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Large Council Tax hikes while councils hold £2 billion in reserves

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Calls for Reform in Welsh Government Funding Formula

RESIDENTS across Wales are facing an average 7.36% increase in Council Tax for the 2025-26 financial year, despite councils holding more than £2 billion in usable reserves. The proposed hikes come amid concerns that the Welsh Labour Government’s Local Government Funding Formula is outdated, leading to significant disparities in funding between councils.

While councils argue that reserves are necessary for financial stability and future investment, critics say the current system places an unfair burden on taxpayers and fails to ensure efficient spending. Some councils are sitting on reserves exceeding £200 million, while others struggle to meet budget demands, raising questions about fairness and transparency in the funding model.

Funding formula concerns
The Welsh Local Government Funding Formula is under scrutiny, with critics highlighting that it still relies on population data from the 1990s. There are also concerns about uneven funding allocations, with some councils receiving significantly more per capita than their neighbours.

For example, Newport City Council receives £600 more per head than Monmouthshire County Council, despite both serving similar areas. Additionally, the funding formula assumes that the cost to a council of an 84-year-old resident is just £7.34, while an 85-year-old resident is assumed to cost over £2,243—a discrepancy that critics argue defies logic.

Welsh Conservative debate in the Senedd
The Welsh Conservatives are set to bring forward a debate in the Senedd next week, urging the Welsh Government to commission an independent review of the funding formula and work with councils to use reserves to ease the burden on taxpayers. The party is also calling for local referendums for any council proposing a tax rise above 5%.

Speaking ahead of the debate, Laura Anne Jones MS, Welsh Conservative Shadow Secretary for Housing and Local Government, said: “Under the Welsh Labour Government, the Local Government Funding Formula is broken. It cannot be right that people in Wales face a 7% hike in their Council Tax while councils sit on over £2 billion in reserves.

In the Senedd next week, we will be calling on the Welsh Labour Government to fix this system by commissioning an independent review and ensuring Council Tax is kept as low as possible.”

The debate motion
The motion to be debated next week includes the following points:

  • Recognising the essential role of councils in delivering public services and the funding challenges they face.
  • Noting that Welsh councils hold over £2 billion in reserves.
  • Expressing regret that the proposed Council Tax rise in Wales is 7.36% for 2025-26.
  • Calling on the Welsh Government to:
  • Review the Local Government Funding Formula to ensure fairer distribution of funding.
  • Encourage councils to use reserves to minimise Council Tax increases.
  • Introduce referendums for any Council Tax rise above 5%.
  • Reduce bureaucracy and increase efficiency in local government.
  • Promote cross-council collaboration to cut costs and improve services.
  • Foster a business-like approach to spending taxpayer money, reducing waste and unnecessary projects.

Council Perspective

Many local authorities defend their financial reserves, arguing that they are needed for unexpected costs, future investments, and financial stability. Some councils state that rising costs, particularly in social care and education, leave them little choice but to raise Council Tax.

A Welsh Government spokesperson previously stated that funding allocations are based on need and that councils are free to use reserves at their discretion. They argue that long-term financial planning is crucial, especially in times of economic uncertainty.

As the debate unfolds, the challenge remains striking a balance—ensuring councils have the funding they need while protecting residents from excessive tax increases.

 

Community

Milford Haven community mourns loss of dedicated volunteer Robert Duncan

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Tributes paid to former RBL chairman and Citizens’ Award recipient

MILFORD HAVEN has been left saddened by the death of Robert Duncan, a well-known and much-respected community figure who devoted decades of his life to voluntary service.

Milford Haven Town Council said it was “so sorry to learn of the passing” of Mr Duncan, describing him as a dear friend to many and a man whose generosity touched countless lives.

Mr Duncan served as Chairman of the Milford Haven branch of the Royal British Legion and was widely recognised for his tireless work supporting veterans and local causes. Alongside his wife Carol, he received a Citizens’ Award in 2016 in recognition of their years of voluntary service to the town.

The couple also fostered children for many years, opening their home to young people in need and providing stability and care to families across the area.

Beyond his work with the Legion, Mr Duncan was involved with the local R.A.O.B. lodge and Milford Haven Museum, contributing time and energy to preserve the town’s history and strengthen community life.

In a statement, the Town Council said: “Robert was a wonderful family man and a most dedicated public servant. So many of us will have stories of his generosity and community activities that we would like to share. Thank you for everything, Robert. We will truly miss you.”

