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National Insurance rise creates black hole in council budget

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THE PEMBROKESHIRE HERALD has confirmed that Pembrokeshire County Council faces significant budget pressure due to Labour’s hike in employers’ National Insurance contributions (NICs).

The pressures stem not only from the local authority’s obligation to pay increased NICs for its own staff, but also from the added costs passed on by external service providers — particularly in social care — who are also affected by the rise.

SETTING A BUDGET BLIND

When former Cabinet Member for Finance Josh Beynon presented this year’s budget, he flagged the potential risks the NIC increase posed to the Council’s finances in both the current and following financial years. However, at the time, due to the UK Government’s delay in confirming its funding plans, he did not know whether the full NIC increase would be covered.

The Welsh Government has claimed it lobbied Westminster to ensure the full increase would be funded, avoiding in-year pressures on already stretched council budgets.

Instead, a combination of Westminster funding and Welsh Government reserves will cover around 85% of the increase. Whether that support remains in place beyond the current financial year is unclear. Once the first two years of the current spending review period end in April 2027, further funding looks unlikely.

NI RISE WILL HIT COUNCIL SERVICES

Even absorbing a fraction of the cost will have a significant impact on Pembrokeshire’s budget.

We asked the County Council to outline the scale of the impact.

Cllr Alistair Cameron, Cabinet Member for Finance and Efficiency, said: “We have been advised that the UK and Welsh Governments will meet circa 85% of the cost of raising the employer’s National Insurance contribution rate. This leaves Pembrokeshire County Council with an in-year pressure of approximately £0.75m. This will also be a pressure for the 2026–27 budget.

“The Council delivers many of its statutory functions through external organisations (such as social care providers). I understand they are not receiving any compensation for this added expense. This will, therefore, add an estimated £2m to their cost base. I fear they will be looking to the Council to meet the additional costs.

“Pembrokeshire County Council is already working hard to plan for next year’s budget, and we will have to take account of this shortfall, along with other pressures, including UK and Welsh Government funding settlements and rising demand for statutory services such as social care.

“We have made significant cost savings over several years and are trying to run our services as efficiently as possible while responding to public need.

“We will be consulting with the Pembrokeshire public on different budget options, but it will not be easy.

“The final decision on next year’s budget rests with Full Council. We aim to discuss all options with the political groups and non-aligned councillors to try to reach an agreement that best serves the people of Pembrokeshire.”

SOCIAL CARE IN CRISIS

The increase in NIC has already led to warnings that the social care sector in Wales faces a £150 million funding gap.

An increase in employer NICs from 13.8% to 15%, alongside a reduction in the earnings threshold from £9,100 to £5,000, is expected to hit the sector hard.

These changes equate to a 37% rise in NICs for an employee earning £25,000 — equivalent to the Real Living Wage.

Combined with the increase in both the National Minimum Wage and National Living Wage, these changes are set to add tens — or even hundreds — of thousands of pounds in additional annual staffing costs for care homes.

In Pembrokeshire, one major care provider has already reorganised its staff structure and reduced the number of full-time equivalent posts. Smaller providers are also being forced to cut back on where and how often staff work in a bid to control costs.

The Nuffield Trust, an independent think tank, has warned that the Chancellor’s policy decisions could see “swathes of the social care market [collapse] under these extra cost pressures.”

If social care provision fails to keep pace with demand, the resulting pressure on the NHS will inevitably grow. In Pembrokeshire — with one of the oldest populations in Wales — that could prove disastrous.

To maintain care levels and ensure service users’ dignity, Pembrokeshire County Council would be left with two stark choices: cut other services, raise council tax, or most likely, both.

Whether Rachel Reeves has considered that consequence is unclear — particularly in light of the continuing prioritisation of the NHS, which is exempt from the NIC rise, and the lack of investment in the wider system that props it up.

 

Community

Princess of Wales praised for ‘skill’ during local wool mill and factory visit

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Royal tour shines spotlight on west Wales textile heritage and local jobs

CATHERINE, Princess of Wales was told “she’s got the skill” after trying her hand at traditional textile work during a visit to west Wales on Tuesday (Feb 3).

The royal spent the day meeting staff and apprentices at two well-known manufacturers – Melin Tregwynt in Pembrokeshire and Hiut Denim in Cardigan – highlighting the region’s long-standing reputation for craftsmanship and small-scale, high-quality production.

Stitching and mending at historic mill

At Melin Tregwynt, a family-run woollen mill that now operates as an employee-owned trust, the princess was guided through each stage of production, from weaving to finishing.

In the quality control room she was invited to mend a blanket using a needle and thread, carefully repairing the fabric under the watchful eye of experienced staff.

Paula Harding, who has worked at the mill for more than a decade, praised her technique, saying: “She did it right – and she didn’t go through the other side. That’s skill. She’s got the skill.”

Laughing, the princess told workers: “You make it look so easy,” adding that the craft was clearly “a labour of love”.

