Politics
Extra £1.5bn for public services as Welsh Government unveils spending plans
THE WELSH Government has unveiled its spending plans for next year with an additional £1.5bn allocated to public services, including an extra £610m for health and social care.
Mark Drakeford announced all government departments will receive increases in day-to-day revenue and longer-term capital funding, marking a departure from last year’s cuts.
Wales’ finance secretary described the £26bn draft budget as offering an opportunity to rebuild and reinvigorate public services after 14 difficult years.
He said: “This is a budget for a brighter future, delivering an extra £1.5bn for our public services and priorities, helping to put Wales firmly back on the path of growth….
“This is in stark contrast to the last couple of years when we have been forced to make some very difficult and painful decisions.”
The ex-First Minister added: “This is a good budget for Wales. But it will take time to reverse the damage inflicted on Wales over 14 years of neglect from previous UK administrations.”
The draft budget includes an extra £610m for health and social services, £186m to improve rail services, including the core valleys lines, and £81m to build more social housing for rent.
Councils will receive a 4.3% increase in the local government settlement.
The increases by department are as follows:
- Health: 3.8% revenue, 30% capital
- Housing and local government: 5.4% revenue, 11.2% capital
- Education: 4.9% revenue, 8.1% capital
- Transport: 12% revenue, 10.7% capital
- Climate change and rural affairs: 6.6% revenue, 31% capital
- Economy, energy and planning: 4.3% revenue, 59.1% capital
- Social justice: 4.7% revenue, 23% capital
- Central services and administration: 7.4% revenue, 47% capital
Welsh rates of income tax will remain unchanged, with taxpayers continuing to pay the same rates as in England and Northern Ireland.
However, the Welsh Government announced that higher residential rates of land transaction tax – Wales’ equivalent of stamp duty – will increase by 1%, raising an extra £7m.
The standard rate of landfill disposal tax will also rise to reduce waste and boost recycling.
The big question is how the Welsh Government will pass its budget, with parliamentary arithmetic in the Senedd on a knife-edge and Labour one seat short of a majority.

Eluned Morgan, who has warned Wales could lose out on £1bn if opposition parties do not support the spending plans, will need to cut a deal with at least one opposition member.
Previous budgets have been passed with the help of Plaid Cymru, Liberal Democrat and independent Senedd Members, with a deal with the Conservatives seeming unlikely.
Plaid Cymru backed the Welsh Government’s budget in recent years in return for 46 commitments but the cooperation deal between the two collapsed in October 2023.
The First Minister could also reach out to Jane Dodds, the Lib Dems’ leader in Wales and the party’s sole Senedd Member, or Rhys ab Owen, who sits as an independent.

Senedd Members need to agree a motion on Welsh rates of income tax (Writ), which are forecast to raise about £3.3bn in 2025/26, before the budget can be passed.
Writ defaults to zero if a motion cannot be passed, meaning basic, higher and additional rates would decrease by 10p in the £1 for Welsh taxpayers.
If the annual budget motion is not agreed by the start of the financial year in April, the budget of the Welsh Government would revert to 75% of the previous year’s.
This would also affect directly funded bodies such as the Senedd, Public Services Ombudsman, Wales Audit Office and the Electoral Commission.
If a motion is still not agreed by the end of July, the budget rises to 95%.
Mark Drakeford will lead a debate on the draft budget in the debating chamber or Siambr, which will be broadcast live on Senedd.TV from about 2.50pm today.
He will also appear before the Welsh Parliament’s finance committee on Thursday morning to face questions about the spending plans for the 12 months from April.
Senedd Members will then scrutinise the draft budget through December and January.
Committees will take evidence from witnesses including the Office for Budget Responsibility, Institute for Fiscal Studies, Wales Fiscal Analysis, Bevan Foundation and Citizens’ Advice.
Based on this evidence, committees will publish scrutiny reports by February 3.
A further debate on the draft budget will be held the following day, with the final budget set to be published on February 25 and a crunch vote to follow on March 4.
Navigating this year’s budget process will be a key test for Wales’ new First Minister, with the next Senedd election looming in less than 18 months in May 2026.
Business
Cwm Deri Vineyard Martletwy holiday lets plans deferred
CALLS to convert a former vineyard restaurant in rural Pembrokeshire which had been recommended for refusal has been given a breathing space by planners.
In an application recommended for refusal at the December meeting of Pembrokeshire County Council’s planning committee, Barry Cadogan sought permission for a farm diversification and expansion of an existing holiday operation through the conversion of the redundant former Cwm Deri vineyard production base and restaurant to three holiday lets at Oaklea, Martletwy.
It was recommended for refusal on the grounds of the open countryside location being contrary to planning policy and there was no evidence submitted that the application would not increase foul flows and that nutrient neutrality in the Pembrokeshire Marine SAC would be achieved within this catchment.
An officer report said that, while the scheme was suggested as a form of farm diversification, no detail had been provided in the form of a business case.
Speaking at the meeting, agent Andrew Vaughan-Harries of Hayston Developments & Planning Ltd, after the committee had enjoyed a seasonal break for mince pies, said of the recommendation for refusal: “I’m a bit grumpy over this one; the client has done everything right, he has talked with the authority and it’s not in retrospect but has had a negative report from your officers.”

