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Jeremy Hunt sets new direction for government as Truss’s credibility trashed by u-turn

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ON MONDAY, Jeremy Hunt unpicked virtually every element of Kwasi Kwarteng’s mini-budget to calm financial markets and restore order to chaos.

The new Chancellor’s statement was a sobering reminder that although Prime Ministers serve with their colleagues’ consent, governments cannot survive without market confidence.

Mr Hunt said every Government’s core responsibility was to deliver economic stability.

“No government can control the markets. But every Government can give certainty about the sustainability of the public finances.”

His words were a damning implied indictment of the PM’s economic policy.

FULL REVERSE GEAR

The Chancellor’s words had an immediate effect on markets: the pound strengthened, and UK government bond yields fell to reduce the cost of government borrowing.

The statement might reduce the amount of a projected mortgage interest rise in November.

But make no mistake: the statement is a humiliation for the PM.

Every policy she’s trailed, trumpeted, and brought in has been chucked on the bin fire of her Government’s reputation.

Liz Truss sacked Mr Kwarteng because she did as she said and pursued a policy she endorsed enthusiastically.

The PM’s campaign slogan was “Trusted to Deliver”.

Her detractors pointed out that Liz Truss was pushed by the political winds and could not set her own course.

She’s tried setting her course and crashed the economy into an iceberg.

Moreover, her Cabinet colleagues must wonder whether they can trust the PM to stand behind them when they pursue a government policy she supports.

This is a government living hour-to-hour, in office but not in power, and with its key policies made by financial markets instead of ministers.

Separate lives:  Truss and Kwarteng part ways

GOVERNMENT AIMS TO “REGAIN TRUST”

The Chancellor’s statement pulled no punches about the size of Ms Truss’s and Mr Kwarteng’s miscalculation and overconfidence.

Mr Hunt said: “The government is prepared to act decisively and at scale to regain the country’s confidence and trust.”

The painful use of the word “regain” underlines what the Government lost after September 23.

The Chancellor stated there would be “more difficult decisions” on tax and spending.

Mr Hunt is focused on lowering debt in the medium term and putting public finances on “a sustainable footing”.

Using the word “sustainable” implies the previous plan was unsustainable.

In light of this, government departments will be asked to find efficiencies within their budgets. The Chancellor is expected to announce further changes to its fiscal policy on October 31 to put the public finances on a sustainable footing.

Reversal of fortunes: Pound rebounded on announcement of U-turn

TAX CUTS SCRAPPED

The Chancellor announced a reversal of almost all of the tax measures set out in the Growth Plan that have not been legislated for in parliament.

The following tax policies will no longer be taken forward:

Cutting the basic rate of income tax to 19% from April 2023. While the Government aims to proceed with the cut in due course, this will only happen “when economic conditions allow for it, and a change is affordable”. The basic rate of income tax will therefore remain at 20% indefinitely. This is worth around £6 billion a year.
Cutting dividends tax by 1.25 percentage points from April 2023. The 1.25 percentage points increase, which took effect in April 2022, will remain in place. This is valued at around £1 billion a year.
Repealing the 2017 and 2021 reforms to the off-payroll working rules (also known as IR35) from April 2023. This will cut the Government’s growth plan’s cost by around £2 billion a year.
Introducing a new VAT-free shopping scheme for non-UK visitors to Great Britain. Not proceeding with this scheme is worth around £2 billion a year.
Freezing alcohol duty rates from February 1 2023, for a year. Not proceeding with the freeze is worth approximately £600 million a year.
This follows from the previously announced decisions not to proceed with the Growth Plan proposals to remove the additional income tax rate and to cancel the planned increase in the corporation tax rate.

The changes are estimated to be worth around £32 billion a year.

That still leaves the Government with a lot to find to plug the hole in its finances, which indicates more pain will follow in public spending.

The Government’s reversal of the National Insurance increase, the Health and Social Care Levy, and the Stamp Duty Land Tax cuts will continue to benefit millions of people and businesses.

The £1 million Annual Investment Allowance, the Seed Enterprise Investment Scheme and the Company Share Options Plan will continue supporting business investment further.

ENERGY BILL SUPPORT TO CHANGE

In September, the Government announced massive financial support to protect households and businesses from high energy prices.

The Energy Price Guarantee and the Energy Bill Relief Scheme support millions of households and businesses with rising energy costs.

The Chancellor made clear they will continue to do so from now until April next year.

However, looking beyond April, the Prime Minister and the Chancellor have agreed that it would be irresponsible for the Government to continue exposing the public finances to unlimited volatility in international gas prices.

