The Green Paper is now out for public consultation, with ministers inviting views from residents, businesses and community groups.
For many in Pembrokeshire, this may be a rare chance to push for specific improvements on their doorstep — from fewer sewage discharges to better monitoring of agricultural runoff and clearer reporting when incidents occur.
If the promised “reset” is to mean anything locally, it will be judged on one thing: whether the Cleddau actually gets cleaner.
The consultation is open on the Welsh Government website, and submissions can be made by individuals as well as organisations.
News
Davies and Morgan clash over policing powers and terror response in Senedd exchange
CONSERVATIVE MS says breaking up UK would ‘benefit criminals’ as First Minister insists Wales would still rely on cross-border co-operation
A ROW over whether policing powers should be devolved to Wales spilled onto the Senedd floor as a senior Conservative warned that separating from UK-wide structures could leave the country exposed to terrorism and serious crime.

During questions to the First Minister in Senedd Cymru, Andrew RT Davies pressed ministers on whether law and order is better delivered from Westminster rather than Cardiff Bay.
Opening the exchange, Mr Davies said that although he and the Welsh Government disagreed on where policing powers should sit, they should both accept that dismantling the United Kingdom would weaken security.
He told the chamber that if “separatists had their way and they broke up the United Kingdom, policing would be fundamentally weakened in these islands and the criminals will benefit from it”.
He asked the First Minister to agree that the UK provides the strongest framework for keeping communities safe through joint working between England, Wales, Scotland and Northern Ireland.
“The co-operative working and that strong union, working together… protects the citizens of this great country of ours,” he said, urging ministers to reject what he called a “narrow, separatist, independent argument”.

‘Strong devolution in a strong UK’
Responding, Eluned Morgan said her government was not pursuing devolution as a stepping stone to independence.
“We want to see strong devolution in a strong UK,” she said, adding that Labour remained committed to improving services rather than chasing constitutional change for its own sake.
She argued that reforming how policing is governed in Wales could improve accountability and outcomes for the public, particularly as discussions continue over replacing the current police and crime commissioner model.
“We want to see change when it comes to policing… because we want to see better provision for the people in Wales,” she told MSs.
Terrorism expertise ‘not something you could replicate’
However, the First Minister acknowledged that certain specialist capabilities, particularly counter-terrorism, would still require close links with the rest of the UK.
“It of course makes sense for us to co-operate across the border when it comes to policing, when it makes sense,” she said.
“Just think about terrorism; we’ll never have the kind of absolute expertise in terrorism that you may get in a place like London. We would have to work with them and depend on them—not something you could do in an independent Wales.”
Her comments prompted Mr Davies to argue that this reliance showed why policing should remain reserved to Westminster.
He later said the admission demonstrated “the dangers of putting the Senedd in charge of policing”, claiming Wales could end up dependent on external support during major incidents.
Long-running debate

Policing and criminal justice are among the few major public services not currently devolved to Wales, with responsibility resting with the UK Government.
Supporters of devolution, including Plaid Cymru, argue that Welsh control would allow policies better tailored to local needs.
Opponents say fragmenting the system could weaken intelligence sharing and increase costs, particularly for specialist units tackling organised crime and terrorism.
The exchange underlines how the issue remains a political dividing line in Cardiff Bay, with both sides framing the argument around public safety rather than constitutional theory.
For now, any change would require agreement from Westminster, meaning the debate is likely to continue long before any powers formally shift.
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