Politics
Reeves under pressure as leaked OBR papers cast doubt on Budget ‘black hole’ claim
Chancellor faces calls for investigation after surplus revealed weeks before tax rises
RACHEL REEVES is facing mounting pressure tonight after leaked documents suggested the Treasury may have overstated the scale of Britain’s financial problems ahead of last week’s Budget.
The Chancellor repeatedly warned of a “black hole” in the public finances during a series of interviews in November, arguing the UK needed “fiscal headroom” to protect against economic shocks. The claim was central to the Government’s justification for around £26 billion in tax rises, including changes to capital gains, business taxation, and duties on property.
Leak reveals £4.2bn surplus
However, a leak from the Office for Budget Responsibility (OBR), first reported over the weekend, shows the UK was actually running a £4.2 billion surplus as recently as late October – weeks before Reeves delivered her Budget.
The revelation has triggered a storm at Westminster, with opposition parties accusing the Chancellor of misleading the public and Parliament. Critics say Reeves used the prospect of a large deficit to lay the groundwork for tax rises that may not have been necessary.
Ministers and civil servants have told national outlets they were not informed about the surplus ahead of the Budget, leading to tensions inside Government.
Reeves denies lying
Speaking to broadcasters on Monday, Reeves insisted she had not lied, saying she had been “honest and frank” about the need to rebuild the nation’s fiscal resilience.
She argued that an OBR downgrade in productivity forecasts meant expected tax receipts were weaker, making it “prudent” to increase fiscal headroom now. “We cannot gamble with the economy,” she said.
Labour sources have also pointed to expected rises in welfare costs and public-sector spending pressures.
Ministerial code questions
Opposition figures are now calling for an investigation into whether the Chancellor breached the ministerial code, which requires ministers to give accurate information.
Some have gone further, suggesting the Financial Conduct Authority may need to consider the impact of potentially misleading statements on markets. The Government has dismissed those suggestions as “political theatre”.
The row intensified after the head of the OBR resigned on Sunday, describing the leak as a “technical but serious” breach of confidentiality. The timing has raised fresh questions about who knew what – and when.
Storm not over
The Prime Minister has publicly backed his Chancellor, insisting the Budget was based on the best information available at the time.
But with senior economists warning that public confidence in fiscal transparency has been damaged, and with several Cabinet ministers privately expressing frustration over communication inside the Treasury, the controversy shows no sign of fading.
Parliament is expected to press for further answers when Reeves appears before the Treasury Select Committee later this week.
Business
Water bottling scheme to support Trerhys farm, near St Dogmaels approved
A CALL for a north Pembrokeshire farm to be able to diversify through the bottling of water from its well has been given the go-ahead.
In an application to Pembrokeshire Coast National Park, a Mr George, through agent Harries Planning Design Management, sought permission for a change of use of part of an existing agricultural shed to a use for the bottling of water as a form of farm diversification at Trerhys, near St Dogmaels, Cardigan.
A supporting statement said: “The water bottling plant will be run and under control by the applicant, who also has direct control of the associated farm known as Trerhys. The water bottling plant seeks to diversify the farm income to provide future economic sustainability and increase revenue from the land.
“The increase in profits generated by the water bottling plant business will be siphoned back into the farm business, to allow for necessary improvements and works to the farm to ensure its future within a worsening agricultural economy.”
It said the profits would be used for on-going repair and replacement of existing fencing around the farm which owns significant land, along with investing and increasing the suckler herd on the farm.
“The applicant underwent major surgery back in 2023 and had to cut back hours on the farm to recover. This meant that the suckler herd dipped in numbers and due to profitability, the farm has yet to be able to recover to its previous numbers.
“This increase in profit will allow the capital to be reinvested in the suckler herd, increase profit margins and overall profitability for the farm.”
It also said the profits would be “channelled into large repairs and overall, like-for-like replacement of a number of existing farm buildings,” and, depending on returns, “there may be scope to invest in the existing farmhouse on site”.
It concluded: “Overall, whilst the water bottling plant will take some time to become established and generate suitable profits, once established significant profits, these will be reinvested as above into the existing farm business to ensure its future can be secured for longer within an uncertain agricultural economy.
“Without diversification, the farm is set to reduce further in size and the buildings and farmyard become further run down and unsightly in the landscape.”
An officer report recommending approval said the scheme for Trerhys Farm, 1.7km to the north of Moylegrove, would use one bay of an existing shed and would “utilise the existing water source from a well within an existing agricultural field to the north of the farm complex”.
