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Invasion of Ukraine and spiralling energy costs steer Chancellor’s Spring Statement

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THE CHANCELLOR, Rishi Sunak, has warned the invasion of Ukraine “presents a risk to our recovery” as he promised to provide “security for working families” with a new “Tax Plan” at the Spring Statement.
The Chancellor explained his desire to offer people “security”. He said: “We will confront this challenge to our values not just in the arms and resources we send to Ukraine but in strengthening our economy here at home.
“So, when I talk about security, yes – I mean responding to the war in Ukraine.
“But I also mean the security of a faster growing economy.
“The security of more resilient public finances.
“And security for working families as we help with the cost of living.

Preseli Pembrokeshire MP, Stephen Crabb said: “I have consistently argued that fuel tax is too high for rural communities like Pembrokeshire. The Chancellor’s landmark decision to cut Fuel Duty by 5 pence will be welcomed by the thousands of individuals and businesses across our County who rely on road transport. The big increase in the threshold for paying National Insurance Contributions to £12, 570 is another good measure which will benefit many people on lower incomes.”

Crabb: Fuel tax is too high (Image: Library)

“When compared to the rest of the country, Wales has a significantly higher proportion of poorly insulated homes. Abolishing the tax on insulation and other energy-saving measures is a really practical way to help more people cut their energy costs and stay warm. Improving home insulation is one of the quickest ways to help shield people from high gas prices.”

“Overall today’s package makes a strong start in tackling the cost of living crisis. I suspect the Chancellor may need to bring forward further measures in due course depending on how long the surge in energy prices continues. I will keep making the case for practical steps that make a real difference for people in Pembrokeshire, especially those on the lowest incomes.”

ENERGY COSTS

Sunak says he is announcing three measures to help with energy costs.
Fuel duty is being cut by 5p a litre, Sunak says.
He says this is the biggest cut to fuel duty ever. It will be in place until March next year.
It is worth more than £5bn.
And it will take effect from 6pm

VAT CUT ON ENERGY SAVING DEVICES

Sunak says VAT being cut to zero on energy saving devices, such as solar panels.
This could cut the cost of having a solar panel installed by £1,000.

NATIONAL INSURANCE THRESHOLD

Sunak said that the national insurance threshold was due to go up by £300. Instead, it will go up by £3,000, he says.
This means it will be equivalent to the income tax threshold
That is a £6bn tax cut for 13 million people. And that amounts to a tax cut for people of £330 a year, he says.
It is the single biggest tax cut for a decade, he says.
He says the IFS said it was the best step to take.
And he says 70% of workers will have their taxes cut by more than they pay for the new levy, he says.

HEALTHCARE

Sunak says the NHS now has a dedicated tax supporting it: the health and care levy.
But that is compatible with reducing taxes on families, he says.
Over the last decade it has been a Conservative mission to cut taxes for working people, he claims.
Some opposition MPs were laughing at this.

BUSINESS RATES

Sunak says the business rates discount coming into effect next month for retail, hospitality and leisure businesses will save them up to £110,000.
A typical pub will save £5,000, he says.

INFLATION

Inflation will average at around 7.4% this year, – meaning an extremely painful squeeze on families, with real wages likely to fall through the year for millions of workers.
Last October, it forecast inflation of 4% this year (which would already have been double the Bank of England’s 2% target).
We learned this morning that inflation hit 6.2% in February. The energy price cap is 54% in April (with another rise feared in the autumn), and commodity prices are being pushed up by the Ukraine war, so 2022 will bring much more pain to households.

TORIES IN WALES

Welsh Conservatives have welcomed the cut in fuel duty in the Spring Statement after leading the campaign in Wales for the Chancellor to take action as prices at the pump continue to rise.

The Chancellor is taking direct steps to support hard-working families in Wales, in light of increased financial pressures due to the war in Ukraine, the rising price of gas and oil and shortages in goods by:

• Scrapping VAT on renewable energy sources to help homeowners to reduce their energy costs, saving £1,000 in tax and £300 in energy costs per year.
• Equalising the tax threshold at £12,570 in July before workers’ pay income tax or national insurance, saving the typical employee £330 a year.
• Cutting fuel duty by 5 pence per litre for all fuel types from 6pm this evening, only the second time in twenty years.
• Doubling the Household Support Fund to £1 billion to help those families most in need.
The announcement follows the UK Government’s action earlier in the year to give households a £150 rebate through Council Tax and a £200 energy discount in October.

WELSH SHADOW MINISTER FOR FINANCE

Commenting on the news, Welsh Conservative Shadow Minister for Finance and Member of the Welsh Parliament for Monmouth, Peter Fox MS, said: “The Chancellor has made it clear today he has a clear plan to tackle the cost of living by protecting jobs, growing the economy and leaving more money in people’s pockets to support family budgets. I particularly welcome the action by the Chancellor to cut fuel duty after our campaign to support hard-working Welsh families.

“However, whilst the UK Conservative Government is taking steps to support families, Labour minister in Cardiff Bay continue to play politics with the cost of living.

