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Politics

Universal Income plans depend on Westminster

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MARK DRAKEFORD’s announcement that the Welsh Government plans to trial Universal Basic Income in a few locations in Wales captured headlines in online media.

The First Minister was variously said to have ‘hinted’ at a trial or announced a trial would take place.

However, nobody should have been surprised by the First Minister’s announcement.

Not only was the policy contained in Labour’s Manifesto for May 6’s election – a bit more than ’a hint’ – but also the principle of holding a trial in Wales was enthusiastically passed by the last Welsh Parliament in September last year. It was a policy in Plaid Cymru’s election manifesto and Labour’s; so, whether Labour went it alone in Government or was in partnership with Plaid Cymru, a trial was on the cards.

WG KNOWS WESTMINSTER HAS THE FINAL WORD

However, whether the Welsh Government can carry out a trial is beyond its immediate control.

Headlines that said the Welsh Government WILL carry out even limited Universal Basic Income trials are also jumping the gun.

When the Senedd debated a motion brought forward by Jack Sargeant MS on September 30, 2020, here is what the Finance Minister Rebecca Evans had to say about it: “The Welsh Government would be open to such a trial taking place in Wales, but we have to be realistic that such a trial would not be possible without the active cooperation of the UK Government, and this is because of the interaction of universal basic income with the tax and benefit system. 

“If such a trial were offered, we would also require that conditions were met to ensure that the Welsh Government and this Senedd were able to play a significant role in the design, governance and accountability of any scheme. 

“Were the Welsh Government to make payments to individuals without the cooperation of the UK Government, this could simply result in them being ineligible for existing benefits or paying more in tax. 

“Aside from the fact that this would not then be a proper test of the effect of an unconditional payment, it would result in the transfer of resources from the Welsh Government to the UK Government. 

“And, sadly, our recent experience of the UK Government’s approach to the taxation of our payments to social care workers doesn’t suggest that we should expect their active cooperation.”

In short, the Welsh Government needs Westminster’s ‘active cooperation’ to make a trial possible.

Without Westminster’s cooperation, those who get the Universal Basic Income could (are almost certain to) lose all of their entitlements to other benefits, tax credits, and other means-tested benefits. They could also have to pay tax on it.

WHAT IS UNIVERSAL BASIC INCOME?

Universal Basic Income is not a new idea. Its long history stretches back to antiquity and has been a feature of both romantic and progressive political theory for centuries.

At its simplest, Universal Basic Income does away with a raft of welfare benefits. It substitutes them with a single payment of a fixed amount.

Schemes that guarantee a basic income, short of enough to live on, exist in a few US states and a handful of national economies. However, those are more of an income floor for those who are otherwise dependent on welfare benefits. They are not an actual Universal Basic Income.

A national trial in Finland ended after two years with no definitive finding of better outcomes for those who received UBI over those who did not.

The Covid pandemic increased interest in the idea of UBI in continental Europe. At the same time, the US used a series of relatively modest income replacement initiatives to stop people’s descent into poverty (or into deeper poverty). 

The UK’s furlough scheme was – essentially – a basic income guarantee but not genuinely universal in nature. 

A major multi-national academic study published in 2017 found that UBI probably improved some health outcomes and increased the likelihood of children attending school. 

However, the same report also concluded the evidence for positive outcomes from UBI-type schemes was ‘very uncertain’.

THE COST TO WALES

The main deterrent to a truly Universal Basic Income is cost.

• If a full universal basic income were paid in Wales to all working-age adults and set at the level of the official living wage, the cost would be around £35 billion a year. 

• If set at the level of the real living wage, the cost would be around £40 billion. 

• For illustration, those figures are around twice the size of the Welsh Government’s budget. As a further comparison, income tax in Wales raises in total just over £5 billion. 

• Of course, the costs could be much reduced if universal basic income were paid at a lower rate. However, payment at a lower rate would reduce its attractiveness.

Those last four points are not our own words. They are the Welsh Government’s position as set out in 2020 by its own Finance Minister.

Nothing has changed those figures since September 30, 2020.

They demonstrate the prohibitive and unsupportable cost of UBI to Wales without massive and systemic change across the whole UK.

SCOTCH MIST

As an illustrative example of the timescales and complexity of introducing even a pilot scheme, we only need to look at Scotland.

