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Calls for ‘outdated’ Barnett funding formula to be replaced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THE SENEDD has called on the UK Government to replace the “outdated” Barnett funding formula with a new needs-based way of setting public spending in Wales.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

News

Pembrokeshire town set to be rejuvenated as £12m investment approved

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SENIOR Pembrokeshire councillors have backed a near-£12m ‘levelling up’ project to rejuvenate parts of Pembroke, with £1.2m of council funds.

At the January 13 meeting of Pembrokeshire County Council’s Cabinet members backed the signing of a memorandum of understanding for a UK Government Levelling Up Fund 3 award for the £11,715,141 Pembroke town Westgate to Eastgate project.

The project attracted a grant award of £10,543,627, with a commitment of £1,171,514 match-funding from the council to comply with the grant offer requirements, some 10 per cent.

Applications for ‘levelling-up’ funding for this part of Pembroke have a history going back several years, with a June 2022 bid for the second round of levelling up funding unsuccessful; a third-round bid based on an amended version of that scheme getting the thumbs-up last year.

The project delivery period is planned to run from April 2025 until March 2028, consisting of three works packages, Cabinet members heard in a presentation by Deputy Leader Cllr Paul Miller.

The three planned works packages consist of, firstly, connecting The Commons to Westgate and Main Street, including an improved pedestrian connection into the town centre running from Common Road, via the Parade to Long Entry and exiting onto Westgate Hill and public realm improvements, improved lighting and public art.

The second package, Eastgate, is described as “both the principal investment and the critical path to the overall programme,” with the works seeing “selective demolition and making good to the elements of the school building, which encroach, onto [a] projected highway corridor, and for construction new retaining walls as necessary,” along with “An enabling contract to ready East End School for development to shell and core, readied for development for currently undetermined use”.

The third work  package, ‘Connecting Townscape, Landscape and Soundscape’ includes: “Pembroke’s network of public realm and green infrastructure will be enhanced along Main Street and connect through underused route ways to its flanking green space of The Commons and the Upper and Lower Mill Pond”.

Cllr Miller warned that inflationary pressures since the original proposal would lead to some adaptions to the scheme, the value of the funding being less than it was in 2022.

Seconding Cllr Miller’s proposal the scheme be backed, Leader Cllr Jon Harvey, county councillor for the Pembroke St Mary North ward, said: “I’m extremely pleased about the levelling-up money coming into this town; Pembroke is a wonderful town, but it is underperforming, with businesses struggling.”

He stressed a need for collaborative work on the project: “Community ‘buy-in’ is very important, we need to work closely with the community and the town.”

Members backed a recommendation to approve the scheme and the match-funding element, along with the signing of the memorandum.

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Health

Autism and ADHD waiting lists ‘could triple in two years’

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THE NUMBER of children waiting for an autism or ADHD assessment in Wales could nearly triple to 61,000 over the next two years, a committee heard.

Sarah Murphy, Wales’ mental health minister, told the Senedd’s children’s committee that 20,770 children were waiting for a neurodevelopmental assessment in September 2024.

She said: “The assessment we’ve got from the NHS Executive is that we’re going to see, by March 2027, between 41,000 to 61,000 people waiting for these assessments.”

By comparison, according to freedom of information (FoI) requests, around 4,100 children were awaiting an ADHD or autism assessment in September 2021.

Giving evidence on January 9, Ms Murphy, who is responsible for neurodevelopmental conditions, learning disability, and dementia, pointed to an extra £3m for health boards.

Ms Murphy said: “It will benefit the children and young people who have been waiting the longest and the money then is dependent on the delivery.”

Quizzed by Vaughan Gething, the former First Minister who first brought her into government in May, she suggested the surge in demand was down to increasing awareness.

Labour MS Vaughan Gething
Labour MS Vaughan Gething

She added: “That assessment means a lot to children, young people and their families. I was speaking to the National Autistic Society yesterday and they said ‘we’ve raised so much awareness but now we need to ride that wave towards understanding and acceptance’.”

The Conservatives’ Joel James was alarmed to hear waiting lists could almost triple in two years, asking how ministers will intervene to ensure sustainable services.

Ms Murphy replied: “We’ve done a national accelerated design event which was really good. It was over a couple of days: it brought together … everybody who has a part to play in this.

“Because we all recognise that this cannot continue – we have to change.”

Asked whether health boards could expect more funding to drive down waiting lists in future, she said: “No. To be very clear, the £3m is one-off funding.”

Ms Murphy explained health boards are bringing in additional capacity from the private sector in an effort to meet demand but cautioned that this is unsustainable.

The Welsh Government has a target of 80% of children and young people receiving an assessment in 26 weeks, twice as long as the 13 weeks recommended by NICE guidelines.

Yet, while data on waiting times is not routinely published unlike in England, it is thought the 80% target has not been met Wales-wide since it was introduced nearly a decade ago.

Welsh ministers have no corresponding target for adult assessments.

Sixty-seven per cent of children waited at least 26 weeks and 45% waited for more than a year in June 2023, according to the response to another FoI request.

Cwm Taf Morgannwg and Betsi Cadwaladr university health boards currently warn of waiting lists of two and three years, respectively.

Albert Heaney, the chief social care officer for Wales, said health boards are confident an extra 2,000 assessments will be delivered by the end of March.

He said: “Importantly, the money is on condition that they are delivered. It’s coming the other way around on this occasion … it’s not money that’s given out, the money is on delivery.”

Mr Heaney added: “I’m really pleased that there’s a lot of co-production, there’s lived experience, there’s a real energy around this because I think there’s recognition … that it can’t just be about focusing on assessment.”

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Community

54 new Saundersfoot homes to welcome first owners by spring

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A CALL to amend plans for a new estate of 54 homes in a south Pembrokeshire seaside village to allow the first of them to be occupied unhindered by plant vehicles while works continue has been submitted.

Back in September 2023, the application for the estate, which includes a mix of 19 affordable properties, on land north of Whitlow, Saundersfoot, was approved by Pembrokeshire Coast National Park planners.

No objection to the plans was received by local community council Saundersfoot, other than concerns regarding the possibility of properties being sold as second homes, but several letters of objection were received, raising concerns including the potential for the new dwellings to become holiday lets, loss of privacy to neighbouring properties, loss of views, and the impact on existing property values.

The applicants are now seeking to amend two of the long string of conditions which accompanied approval to improve access for new home-owners while they build the estate by extending the time allowed for a construction vehicle access route, a condition of which was it would be ‘stopped up’ when the site reached a certain size.

The applicants say the proposed main access is now in place, and four detached dwelling are “at an advanced stage of construction,” and “It is anticipated that the first occupation on the site will take place in the forthcoming two months”.

The application adds: “Those new residents will of course be provided with uninterrupted access via the new estate road arrangements onto Narberth Road. The existing, northern access remains in place at this time and has served the scheme well in providing access for all construction vehicles,” adding: “The applicants wish to continue this arrangement, which will ensure that construction traffic and operatives do not have to use the newly formed main access and estate road, and thus potentially come into conflict with new residents on this first phase of development and also the next subsequent phase which will involve the construction of the affordable units on the site for the local registered social landlord.”

It stresses: “It should also be pointed out that the existing access will only be used by construction traffic, and at no time by new occupier traffic.”

The amendment will be considered by park planners at a later date.

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