“We need to see more action and less words from them. If Labour in Wales were serious about easing the financial pressures on Welsh families, Labour ministers would use devolved levers and cut income tax in Wales.

“In stark contrast to Rishi Sunak in cutting the cost of politics, Labour and their nationalist coalition partners are looking to increase the number of unknown politicians in the Cardiff Bay bubble.

“The additional £12 million a year would be better spent on hundreds of extra nurses and doctors a year to tackle Wales’ NHS waiting time crises and ambulance responses times.

“Once again, Labour ministers have their priorities wrong.”

THE VIEWPOINT FROM WALES

Welsh Government Finance Minister Rebecca Evans has said the Spring Statement has let down people struggling with the rising costs of living.

The Chancellor’s Spring Statement was delivered amidst widespread calls to deliver more support to help people pay bills. The Welsh Government had called for measures including increasing welfare benefits, a windfall tax on big energy companies, and introducing a low income energy tariff to better target support to lower income households.

Despite the OBR almost doubling its inflation forecast to 7.4% from 4% for this year, the Chancellor limited the uplift in benefits to just 3.1% – after a below inflation increase of 0.5% last year.

April will see more pressure on household budgets, with energy bills and National Insurance contributions both rising.

Rebecca Evans, Minister for Finance and Local Government, told The Pembrokeshire Herald: “People will be right to feel let down by today’s threadbare statement. Bills are rising rapidly and disposable income is falling, but there is not enough in today’s statement that recognises the struggle many are facing. It’s an ideological, regressive statement from the Chancellor that lacks practical measures to help those who need help the most – there is nothing for those who cannot work and those on lower incomes.”

“The UK Government has squandered the opportunity to provide meaningful support. It exposes an out-of-touch Chancellor and exacerbates the fairness gap running through Westminster’s lacklustre approach to the cost of living crisis.”

Last month the Welsh Government confirmed a £330m cost of living support package, included extended £200 winter fuel payments, a £150 cost of living payment and more money through the Discretionary Assistance Fund.

The Minister also told this newspaper: “In Wales we provided a cost of living support package worth nearly double the equivalent support provided in England. We encourage everyone to familiarise themselves with what is available and to take advantage of the support on offer. But we also recognise it doesn’t provide all the answers, and that many of the key levers such as welfare support lie in Westminster. We will continue to call on the UK Government to join us in providing a full crisis response to help people with the rising cost of living.”

WELSH LIB DEMS

The Welsh Liberal Democrats have accused Welsh Conservative MPs and MSs of “utterly failing” to make their voices heard after the Chancellor Rishi Sunak delivered his spring statement today.

According to the Welsh Liberal Democrats, the announcement contained nothing of significance to help people in rural areas deal with the cost of living crisis, particularly the extortionate costs of heating faced by those living in rural Wales.

Commenting Welsh Liberal Democrat Leader Jane Dodds MS told The Pembrokeshire Herald: “Today the Chancellor has given rural regions nothing to help them cope with the crisis my residents are facing in being able to heat their homes. Welsh Conservative MPs are clearly failing to influence the Chancellor despite almost exclusively representing rural parts of Wales.

“The cut to fuel duty is welcome, but only will take between £2-£3 off filling your car. It alone does not rise to the occasion. What we would have liked to have seen was the rural fuel duty relief scheme expanded to parts of Wales like Ceredigion, Powys and Gwynedd. We have been calling for this since 2015, but have been blocked by the Conservatives at every point.

“More importantly, the Chancellor has refused to introduce a windfall tax on oil and gas companies that we would want to use to double and expand the warm homes discount. Oil and gas companies are making record-breaking profits while the rest of us are suffering.

“This is especially true in Mid & West Wales where in some counties up to 23% of households live in fuel poverty.

“Finally, the Chancellor made no announcement to protect those reliant on heating oil and LPG. With large numbers of households across rural Wales off the national gas grid, the bare minimum the Government could have announced was a plan to include oil and LPG into the energy price cap or to implement an automatic fuel duty rebate if the price of heating oil reaches over certain levels.

“This spring statement has made it abundantly clear that Welsh Conservative MPs are failing to make their rural constituents’ voices heard in an increasingly London and southeast centric Government.”

 

Crime

Farming company fined £19,000 for damaging protected wildlife site

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A CARDIGAN farming company has been ordered to pay almost £20,000 after recklessly damaging a Site of Special Scientific Interest.

Jenkins Ty Hen Ltd, run by David Glyn Jenkins and William Lloyd Jenkins, of Ty Hen, Verwig, admitted damaging the Llwyn Ysgaw, Caeau Crug Bychan and Ty Gwyn SSSI through the unauthorised use of manure, slurry, fertilisers and lime.

The offences took place between June 21 and July 31, 2024.

The court heard that Natural Resources Wales had repeatedly warned the company about how the protected land should be managed.

