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Welsh ministers ‘creating crisis protocol’ for cash-strapped councils

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THE WELSH Government is developing a protocol in case cash-strapped councils in Wales face financial emergencies such as bankruptcy, a committee heard.

Jayne Bryant, who was appointed local government secretary over the summer, said: “I’ve met with local authority leaders already … and it’s clear to me the severity of the situation.”

She pointed to pressures including years of austerity, the pandemic, inflation and rising demand as she appeared before the Senedd’s local government committee on October 10.

Pressed about financial resilience, Ms Bryant said: “We’re jointly developing, with local authorities, a protocol to apply in case of significant financial challenge.”

Last year, a report warned Welsh councils could face a funding gap of £744m by 2027/28.

Ms Bryant told the committee: “Services have had to be changed, some have faced reductions and councils have had to prioritise. Elected members and officers have been under a significant amount of pressure for a long time.”

Referring to Audit Wales reports on council finances, the Conservatives’ Altaf Hussain warned some face fundamental issues that put their financial sustainability at serious risk.

Ms Bryant replied to Dr Hussain: “If necessary, I do have powers of intervention but of course that would be a step I would not take lightly.”

She said the Welsh Government will have greater clarity after the UK budget on October 30.

The Welsh Government’s draft budget for the 12 months from April will be published on December 10, with the provisional local government settlement set to follow soon after.

Judith Cole, deputy director for local government finance, said if a council faced a section 114 (bankruptcy) notice, it could seek assistance from the Welsh Government.

But she cautioned: “The moral hazard means that we would not be suggesting to the cabinet secretary that she opens up the bank because we haven’t got any.”

She added that councils could use an improvement fund given to the WLGA before getting to the stage of a section 114 notice.

She said: “There is nobody who has formally come to us and said ‘we need help’ at this point, what we are conscious of is the sector as a whole is saying it’s really difficult.”

Ms Cole told the committee the protocol aims to ensure a “no-surprises” approach.

Reg Kilpatrick, director of local government, said the Welsh Government has an “open and frank” dialogue with councils about finances throughout the year.

He recognised “concerning messages” coming out of Audit Wales reports.

Asked about council reserves, and the important distinction between usable and allocated reserves, he said the Welsh Government collects data but has no role in managing reserves.

Mr Kilpatrick cautioned it will “be a while” before the Welsh Government can provide any indicative allocations to councils for next year.

The Conservatives’ James Evans asked about the formula used to allocate council funding, joking that only about four people in Wales understand it.

Ms Bryant said the complicated formula includes more than 4,000 data points and the Welsh Government is reviewing the biggest areas such as social care and education.

Plaid Cymru’s Siân Gwenllian criticised a u-turn on setting up a commission on community assets, “which suggests, perhaps, this isn’t going to receive the specific attention it needs”.

Ms Bryant said the Welsh Government has set up a task and finish group rather than a commission, which reflects financial constraints.

Labour’s Lee Waters raised an Audit Wales report, which found half of councils do not have a digital strategy, as he expressed concern about a “pedestrian” pace of change.

Mr Kilpatrick said the Welsh Government has put more than £7m into supporting the local government chief digital officer’s team, with a £1.3m annual grant.

Mr Waters suggested spending on digital is relatively small in the context of council budgets, warning: “This really isn’t anywhere near the top of the agenda.”

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Labour’s Henry Tufnell on first 100 days as Pembrokeshire MP

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THIS SUNDAY marks 100 days since the Labour Party won a landslide in the 2024 General Election on 4 July. It also marks 100 days in office for Mid and South Pembrokeshire’s MP, Henry Tufnell.

On a visit to Pembrokeshire College on Friday (Oct 11), Tufnell met with students and staff to discuss the impact that GB Energy, a key Labour policy, will have on jobs and the environment here in Pembrokeshire. GB Energy has long been touted as a cornerstone of Labour’s commitment to combat climate change while creating good, green jobs across the country and reducing household energy bills.

Reflecting on his first 100 days as Pembrokeshire’s newest MP, Tufnell said: “It’s been a very busy start. In these first 100 days, I have set up my office in the heart of the constituency, held multiple surgeries, employed 4 local staff members, met with fantastic community groups such as Car Y Mor, visited Pembrokeshire College, and worked with the energy industry around net zero. I’ve talked to BBC Wales about the passion and opportunity that Pembrokeshire holds, and most importantly, I’ve advocated for my constituents in Parliament.

“And I’m just getting started.”

Tufnell discussed the impact that Labour’s flagship policy of GB Energy would have on their hometowns, and how Pembrokeshire will play its part in contributing to the UK’s net-zero targets.

At Pembrokeshire College, Tufnell said: “GB Energy is one of the boldest steps this government has taken to ensure that the UK becomes a world leader in clean energy and the fight against climate change. Now, with GB Energy, we can reduce our reliance on fossil fuels and create the jobs of the future right here in Mid and South Pembrokeshire.”

In August, Deputy Prime Minister, Angela Rayner joined Secretary of State for Wales, Jo Stevens, First Minister, Eluned Morgan, and Tufnell at Pembroke Dock Marine to initiate the Swansea Bay City Deal project, which is set to complement the Celtic Freeport and place Pembrokeshire at the heart of UK zero carbon and offshore energy innovation.

