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Politics

Calls for ‘outdated’ Barnett funding formula to be replaced

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THE SENEDD has called on the UK Government to replace the “outdated” Barnett funding formula with a new needs-based way of setting public spending in Wales.

Opening a Plaid Cymru debate, Rhun ap Iorwerth said having to make a case for fair funding speaks volumes about Wales’ status within an unequal union.

He told the chamber the population-based Barnett formula, which was devised in the late 1970s and only intended as a temporary measure, does not reflect the needs of Wales.

The Plaid Cymru leader described the funding formula as a weak, short-term solution from the 20th century based on the needs of another country.

He said: “It has become more and more apparent over the years that the Barnett formula is well past its sell-by date.”

Calling out apathy at Westminster, Mr Iorwerth accused the Conservatives of placing barriers before any attempts to reform and he criticised Labour for refusing to promise change.

He urged the new first minister to stand up for Wales, saying: “I want to hear a Labour first minister putting Wales first and not taking ‘no’ for an answer from Keir Starmer.”

Mr Iorwerth told MSs the Barnett formula has been a cornerstone for a broader pattern of unfairness faced by Wales in recent years.

He raised examples such as a lack of powers over the Crown Estate and £4bn in consequential funding for Wales from the HS2 project being withheld.

The Ynys Mon MS said: “This general theme of injustice that flows through all of those cases, and more, all emerge fundamentally from the failure to have fair and appropriate funding arrangements in place, and the Barnett formula is at the heart of that.”

Peter Fox said Wales continues to receive record funding, with the largest block grant in the history of devolution supplemented by about £440m of levelling-up funding.

The Conservatives’ shadow finance minister agreed that there needs to be a rethink about how the Barnett formula is calculated to better address Wales’ unique challenges.

Mr Fox said some strides were made to make the settlement fairer, with a 115% funding floor agreed between the Welsh and UK Governments in 2016.

He told the chamber: “That ensures the Welsh settlement will never drop below 115% of the money spent on public services in England. But we know currently that that floor hasn’t had to kick in, as the current settlement is delivering 120%, ie £1.20 for every £1 spent.”

Mr Fox stopped short of calling for the Barnett formula to be scrapped, saying it would be unrealistic in the UK context.

Peredur Owen Griffiths, Plaid Cymru’s shadow minister, said the state of the Welsh budget for the financial year from April shows in stark terms how poorly Wales is served.

He warned: “The experiences of the past few months have conclusively demonstrated that Welsh public finances are on an utterly unsustainable trajectory.”

The South Wales East MS argued the Barnett formula is ill-equipped to address the precarious state of council finances, with the threat of bankruptcy looming large.

He told the chamber that Wales’ 22 councils have a combined debt of £5.6bn, according to a UK public accounts committee report, with a £354m funding gap next year.

He said: “It would take a work of fiscal fiction that Jeremy Hunt himself would be proud of to argue the Barnett formula, in its current form, is sufficient to rectify this dire predicament.”

Mabon ap Gwynfor focused on the needs of Wales, saying: “The truth is, it’s more expensive to provide health and social care to older, more rural and impoverished communities.”

He argued replacing the Barnett formula should be regarded as a vital investment in health.

Sioned Williams, a fellow Plaid Cymru MS, said a needs-based model would not be an instant panacea but it would undoubtedly be a necessary step in the right direction.

She said: “We need to be honest with voters that the current arrangements will only keep us standing still on a path to a fairer and more equal society.”

Mike Hedges, a Labour backbencher, pointed out that the local government funding formula shows that a needs-based solution can still be controversial.

“The discussion we need is about how to get a needs-based framework to work,” he said.

Rebecca Evans told the chamber it is clear the UK funding model does not work for Wales.

The finance minister said the funding system for devolved governments is characterised by quick fixes, inconsistency, uncertainty and instability.

Ms Evans called for a new relative needs-based approach, overseen by a body independent of the UK Government and to be agreed by all four nations

She said: “That would be fairer but also more efficient and effective, and it would help reduce the distortions and inefficiencies that arise from the current system.

“It would enable a more rational, transparent allocation of public spending across the UK.”

The Plaid Cymru motion and Conservative amendment were defeated following the debate on March 20. The motion as amended by the Welsh Government was agreed, 37-15.

Local Government

Pembrokeshire Council faces backlash over £3.5m housing ‘buying spree’

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Critics say policy inflates numbers while new-build programme stalls

PEMBROKESHIRE COUNTY COUNCIL is under growing pressure over its multi-million-pound programme of buying back former council houses, with critics warning that the strategy gives the illusion of progress while long-promised new-builds remain stuck on the drawing board.

