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.
Farming
Farmers fight back: Inheritance tax row at Welsh Labour conference
THE Welsh Labour conference in Llandudno, Conwy, on Saturday (Nov 16) became the backdrop for a large and impassioned protest by farmers opposing the Labour government’s controversial inheritance tax changes. Hundreds of farmers descended on the venue with tractors and vehicles, voicing their frustration at what they describe as policies that will devastate rural communities and family farms.
The protest was a coordinated effort by Digon yw Digon (“Enough is Enough”), a group advocating for rural communities. Protesters carried signs reading “Labour War on Countryside” and “No Farmers No Food,” while tractors lined the promenade outside Venue Cymru.
Starmer’s absence deepens anger
Farmers had hoped to confront Prime Minister Keir Starmer directly and present their concerns. However, Starmer avoided the protesters, leaving the venue without meeting them. This decision was sharply contrasted by the actions of former Prime Minister Rishi Sunak, who earlier this year attended the Welsh Conservative Conference and took time to speak with farmers about their challenges.
One farmer remarked, “Starmer didn’t have the guts. He left without facing us.”
The farmers’ message
In lieu of a direct meeting, the farmers delivered a strongly worded letter addressed to Starmer, outlining their grievances:
“Dear Prime Minister,
Croeso i Gymru,
Today you can see the depth of feeling and concerns that you are creating as the PM of this country towards the rural areas and farming community.
The outcome of your Budget highlights the government’s incapacity to look at the position as a whole rather than a tick-box exercise to fulfill your selfless ambition.
The inheritance tax debacle highlights this case. This new tax represents a considerable challenge not only for farmers but also the broader agricultural sector. The £1 million threshold is alarmingly low, and many farmers will face impossible decisions to sell portions of their land to cover these costs. This will affect the smaller family farm the most.”
Why farmers are protesting
The changes announced in the Autumn Budget include:
- A new 20% inheritance tax on farms valued over £1 million.
- Modifications to Agricultural Property Relief (APR) and Business Property Relief (BPR), effective from April 2026.
Farmers fear these changes will force many family-run farms to sell land, leading to reduced food production and driving up food prices.
Becky Wall, a farmer at the protest, made an emotional appeal:
“Please support our farmers; they work hard over long hours to feed us. Without them, we have no food. These changes will also impact small businesses connected to farming, posing a serious threat to our economy and our bellies.”
Rural Wales under pressure
The letter also highlighted the cumulative challenges faced by Welsh farmers, including the draconian impact of Nitrate Vulnerable Zone (NVZ) regulations, increasing incidences of bovine tuberculosis (TB), and uncertainty surrounding the Sustainable Farming Scheme (SFS).
“This cumulative approach has created despair in the countryside,” the letter continued. “As food supplies decrease, it will become more expensive, and the poorest in society will suffer the most.”
Gareth Wyn Jones, a farmer and broadcaster, expressed the emotional toll on rural communities:
“They’re destroying an industry already on its knees mentally, emotionally, and physically. We need government support, not hindrance, to feed the nation. Enough is enough.”
A strike as a last resort
As frustration boils over, some farmers have announced plans to go on strike starting Sunday. While economically challenging, the strike reflects the growing anger in the countryside.
The protest in Llandudno is part of a larger movement, with a major demonstration planned for Westminster next Tuesday. The event has already drawn so much support that its location was moved from Trafalgar Square to accommodate the expected turnout.
Starmer defends budget
Inside the conference, Starmer defended the Budget, describing it as a tough but necessary measure to stabilise the economy:
“Make no mistake, I will defend our decisions in the Budget all day long. Tough decisions were necessary to protect the payslips of working people, fix the foundations of our economy, and invest in the future of Wales and Britain.”
Starmer also hailed Labour’s collaboration between Westminster and the Welsh government as a “gamechanger,” promising that communities in Wales would benefit from Labour-led governments pulling in the same direction.
Investments and promises
Despite the protests, the conference included announcements of major investments:
- A £160 million investment zone for Flintshire and Wrexham, described by Starmer as a turning point for the region’s economy.
- An additional £22 million to tackle NHS waiting lists in Wales, adding to the £28 million pledged earlier this year.
- A record £21 billion Budget allocation for Wales in 2025.
First Minister Eluned Morgan touted the “power in partnership” between the two Labour governments and emphasised their commitment to delivering for Welsh communities.
Farmers and rural advocates insist that their voices will not be ignored. The inheritance tax changes have become a flashpoint for broader frustrations with government policies affecting rural areas.
