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Politics

Welsh public bodies ‘could be shortchanged on NI hike’

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PUBLIC bodies in Wales may not receive full compensation from the UK Government for the cost of employer national insurance increases unlike in England, a committee heard.

Mark Drakeford told the Senedd’s finance committee the cost of workers within the Office for National Statistics definition of a public sector employee will be covered by the UK treasury.

Andrew Jeffreys, director of the Welsh treasury, explained the UK Government plans to use the Barnett formula to decide how much Wales will receive based on the costs in England.

But Prof Drakeford said: “That’s not my position … if public authorities in England are getting 100% compensation then public authorities in Wales should have 100%.

“The Barnett share may turn out to be less than we need in Wales.

“That would seem to me fundamentally unfair if English public authorities know they’re getting everything covered and in Wales we’re left filling gaps.”

He added: “If things worked out in the way we just described where Wales doesn’t have full cover but English public authorities do …, I won’t simply be leaving it there.”

Peredur Owen Griffiths, who chairs the committee, raised a warning from Ynys Môn council of a “gaping hole” in the budget that leaves local authorities facing an existential crisis.

Peredur Owen Griffiths at the Senedd on December 7, 2021
South Wales East’s Plaid Cymru MS Peredur Owen Griffiths

He said councils could be put in an invidious position of having to balance books, potentially making jobs redundant, in the interim before clarity on compensation in May or June.

Pointing to the example of extra cash from UK pay deals, Prof Drakeford stated ministers took a risk-based decision to plan for the funding coming to Wales despite some uncertainty.

He told the committee: “I think local authorities will want to do that. They will look to see the ONS definition … and make assumptions against that. I equally think there will be organisations who … will need to plan on the basis they won’t get help from the treasury.”

Prof Drakeford, who was appointed finance secretary in September, said he would be loath to use money that comes to Wales to “substitute for responsibilities held elsewhere”.

Giving evidence after unveiling his £26bn draft budget, including a £6bn planned settlement for councils in 2025/26, Prof Drakeford said local government funding will increase by 4.3%.

The former First Minister told Senedd Members headline figures on how much funding each council receives often disguise the fact some are doing well on a per-head basis.

Prof Drakeford said he would look if anything more can be done to assist councils at the bottom end before the final budget is published on February 25.

He said the mission has not simply been to restore the position before wide-ranging cuts across almost every Welsh Government department were announced in October 2023.

He told the committee: “I’ve resisted with my colleagues suggestions that what we should be doing with the money we’ve got available next year is go back and fill the holes that we had to create in order to make this year’s budget viable.”

Pressed about tough decisions he has had to make, Prof Drakeford said: “There’s very little in this budget where people have had to deprioritise …. Last year we were using that term to denote the fact we were having to cut budgets, there’s very little of that in this budget.”

He suggested he would have liked to have allocated more than an extra £20m for childcare due to pressures to raise the hourly rate for providers and extend the Flying Start scheme.

Conservative Peter Fox questioned whether enough funding would be provided to the NHS in the draft budget to tackle the record 618,000 people in Wales on waiting lists.

Conservative MS Peter Fox
Conservative MS Peter Fox

Prof Drakeford replied: “There’s no ceiling here where you could say ‘well, the health service has now got everything it needs’ because there is always more demand…. I am satisfied that there is adequate funding … to make inroads into those waiting lists.”

Mike Hedges asked for an update on introducing a vacant land tax after talks with the Tory UK Government on devolving powers requested nearly five years ago broke down.

Prof Drakeford told his Labour colleague plans for a vacant land tax had completely stalled but he had a positive meeting with James Murray, exchequer secretary to the UK treasury.

He said he was given a commitment to revisit the proposal which aims to test arrangements set out in the 2014 Wales Act to devolve powers for new taxes to Wales.

Pressed about talks with the UK treasury on the Welsh Government’s borrowing powers and flexibility with reserves, Prof Drakeford warned the issue becomes more pressing every year.

He said if capital borrowing continues at the current rate of £150m a year, the Welsh Government will hit the £1bn cap during the next Senedd term from 2026.

Business

Cwm Deri Vineyard Martletwy holiday lets plans deferred

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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.

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Climate

Fishguard ‘battery box’ scheme near school refused

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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.

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Climate

Fears Sageston wind turbine scheme could affect bats

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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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