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Politics

Welsh Government wins vote on £26bn draft budget

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THE WELSH Government won the first vote on its £26bn spending plans for next year in the absence of two Conservative Senedd Members.

The Senedd, which had been expected to reject the motion, voted 29-26 in favour of the 2025/26 draft budget, with one abstention, following a two-hour debate on February 4.

Darren Millar and Russell George, trustees of the Evan Roberts Institute, a Christian charity, missed the vote after jetting off for a prayer meeting in Washington DC.

Labour, which holds half of the Senedd’s 60 seats, refused to agree to a pairing arrangement which would have seen some of its members not vote to cover the absences.

The Conservatives similarly refused to “pair” when two Labour members were off sick for a no-confidence vote on former First Minister Vaughan Gething in June.

Conservative MS Darren Millar
Conservative MS Darren Millar

But Tuesday’s vote was largely inconsequential unlike the crunch vote looming on March 4.

With parliamentary arithmetic on a knife-edge, ministers still need to cut a deal with at least one opposition member to pass the final budget which will be published on February 25.

If not agreed, the Welsh Government’s budget would initially revert to 75% of the previous year’s and if a motion is not passed by the end of July, this would rise to 95%.

Welsh rates of income tax, set to raise £3.4bn in 2025/26, will also need to be agreed before the budget motion on March 4 or rates would fall by 10p in the £1 for all Welsh taxpayers.

Finance secretary Mark Drakeford said the draft budget provides an extra £1.5bn, with every Welsh Government department receiving an increase in capital and revenue funding.

He told the Senedd: “In sharp contrast to this time last year, I have been able to provide an uplift to every part of the public service here in Wales.”

Peredur Owen Griffiths, who chairs the Senedd’s finance committee, raised a groundswell of evidence about the impact of the UK Government’s employer national insurance hike.

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

He also called for a “funding floor” to close the gap between the councils that fared best and worst in the Welsh Government’s 2025/26 provisional local government settlement.

With the leader of the opposition in the US for a national prayer meeting expected to be addressed by President Donald Trump, Sam Rowlands led the Conservatives’ response.

The shadow finance secretary said a quarter of a century of Labour budgets in Wales have led to the longest NHS waiting lists and the worst educational outcomes in the UK.

Mr Rowlands warned that Welsh firms faced the highest business rates in Britain as he criticised spending on the default 20mph limit and more politicians in Cardiff Bay.

Conservative MS Sam Rowlands speaking in the Senedd
Conservative MS Sam Rowlands

In recent years, Welsh Government budgets have passed with Plaid Cymru’s support in return for 46 commitments as part of a since-collapsed cooperation deal.

Heledd Fychan, Plaid Cymru’s shadow finance secretary, said: “He [Mr Rowlands] can speak on behalf of his party but he certainly can’t vote on behalf of the two missing members.”

She added: “The fact that two members are missing from their benches today tells you all you need to know about what they actually think of Wales.”

Accused of “propping up” Labour for three years, Ms Fychan responded: “Grown-up politics requires cooperation – it also requires turning up to vote.”

She told the Senedd: “Every independent analysis, every sector in crisis demonstrates in stark terms that the draft budget is not going to lead to a brighter future for Wales.”

Plaid Cymru MS Heledd Fychan
Plaid Cymru MS Heledd Fychan

Calling for fair funding, Ms Fychan accused the Welsh Government of name-calling and trying to bully Plaid Cymru into supporting an “inadequate” budget.

Labour’s Mike Hedges and Rhianon Passmore, members of the finance committee, both distanced themselves from the committee’s “partisan” press release on the draft budget.

Ms Passmore stressed: “The Welsh Government’s financial settlement for 2025/26 is the largest real terms funding increase since devolution began.”

Islwyn MS Rhianon Passmore
Islwyn MS Rhianon Passmore

Welsh Liberal Democrat leader Jane Dodds, who is thought to be most likely to do a budget deal with the Welsh Government, did not contribute to the debate.

Ms Dodds, a former social worker, called for more funding for childcare and speech and language therapy during First Minister’s questions earlier in the plenary meeting.

Mark Drakeford accused Plaid Cymru of “fantasy politics”, pointing out that the party backed cuts in previous years but would not support a better settlement in 2025/26.

Prof Drakeford said: “They will deliberately and knowingly vote to deny those public services, and those people who rely on them, the extra money available to them in this budget.”

The former First Minister told the opposition: “They’re very keen indeed to tell us what’s wrong but they’ve almost nothing to tell us on how that is to be put right and, even when they do, they can’t tell us how they would pay for it.”

 

Community

Cilgerran Church in Wales school petition to be heard

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A PETITION opposing proposed changes for a north Pembrokeshire school is to be heard by councillors later this week.

At last May’s meeting, Pembrokeshire County Council considered a report of the School Modernisation Working Group which outlined the findings of a review of education provision in the Preseli area.

A later July meeting backed a general consultation to discontinue Cilgerran Church in Wales Voluntary Controlled School, and to establish it as a 3-11 community school.

“In particular, the review considered the extent of surplus school places in the area, set against a significant decline in the pupil population,” the council in its consultation has said.

The consultation closed on January 30.

Hundreds have opposed the proposed changes, with a petition, on the council’s own website opposing the changes recently closing after gaining 391 signatures.

Any petition of more than 100 signatures triggers a debate at one of the council’s scrutiny committees, in the case of Cilgerran that debate taking place at Pembrokeshire County Council’s February 5 schools and learning overview and scrutiny committee.

