Politics
Drakeford confirms public sector shielded from tax hike
MARK DRAKEFORD confirmed the UK Treasury will cover increased costs of national insurance in the public sector amid concerns additional funding could be “swallowed up” by tax rises.
The former First Minister said Wales will receive full funding for employer national insurance (NI) contributions for public sector workers, as defined by the Office for National Statistics.
He told the Senedd this will be “above and beyond” an additional £1.7bn announced for Wales last week in Labour’s first UK budget in 15 years.
Prof Drakeford, Wales’ finance secretary, who will announce the Welsh Government’s own spending plans in December, described the UK settlement as a step change.
But he stressed: “It was never going to be possible to repair 14 years’ worth of damage within the first 14 weeks of a UK Labour Government.”
Prof Drakeford explained the Welsh Government will receive £235m in 2025/26 for capital investment in areas such as repairing schools or building hospitals.
In a statement to the Senedd on November 5, he said: “That is a real-terms 7% increase in a single year. That compares with 0.5% a year on average over the last 14 years.
“In 14 years of the last Conservative government, the annual uplift in capital available to the Welsh Government accumulated to the uplift we have now received in a single year.”
He contrasted this with an extra £1m in capital spending provided by Jeremy Hunt, the former Tory chancellor, in March, stating Wales now is 235 times better off.
He said: “That additional capital will not fill every hole nor undo all the damage inflicted on the fabric of our public services but it is a different world to the one we had learned to fear.”
Peter Fox, the Conservatives’ shadow finance secretary, criticised the “snatch-and-grab” budget, accusing Labour of misleading the public and breaking manifesto promises.
He told the debating chamber or Siambr: “Despite all the spin, this is the same old Labour: borrowing more, taxing more – taking more of other people’s money.”
Mr Fox said the £40bn in tax rises, which includes employers’ NI contributions, will suppress economic growth and wages, costing jobs and impacting thousands of working people.
Accusing Rachel Reeves of “fiscal fiddling”, he warned the chancellor is playing a dangerous game that risks saddling generations with debt by maxing out the country’s credit card today.
His Conservative colleague James Evans raised concerns about care homes and GP surgeries, which, unlike the health service, will not be protected from the NI hike.
Heledd Fychan suggested calls for HS2 funding, devolution of the Crown Estate and replacement of the Barnett formula had fallen on deaf ears.
Prof Drakeford said Welsh ministers would continue to make the case for rail funding and reform of the formula that is used to allocate money to Wales.
But he stressed it is unrealistic to expect fundamental change in six months, with the Barnett formula dating to 1978 and reform requiring agreement across all four nations.
Ms Fychan, Plaid Cymru’s shadow finance secretary, told the Senedd that cruel and damaging policies of the previous Tory UK Government are continuing under Labour.
Her party colleague Sioned Williams was disappointed the UK’s first female chancellor did not mention childcare in her speech given its importance to tackling inequality.
Community
Future of Milford Haven Library set to be secured by agreement
A CALL to residents for a potential £3.35 annual contribution to help support a town library has been overwhelmingly supported, councillors heard.
In a submitted question to Cabinet Member for Residents’ Services Cllr Rhys Sinnett, heard at the December meeting of Pembrokeshire County Council, fellow Milford Haven councillor Cllr Alan Dennison asked: “I and many residents of Milford are deeply concerned about the drastic cut in funding for the Milford library, which has hindered its ability to function effectively, especially given its lack of a permanent location since its sale years ago.
“Many residents have voiced their dissatisfaction with the request for over £3 weekly contributions to keep the library operational for another year, particularly while we see ongoing financial support for Haverfordwest.
“As a councillor for Milford and responsible cabinet member, you are aware of the PCC’s plans for the Haverfordwest library.
“Are you not concerned, as your constituents are, about the insufficient investment in our town’s library, especially in light of the seemingly unlimited funds directed towards Haverfordwest and can you identify what plans are in place to support Milford library going forward?”
Cllr Sinnett responded by saying the county council was working in partnership with the town council and Milford Haven Port Authority to consider options to improve the financial sustainability of the library.
Milford Haven’s library has been based at the town’s Cedar Court for the past 16 years, with its lease running up to 2034, members heard.
He said the cost referred to were a town council survey of residents to see if they were willing to contribute, through the town council part of the overall council tax bill, towards the library, at a cost of £3.35 per year, with more than 89 per cent of responses favourable.
He said Haverfordwest was “not immune” from any potential cuts and cost savings, but funding had been secured to address antisocial behaviour at that library.
Business
Community council objections to Tenby Lidl store scheme
PLANS for a new store on the edge of Tenby by retail giant Lidl, which has seen objections from the local community council, are likely to be heard next year.
In an application recently lodged with Pembrokeshire County Council back in October, Lidl GB Ltd, through agent CarneySweeney, seeks permission for a new 1,969sqm store on land at Park House Court, Narberth Road, New Hedges/Tenby, to the north of the Park Court Nursing Home.
The proposals for the latest specification Lidl store, which includes 103 parking spaces, would create 40 jobs, the applicants say.