Concerns were raised by three members of the public on the grounds of a query on the water source and transportation of the finished product, and potential noise issues.
The report said a noise assessment found no detrimental impacts in the locality, with Highways officers having no concerns on transportation issues.
The officer report concluded: “Following careful consideration of the application and its merits, it is concluded that the proposed scheme represents an appropriate form of development in this location.”
The application was conditionally approved.
Business
Officers to decide outcome of turbine scheme after receiving bats report
A PEMBROKESHIRE wind turbine scheme which was recommended to be refused over a lack of information on how it may affect bats, which led to it being previously withdrawn, has gained some breathing space to address the issue.
In December of last year, in an application recommended for refusal at Pembrokeshire County Council’s planning committee, Constantine Wind Energy Ltd sought permission for a 76-metre-high wind turbine at Summerton Farm, Sageston.
Back in 2024, an application to replace a current 60.5m high turbine on the site with one up to 90 metres, or just under 300 foot, at the site was refused on the grounds its height and scale would have a detrimental impact on the visual amenity of the locality, with the additional clause of failing to comply with supplementary guidance.
A report for committee members on the latest application says the smaller turbine than previously proposed, representing a 16-metre increase in height from a previously granted turbine “would not be sufficient for it to become an overbearing feature in the landscape,” with no objections from either the Council Landscape Officer or Natural Resources Wales.
However, concerns were raised by the council ecologist that the applicant’s Preliminary Ecological Appraisal Report was incomplete, with a bat survey not included.
It was recommended for refusal on the grounds that appraisal report, and technical note, “do not adequately address the impact of the proposed wind turbine on bat activity in the area”.
At the December meeting, members heard the scheme had been temporarily withdrawn to deal with issues raised, the application returning to the June meeting, again recommended for refusal on a lack of information on the potential impact on bats.
A report for members ahead of the June meeting says the application was withdrawn from the December agenda to allow the applicant time for consideration of the Council Ecologist’s request for further survey work.
It said the applicant had started a bat survey programme, with further surveys due to take place in July and September, the applicant asking for the matter to be deferred in November.
At the June meeting, Richard Grisk, on behalf of the applicants, referenced the additional surveys, calling for a further deferral, saying it would be far most cost efficient and effective for all parties, the applicants intending to resubmit an expected to be near-identical scheme, other than the bat reports, if it was refused.
After a great deal of deliberation on the matter, Cllr John Cole, who had initially proposed a deferral, moved the scheme be decided by officers under delegated powers.
This would allow them to either approve or refuse after the bat reports have been received.
Members, by 10 votes to four, supported the delegated decision, expected later this year.
Business
Holiday lets conversion near Brewery Inn, Cosheston approved
A CALL to convert holiday lets near a Pembrokeshire village pub to a single home for their owner to downsize has been approved by county planners.
In an application to Pembrokeshire County Council, Dr Susan Richards, through agent Carl Bentley Architectural Services, sought permission for a change of use and alteration works from two holiday let units to form one dwelling at Dovecote Cottage, Cosheston, near Pembroke Dock.
A supporting statement accompanying the application said: “This planning application seeks a change of use of the holiday let units known as Dovecote Cottage to form a new dwelling for the applicant to use as her main/only residence.
“The original farm/agricultural buildings at East Farm were converted from old farm outbuildings to self-catering holiday let units in the 1980s and 2010s partly by the previous owner and also partly by the current owner/applicant.”
It said Dr Richards, living at the village’s Little Mayeston Cottage, has been in the village since 2016, and has owned Dovecote Cottage, near the village’s listed Brewery Inn, since 2017, adding: “The applicant wishes to downsize from the current dwelling and relocate to a central village location to a smaller dwelling and be closer to friends within the village.”
Of the proposals it further said: “The holiday let units are semi-detached single storey traditional farm outbuildings of stone wall construction set under a pitched roof.
“One unit (known as Dovecote Cottage) provides two bedrooms of accommodation for four people, and the other unit (known as The Stable at Dovecote Cottage) provides one bedroom of accommodation for four people. Both units have open plan kitchens / dining and living areas plus separate shower rooms.”
An officer report recommending approval said: “Amendments to the proposal were sought from the agent following case review.
“On balance, the visual impact of the amended design on the character of the Conservation Area and listed building is considered neutral to positive and is therefore recommended for approval.”
The application was conditionally approved by county planners.
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