Politics
Drakeford: Plaid Cymru faces ‘day of reckoning’ on draft budget
MARK DRAKEFORD warned Plaid Cymru will face a “day of reckoning” on whether to block the Welsh Government’s £26bn spending plans for next year.
Wales’ finance secretary laid down a challenge to Plaid Cymru after unveiling the Welsh Government’s 2025/26 draft budget which included an extra £1.5bn for public services.
Prof Drakeford said he remains open to talks with Plaid Cymru about how the budget can be improved, with Labour one seat short of the majority needed to pass its spending plans.
But, addressing opposition benches, he warned: “If that’s not the business you are in then, believe me, the people of Wales will see through you and the political games you think you can play with their future.”
He added: “There’s £253m for local government and when you vote against the budget, you will be saying to those local authorities that you don’t want them to have a single penny of it.
“That’s what serious politics is about … and that day of reckoning is coming your way.”
The cooperation agreement between the Welsh Government and Plaid Cymru collapsed in 2023, and the party has said it intends to vote against this year’s budget on March 4.
Leading a debate on December 10, the former First Minister told the Senedd the spending plans for the 12 months from April seek to protect the most vulnerable people in society.
He said: “It is a budget for priorities, it is a budget for growth, it is a budget that reminds people in Wales why, time after time, they have put their trust in a Labour government.
“A government which shares their values of trust, ambition, care for one another, and especially those who need that care the most. And that … is why this is a budget for hope, a budget which sets out on that path to deliver a brighter future.”

Peter Fox, the Conservatives’ shadow finance secretary, criticised Labour’s “tax-and-spend frenzy” and raised concerns economic growth could slow.
Mr Fox said: “Both Labour governments just don’t understand business,” as he described national insurance increases as a tax on growth and a broken manifesto pledge.
He rejected “fictitious” claims of a £22bn “blackhole” in the UK’s finances left by the Tories, adding that the Welsh budget has increased due to tax rises and vast amounts of borrowing.
Mr Fox welcomed an additional £253m for local government but cautioned it will still leave councils facing a “cliffedge” with financial pressures totalling £300m.
The former council leader said the Welsh Government has “finally seen sense”, agreeing to offer retail, hospitality and leisure businesses the same business rates relief as in England.
Heledd Fychan, for Plaid Cymru, warned the draft budget falls short of the funding Wales is owed following the lowest real-terms increase of all the devolved nations at 1.3%.
The party’s shadow finance secretary reiterated calls for billions from HS2 and replacement of the “outdated” Barnett formula with a fairer model based on population need.