Councillors added that his quiet commitment and willingness to help others made him a familiar and trusted figure across Milford Haven.

Sympathies have been extended to Carol and the wider family, as well as friends and colleagues who worked alongside him over the years.

Those who knew him say his legacy will live on in the many lives he helped shape and the strong sense of community he worked so hard to build.

Photo caption: Robert Duncan and his wife Carol receive a Citizens’ Award in 2016 alongside the Mayor of Milford Haven (Pic: Milford Haven Town Council).

 

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Road sign vandalism sparks political row across west Wales

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BILINGUAL road signs across parts of west Wales have been deliberately defaced, with English place names sprayed over in what politicians have described as targeted acts of vandalism.

Incidents have been reported in St Clears, Welshpool and Burry Port in recent days, with the English wording obscured while the Welsh language names were left untouched.

The damage has prompted criticism from Andrew RT Davies, the South Wales Central Conservative Member of the Senedd, who said the attacks were “disgraceful” and risk fuelling division within communities.

In St Clears, Carmarthenshire, black paint was sprayed across the English name on entrance signage, while the Welsh version, “Sancler”, remained clearly visible. The town itself dates back to the 12th century as an Anglo-Norman settlement, with the Welsh name derived from the original English.

Similar reports have emerged from Welshpool in Powys and Burry Port on the Carmarthenshire coast, where bilingual signs have also been tampered with.

Mr Davies said: “These attacks, presumably carried out by Welsh separatist activists, are disgraceful.

“The English language is central to Welsh culture.

“Attempts to erase it are completely unacceptable and must be condemned.”

He added that road signs are there for safety and navigation and should not be used to make political statements.

Local residents have also voiced frustration, with some pointing out that obscuring parts of signs could pose a risk to drivers unfamiliar with the area, particularly visitors and tourists.

Bilingual signage has been standard across Wales for decades, reflecting both Welsh and English as everyday languages used by communities. While the vast majority of signs remain untouched, the recent incidents appear to have been deliberate and selective.

Police have not yet confirmed whether any arrests have been made, but anyone with information about damage to public property is urged to contact their local force.

Anyone who spots vandalised signage is also advised to report it to their local council so repairs can be arranged quickly.

 

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Community

Fishguard juniors host friendly chess clash with Pembrokeshire youngsters

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YOUNG players from Pembrokeshire and Fishguard enjoyed an evening of friendly competition and learning as Fishguard Junior Chess Club welcomed Pembrokeshire Chess Club Juniors for a lively inter-club match.

Fourteen juniors took part in a series of games, gaining valuable experience across the boards while putting their developing skills into practice. Coaches from both sides said it was encouraging to see not only improving tactics and confidence, but also the traditional etiquette of the game on full display.

Handshakes, quiet concentration and respectful play summed up the night, with sportsmanship praised as highly as the results.

While everyone enjoys winning, organisers stressed that chess is also about patience, discipline and respect — qualities that serve players well both at the board and beyond.

One standout performance came from Pembrokeshire captain and board one Harry Harling, who secured two impressive results against an opponent around 150 grading points higher and several years his senior.

Growing numbers

The club continues to go from strength to strength, with ten new junior members joining in recent weeks. That brings total junior membership to 25, prompting sessions to be split into two groups to ensure coaching can be tailored to different ages and abilities.

Plans are already in place for Fishguard to make a return visit to the Pembrokeshire club’s Steynton headquarters, giving those who missed out this time a chance to take part.

The wider aim, organisers say, is simple: to grow junior chess locally and give as many young people as possible the opportunity to play competitively.

That philosophy is already bearing fruit, with under-11 Henry Burton recently stepping up to represent the adult side on board one — an opportunity he is said to be relishing.

What’s next

Attention now turns to the half-term trip to Llanelli on February 18 for a return fixture against White Knights, with thanks given to Jason Garcia for organising the match.

There is also talk of arranging games against the newly formed Haverfordwest Chess Club, with both senior and junior players expected to take part, ensuring newcomers and experienced competitors alike get time at the table.

The club also congratulated friends at Redhill High School for fielding three teams at the Welsh Secondary Schools Championship, where they competed with distinction.

With more fixtures in the diary and growing enthusiasm among young players, junior chess in Pembrokeshire looks to be firmly on the move.

 

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