The Cilgerran e-petition, created by Louise Williams, raised concerns including the school could become part of a federation, a loss of permanent head teacher on site, a shared head teacher would have to oversee several schools, loss of funding control and the ability to maintain the school’s current healthy and stable funding, and a loss of commitment to the church, in turn could impact on the school’s and pupils values, beliefs and cultural beliefs.   

It said: “Ysgol Cilgerran VC school has strong links with the Church community in Cilgerran and we believe this will have a negative impact on the children who attend the school, the community of Cilgerran and the links between the two.
“We are proud of our school ethos and values which are strengthened by our links with the church. The school has close and strong relationships with our Church in Wales federation governors one of which is also our safeguarding governor.

“Our Church Federation governors work closely with the school and are regular visitors to the school and the children. They provide vital support and guidance to the school and have a positive impact on the Children’s education. We believe these links will be weakened by this proposal to remove our VC status and we believe this is an un-necessary action.”

The proposals for Cilgerran are part of a wide range of potential education changes in the county.

Two petitions, opposing the potential closures of Manorbier and Ysgol Clydau schools, were recently heard at full council and a further petition opposing the potential closure of Stepaside School has recently been launched, which has generated enough support to be heard at a future council meeting.

 

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Crime

Welsh Lib Dems urge ministers to rethink rates relief for struggling pubs and cafés

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Calls grow for Welsh Government to match support offered to English venues

THE WELSH LIBERAL DEMOCRATS have urged the Welsh Government to review its business rates policy, warning that scaling back support for pubs and hospitality risks further closures across towns and villages.

Party leader Jane Dodds, who represents Mid and West Wales in the Senedd Cymru, said ministers should act quickly to protect local venues after additional support for pubs and music venues was announced for England by the UK Government.

The measures announced by the Chancellor do not automatically apply in Wales, leaving uncertainty over whether similar help will be introduced here.

Hospitality businesses across Pembrokeshire and Carmarthenshire have already reported rising energy bills, higher wage costs and reduced footfall since the pandemic. From April, current business rates relief is expected to be reduced, a move the Liberal Democrats say could place Welsh firms at a disadvantage compared with competitors over the border.

Dodds said that pubs, cafés and restaurants form “the heart of our communities” and warned that withdrawing relief now would be “a serious mistake”.

She told the Senedd that support “cannot stop at pubs alone” and should extend to the wider hospitality sector, including restaurants and family venues that rely heavily on seasonal trade and tourism.

“When questioned, the First Minister said she needed to examine the details of the English package before committing to anything similar for Wales,” Dodds said. “Without urgent action, we risk losing viable, well-loved businesses that communities simply cannot afford to lose.”

The party is also calling for UK-wide action, including a temporary reduction in VAT for hospitality and tourism, funded by a windfall tax on large banks.

However, Welsh Government sources have previously argued that decisions on rates relief must be balanced against pressures on public finances, with ministers required to prioritise health, education and other frontline services within a fixed budget. They have said any additional support would need to be affordable and targeted.

Industry bodies have echoed concerns about the challenges facing the sector. Trade groups say many independent pubs and cafés continue to operate on tight margins, particularly in rural areas where they serve as community hubs as well as businesses.

Local operators say clarity is now key, with decisions on staffing, stock and opening hours often planned months in advance.

With the next financial year approaching, hospitality owners will be watching closely to see whether Wales mirrors England’s support – or leaves businesses to absorb the extra costs alone.

 

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international news

Mandelson quits Labour over Epstein controversy

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Former cabinet minister says stepping down is ‘in best interests of the party’ as questions raised over historic payments

LORD MANDLESON has resigned his membership of the Labour Party, saying he does not want to cause “further embarrassment” following renewed controversy over his past links to convicted sex offender Jeffrey Epstein.

The former cabinet minister and one-time UK ambassador to the United States confirmed his decision in a letter to Labour’s general secretary after fresh documents released by the US Department of Justice appeared to reference him in connection with Epstein’s finances.

The files suggest that three payments of $25,000 — totalling $75,000, about £55,000 at today’s exchange rates — were allegedly made to Peter Mandelson in 2003 and 2004.

Lord Mandelson said he had “no record or recollection” of the transactions and believes the allegations may be false, but intends to investigate the matter himself.

In his resignation letter, he wrote that he felt “regretful and sorry” to be linked again to what he described as the “understandable furore” surrounding Epstein.

He added that stepping down from party membership was the responsible course of action while he reviewed the claims.

“I do not wish to cause further embarrassment to the Labour Party,” he said. “I have dedicated my life to the values and success of the party and believe I am acting in its best interests.”

Ambassador role ended

Lord Mandelson had been appointed the UK’s ambassador to Washington by Prime Minister Keir Starmer in December 2024.

However, he was removed from the post last year after earlier revelations about his past friendship and contact with Epstein, including emails showing communication after the financier’s 2008 conviction.

The latest release of files has also included photographs said to show Lord Mandelson alongside an unidentified woman. He said he could not place the location or circumstances of the images.

There is no suggestion that appearing in the documents or photographs indicates criminal wrongdoing.

‘Deep regret’

Earlier this weekend, Lord Mandelson reiterated his regret for ever having known Epstein and apologised “unequivocally” to the women and girls who suffered abuse.

“I want to repeat my apology to the women and girls whose voices should have been heard long before now,” he said.

Epstein died in prison in 2019 while awaiting trial on sex trafficking charges, but investigations into his network of associates continue to generate political fallout on both sides of the Atlantic.

Labour has not yet issued a detailed statement beyond confirming it had received Lord Mandelson’s resignation.

 

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