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£1.7bn boost for Welsh Government in UK Budget

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CHANCELLOR Rachel Reeves presented the UK Budget on Wednesday, unveiling an additional £1.7bn in funding for the Welsh Government next April. This increase, she described as “the largest real-terms funding boost since devolution,” will support key areas including schools, housing, health, social care, and transport.

In addition to the primary funding, the Chancellor announced a £25m allocation for coal tip maintenance and safety in Wales. This move comes after Welsh Finance Secretary Mark Drakeford highlighted the need for UK Treasury intervention, citing over 2,500 coal tips across Wales, with 360 categorized as high-risk.

The Budget also confirmed UK government backing for two electrolytic hydrogen projects in Milford Haven and Bridgend, aimed at advancing low-carbon hydrogen production in Wales. Welsh Secretary Jo Stevens remarked on the significance of collaborative efforts between UK and Welsh governments, noting the Budget’s potential to drive substantial regional development.

Reactions to the Budget varied widely. Welsh Conservatives labelled it a “smash and grab Budget,” warning of potential harm, while Plaid Cymru criticized it for lacking “transformative change.”

Analysis: Will £1.7bn meet Wales’ needs?

While the funding is substantial, Welsh ministers face challenges in addressing rising NHS waiting lists—a pressing priority given the record-high backlog. Last year, the Welsh Government redirected over £400m to the health sector, necessitating cuts elsewhere. Local councils are also bracing for a £559m shortfall in the coming financial year, adding pressure to the allocation of these funds.

Despite the Budget’s provisions, opposition parties are raising concerns. They argue that National Insurance increases could harm small businesses, and proposed inheritance tax reforms may pose challenges for family-run farms in Wales.

Additional measures

  • Minimum wage increase: Rising to £12.21 per hour next year, as announced earlier in the week.
  • Ongoing negotiations: The Welsh Government hopes to secure further coal tip safety funding.

This Budget marks a critical phase for Welsh governance, with both opportunities and challenges ahead.

Conservative MS, Samuel Kurtz said “This Budget brings devastating tax rises that will hit businesses and individuals across west Wales hard.

“With £25 billion in new taxes for businesses, economic growth will be stifled. The economy is now only forecast to grow by 1.5% by the end of the decade—lower than under the previous Conservative Government.

“Our farmers also find themselves under Labour’s axe as they slash Agricultural Property Relief, putting thousands of family farms at risk.

“Coupled with cuts to the Winter Fuel Allowance for thousands of pensioners, this Budget is deeply damaging and exposes Labour’s broken promises from the General Election.”

Responding to the publication of the UK Government budget, Welsh Liberal Democrat Deputy Leader David Chadwick MP said: “This budget fails to offer an ambitious vision for Wales that would mark a long-term investment in its future, it punishes small businesses and will be a disaster for family farms. 

“Labour has failed to deliver the billions owed to Wales from HS2, yet constituents like mine are facing deep cuts in their rail services.

“Meanwhile, the Chancellor has chosen to increase taxation for the small businesses that are the lifeblood of the Welsh economy instead of taking aim at the enormous profits of the banks, oil and gas giants and big tech.

“The Chancellors Family Farm Tax risks being a death knell for local farmers who have already faced attacks on their livelihoods by the Welsh Labour Government, who have shown time and time again they have no understanding of the rural economy or the work that goes into making sure the public have food on their plates.”

  • We would like to apologise that an earlier version of this article, briefly published, contained a number of reporting inaccuracies. This was due to to incorrect text being displayed due to a server error

Business

First wind turbine components arrive as LNG project moves ahead

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THE FIRST ship carrying major components for Dragon LNG’s new onshore wind turbines docked at Pembroke Port yesterday afternoon, marking the start of physical deliveries for the multi-million-pound renewable energy project.

The Maltese-registered general cargo vessel Peak Bergen berthed at Pembroke Dock shortly after 4pm on Wednesday, bringing tower sections and other heavy components for the three Enercon turbines that will eventually stand on land adjacent to the existing gas terminal at Waterston.

A second vessel, the Irish-flagged Wilson Flex IV, is due to arrive in the early hours of this morning (Thursday) carrying the giant rotor blades.

