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Pembrokeshire council overspend cut but bleak warnings ahead

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PEMBROKESHIRE still faces its greatest-ever financial challenge despite the council being in a better economic position than previously projected.

Earlier this year, the council’s third quarter of the financial year projections for the 2023-24 budget, the council was currently on course for an overspend of £6.6m on a previously-agreed budget of £287.6m, up from £3m three months previously.

Members of Pembrokeshire County Council’s Cabinet, meeting on July 11, will now hear that figure – at financial year end – has been reduced to a £3m overspend, for a total of £290.6m.

“This represents an improved position from the £6.6m projected overspend reported at Quarter 3 (Q3) mainly due to continued vacancy savings, the moratorium on non-essential expenditure, additional income and grant income received during the final quarter of the year, further reduction in capital financing costs,” the report says.

The report also says that picture is even more rosy: a Minimum Revenue Provision (MRP) adjustment to offset an overpayment of MRP in 2019-20 has resulted in the council’s net expenditure for 2023-24 reducing to £289m; the overspend reducing to £1.4m.

The final financial quarter, Q4, has seen additional and increased demands in many council services, particularly School ALN provision, Children’s Services, Adult Services and Homelessness, partly offset by an underspend of £5.9m in Capital Financing Costs and Investment Income, together with use of the £1.6m MRP.

Additional council tax income, primarily as a result of the ongoing collection of council tax arrears from previous years during 2023-24, has also resulted in £1.1m more than anticipated being collected during 2023-24, the report says.

A report from the Director of Resources and S151 Officer says: “Whilst the reduction in projected overspend of £6.6m to actual overspend of £3m is welcomed, the fact that we have ended 2023-24 with an overspend is disappointing and something we should seek to avoid in future years.

“The MRP adjustment and additional council tax income will mean that the utilisation of reserves to fund the adjusted overspend for 2023-24 will be minimal at £0.253m.”

However, he warned: “The financial challenge for 2024-25 and throughout the Medium Term Financial Plan (MTFP) will be the greatest challenge ever faced by the council.

“There are going to be some extremely difficult decisions to be made and it is virtually inevitable that in order to balance the budget and ensure financial sustainability for 2025-26 and beyond, the council will have to make significant budget savings across virtually all council services, continue to utilise a significant element of the council tax premiums to fund elements of the budget relating to affordable housing and enhancing the sustainability of local communities, and move its Band D council tax level to at least the average level in Wales.”

The report highlights a continued bleak MTFP, with a ‘most likely’ projected funding gap of £84.6m over the period 2024-25 to 2027-28; with £32.3m in respect of 2024-25.

Cabinet members are recommended to approve the Budget Outturn Report, and to approve the appropriation of £0.253m from the Initiative Fund reserve to fund the deficit reported for 2023-24.

 

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Rhun ap Iorwerth becomes Wales’ new First Minister

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PLAID CYMRU TAKES POWER AFTER HISTORIC SENEDD VOTE

PLAID CYMRU leader Rhun ap Iorwerth has become Wales’ new First Minister following a historic vote in the Senedd today, marking one of the biggest political changes since devolution.

Ap Iorwerth secured 44 votes in the chamber, defeating Reform UK Wales leader Dan Thomas, who received 34. There were nine abstentions.

The result confirms Plaid Cymru’s move into government after the party emerged from the Senedd election as the largest group in the expanded 96-member parliament.

It is the first time Plaid Cymru has held the top job in Welsh politics, ending Labour’s long dominance of the Welsh Government since the start of devolution in 1999.

The vote followed days of intense political manoeuvring after an election which transformed the balance of power in Cardiff Bay.

Plaid Cymru won the largest number of seats but fell short of an overall majority, meaning ap Iorwerth will now lead a minority administration.

Reform UK’s Dan Thomas also put himself forward for the role of First Minister after his party’s major breakthrough at the election.

However, ap Iorwerth won the Senedd vote with support from outside his own party, while Labour members abstained.

The result leaves Reform UK as the main opposition party in the Senedd, with Labour reduced to a much smaller role after more than two decades in control of Welsh Government.

Ap Iorwerth, a former BBC journalist and broadcaster, has represented Ynys Môn in the Senedd since 2013 and became Plaid Cymru leader in 2023.

He now faces the task of forming a government and setting out his cabinet, with pressure expected immediately on health, the economy, farming, housing, transport and public services.

The change comes after the first Senedd election held under the new voting system, with 96 Members elected across larger multi-member constituencies.

For Wales, the vote marks a political turning point.

For Plaid Cymru, it is the moment the party has sought for a century: the chance to lead the Welsh Government.

Welsh Labour interim leader has congratulated Plaid Cymru leader Rhun ap Iorwerth on his appointment as First Minister.