Aled Watkins, prosecuting for NRW, said an agreement made in 2004 made clear that the landowners needed written consent before carrying out certain activities on the site, including the use of slurry, herbicides, pesticides, fertiliser or lime.

He said: “A significant amount of guidance, advice and warnings has been directed to the company over a substantial period of time, as there have been problems before.”

The court was told advice had been given in 2017, with further discussions in 2021. Further problems were identified in 2024, leading to advice letters and then a formal warning in June that year.

Mr Watkins said: “Even after the letters were sent, no consent request was made.

“The common sense conclusion was that, where the original agreement was clear and advice had been given years prior, this was a deliberate act by the landowners of spreading slurry on the SSSI.”

Jenkins Ty Hen Ltd pleaded guilty to intentionally or recklessly destroying or damaging flora on the protected site, contrary to the Wildlife and Countryside Act 1981.

The company also admitted permitting the use of manure, slurry, silage liquor, fertiliser or lime without written consent from NRW, knowing it was likely to damage rare flora and fauna as well as geological and physiographical features.

Defending, solicitor Harry Dickens said the company had not deliberately set out to damage the land.

“This is more akin to the business damaging the land rather than setting out within their practices to do that damage,” he said.

He added that various contractors were used at the farm and were not always aware of the regulations.

“The defendants did not go out intentionally to harm the flora and fauna,” he said.

“Yes, they had foresight of the warnings and the previous agreement, but this is more akin to wilful blindness rather than going out intending to damage the land. It was not a flagrant disregard.

“The defendants were not loutish in their usage of the land, they are not vandals, they have not been silent and neither have they stonewalled NRW.”

Mr Dickens said the farmers accepted the need to restore the land and were keen to work productively with the authorities.

District Judge Mark Layton said Jenkins Ty Hen Ltd had breached NRW requirements.

“They spread fertilisers, herbicides and slurry on the land which was a breach,” he said.

“This was clearly a deliberate act of culpability and a complete disregard after already being given advice and warnings.”

The court heard the company’s most recent financial turnover was just over £1.6m. It was described by the defence as a micro-business.

Jenkins Ty Hen Ltd was ordered to pay £19,940.66, made up of a £9,000 fine, £8,940.66 costs to NRW and a £2,000 surcharge.

A restoration order was also made requiring work to improve the quality of the damaged SSSI land.

 

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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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Landlords in Wales face new anti-discrimination laws

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New rules from June 1 will make it unlawful to refuse renters because they have children or receive benefits

LANDLORDS in Wales are being warned to prepare for new anti-discrimination laws which come into force at the beginning of June.

From Monday, June 1, it will be unlawful for landlords and letting agents to discriminate against prospective contract-holders because they have children or receive benefits.

The change follows the Renters’ Rights Act 2025, which mainly reforms renting law in England, but also extends key anti-discrimination protections into Wales.

The Welsh provisions will be incorporated into the Renting Homes framework and will apply to occupation contracts. Unlike the civil penalty regime used in England, breaches in Wales may amount to a criminal offence, with enforcement handled by local authorities and cases dealt with through the courts.

What landlords cannot do

From June 1, landlords and agents must not deter people from applying for a property because they have children or receive benefits.

They must also not refuse or restrict access to viewings, prevent prospective tenants from receiving information about a property, or exclude them from entering into an occupation contract on those grounds.

The measures are aimed at ending blanket “no children” or “no benefits” policies, which campaigners have long argued unfairly shut families and low-income households out of the private rented sector.

Landlords will still be allowed to carry out affordability checks and assess whether a property is suitable. For example, a landlord may still decide that a particular room or property is physically unsuitable for children, but the decision must be based on the property itself rather than a blanket ban.

Paperwork deadline

Under the new rules, landlords will need to issue either a new occupation contract or a statement of variation to reflect the changes.

The statement can be served up to fourteen days after the rules take effect, meaning landlords should act by June 14.

Leading North Wales estate and lettings agent Cavendish, which has offices in Mold and Ruthin, says it has been advising landlords ahead of the deadline.

Nicola Blake, Operations Director at Cavendish, said: “While much of the focus in recent months has been on the introduction of the Renters’ Rights Act in England, some of the changes are also impacting Wales.

“As of June 1, landlords in Wales will be subject to stringent anti-discrimination laws and failure to adhere to the new legislation could result in a criminal prosecution.”

She added: “This is a significant change for landlords in Wales, and we are helping our clients to be ready well ahead of the deadline, completing the required paperwork and ensuring they are fully compliant.”

Landlord seminar

Cavendish will hold a seminar later this year for landlords in Wales, covering legislative changes and advice on managing and improving property portfolios.

The event will take place on Monday, October 26, at Theatr Clwyd. Cavendish recently became a Gold Member of the Mold arts venue.

Cavendish was established in 1993 by Julian Adams, the firm’s chairman, and his then business partner Robert Ikin.

The company now employs more than thirty people across estate agency and lettings, with offices in Mold, Ruthin and Chester. It says it helps more than 600 homeowners move each year and manages around 650 properties.

 

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