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Politics

Calls for ‘outdated’ Barnett funding formula to be replaced

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THE SENEDD has called on the UK Government to replace the “outdated” Barnett funding formula with a new needs-based way of setting public spending in Wales.

Opening a Plaid Cymru debate, Rhun ap Iorwerth said having to make a case for fair funding speaks volumes about Wales’ status within an unequal union.

He told the chamber the population-based Barnett formula, which was devised in the late 1970s and only intended as a temporary measure, does not reflect the needs of Wales.

The Plaid Cymru leader described the funding formula as a weak, short-term solution from the 20th century based on the needs of another country.

He said: “It has become more and more apparent over the years that the Barnett formula is well past its sell-by date.”

Calling out apathy at Westminster, Mr Iorwerth accused the Conservatives of placing barriers before any attempts to reform and he criticised Labour for refusing to promise change.

He urged the new first minister to stand up for Wales, saying: “I want to hear a Labour first minister putting Wales first and not taking ‘no’ for an answer from Keir Starmer.”

Mr Iorwerth told MSs the Barnett formula has been a cornerstone for a broader pattern of unfairness faced by Wales in recent years.

He raised examples such as a lack of powers over the Crown Estate and £4bn in consequential funding for Wales from the HS2 project being withheld.

The Ynys Mon MS said: “This general theme of injustice that flows through all of those cases, and more, all emerge fundamentally from the failure to have fair and appropriate funding arrangements in place, and the Barnett formula is at the heart of that.”

Peter Fox said Wales continues to receive record funding, with the largest block grant in the history of devolution supplemented by about £440m of levelling-up funding.

The Conservatives’ shadow finance minister agreed that there needs to be a rethink about how the Barnett formula is calculated to better address Wales’ unique challenges.

Mr Fox said some strides were made to make the settlement fairer, with a 115% funding floor agreed between the Welsh and UK Governments in 2016.

He told the chamber: “That ensures the Welsh settlement will never drop below 115% of the money spent on public services in England. But we know currently that that floor hasn’t had to kick in, as the current settlement is delivering 120%, ie £1.20 for every £1 spent.”

Mr Fox stopped short of calling for the Barnett formula to be scrapped, saying it would be unrealistic in the UK context.

Peredur Owen Griffiths, Plaid Cymru’s shadow minister, said the state of the Welsh budget for the financial year from April shows in stark terms how poorly Wales is served.

He warned: “The experiences of the past few months have conclusively demonstrated that Welsh public finances are on an utterly unsustainable trajectory.”

The South Wales East MS argued the Barnett formula is ill-equipped to address the precarious state of council finances, with the threat of bankruptcy looming large.

He told the chamber that Wales’ 22 councils have a combined debt of £5.6bn, according to a UK public accounts committee report, with a £354m funding gap next year.

He said: “It would take a work of fiscal fiction that Jeremy Hunt himself would be proud of to argue the Barnett formula, in its current form, is sufficient to rectify this dire predicament.”

Mabon ap Gwynfor focused on the needs of Wales, saying: “The truth is, it’s more expensive to provide health and social care to older, more rural and impoverished communities.”

He argued replacing the Barnett formula should be regarded as a vital investment in health.

Sioned Williams, a fellow Plaid Cymru MS, said a needs-based model would not be an instant panacea but it would undoubtedly be a necessary step in the right direction.

She said: “We need to be honest with voters that the current arrangements will only keep us standing still on a path to a fairer and more equal society.”

Mike Hedges, a Labour backbencher, pointed out that the local government funding formula shows that a needs-based solution can still be controversial.

“The discussion we need is about how to get a needs-based framework to work,” he said.

Rebecca Evans told the chamber it is clear the UK funding model does not work for Wales.

The finance minister said the funding system for devolved governments is characterised by quick fixes, inconsistency, uncertainty and instability.

Ms Evans called for a new relative needs-based approach, overseen by a body independent of the UK Government and to be agreed by all four nations

She said: “That would be fairer but also more efficient and effective, and it would help reduce the distortions and inefficiencies that arise from the current system.

“It would enable a more rational, transparent allocation of public spending across the UK.”

The Plaid Cymru motion and Conservative amendment were defeated following the debate on March 20. The motion as amended by the Welsh Government was agreed, 37-15.

 

News

Welsh peace campaigner removed from court during Palestine protest case

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Concerns raised over use of terrorism laws against silent sign-holders as Welsh activist among those ejected from London hearings

A WELSH peace campaigner was among several protesters removed from court by security staff this week as plea hearings continued for people charged under terrorism legislation for holding pro-Palestine signs.

Angie Zelter, aged 74, from Knucklas, appeared at Westminster Magistrates’ Court in London on Monday as part of mass proceedings linked to the Government’s ban on Palestine Action.

Campaigners say hundreds of people across the UK – including some in Wales – have been charged under Section 13 of the Terrorism Act 2000 after quietly holding handwritten signs reading: “I oppose genocide. I support Palestine Action.”

Zelter, a long-time anti-war activist and founder of Trident Ploughshares, attempted to read a prepared statement criticising the prosecutions before being escorted from the courtroom, according to supporters.

She told the court she did not accept being labelled a terrorist for what she described as peaceful protest and opposition to the war in Gaza.

