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Kwarteng gambles on rush for growth

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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.”

 

Crime

Former Wales rugby star admits Christmas Day drink-driving offence

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Ex-Ospreys captain was almost twice over limit in Pembroke town centre

Former Wales back row Jonathan Thomas has admitted driving through Pembroke town centre on Christmas Day when he was almost twice over the drink-drive limit.

This week Haverfordwest magistrates heard that Thomas, 43, was stopped by officers as he drove his Mercedes CLA 220 along The Green, Pembroke, at around 5pm on Christmas Day.

“The officers were very concerned at the manner of his driving, as the car was being driven erratically and was swerving to the other side of the road,” said Crown Prosecutor Sian Vaughan.

“When Jonathan Thomas got out of the car, the officers could see that he was having difficulty standing and was unsteady on his feet.”

Subsequent breathalyser tests showed Thomas had 62 mcg of alcohol in his system, the legal limit being 35.

Thomas, who has no previous convictions, pleaded guilty to the drink-drive charge and was represented in court by solicitor Jess Hill.

“He has family in the area and had travelled to spend time with them on Christmas Day,” she told the magistrates. “He’s very remorseful for his actions and hugely regrets his decision that day.”

Jess Hill concluded by saying that Thomas is currently “between jobs and living off his savings”.

Thomas, who gave his address as Main Road, Bredon, was disqualified from driving for a total of 18 months.

“The length of your disqualification reflects the fact that you were more than a little bit over the limit,” commented the presiding magistrates when imposing sentence.

He was fined £120 and ordered to pay £85 costs and a £48 court surcharge.

The former Wales back row left his role as Swansea RFC head coach at the beginning of December 2025 as a result of ongoing health concerns. He was forced to retire from playing in 2015 on medical advice after being diagnosed with epilepsy and is one of the 390 former rugby union players currently taking part in a concussion lawsuit against the sport’s authorities.

“Long-standing issues linked to the head trauma have caused me some concern recently and it has been impossible for me to give the role everything it needs,” he said in a previous interview with the BBC.

His rugby career started out with Pembroke RFC juniors before moving to Swansea RFC, which he captained when he was 19. He then joined the Ospreys where, over a ten-year period, he won four league titles and an Anglo-Welsh Cup. He was the youngest player to captain the Ospreys and, at the time of leaving, was the joint highest appearance holder, together with Andrew Bishop, on 188 appearances.

His international career saw him play for Wales at Under-16, Youth, Under-19, Under-21 and Sevens levels. He made his senior international debut against Australia in 2003, featured at the 2007 Rugby World Cup and was part of two Six Nations Grand Slam-winning sides in 2005 and 2008. Between 2004 and 2011, Thomas was included in every Wales Six Nations squad. In his appearances for Wales, he scored seven tries.

 

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Local Government

Independent panel gives positive verdict on Pembrokeshire County Council

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Four-day assessment highlights improvement, leadership and governance

AN INDEPENDENT panel has concluded that Pembrokeshire County Council is meeting its statutory performance requirements and has shown improvement across a number of key areas.

The findings follow a four-day visit in October 2025, when a group of external peers carried out a Panel Performance Assessment (PPA), a process required once every electoral cycle under Welsh Government legislation.

The purpose of the PPA is to provide an independent expert view on how effectively the council is using its functions, how it deploys resources, and whether its governance arrangements are fit for purpose.

The four-member panel was led by Phil Roberts, independent chair and former chief executive of Swansea Council. Other members were Cllr Anthony Hunt, leader of Torfaen Council; Emma Palmer, chief executive of Powys Council; and Andrea Street OBE, representing the public, private and voluntary sectors.

In its final report, the panel concluded that Pembrokeshire County Council is meeting its statutory requirements and commented favourably on many aspects of its work. The authority was described as effective, having responded well to a challenging financial position and demonstrated improvement in a number of key areas.

Among the report’s findings was praise for “a cohesive cabinet, which despite its rainbow coalition arrangements, exercises a model of distributed leadership which is particularly effective”. The panel also highlighted “a committed Senior and Extended Leadership Team who recognised the journey of improvement the council has been on under the Chief Executive’s strong leadership”.

The panel further noted “a broad set of values and behaviours consistently demonstrated across the organisation, from the Senior Leadership Team to frontline staff”, adding that there was “a genuine desire to work in the interests of the communities and residents of the county”.

While the overall assessment was positive, the report also identified areas where further progress could be made. Seven recommendations were set out, covering scrutiny arrangements, corporate capacity, collaborative leadership, economic regeneration capacity, resource prioritisation, communications, and transformation and innovation.

Council leader Jon Harvey welcomed the report, describing the assessment as a constructive experience.

“This was an extremely positive experience for the council, and an opportunity to learn and benefit from the views and perspectives of independent experts from outside the authority,” he said. “We welcome the assurance provided by the panel that we are on the right track, and the feedback which has helped to identify opportunities and areas for improvement.”

Cllr Harvey also thanked panel members for their work, along with officers from the Welsh Local Government Association who supported the assessment process.

“We accept the panel’s findings in full and I am convinced that the action plan we have developed in response to the recommendations will enable us to further strengthen key areas of our work so we can continue to provide quality services to our residents and communities,” he added.

In line with legislation, the council has produced a formal response and action plan setting out how it will address the panel’s recommendations. These will be presented to Cabinet on February 9 and to full council on March 5 for formal approval.

 

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News

Kurtz calls on Labour MPs to back release of Mandelson papers

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Opposition motion follows Epstein-linked document disclosures

A SENEDD Member has called on Labour MPs to support a Conservative Opposition Day Motion demanding the release of papers linked to Peter Mandelson’s appointment as the UK Ambassador to the United States.

Samuel Kurtz said the motion follows the publication of new files and photographs involving Lord Mandelson, which were released as part of a United States investigation into the disgraced and convicted child sex offender Jeffrey Epstein.

Speaking out, Mr Kurtz said that during Prime Minister’s Questions, the Prime Minister admitted he was aware of Peter Mandelson’s ongoing relationship with Epstein at the time of his appointment.

“That means the Prime Minister knowingly appointed Peter Mandelson to one of the most important diplomatic roles in government despite his links to Epstein,” he said. “This raises serious questions about the Prime Minister’s judgement.”

Mr Kurtz went on to accuse the Prime Minister of attempting to prevent transparency over the appointment process.

“Now, instead of being open and transparent, the Prime Minister is attempting to block the release of documents relating to Mandelson’s appointment in order to protect his own position,” he said.

He warned that Labour MPs who oppose the motion would share responsibility for withholding information, adding: “If Labour MPs support blocking the release of these papers, they will be complicit in covering up the process and judgement that led the Prime Minister to appoint Peter Mandelson as Ambassador, despite his friendship with Jeffrey Epstein.”

 

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