The application follows draft proposals submitted in 2024 and public consultations on the scheme, with a leaflet drop delivered to 8,605 local properties; an information website, with online feedback form; and a public exhibition, held last December at the De Valence Pavillion in Tenby, with a follow-up community event held at New Hedges Village Hall, close to the site, publicised through an additional postcard issued to 2,060 properties.

Some 1,365 responses have been received, with 89 per cent of respondents expressing support for the proposals, the applicants say.
A supporting statement says: “Lidl is now exceptionally well established in the UK with the Company operating c.980 stores from sites and premises both within and outside town centres. Its market share continues to increase substantially, and the company is expanding its store network considerably. The UK operational model is based firmly on the success of Lidl’s operations abroad with more than 10,800 stores trading across Europe.
It adds: “The granting of planning permission for the erection of a new Lidl food store would increase the retail offer and boost the local economy. The new Lidl food store would create up to 40 employment opportunities for people of all ages and backgrounds, providing opportunities for training and career development. This in turn will create an upward spiral of economic benefits.”
Local community council St Mary Out Liberty Community Council has formally objected to the scheme, saying that, while it supports the scheme for a Lidl store in principle, recognising “the economic benefits a new retail store could bring,” it says the proposed location “is unsuitable, conflicts with planning policy, and cannot be supported in its current form”.
Its objections add: “The A478 is heavily congested in peak tourist months. A supermarket would worsen congestion, increase turning movements, and heighten risks to pedestrians, cyclists, and emergency access.”
It also raises concerns on the potential impact through “noise, lighting, traffic disturbance, and loss of quiet amenity” on a neighbouring residential care home.
An initial assessment by Pembrokeshire County Council, highlighted concerns about the visual impact, with the authority’s landscape officer commenting that the store would introduce “an intense urban function into an otherwise rural context”.
The report added: “It is not considered to be compatible with the character of the site and the area within which it is located; and furthermore, will lead to a harmful visual impact on the setting of the National Park.”
The application will be considered by county planners at a later date.
Local Government
£4m Plaid Cymru deal boost to Pembrokeshire council coffers
PEMBROKESHIRE’S financial situation for next year is some £4m better off after a higher settlement from the Welsh Government, but the council still faces difficult decisions, councillors heard.
While council tax makes up a proportion of the council’s annual revenue, a crucial area of funding is the Aggregate External Finance (AEF) rate from Welsh Government.
Pembrokeshire was to receive a 2.3 per cent increase on its settlement, a total of £244,318,000, amounting to an extra £5,493,000, placing it at joint 13th of the 22 local authorities in Wales.
Now, following a Welsh Government and Plaid Cymru agreement, local authorities including Pembrokeshire have received a better financial settlement.
Speaking at the December meeting of Pembrokeshire County Council, while presenting a report on the outline draft medium term financial plan (MTFP) 2026-27 to 2028-29, Cabinet member for finance Cllr Alistair Cameron said the recent rise in the financial settlement from the Welsh Government had decreased the expected funding gap for the next financial year for the county from £17.7m to £13.6m, but stressed: “There are still increased pressures we are going to have to face.”
His report for members outlined some of the pressures faced by the council in setting its budget for the next financial year.
“Based on the revised projected funding gap of £13.6m, it is evident that major budget savings as well as a significant Council Tax increase will be required in order to deliver a balanced budget for 2026-27. The lower the Band D Council Tax increase, the higher the budget savings requirement will be, with the consequential adverse impact on the provision of Council services and on the medium-term financial sustainability of the council.”
His report also noted the decision in October by members to cut the council tax premium on second homes from 150 to 125 per cent, which on its own has increased the funding gap for 2026-27 by £1.3m.
The report, listing the many pressures and potential savings, said that where possible, discretionary fees and charges income has been budgeted to increase by 3.8 per cent, with any increases above this level included as part of the budget savings options presented.
The report for members, prior to the revised settlement from Welsh Government, gave council tax increase options ranging from five to 10 per cent with 7.5 per cent highlighted as the most favoured option, the 7.5 rate equating to a £2.38 a week increase for the average Band D property; each one per cent increase or decrease in council tax being worth £0.908m for council coffers.
Leader of the Conservative group on the council Cllr Di Clements made a plea to the leader, calling on the council to use the extra money from Welsh Government to “contribute to making this authority financially sustainable in the long term,” adding: “We know it’s tough out there for our council tax-payers, let’s hopefully give them a break this year.”
Independent Group leader Cllr Huw Murphy said the better settlement was “a huge sigh of relief” for the council, adding: “The budget negotiations still won’t be any easier because we’ve had this pot of money; [but] we have to applaud Plaid Cymru on this.”
A long string of recommendations essentially noting the report, but including the fees and charges increase, was moved by Cllr Cameron, seconded by Leader Cllr Jon Harvey, backed by members by 46 votes to one, with three abstentions.
The actual setting of the budget and related council tax level along with any potential savings and cuts, will be decided at a later date, with a public consultation running to January 4, followed by committee scrutiny ahead of Cabinet considering a revised draft budget on February 9, before it is recommended to full council on February 20.
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