The latest criticism comes from Milford Haven councillor Mike Stoddart, who has accused the authority of “standing still” by funnelling Housing Revenue Account (HRA) cash into purchasing properties that were once part of the council’s own stock.

Stoddart said the council’s approach “doesn’t increase the housing stock – it merely moves people from the private sector into the public sector”.

He added: “It would be much better if the money was spent on building anew.”

A temporary fix that became permanent

The buy-back scheme began in 2017 when the council adopted a new inflation-linked rent regime that delivered sizeable HRA surpluses. At the time, officers described buying ex-council homes on the open market as a “stop-gap” measure until the new-build programme ramped up.

But that programme has repeatedly faltered. Major schemes in Johnston and Tiers Cross have been hit by cost overruns of around 66%. In Milford Haven, new flats on Charles Street are costing close to £300,000 each for a one- or two-bed unit, before adding land costs, architects’ fees and planning expenses.

Unhappy with the council’s home-buying spree: Cllr Mike Stoddart

Stoddart said the pattern amounted to a “disaster”, arguing that buying existing homes had become the authority’s default option. “It gives the impression of making progress while actually standing still,” he said.

Brownfield sites left idle

In Stoddart’s own ward, three former school sites have stood empty since 2018. Their redevelopment is not expected to begin until 2027 or 2028. Meanwhile, the council’s purchasing programme has accelerated.

A Cabinet report for late 2025 shows more than £3.5 million spent on acquisitions in just the first half of the year.

The most striking deal was a bulk purchase of five homes in Harcourt Close, Hook, for £1.851 million — almost £400,000 each. Stoddart said the developer would think “all his birthdays have come at once”, with the council avoiding estate agents’ fees, reducing legal costs and allowing the seller to immediately stop paying interest to the bank.

Thirteen high-value purchases

All properties were bought for over £100,000 and moved into the council’s HRA stock:

AddressLocationPriceCompletion
32 Southdown ClosePembroke£115,00029/07/2025
8 HyfrydleLetterston£115,00001/08/2025
6 Precelly PlaceMilford Haven£120,00022/09/2025
50 Heywood CourtTenby£125,00002/10/2025
33 Croft AvenueHakin, Milford Haven£130,00020/10/2025
7 HyfrydleLetterston£135,00005/09/2025
18 St Clements ParkFreystrop£140,00014/07/2025
55 College ParkNeyland£140,00028/10/2025
26 Baring Gould WayHaverfordwest£146,00015/08/2025
25 Station RoadLetterston£170,00010/10/2025
16 Woodlands CrescentMilford Haven£283,00031/10/2025
26 & 27 Harcourt CloseHook£744,00022/10/2025
23, 24 & 25 Harcourt CloseHook£1,107,00030/07/2025

All purchases were made from HRA reserves with no borrowing, a point the council highlights as prudent financial management.

Fears over market distortion

Stoddart also warned that the authority’s deep pockets may be pricing out young families by outbidding first-time buyers for entry-level homes. “If classical economic theory is to be believed, it’s forcing up the price,” he said.

House prices in Pembrokeshire have risen around 15% in the past year, according to recent ONS data. Local estate agents, speaking anonymously, told this newspaper that council intervention “definitely nudges prices upward” in hotspots like Hook, Neyland and Milford Haven.

Council defends strategy

A council spokesperson said the approach was necessary to deliver homes “immediately” amid chronic shortages.

“Acquiring existing properties allows us to respond quickly to housing need,” they said. “New-builds remain a priority, but delays in planning, construction and funding mean we must use all available tools to meet demand. All purchases represent value for money and are compliant with our HRA strategy.”

Housing charity Shelter Cymru took a different view, arguing that “recycling stock is not a substitute for expansion”. The charity says Pembrokeshire needs around 500 new affordable homes a year to meet demand.

‘Residents deserve homes, not headaches’

Social housing waiting lists in Pembrokeshire now exceed 2,000 applicants. With another Cabinet briefing due later this month, Stoddart says he will push for a fundamental rethink.

“It’s time to stop standing still,” he told this newspaper. “Our residents deserve homes, not headaches.”

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Business

Cwm Deri Vineyard Martletwy holiday lets plans deferred

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CALLS to convert a former vineyard restaurant in rural Pembrokeshire which had been recommended for refusal has been given a breathing space by planners.

In an application recommended for refusal at the December meeting of Pembrokeshire County Council’s planning committee, Barry Cadogan sought permission for a farm diversification and expansion of an existing holiday operation through the conversion of the redundant former Cwm Deri vineyard production base and restaurant to three holiday lets at Oaklea, Martletwy.