At the time the Deputy Prime Minister said: “We want to get all parts of the UK tapping into their local opportunities for growth so that every single person can unlock their potential, no matter where they live.”

And it’s not just Tufnell that is enthusiastic about GB Energy’s impact on the constituency. Tufnell recently met with Martin Jones, a longtime Pembrokeshire resident and community champion in Milford Haven. Jones enthused:

“As a Pembrokeshire resident, I’m delighted to see such a significant investment in our area. This initiative not only creates skilled, well-paid jobs but also enhances Pembrokeshire’s profile while contributing to our net-zero goals.”

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The results are in: Nick Neumann is Pembrokeshire’s newest councillor

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AFTER a tense period of campaigning, Conservative candidate Nick Neumann has won with 365 votes.

His controversial rival, Mike Harris, only received 43 votes, alongside Jony Griff with 201 votes and Thomas Hughes with 135 votes. 

Speaking to The Herald after the result was announced by the Returning Officer on Thursday (Oct 10), the now councillor Neumann said: “Firstly to thank the campaign team for their support led by Di Clements and good friend Mark Carter.

He added: “It makes a huge difference being part of a group in terms of campaign support. And thank you to all the good people of the Havens and Roch who have entrusted me to represent them at county hall.”

Cllr Neumman also said he wished to thank the Returning Officer and the County Council’s counting staff for running the count so smoothly.

Cllr Nick Neumann, and his wife Jessica run Newgale Holidays. They are a well-known couple in the local area.

Neumann’s has a degree in agriculture and business. His business, Pembrokeshire Agrisolutions, launched in 2000, and is directly helping local farming communities.

Nowadays, latest business venture, Newgale Holidays, is continuing to grow with a newly approved holiday lodge development on the site of the former Roch Gate Hotel. 

Now Pembrokeshire’s newest county councillor, the voters of The Havens will be looking forward to Neumann to delivering for their communities. 

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Heritage body ‘working to the bone’ as workforce nearly halves over past decade

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A HERITAGE body warned its workforce has almost halved over the past decade due to cuts, with some staff now “doubling up” and doing two jobs.

Christopher Catling, chief executive of the Royal Commission on the Ancient and Historical Monuments of Wales, gave evidence to the Senedd’s culture committee on October 9.

Mr Catling, who came into post nearly a decade ago in 2015, explained that the commission operates under a Royal Warrant to maintain an inventory of monuments in Wales.

He cautioned that the commission’s remit letter and key-performance indicators from the Welsh Government “don’t really address that core warrant duty”.

Mr Catling warned of an assumption that worthy social objectives can be delivered as a by-product, saying the commission has sought external funding for this purpose.

He said: “The social objectives are not funded by [the] Welsh Government to the same degree – quite honestly, our funding … pays for the salaries of our staff, it leaves very [little].”

Hayley Roberts, an international lawyer who is deputy chair of the Royal Commission, which received a 10.5% cut in 2024/25, agreed the situation has worsened in the past decade.

Dr Roberts pointed to the commission’s written evidence, which warned of a near 50% reduction in staff over 10 years causing substantial reductions in service delivery.

“We can’t do more with fewer staff and we can’t do the same things with less.” she said.

Mr Catling added that the commission’s costs have been rising at an “astonishing” rate, with  fees for required cyber security certification jumping from £700 to £10,000.

He told the committee: “The way we’ve coped, I’m afraid, is simply by freezing posts as people have left the commission. We have not replaced them unless their role is so absolutely fundamental to our delivery that we have to.”

Mr Catling added: “A number of our staff are now doubling up and doing two jobs.

“Our governance manager is now our HR manager even though she has none of the qualifications or skills to do that job.

“Our procurement and operations manager is doubling up as our finance manager.”

Asked about charging for pre-planning advice, Mr Catling suggested this would not be viable because the level of income raised would not pay for staff nor sustain the commission.

Looking to the future, he said: “It will mean change and it will mean probably doing less than we currently do but doing it differently.”

Mr Catling raised the example of the commission having one-and-a-half people to record buildings being demolished, with Wales set to lose 500 places of worship in the next decade.

Asked about cooperating with Cadw, he told the committee: “We have been continually asked to look at efficiency savings, particularly combining back-office functions.

“We have worked really hard at that and we’ve never identified a single saving. Our organisations – all of us – are working to the bone.”

Lee Waters said he struggled, from a common sense point of view, to understand that there are no savings to be made across heritage organisations.

“It’s a hard argument to sustain,” said the Labour MS for Llanelli.

Mr Catling reiterated that efficiency savings have been exhausted, suggesting the commission is unlikely to be able to share functions with Cadw following a review.

The chief executive hit back at Mr Waters’ line of questioning, asking: “Who would you suggest we talk to? Come on, be specific.”

Mr Waters replied: “I beg your pardon. OK, maybe we need to calm down a little…. You’re special pleading the whole time.

“I don’t doubt you’re very efficient and you’re doing a tough job with limited resources – that’s frustrating, I completely understand that and I’m not questioning the value of your work.

“I’m simply challenging some of your evidence that there aren’t functions you could share.”

Asked about an extra £90,000 announced by the Welsh Government, Mr Catling said six staff have been hired for six months to work on vital projects.

He shared previous witnesses’ concerns that in-year funding is a sticking-plaster solution.

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