News

Kwarteng gambles on rush for growth

Published

4 years ago

September 23, 2022

Jon Coles

CHANCELLOR of the Exchequer Kwasi Kwarteng unveiled his and Liz Truss’s economic vision for the UK on Friday morning.

The headlines are straightforward.

There will be £45bn in tax cuts by 2027; however, the largest cuts – national insurance cuts, the abolition of the cap on bonuses and the highest income tax rate- benefit only high earners.

MAIN POLICIES

Cut in the basic rate of income tax to 19% from April 2023;

National Insurance will not rise as scheduled, and the Government will reverse the current year rise as of November 6;

New Health and Social Care Levy to pay for the NHS will not be introduced;

The top rate of income tax was cut from 45% to 40%;

Cancel the rise in corporation tax which was due to increase from 19% to 25% in April 2023;

Rules around universal credit tightened by reducing benefits if people don’t fulfil job search commitments;

VAT-free shopping for overseas visitors;

End of the cap on bankers’ bonuses;

Planned increases in the duties on beer, cider, wine, and spirits cancelled;

Government to discuss setting up investment zones with 38 local areas in England.

Alongside the above, the Chancellor announced plans to remove environmental safeguards for building developments and reduce the regulatory burden on financial institutions.

KWARTENG LEAVES LABOUR AN OPEN GOAL

In an interview with Rishi Sunak during the Conservative leadership contest, Nick Robinson observed that it would be a nasty surprise for the former Chancellor when he found out who’d been in power for the last twelve years.

Kwasi Kwarteng followed Liz Truss’s preferred method of operation: he pretended they hadn’t happened.

The Chancellor comprehensively dumped on the policies pursued over the last dozen years by successive Conservative governments, for a decade of which Liz Truss has been a member.

His statement was, as one ministerial colleague said, “a game changer”, although perhaps not in the way he envisaged.

So complete was the change of economic policy that it leaves an open question about how Mr Kwarteng and his Cabinet colleagues ended up in the same political party as most of their backbench colleagues and served under the last three Conservative leaders.

Shadow Chancellor Rachel Reeves did not miss the open goal. Even as Mr Kwarteng and Ms Truss shook their heads on the government benches, she hammered home that the Chancellor’s statement was an admission the record of Conservative governments since 2010 was one of a failure to deliver growth or a viable economic plan.

THE SUPPLY SIDE FIX

The Chancellor and Prime Minister’s rationale is that cutting taxes for the already well-off will benefit all citizens as they are incentivised to invest and act in entrepreneurial ways. In addition, reducing regulation for businesses will encourage increased commercial enterprise.

They believe the growth stimulated will make up for any loss in tax revenues as increased economic activity, encouraged by lower taxes, leads to increased government revenues.

That approach is called supply-side economics, which focuses on increasing the supply of goods and services through growth.

In every developed nation where the Government’s brand of economics has been tried, two things have happened: a cataclysmic bust has followed a short-term burst of economic activity.

In addition, wealth inequalities – and the UK is already grossly unequal – are embedded and made worse.

Low taxes on the wealthiest do not distinguish between those who generate wealth through their industry or create economic activity through business investment and those who inherit wealth or sit on capital without producing anything.

“THE RICH WILL REJOICE”

Wales’s Finance Minister, Rebecca Evans MS, responded: “Rebecca Evans, Minister for Finance and Local Government, said: “Instead of delivering meaningful, targeted support to those who need help the most, the Chancellor prioritises funding for tax cuts for the rich, unlimited bonuses for bankers, and protecting the profits of big energy companies.

“Instead of increasing funding for public services in line with inflation, we get a Chancellor blithely ignoring stretched budgets as public services find their money is not going as far as it did before.”

Plaid Regional MS Cefin Campbell said: “This Budget will see the rich rejoice as their bonuses rocket and their tax bill sliced, once again it will be the poorest and most vulnerable bearing the brunt of the disastrous cost of living crisis.”

Plaid Cymru’s Treasury spokesperson, Ben Lake MP, added: “Tax cuts for the super-rich will do absolutely nothing to drive growth in the Welsh economy.

“I urge the UK Government to recognise that our Government in Wales must be given the fiscal tools to unlock our economic potential ourselves. That is the only way to improve the lives of people across Wales.”

Welsh Conservative Shadow Minister for Finance, Peter Fox MS, said: “Today shows that the UK Conservative Government has a comprehensive plan to provide a sharp boost to the economy by putting cash back into people’s pockets. Labour in Wales has the power to cut taxes in Wales but chooses not to.

“Mark Drakeford needs to take a leaf out of Liz Truss’ book and take immediate action to support hard-working people and struggling businesses, stimulating the Welsh economy rather than stifling it.”

Scott Corfe, Research Director at Social Market Foundation, said: “The Chancellor is taking a very high-risk gamble with the economy.

“If his package of enormous tax cuts and ‘supply side reforms’ fails to translate into significantly higher economic growth, we risk further falls in the pound and surging gilt yields as investors lose confidence in our ability to pay our way in the world.

“That, in turn, means higher inflation, an unsustainable trajectory for the public finances and steeper interest rate rises – potentially deepening rather than alleviating the cost of living crisis.”

Local Government

Milford Haven civic service marks start of mayoral year

Published

4 hours ago

June 21, 2026

Tom Sinclair

Mayor’s charities named as civic leaders gather at St Katharine and St Peter’s Church

THE CIVIC SERVICE of the Mayor of Milford Haven, Cllr Mark Woodward, took place at St Katharine and St Peter’s Church on Saturday (June 20).