A Treasury-led review will therefore be launched to consider how to support households and businesses with energy bills after April 2023. The review’s objective is to design a new approach that will cost the taxpayer significantly less than planned whilst ensuring enough support for those in need.

The Chancellor also said in his statement that any support for businesses will be targeted to those most affected and that the new approach will better incentivise energy efficiency.

“CHAOS AT THE HEART OF GOVERNMENT”

Rebecca Evans, Wales’s Finance Minister, responded: “The complete unravelling of the mini-budget shows the chaos at the heart of the UK Government.
“In six short weeks, the UK Government’s reckless and flawed economic policy has caused mayhem in the financial markets, pushed up mortgage costs and stretched household budgets even further.
“Now the UK Government is rolling back on its energy price support scheme for households, which will only add to the uncertainty people face as they worry about paying their bills.
“The new Chancellor has signalled a new era of austerity to start to fill the hole in public finances.
“We will all pay for the Government’s mistakes. But this is a crisis made in Downing Street and one it needs to address.
“The Chancellor needs to use his next financial statement to provide reassurance we will not see the deep spending cuts that will affect jobs, services and our economy – and to provide support to vulnerable households who have been ignored today.”

Community

Survey of Picton Castle reveals groundbreaking medieval architecture

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THE first ever detailed architectural survey of Picton Castle, Pembrokeshire, has revealed a medieval castle ahead of its time in terms of design and high status living. Much altered in the Georgian period, the castle was surveyed by the author, Neil Ludlow, with Phil Poucher of Heneb – Dyfed Archaeology (formerly Dyfed Archaeological Trust) and funded by the Castle Studies Trust: it reveals a sophisticated building fit for royalty.

However, the building was actually built between 1315-20 by a senior royal government official called Sir John Wogan, who held office in Pembrokeshire, Northern England and Ireland and possibly fought on a military campaign in Gascony.

While outwardly it retains much of its medieval flavour, the interiors were extensively made over during the eighteenth century so that it now presents itself first and foremost as a Georgian country seat. But beneath this veneer, much medieval work still survives – though a lot of it is tucked away behind stud-walls, in cupboards, or is otherwise obscured.

Picton’s unique layout makes it a castle of great importance and architecturally ground-breaking for when it was built in the early fourteenth century. Most castles have at least some close parallels, but Picton is effectively one of a kind. Close study shows that it resolves as a central first-floor hall, flanked by services and a chamber-block to form a very early example of the three-unit ‘H-plan’ house.

The gatehouse – unusual in buildings of this kind – led onto an equally unusual ‘grand stairway’ to the hall; a second ground-floor entry probably led to an external kitchen and bakehouse.

The castle’s spatial disposition, access and circulation are meticulously planned, while the domestic appointments show a remarkable level of sophistication for the period, including what appear to be vertical serving-hatches between the ground floor and the service rooms above. At second-floor level, the east towers and gatehouse form two integrated suites of residential apartments either side of a chapel, in a manner firmly rooted within royal planning. The opposite pair of towers, at the west end, seem to have been united internally to form a residential chamber-block, for Wogan’s officials and guests, possibly served by latrines in the former west tower; the present partition walls are later.

Neil Ludlow told The Pembrokeshire Herald: “The enigmatic castle at Picton in Pembrokeshire is best-known for its magnificent Georgian interiors. But beneath this veneer is a medieval castle, from around 1315-20, with a unique layout. A towered hall-block with a pioneering ‘H-plan’, it reveals elements derived from royal planning, and sophisticated domestic arrangements including serving hatches between the floor levels. These innovations show it to have been a castle that was ahead of its time.”

Castle Studies Trust Chair of Trustees Jeremy Cunnington added: “The Castle Studies Trust is delighted to have funded the first ever detailed survey of Picton Castle and to have learned so much more about the medieval form of this unique building.”

Dr Rhiannon Talbot-English, Director at Picton Castle Trust told this newspaper: “Picton Castle has always been something of an enigmatic mystery: hidden gothic alcoves and arches, secret spiral staircases and untouched medieval Undercroft. Picton Castle Charitable Trust is extremely grateful to the Castle Studies Trust for its generous financial support which has enabled this research to be undertaken and we look forward to sharing this new knowledge with the public in a new exhibition about the early castle.”

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Solemn tributes at Freshwater West for WWII maritime tragedy

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IN an emotional gathering at Freshwater West, Pembrokeshire, the public and veterans convened on April 29, to honour the memory of the 85 souls lost in the tragic sinking of Landing Craft, Gun (LCG) 15 and LCG 16 during a brutal storm in April 1943.