She asked questions about the history of the business, which has produced Welsh-designed blankets and throws for more than a century, and spoke with several generations of the same families who have worked at the mill.

‘Made in Wales’ denim

Later, the princess travelled to Hiut Denim, the Cardigan-based firm credited with bringing jeans manufacturing back to the town after large factories closed in the early 2000s.

The company now focuses on small-batch, premium denim and employs skilled cutters and machinists locally.

During a tour of the factory floor, the princess tried cutting out a pair of jeans and helped stitch a “Made in Wales” label onto a finished pair that staff said would be presented to the Prince of Wales.

“He will love those,” she replied.

She joked that there was “no pressure” when handed the cutting tools and said she enjoys making clothes herself, admitting the most adventurous project she had attempted was sewing a pair of pyjamas.

The royal also stopped to greet Barney, the factory’s English cocker spaniel, drawing smiles from staff.

Meeting well-wishers

Crowds gathered outside both sites to catch a glimpse of the visitor, with the princess spending time chatting with families and children before moving on.

The visit forms part of ongoing efforts by the royal household to showcase traditional industries and skilled manufacturing across the UK, with west Wales’ textile sector recognised as a key part of the region’s heritage and economy.

For workers at both businesses, the message was simple: the spotlight on locally made products and homegrown skills was just as important as the royal presence itself.

Local flavour: The Princess of Wales chats with staff and accepts a jar of Crwst’s Welsh honey butter before departing Cardigan following her visit to Hiut Denim (Pic: Crwst).

 

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Crime

Man spared jail after admitting child abuse image offences

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Police seized devices after intelligence linked Pembrokeshire address to illegal cloud storage accounts

A 23-YEAR-OLD Pembrokeshire man has avoided immediate custody after admitting making and possessing indecent images of children, including extreme bestiality material.

Ryan Beale, aged 23, appeared at Swansea Crown Court for sentencing this week.

At his first hearing, before magistrates on December 31, he entered guilty pleas and being granted conditional bail.

The court heard the case followed an intelligence-led police investigation linking Beale to a Dropbox account suspected of storing illegal material. Officers executed a warrant at his home on December 18.

During his arrest, Beale told officers: “I don’t use Dropbox,” claiming his email and Google accounts had been compromised.

However, police seized his mobile phone and computer equipment. A forensic examination found the email address connected to the Dropbox account stored on his device. Although the account had also been accessed from overseas locations, including Nigeria, investigators were satisfied it was controlled by Beale and linked to a larger cloud storage account containing significant volumes of illegal content.

Officers discovered 120 Category A images, 36 Category B images and 29 Category C images.

Category A represents the most serious level of abuse.

The material included extreme and disturbing bestiality content. Further Category C images were also located within the Dropbox account.

Two identified victims depicted in the images were girls aged nine and eleven.

Beale initially denied the allegations but later admitted the offences.

Passing sentence, at Swansea Crown Court on Tuesday (Feb 3) the His Honour Geraint Walters said: “This was not an innocent pastime. Every time an adult views that image, a child is still being abused.”

He added that an early guilty plea had spared Beale immediate custody but warned the offences would have lifelong consequences.

“The public have no time for anybody doing this,” the judge said. “If you’re doing this, the police will find out. They didn’t knock on your door randomly — they knew what they were looking for.”

Beale was sentenced to eight months’ imprisonment, suspended for two years. He must complete 20 days of rehabilitation activity and pay £300 in prosecution costs.

The court also imposed a Sexual Harm Prevention Order, ordered the forfeiture and destruction of his electronic devices, and placed him on the Sex Offenders Register for ten years.

“If you keep yourself out of trouble, you won’t have to serve that custodial sentence,” the judge told him.

 

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Entertainment

One Night in Dublin returns to the Torch with a brand-new show

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ONE NIGHT IN DUBLIN is heading back to the stage at the Torch Theatre with a lively new production fronted by renowned Irish singer Danny Muldoon.

Tickets are already selling fast for the feel-good celebration of Irish music, which promises two hours of songs, stories and plenty of craic.

Backed by an award-winning five-piece band, Muldoon leads audiences through a packed set of sing-along favourites including Galway Girl, Tell Me Ma, The Irish Rover, Dirty Old Town, Whiskey in the Jar, The Wild Rover and The Galway Shawl, along with many more well-loved classics.

The show recreates the atmosphere of a bustling Dublin pub, complete with fiddle, whistle, guitars, banjo, bodhrán, accordion and driving drums, transporting the audience straight into “Murphy’s Tavern” for an unforgettable night of live entertainment.

Fans can also expect hits from Irish legends including The Pogues, The Saw Doctors, The Dubliners, The Fureys, Flogging Molly and Dropkick Murphys.

One Night in Dublin comes to the Torch Theatre on Thursday, March 26 at 7:30pm.

Tickets cost £26.50. Visit the theatre website or call the Box Office on (01646) 695267 to book.

 

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