The deliveries follow a successful trial convoy on 25 November, when police-escorted low-loader trailers carried dummy loads along the planned route from the port through Pembroke, past Waterloo roundabout and up the A477 to the Dragon LNG site.

Dragon LNG’s Community and Social Performance Officer, Lynette Round, confirmed the latest movements in emails to the Herald.

“The Peak Bergen arrived yesterday with the first components,” she said. “We are expecting another delivery tomorrow (Thursday) onboard the Wilson Flex IV. This will be blades and is currently showing an ETA of approximately 03:30.”

The £14.3 million project, approved by Welsh Ministers last year, will see three turbines with a combined capacity of up to 13.5 MW erected on company-owned land next to the LNG terminal. Once operational – expected in late 2026 – they will generate enough electricity to power the entire site, significantly reducing its carbon footprint.

Port of Milford Haven shipping movements showed the Peak Bergen approaching the Haven throughout Wednesday morning before finally tying up at the cargo berth in Pembroke Dock. Cranes began unloading operations yesterday evening.

Weather conditions are currently favourable for this morning’s arrival of the Wilson Flex IV, which was tracking south of the Smalls at midnight.

The abnormal-load convoys carrying the components from the port to Waterston are expected to begin next week, subject to final police and highway approvals.

A community benefit fund linked to the project will provide training opportunities and energy-bill support for residents in nearby Waterston, Llanstadwell and Neyland.

Further updates will be issued by Dragon LNG as the Port of Milford Haven as the delivery programme continues.

Photo: Martin Cavaney

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Crime

Banned for 40 months after driving with cocaine breakdown product in blood

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A MILFORD HAVEN woman has been handed a lengthy driving ban after admitting driving with a controlled drug in her system more than ten times over the legal limit.

SENTENCED AT HAVERFORDWEST

Sally Allen, 43, of Wentworth Close, Hubberston, appeared before Haverfordwest Magistrates’ Court on Thursday (Dec 4) for sentencing, having pleaded guilty on November 25 to driving with a proportion of a specified controlled drug above the prescribed limit.

The court heard that Allen was stopped on August 25 on the Old Hakin Road at Tiers Cross while driving an Audi A3. Blood analysis showed 509µg/l of Benzoylecgonine, a breakdown product of cocaine. The legal limit is 50µg/l.

COMMUNITY ORDER AND REHABILITATION

Magistrates imposed a 40-month driving ban, backdated to her interim disqualification which began on November 25.

Allen was also handed a 12-month community order, requiring her to complete 10 days of rehabilitation activities as directed by the Probation Service.

She was fined £120, ordered to pay £85 prosecution costs and a £114 surcharge. Her financial penalties will be paid in £25 monthly instalments from January 1, 2026.

The bench—Mrs H Roberts, Mr M Shankland and Mrs J Morris—said her guilty plea had been taken into account when passing sentence.

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Local Government

Sewage leak at Pembroke Commons prompts urgent clean-up works

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Council pollution officers say they have no enforcement powers over Welsh Water infrastructure

SEWAGE contamination on the Commons in Pembroke has prompted an urgent response from pollution officers, after a leak was reported by a member of the public on Tuesday.

Pembrokeshire County Council’s Pollution Control Team confirmed they were alerted yesterday afternoon to sewage surrounding a manhole cover on the site. The Herald understands that officers immediately notified Welsh Water (DCWW) network technicians to investigate the incident “as a matter of urgency”.

County councillor Jonathan Grimes, who represents Pembroke St Mary South and Monkton, said the authority had been clear that it holds no enforcement powers over Welsh Water assets.

“Whilst we work constructively with Welsh Water, we have no authority to intervene on their apparatus or to carry out enforcement action against them for such pollution incidents,” the Pollution Control Team said in a statement shared with the councillor.

Urgent works underway

Council officers visited the site on Wednesday morning alongside contractors and Welsh Water technicians to assess clean-up options. According to the team, works will include cleaning the contaminated ground in and around the manhole cover and fencing off the affected area “until safe”.

Cllr Grimes said officers would return to the scene on Thursday to check on progress and ensure the area is properly secured.

Residents who notice any further issues have been urged to contact the Pollution Control Team directly.

Further updates are expected later this week.

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