The memorial service took place near the scenic, surf-popular beach, where the community assembled to reflect on the calamity that struck during a perilous wartime operation.

The service highlighted the sacrifices made by those aboard the LCGs, as well as six valiant crew members from the HMS Rosemary, who perished while attempting a daring rescue amidst the tempest.

Originally designed as Landing Craft, Tanks (LCTs), LCG 15 and LCG 16 were converted at Belfast’s Harland & Wolff shipyard to support amphibious operations by equipping them with heavy artillery.

Their redesign included the installation of two 4.7 inch guns intended for use during D-Day, suggesting that, had they survived, these crafts and their crews could have played a pivotal role in the Normandy Landings.

The crafts were en route to Falmouth when they encountered severe weather off the coast of Freshwater West.

Compounded by their flat-bottomed design, which was ill-suited for rough seas, both vessels tragically succumbed to the stormy conditions.

Denied shelter at Fishguard, they were compelled to continue towards Milford Haven, a decision that ultimately led to their sinking.

Today, the wrecks of LCG 15 and LCG 16 lie as protected war graves, and a poignant memorial stands overlooking the beach, a testament to the bravery and enduring legacy of the men lost to the sea.

Visitors to the memorial site at Freshwater West, which also hosts another commemorative marker at Thornton Cemetery in Milford Haven, can reflect upon the harrowing experiences faced by wartime naval personnel and the profound impact of their service.

The event served not only as a remembrance but also as an educational experience, particularly for younger generations unaware of the perils faced by their forebears during such tumultuous times.

The memorial at Freshwater West remains open to the public, offering a place for contemplation and respect, against the backdrop of one of Wales’ most beloved surfing beaches, where the echoes of history resonate with the sounds of the waves.

Pictures by Martin Cavaney

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‘Honest’ caravan site owner ran site ‘under the radar’ for 20 years

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A PEMBROKESHIRE caravan site owner who “honestly” admitted “dodging under the radar” by running his site without permission for some 20 years will not be allowed to continue doing do.

In an application before Pembrokeshire County Council’s April planning committee, Nicholas Kinahan sought retrospective permission to continue operating his caravan site with 19 touring pitches, along with caravan storage and the erection of a storage shed at Penrath Farm, Ryelands Lane, Kilgetty.

The long-running site operation, a kilometre from nearby Kilgetty, off the narrow Ryelands Lane, was discovered as part of an ongoing enforcement action.

The application was recommended for refusal on a long list of grounds including the site was in the open countryside, did not propose any community facility, was not supported by a Green Infrastructure Statement, no biodiversity enhancement features, the nearby road being a narrow single-track lane with no visibility splays for access, and concerns over foul waste disposal.

Kilgetty/Begelly Community Council has objected to the scheme on the basis of a lack of information provided within the application and access safety.

One third party representation was also received, raising concerns including a lack of information in respect of type of caravans and their use, no surface water or foul waste drainage details, a lack of an ecology survey, and no highway impact assessment.

Speaking at the meeting, farmer and caravan site owner Mr Kinahan said there were three caravans on-site after he moved to Kilgetty in 2004, housing tenants “on benefits,” with nine caravans on-site by 2010 and ‘vans from other sites stored on site later.

“We’ve done wrong and we know we’ve done wrong,” he told councillors, adding: “I can’t afford to live there without this little bit of extra income.”

Speaking on behalf of neighbour Micheal Ormond of Ryelands Caravan Park and his concerns, Andrew Vaughan-Harries – a planning agent who normally represents applicants – said to the applicant: “When I look at this application, personally, I think you’ve tried to do the application yourself.

“We see many, many problems with this application, a septic tank is not acceptable in 2024, there are lots of issues; it’s unsustainable and has to fail.”

Councillor Mark Carter said: “What can I say really? I think we’re looking at a very honest man, unfortunately in this case he’s got it wrong; he’s had a 20-year run of dodging under the radar.

“We have to respect the law and the policy and be fair to every caravan site.”

Moving the application be turned down, he said: “Much as I admire the gentleman for his initiative, I have to go with the officer recommendation for refusal.”

Councillor Rhys Jordan thanked the applicant for his honesty, adding: “I don’t think he’s tried to ride roughshod over planning, I think he’s been naïve, but I can’t support this application.”

The application was unanimously refused by planners.

Members heard the saga of Kinahan’s caravans may not be ended with a planning refusal, the option of a potential certificate of lawfulness – if he could prove the development had been in place enforcement-free for a decade-plus – being mooted at the meeting.

Committee chairman Cllr Jacob Williams said: “If you can prove it’s immune from enforcement it could be a ‘trump card’.”

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