He said the former Cwm Deri vineyard had been a very successful business, with a shop and a restaurant catering for ‘100 covers’ before it closed two three years ago when the original owner relocated to Carmarthenshire.
He said Mr Cadogan then bought the site, farming over 36 acres and running a small campsite of 20 spaces, but didn’t wish to run a café or a wine shop; arguing the “beautiful kitchen” and facilities would easily convert to holiday let use.
He said a “common sense approach” showed a septic tank that could cope with a restaurant of “100 covers” could cope with three holiday lets, describing the nitrates issue as “a red herring”.
He suggested a deferral for further information to be provided by the applicant, adding: “This is a big, missed opportunity if we just kick this out today, there’s a building sitting there not creating any jobs.”
On the ‘open countryside’ argument, he said that while many viewed Martletwy as “a little bit in the sticks” there was already permission for the campsite, and the restaurant, and the Bluestone holiday park and the Wild Lakes water park were roughly a mile or so away.
He said converting the former restaurant would “be an asset to bring it over to tourism,” adding: “We don’t all want to stay in Tenby or the Ty Hotel in Milford Haven.”
While Cllr Nick Neuman felt the nutrients issue could be overcome, Cllr Michael Williams warned the application was “clearly outside policy,” recommending it be refused.
A counter-proposal, by Cllr Tony Wilcox, called for a site visit before any decision was made, the application returning to a future committee; members voting seven to three in favour of that.
Climate
Fishguard ‘battery box’ scheme near school refused
PLANNERS have refused a Pembrokeshire ‘battery box’ electricity storage unit near a Pembrokeshire town school, which has seen local objections including fears of a potential risk to nearby school children.
In an application recommended for approval at the December meeting of Pembrokeshire County Council’s planning committee, AMP Clean Energy sought permission for a micro energy storage project on land at Fishguard Leisure Centre Car Park, near Ysgol Bro Gwaun.
The application had previously been recommended for approval at the November meeting, but a decision was deferred pending a site visit.
The scheme is one of a number of similar applications by AMP, either registered or approved under delegated planning powers by officers.
The battery boxes import electricity from the local electricity network when demand for electricity is low or when there are high levels of renewable energy available, exporting it back during periods of high demand to help address grid reliability issues; each giving the potential to power 200 homes for four hours.
The Fishguard scheme, which has seen objections from the town council and members of the public, was before committee at the request of the local member, Cllr Pat Davies.
Fishguard and Goodwick Town Council objected to the proposal on grounds including visual impact, and the location being near the school.
An officer report said the scheme would be well screened by a Paladin Fence, with a need to be sited close to an existing substation.
Speaking at the December meeting, Ben Wallace of AMP Clean Energy conceded the boxes were “not things of beauty” before addressing previously raised concerns of any potential fire risk, saying that “in the incredibly unlikely” event of a fire, the system would contain it for up to two hours, giving “plenty of time” for it to be extinguished, an alarm immediately sounding, with the fire service raising no concerns.
“These are fundamentally safe, the technology is not new,” he said, comparing them to such batteries in phones and laptops.
One of the three objectors at the meeting raised concerns of the proximity to homes and the school, describing it as “an unsafe, unsustainable and unnecessary location,” with Cllr Jim Morgan of Fishguard Town Council, who had previously raised concerns of the “nightmare scenario” of a fire as children were leaving the school, also voicing similar issues.
Local county councillor Pat Davies, who had spoken at the previous meeting stressing she was not against the technology, just the location and the potential risk to pupils, said the siting would be “a visual intrusion,” with the school having many concerns about the scheme, adding it had been “brought forward without any dialogue of consultation with the school”.
Cllr Davies added: “It is unacceptable that a micro-storage unit should be proposed in this area; someone somewhere has got it wrong.”
Following a lengthy debate, committee chair Cllr Mark Carter proposed going against officers in refusing the scheme; members unanimously refusing the application.
Climate
Fears Sageston wind turbine scheme could affect bats
AN APPLICATION for a wind turbine nearly 250 foot high on the road to Tenby, recommended to be turned down due to a lack of information on how it could affect bats, has been put on hold.
In an application recommended for refusal at the December meeting of Pembrokeshire County Council’s planning committee, Constantine Wind Energy Ltd sought permission for a 76-metre-high wind turbine at Summerton Farm, Sageston.
Back in 2024, an application to replace a current 60.5m high turbine on the site with one up to 90 metres, or just under 300 foot, at the site was refused on the grounds its height and scale would have a detrimental impact on the visual amenity of the locality, with the additional clause of failing to comply with supplementary guidance.
A report for committee members on the latest application says the smaller turbine than previously proposed, representing a 16-metre increase in height from a previously granted turbine “would not be sufficient for it to become an overbearing feature in the landscape,” with no objections from either the Council Landscape Officer or Natural Resources Wales.
However, concerns were raised by the council ecologist that the applicant’s Preliminary Ecological Appraisal Report was incomplete.
“The Council Ecologist questions why the response received in relation to myotis bat records were not included within the initial PEA. As such, he considers that the PEA does not present enough information on the possible presence of bats within the application site area.
“Whilst there may be negligible foraging and commuting potential, there are records of foraging on grassland within two kilometres which have positive identification of myotis bat foraging, along with greater and lesser horseshoe bat foraging. He also notes that the application site is in close proximity to a wooded area.”
It was recommended for refusal on the grounds that appraisal report, and technical note, “do not adequately address the impact of the proposed wind turbine on bat activity in the area”.
At the committee meeting, members heard the scheme had been temporarily withdrawn to deal with issues raised, the application expected to return to a future meeting.
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