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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 The proposed hikes come amid concerns that the Welsh Labour Government’s Local Government Funding Formula is outdated, leading to significant disparities in funding between councils.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.

Crime

Swansea man dies weeks after release from troubled HMP Parc: Investigation launched

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A SWANSEA man has died just weeks after being released from HMP Parc, the Bridgend prison now at the centre of a national crisis over inmate deaths and post-release failures.

Darren Thomas, aged 52, died on 13 November 2025 — less than a month after leaving custody. The Prisons and Probation Ombudsman (PPO) has confirmed an independent investigation into his death, which is currently listed as “in progress”.

Born on 9 April 1973, Mr Thomas had been under post-release supervision following a period at HMP/YOI Parc, the G4S-run prison that recorded seventeen deaths in custody in 2024 — the highest in the UK.

His last known legal appearance was at Swansea Crown Court in October 2024, where he stood trial accused of making a threatening phone call and two counts of criminal damage. During the hearing, reported by The Pembrokeshire Herald at the time, the court heard he made threats during a heated call on 5 October 2023.

Mr Thomas denied the allegations but was found guilty on all counts. He was sentenced to a custodial term, which led to his imprisonment at HMP Parc.

Parc: A prison in breakdown

HMP Parc has faced sustained criticism throughout 2024 and 2025. A damning unannounced inspection in January found:

  • Severe self-harm incidents up 190%
  • Violence against staff up 109%
  • Synthetic drugs “easily accessible” across wings
  • Overcrowding at 108% capacity

In the first three months of 2024 alone, ten men died at Parc — part of a wider cluster of twenty PPO-investigated deaths since 2022. Six occurred within three weeks, all linked to synthetic drug use.

Leaked staff messages in 2025 exposed a culture of indifference, including one officer writing: “Let’s push him to go tomorrow so we can drop him.”

Six G4S employees have been arrested since 2023 in connection with alleged assaults and misconduct.

The danger after release

Deaths shortly after release from custody are a growing national concern. Ministry of Justice data shows 620 people died while under community supervision in 2024–2025, with 62 deaths occurring within 14 days of release.

Short sentences — common at Parc — leave little time for effective rehabilitation or release planning. Homelessness, loss of drug tolerance and untreated mental-health conditions create a high-risk environment for those newly released.

The PPO investigates all such deaths to determine whether prisons or probation failed in their duties. Reports often take 6–12 months and can lead to recommendations.

A system at breaking point

The crisis at Parc reflects wider failures across UK prisons and probation. A July 2025 House of Lords report described the service as “not fit for purpose”. More than 500 people die in custody annually, with campaigners warning that private prisons such as Parc prioritise cost-cutting over care.

The PPO investigation into the death of Darren Thomas continues.

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Crime

Woman stabbed partner in Haverfordwest before handing herself in

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A WOMAN who stabbed her partner during a drug-fuelled episode walked straight into Haverfordwest Police Station and told officers what she had done, Swansea Crown Court has heard.

Amy Woolston, 22, of Dartmouth Street in Milford Haven, arrived at the station at around 8:00pm on June 13 and said: “I stabbed my ex-partner earlier… he’s alright and he let me walk off,” prosecutor Tom Scapens told the court.

The pair had taken acid together earlier in the day, and Woolston claimed she believed she could feel “stab marks in her back” before the incident.

Police find victim with four wounds

Officers went to the victim’s home to check on him. He was not there at first, but returned shortly afterwards. He appeared sober and told police: “Just a couple of things,” before pointing to injuries on his back.

He had three stab or puncture wounds to his back and another to his bicep.

The victim said that when he arrived home from the shop, Woolston was acting “a bit shifty”. After asking if she was alright, she grabbed something from the windowsill — described as either a knife or a shard of glass — and stabbed him.

He told officers he had “had worse from her before”, did not support a prosecution, and refused to go to hospital.

Defendant has long history of violence

Woolston pleaded guilty to unlawful wounding. The court heard she had amassed 20 previous convictions from 10 court appearances, including assaults, battery, and offences against emergency workers.

Defending, Dyfed Thomas said Woolston had longstanding mental health problems and had been off medication prescribed for paranoid schizophrenia at the time.
“She’s had a difficult upbringing,” he added, saying she was remorseful and now compliant with treatment.

Woolston was jailed for 12 months, but the court heard she has already served the equivalent time on remand and will be released imminently on a 12-month licence.

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News

BBC apologises to Herald’s editor for inaccurate story

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THE BBC has issued a formal apology and amended a six-year-old article written by BBC Wales Business Correspondent Huw Thomas after its Executive Complaints Unit ruled that the original headline and wording gave an “incorrect impression” that Herald editor Tom Sinclair was personally liable for tens of thousands of pounds in debt.

The 2019 report, originally headlined “Herald newspaper editor Tom Sinclair has £70,000 debts”, has now been changed.

The ECU found: “The wording of the article and its headline could have led readers to form the incorrect impression that the debt was Mr Sinclair’s personal responsibility… In that respect the article failed to meet the BBC’s standards of due accuracy.”

Mr Sinclair said: “I’m grateful to the ECU for the apology and for correcting the personal-liability impression that caused real harm for six years. However, the article still links the debts to ‘the group which publishes The Herald’ when in fact they related to printing companies that were dissolved two years before the Herald was founded in 2013. I have asked the BBC to add that final clarification so the record is completely accurate.”

A formal apology and correction of this kind from the BBC is extremely rare, especially for a story more than six years old. 

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