As the protest letter concluded: “Prime Minister, we ask that you revisit the whole approach to farming and rural communities as a matter of urgency. This is a last resort, but growing anger in the countryside has brought us here. The one thing Labour has achieved is uniting farmers, businesses, and rural communities against these policies.”
With protests expected to intensify in the coming days, the farming community’s fight for their livelihoods and the future of rural Wales continues.
News
Four shouts in busy period for Angle RNLI
AT 10:32am on Friday, November 15, Angle RNLI’s all-weather lifeboat was launched following a Pan Pan call from an 18ft vessel experiencing machinery issues near Pennar Point.
The lifeboat quickly located the vessel at anchor in shallow water. After a brief conversation with the skipper, the lifeboat crew established a tow and safely guided the vessel to Neyland Marina. The casualty vessel was secured alongside the fuel pontoon, and the lifeboat returned to its station by 12:30pm.
SEARCH FOR MISSING FEMALE
Two days earlier, on Wednesday, November 13, the crew were conducting an afloat exercise when they were diverted to assist in a search for a missing woman near West Angle.
The lifeboat made best speed to the area and began a search operation. However, the woman was later found safe and making her way back to the car park. St Govan’s and Tenby Coastguard Rescue Teams were also involved in the search.
MISSING FISHERMAN LOCATED
On Monday, October 28, at 10:59pm, the crew joined a large-scale search for a missing fisherman at St Brides Haven. Working with St David’s all-weather lifeboat, Little Haven inshore lifeboat, coastguard rescue teams from Dale and Broad Haven, and Dyfed-Powys Police, the crew searched from West Dale to Jack Sound.
While passing Marloes, the lifeboat crew spotted lights on the shore. The discovery was relayed to the cliff-top teams, who confirmed the lights belonged to the missing fisherman. The man was found safe and escorted off the beach, allowing all search teams to stand down. The lifeboat returned to station by 12:30am.
POLICE INCIDENT RESOLVED
The day before, on Sunday, October 27, at 10:24pm, the crew were paged to assist with a police incident on the Cleddau Bridge. However, the launch was cancelled as the situation was resolved by police before the lifeboat deployed.
Angle RNLI remains on standby 24/7, ready to respond to emergencies along the Pembrokeshire coast.
Health
Eluned Morgan on NHS: ‘I’ve listened, I’ve heard, I’m making it happen’
FIRST Minister Eluned Morgan is set to announce an additional £22 million to tackle NHS waiting lists, bringing the total funding commitment to £50 million in a bid to address the longest delays in NHS Wales.
The announcement will form a key part of her speech at the Welsh Labour Conference on Saturday in Llandudno, marking her first as Welsh Labour Leader. Morgan will emphasise the strength of partnership between the Welsh and UK Labour Governments, showcasing their shared commitment to delivering for the people of Wales.
The funding pledge comes two weeks after Rachel Reeves unveiled a historic £21 billion funding settlement for the Welsh Government—the largest since devolution. Drawing on her summer listening tour, where she engaged with thousands across Wales, Morgan will declare: “I’ve listened, I’ve heard, I’m making it happen.”
Focus on NHS and Green Growth
During her tour, the First Minister heard the pride people feel for the Welsh NHS and its workforce, as well as the importance of safeguarding its future. Today’s funding boost underscores Welsh Labour’s commitment to addressing key issues, distinguishing it as the only party serious about governance and delivery.
In addition to NHS investment, Morgan will highlight her administration’s ambitions for green jobs and growth. Five new renewable energy projects are set to be unveiled, alongside plans to streamline infrastructure planning by 12 weeks—a move aimed at accelerating progress in Wales. These initiatives are expected to create hundreds of skilled jobs, reinforcing Labour’s commitment to a greener, more prosperous future.
Conservative Perspective on NHS Wales
The Welsh Conservatives have expressed concerns regarding the current state of NHS Wales. They have highlighted issues such as prolonged waiting lists and underfunding, attributing these challenges to longstanding Labour governance. In a recent statement, the Welsh Conservatives emphasized the need for increased investment and support for NHS staff, proposing the establishment of an NHS Covenant to guarantee such commitments.
Additionally, the Welsh Conservatives have criticized the Labour Government for not allocating the full Barnett consequential funding to the Welsh NHS, arguing that this shortfall has exacerbated existing challenges within the health service.
Delivering for Wales
The Conference will celebrate the achievements of the Welsh Labour Government while setting out its future priorities. From tackling NHS challenges to driving renewable energy development, the event will demonstrate Morgan’s focus on the issues that matter most to the people of Wales.
Eluned Morgan’s speech is expected to reaffirm Welsh Labour’s ambition to lead with purpose, listening to the public and working closely with the UK Labour Government to deliver tangible results.
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