The service marked Cllr Woodward’s election as Mayor and First Citizen of Milford Haven.

It was conducted by Rev Dr Adrian Furse and Canon John Cecil, with music from church organist Richard Stephens, Gelliswick Community Choir and Milford Haven Town Band.

Guides and Brownies, Milford Haven Sea Cadets and Royal Marines Cadets were also among those taking part, with councillors Colin Sharp and Yvonne Southwell acting as ushers.

Refreshments followed at Milford Haven Bowling Club.

Local MS Paul Davies was among those attending the service and wished the new mayor all the best for his term in office.

Cllr Woodward’s chosen charities for the year are Patch Charity and Greenacres Rescue.

Photo caption:

Civic guests attended the Mayor of Milford Haven’s service at St Katharine and St Peter’s Church on Saturday (Pic: Supplied)

Charity

Toy Story fans fill charity toy box at Haverfordwest cinema

Published

14 hours ago

June 20, 2026

Tom Sinclair

Donations pour in for SNAP Specialist Play as families embrace Toy Story 5 launch

A TOY STORY-themed charity appeal at a Haverfordwest cinema has got off to a flying start, with families donating toys to support children with additional needs across Pembrokeshire.

The Palace Cinema has teamed up with local charity SNAP Specialist Play to collect new and pre-loved toys during screenings of the newly released Toy Story 5.

The appeal centres around an “Andy’s Toys” donation box, inspired by the beloved Pixar films, which has already been filled by generous filmgoers.

***Toy Story magic: The Palace Cinema foyer has been transformed with themed decorations to celebrate the film’s release***

Cinema manager Hannah Cramp said the response from the community had exceeded expectations.

Families attending opening screenings have arrived carrying bags of toys, with many children keen to share their own treasured items to help others.

The cinema has transformed its foyer into a colourful Toy Story-themed experience, complete with hand-painted decorations, character silhouettes, bunting and famous film slogans including “Reach for the Sky” and “To Infinity and Beyond”.

Many visitors have also embraced the spirit of the occasion by attending in costume as their favourite Toy Story characters.

***Specialist support: SNAP’s sensory facilities help children with additional needs learn and develop through play***

The toys are being donated to SNAP Specialist Play, a charity based within the Child Health Department at Withybush Hospital.

SNAP supports pre-school children with additional and complex needs through specialist play sessions designed to encourage communication, physical development and sensory learning.

Its facilities include sensory rooms, therapeutic play spaces and bespoke equipment used by speech and language therapists, occupational therapists and physiotherapists.

Project manager Cindy Jenkins said the charity was delighted by the partnership and grateful for the generosity shown by local families.

She said every toy donated would be put to good use, either during specialist play sessions, at family events, or through seasonal initiatives such as Christmas gift boxes for children and their siblings.

The appeal will continue until mid-July, with organisers hopeful that even more donations will be received over the coming weeks.

Anyone attending Toy Story 5 at the Palace Cinema is invited to bring along a new or good-quality pre-loved toy to support the appeal.

Cover photo:

Fancy dress fun: Palace Cinema manager Hannah Cramp helping launch the Toy Story charity appeal.

Health

Medicine shortages now ‘most severe on record’, health leaders warn

Published

15 hours ago

June 20, 2026

Tom Sinclair

PATIENTS are facing some of the worst medicine shortages ever seen in the UK, with pharmacists warning the situation now poses a serious risk to safety.

The National Pharmacy Association said shortages affecting commonly used medicines are becoming more frequent, lasting longer, and causing increasing disruption for patients, GP surgeries and pharmacies.

The warning comes as Serious Shortage Protocols for Creon, used by people with pancreatic cancer and cystic fibrosis to help digest food, have been in place since May 2024 and have now been extended until July 10, 2026.

HRT treatment Estradot has also been under a Serious Shortage Protocol since December 2024, with the current extension also running until July 10.

Patients travelling between pharmacies

A survey by the National Pharmacy Association found that 98 per cent of pharmacies had encountered patients who had visited several pharmacies in one day to find a prescription.

It also found that 96 per cent of pharmacies believed the current situation posed a serious risk to patient safety, while 89 per cent said they had been unable to dispense a medicine at least once a day because of supply problems.

Some pharmacy teams have also faced anger and abuse from patients unable to obtain medication.

Olivier Picard, Chair of the National Pharmacy Association, said: “Medicine shortages are becoming more frequent, lasting longer and causing increasing disruption for patients.

“These shortages are some of most severe the UK has experienced.

“It is deeply distressing to find patients who have travelled from pharmacy to pharmacy to find the medicines they need without success.”

Calls for urgent taskforce

The NPA is calling on the government to convene an emergency taskforce involving manufacturers, wholesalers, clinicians and pharmacists.

It also wants changes to rules which currently stop pharmacists from making simple substitutions, such as changing a tablet to a capsule or a cream to an ointment, even where a safe alternative is available.

Professor Victoria Tzortziou Brown, President of the Royal College of GPs, said medicine shortages were frustrating for patients, GPs and pharmacists, and added pressure to already stretched services.

She said the College supported pharmacists being able to make limited changes to prescriptions where a medicine is unavailable and a safe alternative exists.

She added: “The most important thing is that patients are able to access the medication they need safely and without delay.”

The Cystic Fibrosis Trust and Pancreatic Cancer UK have also raised concerns about the impact of shortages of pancreatic enzyme replacement therapy, including Creon, on people who rely on the medication to digest food, maintain weight and stay well enough for treatment.