Speaking following the vote in this afternoon’s first meeting of the Seventh Senedd, in which Welsh Labour abstained, Mr Skates said: “I look forward to being an effective opposition, scrutinising and holding Rhun and his colleagues to account where necessary to improve legislation. I hope as a Minister I demonstrated to Plaid members how collaboration and challenge are mutually beneficial and we will be focused laser-like on serving the people of Wales. No games, no nonsense, just a determination to make the lives of those we serve better

“Be assured that we will not let the party of government off the hook at any time – as they, quite rightly, did not with us.”

 

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Researchers appeal for hidden Brexit ‘boxcounts’ to map how communities voted

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TEN YEARS after the UK voted to leave the European Union, researchers at Aberystwyth University are launching an ambitious project to build the most detailed map yet of how communities voted in the referendum.

The team is appealing to campaigners, party activists and referendum observers to search old files, emails and campaign folders for informal tallies known as “boxcounts”.

These were unofficial figures recorded when ballot boxes were opened on referendum night, before the formal count began.

Official results from the 2016 referendum were published only at local authority level, giving a broad picture of Leave and Remain support across the UK.

But researchers say those figures do not show the more detailed patterns within towns, villages, suburbs and neighbourhoods.

The project, led by Professor Michael Woods at Aberystwyth University’s Centre for Welsh Politics and Society, aims to uncover those hidden local voting patterns.

Professor Woods said: “The EU referendum was the defining event in recent British politics and has shaped our political landscape for the last decade.

“We often talk about ‘Leave areas’ and ‘Remain areas’, but we don’t really know how communities voted beneath the level of local authorities.

“By bringing together boxcounts from across the UK, we can build a much more detailed picture of where support for Brexit was strongest, where it was weakest, and how these patterns relate to different types of places.

“As boxcounts from the referendum are unofficial no one has collected them together, but they will still be saved on people’s computers or archived in old campaign folders. We’re urging anyone who recorded or collated them to dig them out and send them to us.”

The team says it has developed a process to check the material and correct for potential bias, as well as safeguards to ensure privacy requirements are met.

Anyone with boxcounts from the 2016 referendum can find details on how to submit them via the Rural Spatial Justice Substack.

The study is part of the wider Rural Discontent, Spatial Justice and Disruptive Politics project, funded by the UK Frontier Research Guarantee, which is examining links between rural discontent and disruptive politics around the world.

 

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Starmer fights for survival as Labour civil war erupts

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Cabinet split, ministers resign and MPs revolt as pressure mounts on Prime Minister after disastrous election losses

KEIR STARMER is facing the biggest political crisis of his premiership as Labour descends into open civil war, with cabinet ministers divided, MPs publicly revolting and speculation mounting over who could replace him.

The Prime Minister entered a crucial cabinet meeting on Tuesday morning under extraordinary pressure after Labour’s disastrous local election performances across England, Scotland and Wales triggered a wave of panic inside the party.

By mid-morning, at least 78 Labour MPs had publicly called on Starmer either to resign immediately or set out a timetable for departure — almost one in five of Labour’s parliamentary party.

The situation worsened overnight when six ministerial aides quit their roles, forcing Downing Street into a late-night reshuffle to replace them.

The political turmoil is now so severe that financial markets have started reacting nervously, with UK government borrowing costs climbing amid fears of instability at the heart of government.

The PM is dominating the front pages today (Image: BBC)

Cabinet tensions explode

Tuesday morning’s cabinet meeting was supposed to focus heavily on the escalating Middle East crisis.

Instead, Labour’s internal collapse dominated Westminster.

BBC political editor Chris Mason reported that Starmer’s cabinet is now openly split on the most fundamental question in government:
whether the Prime Minister should remain in office.

Some ministers are urging him to fight on.

Others are reportedly telling him privately that he should announce a timetable for departure.

The most damaging intervention came from Home Secretary Shabana Mahmood, who is understood to have urged Starmer to prepare for an orderly transition.

Despite the growing pressure, the Prime Minister attempted to project calm and authority during cabinet discussions.

According to political correspondent Harry Farley, Starmer told ministers:
“As I said yesterday, I take responsibility for these election results and I take responsibility for delivering the change we promised.

“The past 48 hours have been destabilising for government and that has a real economic cost for our country and for families.

“The Labour Party has a process for challenging a leader and that has not been triggered.

“The country expects us to get on with governing.”

However, few in Westminster now believe the crisis can simply be contained.

Uncertain times: If the PM goes who will replace him?

First minister resigns

The first ministerial resignation came from Communities Minister Miatta Fahnbulleh, who delivered a devastating blow to Starmer’s authority.

In a resignation letter published online, she wrote:
“The public does not believe that you can lead this change — and nor do I.”

Fahnbulleh accused the government of failing to govern with sufficient “vision, pace and ambition”.

