Politics
Pembrokeshire County Council expected to overspend by £2.9m

PEMBROKESHIRE County Council is facing a predicted overspend in its annual budget of nearly £3m, with a moratorium on all non-essential expenditure still in force, senior councillors heard.
Members of Pembrokeshire County Council’s Cabinet, meeting on September 9, heard a report on the quarter one figures for the 2024-25 budget, highlighting an expected overspend of £2.9m by the end of the financial year.
A year ago, that q1 overspend – for the 2023-’24 budget – was predicted at £4.8m.
The budget for 2024-25 was approved by council on March 7. This is the first budget monitoring report for 2024-25.
A report for Cabinet members stated: “The approved revenue net expenditure budget for 2024-25 is £303.5m. This budget was set against a backdrop of increased level of demand, complexity and cost of packages within our School ALN provision, Children’s Services, Adult Services and Homelessness.
“This increase in demand, complexity and cost of packages has continued into 2024-25 with material projected overspends in each of these areas totalling £5.3m.
“Although work is being undertaken to try to reduce the cost of packages, it should be noted that these demand levels are projected to continue into 2025-26 and future years, creating further additional permanent budget pressures that will either need to be met through additional budget savings, income generation or increased council tax.”
The projected outturn at quarter one of 2024-25 is £306.4m, representing a projected overspend of £2.9m.
The report before members, presented by Cabinet Member for Corporate Finance and Efficiencies Cllr Joshua Beynon also detailed the medium term financial plan, with longer-term financial pressures for the council.
The report also highlighted the high cost of out-of-county in-care placements for children’s services, with the authority due to open up its first in-county residential home for children later this year.
“The majority of the Children’s Services pressures continue to pertain to the high costs of residential placements that we have to arrange in order to safely meet complexity of need and fulfil statutory responsibilities.
“Our Children’s Services commissioning team continue to mitigate this pressure through reviews of existing provision and shaping a market of more locally based provision, which aligns with the Welsh Government’s proposed legislation for the elimination of profit from the provision of children’s care.”
It said adult care and services were also facing pressure: “Complexity of need continues to feature within adult services as can be seen with the increase in demand and complexity of residents requiring nursing and residential care placements.
“From a housing perspective, the number of individuals in temporary accommodation overall has reduced from the previous quarter but the numbers within B&B accommodation remains high.”
Members backed a recommendation to note the report and the moratorium on all non-essential expenditure which is in force, and for the senior leadership team and appropriate Cabinet members to implement in-year savings measures to address the projected overspend for 2024-25.
Members also agreed to note similar measures to “identify potential savings to assist in addressing the indicative budget gap of £31.4 million for 2025-26 and £78.2 million across the period of the Medium-Term Financial Plan”.
News
Hundreds of Pembrokeshire Council Tax defaulters in court next week

HAVERFORDWEST Magistrates’ Court will hear cases against hundreds of defendants next week as Pembrokeshire County Council seeks liability orders for unpaid council tax and non-domestic rates.
The session, scheduled for Monday (Mar 17) at 10:00am, will see a block of cases between 12:00pm and 1:00pm dedicated to council tax disputes. The council is applying for liability orders under regulation 34 of the Council Tax (Administration and Enforcement) Regulations 1992.
A total of 341 defendants are listed for non-payment of council tax, while a further 18 cases relate to unpaid non-domestic rates under Regulation 12 of the Non-Domestic Rating (Collection and Enforcement) (Local Lists) Regulations 1989.
Liability orders allow the council to take further enforcement action, which may include deductions from wages or benefits, bailiff action, or bankruptcy proceedings.
The Herald will provide further updates following the hearing.
News
Reimburse charities for NI rise, say Welsh Conservatives