Ms Fychan said: “Without this, it is clear despite the uplift many sectors will be left broken and uncertain about the future: cuts will still have to be made, council tax will have to rise and the backlog across the NHS will remain incredibly high.
“Yes, the investment is welcome but it is a drop in the ocean of what’s needed.”
Ms Fychan, who represents South Wales West, warned the budget will largely plug gaps created by Westminster and Labour mismanagement.
Labour’s Lee Waters said the opposition reaction “breeds cynicism in politics”, accusing the Conservatives of complaining about revenue raising plans while demanding more money.
Pointing to a need for cooperation, the former minister added: “Plaid Cymru have already said before they heard the budget that they would be voting against this budget. So, how is that seriously engaging with the constitutional reality that we’ve all embraced?”
Responding to the debate, Prof Drakeford said: “I understand the Conservative party – the problem for them is so do the people of Wales.”
Turning his ire to Ms Fychan’s depiction of £1.5bn extra as a “drop in the ocean”, he told the debating chamber or Siambr: “Well … some drop and some ocean.
“She too asked for more money for local government, more money for the arts, she referred, of course, to the sainted Scots. There is a day of reckoning coming for Plaid Cymru, though, isn’t there, on the budget?”
Business
Bid to convert office space into chocolate factory, salon and laundrette
A CALL for the retrospective conversion of office space previously connected to a Pembrokeshire car hire business to a chocolate factory, a beauty salon and a laundrette has been submitted to county planners
In an application to Pembrokeshire County Council, Mr M Williams, through agent Preseli Planning Ltd, sought retrospective permission for the subdivision of an office on land off Scotchwell Cottage, Cartlett, Haverfordwest into three units forming a chocolate manufacturing, a beauty salon, and a launderette, along with associated works.
A supporting statement said planning history at the site saw a 2018 application for the refurbishment of an existing office building and a change of use from oil depot offices to a hire car office and car/van storage yard, approved back in 2019.
For the chocolate manufacturing by ‘Pembrokeshire Chocolate company,’ as part of the latest scheme it said: “The operation comprises of manufacturing of handmade bespoke flavoured chocolate bars. Historically there was an element of counter sales but this has now ceased. The business sales comprise of online orders and the delivery of produce to local stockist. There are no counter sales from the premises.”
It said the beauty salon “offers treatments, nail services and hairdressing,” operating “on an appointment only basis, with the hairdresser element also offering a mobile service”. It said the third unit of the building functions as a commercial laundrette and ironing services known as ‘West Coast Laundry,’ which “predominantly provides services to holiday cottages, hotels and care homes”.
The statement added: “Beyond the unchanged access the site has parking provision for at least 12 vehicles and a turning area. The building now forms three units which employ two persons per unit. The 12 parking spaces, therefore, provide sufficient provision for staff.
“In terms of visiting members of the public the beauty salon operates on an appointment only basis and based on its small scale can only accommodate two customers at any one time. Therefore, ample parking provision exists to visitors.
“With regard to the chocolate manufacturing and commercial laundrette service these enterprises do not attract visitors but do attract the dropping off laundry and delivery of associated inputs. Drop off and collections associated with the laundry services tend to fall in line with holiday accommodation changeover days, for example Tuesday drop off and collections on the Thursday.
“With regard to the chocolate manufacturing ingredients are delivered by couriers and movements associated with this is also estimated at 10 vehicular movements per week.”
The application will be considered by county planners at a later date.
Politics
Ceredigion council tax expected to rise by 4.7 per cent
A BETTER financial settlement for Ceredigion from the Welsh Government along with a fresh grant is expected to see council tax bills in the county rising by less than five per cent this year, far below previous fears of a rise as high as nearly nine.
Last year, for the 2025-’26 budget, Ceredigion saw a council tax rise of 9.3 per cent.
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.
Ceredigion was to receive a 2.3 per cent increase on its settlement, some £3,388,000 for a total of £150,670,000, placing it at joint 13th of the 22 local authorities in Wales.
Following a later Welsh Government and Plaid Cymru agreement additional funding for local government was secured, giving Ceredigion additional funding.
Back in November, before the increased settlement was announced, Ceredigion Leader Cllr Bryan Davies said that early estimates indicated that an 8.9 per cent increase in council tax would be necessary, but an improved position of 6.9 per cent had been indicated as a result of a further modelling of service cost pressures and operational savings.
Following the improved settlement, members at the January meeting of Cabinet heard from Cabinet Member for Finance and Procurement Services Cllr Gareth Davies a recommendation for a 4.75 per cent council tax increase as part of a draft budget requirement of £221.493m was being mooted.
That position has improved again, following financial support towards the Mid and West Wales Fire Service Levy, members of the February 3 meeting of the council’s corporate resources overview and scrutiny committee heard, the funding now dropping the expected council tax increase to 4.7 per cent, equivalent to an extra £7.39 per month for the average Band D property for the next financial year.
Members of the committee agreed to note the 4.7 per cent figure, with the final council tax recommendation being considered by Cabinet on February 10; the final decision on the budget being made by full council on March 2.
international news
Mandelson quits Lords amid police probe over Epstein links
Peter Mandelson has announced he will retire from the House of Lords with immediate effect, as mounting political and legal pressure grows over claims he shared sensitive government information with convicted sex offender Jeffrey Epstein.
Parliamentary officials confirmed that Peter Mandelson formally notified the Clerk of the Parliaments of his decision, ending his membership of the upper chamber from Tuesday (Feb 4).
The move follows reports that the Metropolitan Police Service is reviewing allegations of possible misconduct in public office connected to emails said to have been forwarded to Epstein while Mandelson was business secretary during the 2008–09 financial crisis.
Downing Street has confirmed that material has been passed to police after an initial Cabinet Office review.
Government fury

Prime Minister Keir Starmer told cabinet colleagues Mandelson had “let his country down”, according to No 10, and officials are now drafting legislation that could strip him of his peerage entirely.


Removing a life peer is rare and would require an Act of Parliament.
If passed, Mandelson would lose the title “Lord” altogether — an extraordinary step that has only been considered in the most serious cases.
Senior ministers have described the alleged passing-on of market-sensitive government discussions as “disgraceful” and a “betrayal of trust”.
What police are examining
Misconduct in public office is a centuries-old common law offence that applies where someone in a position of public trust wilfully abuses that role. It carries a maximum sentence of life imprisonment.
Investigators will assess whether confidential information — particularly relating to government financial policy during the crash — was shared without justification and whether safeguards were breached.
At this stage, no charges have been brought.
Mandelson has previously apologised for maintaining contact with Epstein after the financier’s conviction, saying he regrets “ever having known him”, but he has disputed some of the latest claims and has not commented directly on the police review.
Political shockwaves
Opposition parties are pushing for further disclosure of documents relating to Mandelson’s vetting and his past roles.
Conservatives are expected to force a Commons vote demanding more information, while Liberal Democrats have called for a public inquiry.
Several MPs have also suggested Mandelson should be removed from the Privy Council.
The developments mark a dramatic fall for one of Labour’s most influential political figures of the past three decades, who only months ago was serving as the UK’s ambassador to Washington.
Now, with police examining evidence and legislation being prepared to remove his title, his public career appears effectively over.
More updates are expected as the investigation continues.
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