Outside the building, fellow campaigners said she had sought to argue that international law and freedom of expression should protect non-violent dissent.

Also removed from the hearing was Tim Crosland, co-founder of Defend Our Juries, who said he had tried to raise legal objections to the charges before being asked to leave.

Arrests nationwide

Organisers of the “Lift The Ban” campaign claim nearly 3,000 people have been arrested across Britain since late 2025 for taking part in silent vigils, with several hundred now facing prosecution. The offences carry a maximum sentence of six months in prison.

The group argues the legislation is being used to criminalise peaceful protest. It is calling on the Government to lift the ban on Palestine Action and to change its stance on military cooperation with Israel.

However, ministers have defended the proscription, saying the organisation has been linked to criminal damage and disruption at sites connected to defence manufacturing.

Welsh perspective

While most hearings are taking place in London, campaigners say demonstrators in Wales have also taken part in sign-holding protests.

Civil liberties advocates have warned that applying terrorism laws to non-violent protest risks setting a troubling precedent.

For many in mid Wales, the sight of a pensioner from rural Powys being removed from a courtroom has sharpened debate over where the line lies between legitimate protest and criminality.

Further hearings are scheduled in the coming weeks, with more defendants from across the UK expected to appear.

 

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Business

Bid to convert office space into chocolate factory, salon and laundrette

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A CALL for the retrospective conversion of office space previously connected to a Pembrokeshire car hire business to a chocolate factory, a beauty salon and a laundrette has been submitted to county planners

In an application to Pembrokeshire County Council, Mr M Williams, through agent Preseli Planning Ltd, sought retrospective permission for the subdivision of an office on land off Scotchwell Cottage, Cartlett, Haverfordwest into three units forming a chocolate manufacturing, a beauty salon, and a launderette, along with associated works.

A supporting statement said planning history at the site saw a 2018 application for the refurbishment of an existing office building and a change of use from oil depot offices to a hire car office and car/van storage yard, approved back in 2019.

For the chocolate manufacturing by ‘Pembrokeshire Chocolate company,’ as part of the latest scheme it said: “The operation comprises of manufacturing of handmade bespoke flavoured chocolate bars. Historically there was an element of counter sales but this has now ceased. The business sales comprise of online orders and the delivery of produce to local stockist. There are no counter sales from the premises.”

It said the beauty salon “offers treatments, nail services and hairdressing,” operating “on an appointment only basis, with the hairdresser element also offering a mobile service”. It said the third unit of the building functions as a commercial laundrette and ironing services known as ‘West Coast Laundry,’ which “predominantly provides services to holiday cottages, hotels and care homes”.

The statement added: “Beyond the unchanged access the site has parking provision for at least 12 vehicles and a turning area. The building now forms three units which employ two persons per unit. The 12 parking spaces, therefore, provide sufficient provision for staff.

“In terms of visiting members of the public the beauty salon operates on an appointment only basis and based on its small scale can only accommodate two customers at any one time. Therefore, ample parking provision exists to visitors.

“With regard to the chocolate manufacturing and commercial laundrette service these enterprises do not attract visitors but do attract the dropping off laundry and delivery of associated inputs. Drop off and collections associated with the laundry services tend to fall in line with holiday accommodation changeover days, for example Tuesday drop off and collections on the Thursday.

“With regard to the chocolate manufacturing ingredients are delivered by couriers and movements associated with this is also estimated at 10 vehicular movements per week.”

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

 

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Politics

Ceredigion council tax expected to rise by 4.7 per cent

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A BETTER financial settlement for Ceredigion from the Welsh Government along with a fresh grant is expected to see council tax bills in the county rising by less than five per cent this year, far below previous fears of a rise as high as nearly nine.

Last year, for the 2025-’26 budget, Ceredigion saw a council tax rise of 9.3 per cent.

While council tax makes up a proportion of the council’s annual revenue, a crucial area of funding is the Aggregate External Finance (AEF) rate from Welsh Government.

Ceredigion was to receive a 2.3 per cent increase on its settlement, some £3,388,000 for a total of £150,670,000, placing it at joint 13th of the 22 local authorities in Wales.

Following a later Welsh Government and Plaid Cymru agreement additional funding for local government was secured, giving Ceredigion additional funding.

Back in November, before the increased settlement was announced, Ceredigion Leader Cllr Bryan Davies said that early estimates indicated that an 8.9 per cent increase in council tax would be necessary, but an improved position of 6.9 per cent had been indicated as a result of a further modelling of service cost pressures and operational savings.

Following the improved settlement, members at the January meeting of Cabinet heard from Cabinet Member for Finance and Procurement Services Cllr Gareth Davies a recommendation for a 4.75 per cent council tax increase as part of a draft budget requirement of £221.493m was being mooted.

That position has improved again, following financial support towards the Mid and West Wales Fire Service Levy, members of the February 3 meeting of the council’s corporate resources overview and scrutiny committee heard, the funding now dropping the expected council tax increase to 4.7 per cent, equivalent to an extra £7.39 per month for the average Band D property for the next financial year.

Members of the committee agreed to note the 4.7 per cent figure, with the final council tax recommendation being considered by Cabinet on February 10; the final decision on the budget being made by full council on March 2.

 

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