She also criticised controversial decisions including winter fuel payment changes and cuts affecting disabled people.

Her resignation is politically significant because she is regarded as a close ally of former Labour leader Ed Miliband.

Importantly, Fahnbulleh did not demand Starmer leave immediately.

Instead, she called for: “An orderly transition so that a new team can deliver the change we promised the country.”

That wording is already being interpreted inside Westminster as an attempt to create time for potential successors — particularly Greater Manchester Mayor Andy Burnham — to position themselves.

Andy Burnham and Kier Starmer during the General Election Campaign

Burnham speculation grows

Speculation surrounding Andy Burnham intensified dramatically throughout Tuesday morning.

Burnham, currently Mayor of Greater Manchester, is seen by many Labour activists and MPs as one of the few figures with strong electoral appeal outside Westminster.

However, he is not currently an MP, meaning he would need to return to Parliament through a by-election before he could formally contest the Labour leadership.

Senior minister Darren Jones attempted to shut down the speculation during a difficult round of BBC interviews.

Asked whether Burnham could return to frontline politics, Jones dismissed the idea as:
“Fantasy politics.”

He insisted Labour should focus on governing rather than leadership plotting.

Jones also criticised the public nature of Labour’s internal warfare, saying:
“It’s right to have challenging conversations internally — as opposed to in public.”

However, notably, Jones repeatedly avoided explicitly guaranteeing that Starmer would lead Labour into the next general election.

That omission fuelled further speculation that even some loyalists are preparing for change behind the scenes.

Two rival camps emerging

Westminster insiders now believe Labour is beginning to split into two broad leadership camps.

One group is thought to favour an “orderly transition” which would potentially allow Burnham time to re-enter Parliament before a contest begins.

Another faction — reportedly involving allies of Health Secretary Wes Streeting — is believed to favour a faster leadership contest that would effectively prevent Burnham entering the race.

Streeting himself has remained publicly loyal so far, but his name is increasingly being discussed as a potential successor.

Other names circulating include:
– Angela Rayner
– David Lammy
– Rachel Reeves
– Yvette Cooper

At present, no formal challenger has declared.

But the atmosphere inside Westminster is deteriorating rapidly.

One Labour MP reportedly described the situation as: “Complete meltdown.”

Rebellion spreads across Labour

Several Labour MPs openly attacked Starmer during broadcast interviews on Tuesday morning.

Labour MP Yuan Yang said she no longer believed the Prime Minister could lead the party into the next election.

She urged Starmer to:
“Take control and set out an orderly timetable.”

Meanwhile Gower MP Tonia Antoniazzi said Starmer was:
“Not cutting through” with voters.

She warned that Nigel Farage and Reform UK were increasingly dominating public debate while Labour appeared directionless.

Jonathan Hinder, Labour MP for Pendle and Clitheroe, delivered one of the most brutal assessments.

Speaking on BBC Newsnight, he said: “No prime minister can survive this number of MPs losing confidence in him.”

He added: “Keir Starmer has never been an electoral asset.”

Economic warning signs emerge

The political instability is now beginning to have real-world economic consequences.

UK government borrowing costs rose sharply on Tuesday morning, with yields on 10-year government bonds climbing above five per cent.

Economics editor Dharshini David warned that investors fear a change in Labour leadership could lead to:
– Looser control of public spending
– Increased borrowing
– Higher inflation
– Rising mortgage costs

The UK already faces growing debt interest payments, with roughly one pound in every ten spent by government now going towards servicing debt.

Analysts warned prolonged political instability could further damage confidence in Britain’s economic outlook.

Timing could hardly be worse

The crisis comes at an extraordinary moment politically.

On Wednesday, the King is due to deliver the State Opening of Parliament, outlining the government’s legislative plans for the coming year.

Traditionally, the monarch repeatedly refers to “My Government” throughout the speech.

Yet as ministers arrived at Downing Street on Tuesday morning, journalists openly shouted questions including: “Is it all over for Keir Starmer?”

Deputy Prime Minister David Lammy smiled and waved at reporters but ignored questions about whether Starmer should resign.

Chancellor Rachel Reeves also declined to answer questions as she entered Downing Street.

Meanwhile, political commentators noted the surreal contrast between the pageantry of constitutional government and the growing sense that the Prime Minister may be politically mortally wounded.

What happens next?

Under Labour Party rules, 20% of Labour MPs — 81 MPs — are required to formally trigger a leadership contest.

Public opposition is now approaching that threshold.

Attention will now focus on:
– Whether further ministers resign
– Whether cabinet ministers publicly break ranks
– Whether leadership camps begin organising openly
– Whether Starmer offers concessions or timetables
– Whether markets continue reacting negatively

For now, Starmer insists he will not “walk away”.

But inside Westminster, many Labour MPs increasingly believe the question is no longer whether he goes — but when.

 

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