In September 2017, the Scottish Government announced it would support local authority areas to explore a Citizen’s Basic Income Scheme by establishing a fund to help regions to develop their proposals further and establish appropriate testing. 

The funding offered was £250,000 over the two financial years 2018/19 and 2019/20. 

Four local authority areas: Fife Council, City of Edinburgh Council, Glasgow City Council and North Ayrshire Council, worked together to research and explore the feasibility of local pilots of Basic Income in Scotland. 

Notlaunch a basic income. Explore its feasibility.

Over three and a half years since the Scottish Government’s announcement, there is still no UBI trial in Scotland.

Putting such a scheme in place depends, yet again, on Westminster’s cooperation.

A report on the progress of the feasibility study notes’ any pilot [must] have the necessary support to influence the future of national policy and the role of Department of Work and Pensions (DWP), HM Revenue and Customs (HMRC), HM Treasury and the NHS will be vital in the design and implementation of a Basic Income pilot.’

Three years to design and complete a feasibility study into a limited trial in four local authority areas in Scotland combined with the need to wait for Westminster approval does not suggest a quick fix.

And if it’s not a rapid process in Scotland, it will scarcely be quicker in Wales.

 

Business

Pembrokeshire Broad Haven holiday park works refused

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A DEVELOPMENT call for a Pembrokeshire holiday park has been turned down by Pembrokeshire Coast National Park.

In an application to park planners, Broad Haven Holiday Park, through agent Gerald Blain Associates, sought permission for the relocation of a boat storage area, vehicle shed and play area along with rewilding of adjoining fields at Broad Haven Holiday Park, Broad Haven, near Haverfordwest.

The application was supported by local community council The Havens.

However, an officer report recommended refusal.

Detailing the application, it said: “The proposal relates to the extension of an existing static caravan holiday site into adjacent undeveloped woodland to accommodate the relocation of boat storage, a vehicle shed, and a children’s play area, together with associated ecological mitigation measures. No increased pitch numbers are proposed.

“The development site has already undergone some site clearance, resulting in the removal of approximately 1,000 square metres of woodland.”

It went on to say: “The existing site is already intervisible with the coast, and the proposed relocation of boat storage would likely increase its visibility rather than reduce it. Without supporting evidence in the form of a Landscape and Visual Impact Assessment (LVIA) or Zone of Theoretical Visibility (ZTV) demonstrating that the development would be visually contained, the proposal appears contrary to the guidance contained within the SPG and the objectives of Policy 41.

“As a result, the proposed development is considered to detract from the special qualities of the National Park in this location and would be detrimental to the quality and character of the landscape character area in which the site sits, and as such does not comply [with policies].”

The application was refused on grounds including it being sited within previously undeveloped land within a flood zone, a lack of information on potential impacts on biodiversity, and it is “considered to detract from the special qualities of the national park in this location and would be detrimental to the quality and character of the landscape character area in which the site sits”.

 

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Politics

Calls to reopen access to top of Pembrokeshire’s Hean Castle

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CALLS for permission to replace a decayed spiral staircase preventing access to the top of Pembrokeshire’s historic Hean Castle mansion have been submitted.

In a listed building application submitted to Pembrokeshire Coast National Park, The Trustees of T O Lewis Trust, through agent Acanthus Holden Architects, seeks permission for the removal of a decayed timber spiral staircase and replacement in aluminium, along with pointing and masonry repairs to a flue turret, stairs turret and s bay at the Grade-II-listed Hean Castle, near Saundersfoot.

A supporting statement accompanying the application says the works planned will reinstate the spiral stairs access to the main castle tower, the scheme “aimed at reducing moisture ingress through the thin, walled turrets a replacing a rotten timber spiral staircase 13m tall”.

It says the upper third of the wooden treads in the “existing and very possibly the original spiral staircase” are “now badly decayed where they slot into the equally rotten stringers at this level, to the point that safe access to the turret top is no longer safe”.

It adds: “The replacement of the stairs in timber is a difficult and a very costly exercise with all fabrication and erection carried out likely to have been carried out originally on site. Accessing the turret at high level on the outside is also very difficult and only limited repointing will be possible.