CHARITIES not-for-profits, and voluntary organisations in Wales face mounting financial strain due to an increase in employer National Insurance (NI) contributions, prompting calls for government intervention.
The UK Labour Government’s decision to raise employer NI contributions has drawn sharp criticism from the Welsh Conservatives, who warn that the move will place an undue burden on charities and voluntary groups. While public sector bodies such as the NHS and local councils will receive compensation for the additional costs, charities providing essential services under local authority contracts will not be reimbursed.
A survey by the Welsh Council for Voluntary Action (WCVA) found that 84% of voluntary organisations are concerned about how they will manage the NI increase.
Senedd debate on reimbursement
Next week, the Welsh Conservatives will bring forward a Senedd debate urging the Welsh Labour Government to press Westminster for financial support for Welsh charities, not-for-profits, and voluntary organisations. The motion argues these groups should be classified under the Office for National Statistics’ (ONS) definition of public sector employees to qualify for reimbursement.
Welsh Conservative Shadow Secretary for Economy, Energy, and Welsh Language, Samuel Kurtz MS, said:
“Welsh charities, not-for-profits, and voluntary organisations play a vital role in delivering public services that the most vulnerable in society depend upon.
“Labour’s decision to increase employer National Insurance contributions will have a detrimental impact on the future and viability of these organisations.
“The Welsh Conservatives are clear: Labour must ensure that Welsh charities, not-for-profits, and voluntary organisations are reimbursed for this rise in employer National Insurance contributions.”
Sector voices concern
The WCVA has also warned that the NI increase could put crucial community services at risk.
A WCVA spokesperson said: “WCVA is deeply concerned about the impact of increased Employers’ National Insurance contributions on voluntary sector organisations across Wales. Many of these organisations already face significant financial pressures, and this increase threatens to put additional strain on their resources and potentially jeopardise vital services delivered to communities.
“We have strongly urged both the UK and Welsh Governments to recognise the invaluable role the voluntary sector plays, especially in partnership with public services. We believe it is critical for voluntary organisations delivering public services to be treated equitably and included in any financial support measures, ensuring they are not disproportionately disadvantaged by these policy changes.
“WCVA welcomes the debate in the Senedd and hopes it will lead to productive discussions and practical solutions to protect the voluntary sector’s essential contribution to Welsh society.”
Motion to be debated
The Senedd motion, set for debate next week, states:
- Notes the UK Government’s increase to employer National Insurance contributions, coming into effect for the 2025-26 tax year.
- Recognises the detrimental impact the increase will have on Welsh charities, not-for-profits, and voluntary organisations.
- Calls on the Welsh Government to make urgent representations to the UK Government to ensure that these organisations delivering public services are included in the ONS-defined public sector category and are reimbursed for the rise in employer National Insurance contributions.
The debate will determine whether Welsh Labour will push for financial support to shield the voluntary sector from these additional costs.
News
Local Authority is ‘hoarding cash’ as Council Tax rises by 9.35%, says MS

DEMANDS FOR REFORM AS COUNCIL’S £83 MILLION RESERVES REVEALED
PEMBROKESHIRE residents are bracing for a 9.35% council tax rise, despite local authorities across Wales holding more than £2 billion in reserves. The increase, among the highest in Wales, comes as families struggle with soaring living costs and a series of consecutive tax hikes.

Local Senedd Member Paul Davies has called for urgent reform, criticising the Welsh Government’s Local Government Funding Formula and urging councils to use their reserves to ease the burden on taxpayers.
‘UNFAIR AND UNSUSTAINABLE’
Mr Davies said: “Under the Welsh Government, the Local Government Funding Formula remains broken.
“It cannot be right that people in Pembrokeshire face such a huge increase in their council tax while councils across Wales are sitting on over £2 billion in usable reserves.
“The Welsh Government must do more to keep council tax as low as possible by encouraging the use of reserves, improving efficiency within councils, and promoting the sharing of resources across council boundaries.”

CALLS FOR CHANGE
The Welsh Conservatives have consistently opposed large council tax increases, calling for an independent review of the Local Government Funding Formula. They argue that councils should:
- Use reserves to reduce tax rises.
- Improve efficiency by cutting unnecessary spending.
- Increase cooperation between councils to share services and lower costs.
RISING RESERVES, RISING BILLS
For years, Pembrokeshire had the lowest council tax in Wales, but after a 12.5% rise in 2024-25, it has surged significantly. Despite this, Pembrokeshire County Council holds £82.6 million in usable reserves, equivalent to 28.4% of its annual service expenditure.
In 2016-17, the council held just £47 million in reserves, rising to £83 million in 2021-22. Critics argue that this surplus should be used to relieve financial pressures rather than imposing further tax hikes.
With councils under fire for hoarding cash while demanding more from residents, pressure is mounting on the Welsh Government to overhaul funding and prevent further unaffordable rises.
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