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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.

 

Local Government

Pembrokeshire council Cabinet finance roles under spotlight

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THE NUMBER of senior Pembrokeshire councillors holding the top finance job in recent years came under the spotlight at the July meeting of the council.

A submitted question by Cllr Alan Dennison, heard at the July meeting of Pembrokeshire County Council asked: “Since my election in 2022, this administration has experienced a turnover of four finance cabinet members, averaging one per year.”

Those four Cabinet members with responsibility for finance were: Cllr Alec Cormack, Cllr Joshua Beynon, Cllr Alistair Cameron, and former leader Cllr Jon Harvey who has now assumed the finance role.

Cllr Dennison’s question added: “This high turnover raises concerns about the stability of the council’s financial management, particularly in light of the current fiscal challenges and in light of the recent announcement by Finance Cabinet Member number 3 [Cllr Cameron] that under this administration there has been a staggering 97 per cent increase in council tax rates since 2017, in contrast to a mere 37 per cent rise in the inflation rate.

“Could the Leader explain the rationale behind these frequent changes in leadership and what apparent benefit this has to the Pembrokeshire ratepayers?”

Back in May, a previous submitted question by Cllr Dennison asked for the increase in council tax levels since 2017.

Cllr Cameron had responded by saying the level of council tax for a Band D average property had increased by 95.7 per cent in that time.

For the 2026 to ’27 financial year, the county council part of council tax levels in the county rose by 4.6 per cent, equivalent to an extra £76 for the average Band D property, less than half last year’s increase.

The previous year saw Pembrokeshire’s council tax increased by 9.35 per cent, lower than that year’s Cabinet recommendation of 9.85 per cent.

The previous year to that saw a 12.5 per cent rise on top of previous increases of 12.5 per cent, 9.92 per cent, five per cent, 3.75 per cent, five per cent and 7.5 per cent.

The overall council tax bill is made up of the county council element, the largest part, the Dyfed-Powys Police precept, and individual town or community council elements.

Responding to Cllr Dennison’s question at the July meeting, new leader Cllr Tessa Hodgson pointed out that he had got “his facts and figures wrong,” as she had only had cabinet member for finance under her leadership, Cllr Harvey, who was “doing a great job”.

 

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Community

Contentious DARC space radar scheme  to be decided by Welsh Government

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THE CONTENTIOUS DARC ‘space radar’ scheme in Pembrokeshire is to be decided by Welsh Government rather than county planners, just days before it was to be debated by them.

In an application submitted earlier this year to Pembrokeshire County Council following a public consultation, the Ministry of Defence wants to install 27 radar antenna and a long list of associated works at Cawdor Barracks, Brawdy for a worldwide network of sensors called the Deep Space Advanced Radar Concept (DARC) to track active satellites and other objects which would utilise three sites worldwide, part of the AUKUS trilateral security partnership, in the USA, the UK and Australia “enabling 360-degree coverage of the sky at all times of day and under any weather conditions”.

In late 2023, Cawdor Barracks was identified as the preferred UK site by the-then UK Defence Secretary, Grant Shapps.

A supporting statement says of the DARC scheme: “This capability is critical to protect and defend the services provided by satellites, ensuring continuity and resilience against collisions or debris-related incidents.

“Without DARC, the UK faces a significant risk of losing access to these vital services, which would have severe consequences for national security, economic stability, and public safety.”

St Davids City Council members unanimously opposed the pre-application consultation proposals, and public objectors have raised concerns with protests taking place outside the barracks and County Hall, Haverfordwest earlier this year, and the scheme before county planners attracted more than 1,000 objections.

Pembrokeshire-based Jerome Flynn, famous for his roles in Soldier Soldier, Robson & Jerome and more recently Game of Thrones has described the scheme as “the most unspeakably abominable planning application led by the US military, backed by Donald Trump to place 27 radar dishes right on the edge of our beloved coastal national park”.

Campaign group PARC against DARC, set up in 2024 to oppose the scheme which it has described as the militarisation of space, submitted an official request to ‘call in’ the application for DARC radar to the newly formed Plaid Cymru Welsh Government.

A ‘call-in’ means the application could be decided at Welsh Government level rather than by county planners.

The application was due to go before Pembrokeshire County Council’s next planning committee, on July 28, but has now been ‘called in by Siân Gwenllian MS, Minister for Local Government, Housing and Planning.

The Cabinet Minister’s letter to Pembrokeshire County Council calling in the application says: “The proposed development raises national security issues given the strategic defence nature of the proposal and is a novel planning issue.

“The proposal potentially conflicts with national policy in relation to landscape, ecology, sustainability and placemaking.

“A decision on the proposal may be controversial beyond the immediate locality, and there is already considerable public interest in the proposal.

“All these matters lead the Cabinet Minister to conclude the development is of more than local importance and the application should be determined by the Welsh Ministers.”

A PARC against DARC spokesperson, welcoming the ‘call-in,’ said: “As we made in our case to Welsh ministers, the DARC proposal is part of a weapons system designed to track and target satellites belonging to other countries around the world.

“It is being developed for the US Space Force, which was created under Donald Trump, at a time when US military spending has doubled since he took office. That is why DARC has been described as a significant escalation in the militarisation of space.”

A planned demonstration at County Hall, Haverfordwest, due to be held on July 28 when Pembrokeshire planners were to deliberate on DARC, is to go ahead as “a vigil in support of Welsh Government’s call-in decision,” PARC against DARC has said.

A spokesman for Pembrokeshire County Council said the call-in had been received on July 21.

“As such the application is transferred to the Welsh Ministers for a decision and the application will no longer be presented to the council’s planning committee at its meeting scheduled for July 28.

“The council now awaits confirmation from the Welsh Ministers regarding the procedure and timetable that will be adopted for their consideration of the application.

“Further information will be provided once the council has been formally notified of the next steps in the decision-making process.”

 

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Local Government

Call to end special planning delegation panel

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A CALL to bring to an end a special Pembrokeshire council panel which decides whether some planning applications should be considered by councillors rather than planning officers is to be discussed further.

A notice of motion submitted by Councillor Huw Murphy to the July meeting of Pembrokeshire County Council asked: “That council consider disbanding the Planning Delegation Panel (PDP) and review the current arrangements so that planning applications delegated to officers for refusal, where a member requests further consideration, are referred directly to the Planning Committee rather than first being considered by the PDP.”

His supporting statement said: “Under the current arrangements within Pembrokeshire County Council, where a planning application has been delegated to officers and a refusal is recommended, the local county councillor may request that the application be considered by the PDP.

“The PDP then determines whether the application should proceed to full planning committee. It is considered that this additional stage introduces unnecessary bureaucracy into the planning process, leading to increased delays and costs for applicants.

“The current process can also be perceived as limiting democratic oversight, as applications may be refused by the panel without being considered by full planning committee, whose elected members bring local knowledge, experience transparency and democratic accountability to planning decisions.

“By comparison, the Pembrokeshire Coast National Park Authority, which is responsible for planning across more than 30 per cent of the land area of Pembrokeshire, does not operate a planning delegation panel. Instead, planning matters are considered through its established planning procedures, and this approach appears to function effectively without the need for a PDP.”

His supporting statement ended: “The removal of the PDP should simplify decision-making, reduce bureaucracy, improve transparency and democratic accountability, and reduce the workload of Democratic Services.”

At the July meeting, members agreed the notice of motion would be referred to the council’s constitutional review committee for further consideration.

 

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