“Ongoing water ingress into the turret would likely lead to further rotting of the replacement timber stairs in the near future.

“Two options have been considered for the replacement of the stairs in metal: Aluminium and Galvanised steel, both with similar cost implications.

“Aluminium is favoured and an acceptable quote has been received for the supply of a sectional staircase with ‘made to measure’ hard wood timber treads bolted to the Newell brackets. The made-to-measure treads will allow us a degree of flexibility with regard to any variance in the diameter of the ‘tube’.”

It says the proposed works will secure long-term sustainability, improve accessibility, and address urgent fabric defects.

The application will be considered by park planners at a later date.

 

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News

Game of Thrones star urges voters to back anti-DARC parties

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ACTOR Jerome Flynn has urged voters in Wales to back parties opposed to the proposed DARC radar scheme at Cawdor Barracks, saying the issue could be decided by the next Welsh Government.

The Pembrokeshire-based Game of Thrones star, also known for Soldier Soldier and Robson & Jerome, made the appeal in a video released by PARC Against DARC on Tuesday (May 5), just two days before polling day in the Senedd election.

Radar row enters election campaign

Flynn urged voters in Ceredigion Penfro and across Wales to support Plaid Cymru or the Green Party, saying both parties had pledged to oppose the project.

The Ministry of Defence has submitted a planning application to Pembrokeshire County Council for 27 radar antennas and associated infrastructure at Cawdor Barracks, near Brawdy.

The scheme forms part of the Deep Space Advanced Radar Capability programme, linked to the AUKUS defence partnership between the UK, US and Australia.

The MOD says DARC would help detect, identify and track objects in Earth orbit, supporting military and civilian satellite security.

Opponents claim the radar would industrialise part of the Pembrokeshire countryside, damage the setting of the national park, and increase the area’s military significance.

Flynn says project ‘not a done deal’

In the video, Flynn described the election as “probably the most crucial vote we’ve made in 25 years”.

He claimed the next Senedd could play a decisive role in the future of the project, saying: “I’m here to say, it’s not a done deal because Plaid Cymru and the Greens have both made party-led decisions to say no to Westminster.

“We’re not having such a thing on our beloved coast.”

Flynn also described St Davids as “the spiritual home of Wales” and criticised what he called “the most unspeakably abominable planning application” on the edge of the Pembrokeshire Coast National Park.

Campaign steps up pressure

PARC Against DARC said it welcomed Flynn’s intervention and said it had distributed 22,000 leaflets around Pembrokeshire in recent weeks.

The campaign group said First Minister Eluned Morgan’s recent comments on the scheme did not go far enough.

A spokesperson said: “While Eluned Morgan has come out in the final hour to call for DARC to be halted, we fear this does not go nearly far enough.

“Plaid Cymru and the Green Party have both made it their national party policy to oppose and stop DARC, so we have no doubt of the authenticity of their commitment.”

The group is also urging residents to submit objections to Pembrokeshire County Council before the current publicity period ends on May 20.

Welsh Government role

Campaigners say the next Welsh Government could intervene by “calling in” the planning application, meaning Welsh ministers would take responsibility for deciding it rather than leaving the final decision with Pembrokeshire County Council.

That possibility has made DARC a significant local election issue in Ceredigion Penfro, where Eluned Morgan is Labour’s lead candidate, Elin Jones leads the Plaid Cymru list, and Amy Nicholass heads the Green Party list.

Under the new Senedd voting system, voters will elect six Members of the Senedd for the constituency using a proportional list system.

PARC Against DARC said this meant there was “far less need for tactical voting” and argued that voters opposed to the radar could support either Plaid Cymru or the Greens.

Wider concerns

Campaigners have repeatedly claimed that the radar would make Pembrokeshire a potential military target and draw Wales further into US military strategy.

They also say the project raises environmental, health, democratic and security concerns.

Supporters of the scheme argue that space monitoring is becoming increasingly important as satellites are used for communications, navigation, defence and emergency infrastructure.

Flynn ended his video by saying: “Vote with your heart because we can make a difference here, we could put in a government that cares about our land, our people and our environment.”

Whatever the outcome of Thursday’s election, the intervention by one of Pembrokeshire’s best-known residents is likely to keep the DARC controversy high on the political agenda.

 

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