It was recommended for refusal on the grounds of the open countryside location being contrary to planning policy and there was no evidence submitted that the application would not increase foul flows and that nutrient neutrality in the Pembrokeshire Marine SAC would be achieved within this catchment.

An officer report said that, while the scheme was suggested as a form of farm diversification, no detail had been provided in the form of a business case.

Speaking at the meeting, agent Andrew Vaughan-Harries of Hayston Developments & Planning Ltd, after the committee had enjoyed a seasonal break for mince pies, said of the recommendation for refusal: “I’m a bit grumpy over this one; the client has done everything right, he has talked with the authority and it’s not in retrospect but has had a negative report from your officers.”

He said the former Cwm Deri vineyard had been a very successful business, with a shop and a restaurant catering for ‘100 covers’ before it closed two three years ago when the original owner relocated to Carmarthenshire.

He said Mr Cadogan then bought the site, farming over 36 acres and running a small campsite of 20 spaces, but didn’t wish to run a café or a wine shop; arguing the “beautiful kitchen” and facilities would easily convert to holiday let use.

He said a “common sense approach” showed a septic tank that could cope with a restaurant of “100 covers” could cope with three holiday lets, describing the nitrates issue as “a red herring”.

He suggested a deferral for further information to be provided by the applicant, adding: “This is a big, missed opportunity if we just kick this out today, there’s a building sitting there not creating any jobs.”

On the ‘open countryside’ argument, he said that while many viewed Martletwy as “a little bit in the sticks” there was already permission for the campsite, and the restaurant, and the Bluestone holiday park and the Wild Lakes water park were roughly a mile or so away.

He said converting the former restaurant would “be an asset to bring it over to tourism,” adding: “We don’t all want to stay in Tenby or the Ty Hotel in Milford Haven.”

While Cllr Nick Neuman felt the nutrients issue could be overcome, Cllr Michael Williams warned the application was “clearly outside policy,” recommending it be refused.

A counter-proposal, by Cllr Tony Wilcox, called for a site visit before any decision was made, the application returning to a future committee; members voting seven to three in favour of that.

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Climate

Fishguard ‘battery box’ scheme near school refused

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PLANNERS have refused a Pembrokeshire ‘battery box’ electricity storage unit near a Pembrokeshire town school, which has seen local objections including fears of a potential risk to nearby school children.

In an application recommended for approval at the December meeting of Pembrokeshire County Council’s planning committee, AMP Clean Energy sought permission for a micro energy storage project on land at Fishguard Leisure Centre Car Park, near Ysgol Bro Gwaun.

The application had previously been recommended for approval at the November meeting, but a decision was deferred pending a site visit.

The scheme is one of a number of similar applications by AMP, either registered or approved under delegated planning powers by officers.

The battery boxes import electricity from the local electricity network when demand for electricity is low or when there are high levels of renewable energy available, exporting it back during periods of high demand to help address grid reliability issues; each giving the potential to power 200 homes for four hours.

The Fishguard scheme, which has seen objections from the town council and members of the public, was before committee at the request of the local member, Cllr Pat Davies.

Fishguard and Goodwick Town Council objected to the proposal on grounds including visual impact, and the location being near the school.

An officer report said the scheme would be well screened by a Paladin Fence, with a need to be sited close to an existing substation.

Speaking at the December meeting, Ben Wallace of AMP Clean Energy conceded the boxes were “not things of beauty” before addressing previously raised concerns of any potential fire risk, saying that “in the incredibly unlikely” event of a fire, the system would contain it for up to two hours, giving “plenty of time” for it to be extinguished, an alarm immediately sounding, with the fire service raising no concerns.

“These are fundamentally safe, the technology is not new,” he said, comparing them to such batteries in phones and laptops.

One of the three objectors at the meeting raised concerns of the proximity to homes and the school, describing it as “an unsafe, unsustainable and unnecessary location,” with Cllr Jim Morgan of Fishguard Town Council, who had previously raised concerns of the “nightmare scenario” of a fire as children were leaving the school, also voicing similar issues.

Local county councillor Pat Davies, who had spoken at the previous meeting stressing she was not against the technology, just the location and the potential risk to pupils, said the siting would be “a visual intrusion,” with the school having many concerns about the scheme, adding it had been “brought forward without any dialogue of consultation with the school”.

Cllr Davies added: “It is unacceptable that a micro-storage unit should be proposed in this area; someone somewhere has got it wrong.”

Following a lengthy debate, committee chair Cllr Mark Carter proposed going against officers in refusing the scheme; members unanimously refusing the application.

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