Politics
Drakeford ‘optimistic’ ahead of Welsh budget
WALES’ new finance secretary Mark Drakeford expressed optimism about the Welsh Government’s draft budget but warned public spending will not suddenly start flowing.
Prof Drakeford said he is planning for 1% growth in day-to-day revenue spending and a flat settlement for longer-term capital expenditure.
Appearing before the finance commission for scrutiny, the former First Minister said: “I have some optimism that things will be a little bit better.”
He cautioned: “I don’t think it’s going to be a sudden turning on of public expenditure but I think that things won’t be quite as tight.”
Pressed by Labour’s Rhianon Passmore about areas that could be deprioritised in Wales, he said it is too early to say ahead of the UK Government’s budget on October 30.
And pressed to reassure people that the in-year budget is secure, in light of £500m cuts in Scotland, he said: “It looks to me more like what I would have thought of as a ‘normal year’.”
Prof Drakeford stressed that stresses and strains persist but the previous budget was extraordinarily more difficult, leading to “very, very painful” cuts this time last year.
He said the First Minister’s statement on her government’s priorities will shape the Welsh Government’s draft 2025/26 spending plans that will be published on December 10.
The former First Minister compared his overriding responsibility as finance secretary with landing a jumbo jet of a budget on a postage stamp.
He stressed the importance of getting maximum value from expenditure and not overspending which “takes you into very difficult territory”.
Prof Drakeford suggested negotiating relationships with the UK Government on matters such as freeports and investment zones will be near the top of his agenda.
He said his focus will also be on legacy issues like the shared prosperity fund, replacement EU funding – “one of the sorrier examples of spending by the previous UK Government”.
He said: “I will wish to have conversations with my UK colleagues about the longer-term transfer of post-EU funding back to where it belongs: here in the hands of the Senedd.”
Prof Drakeford suggested the Welsh Government will seek powers that have already been devolved to Scotland and Northern Ireland.
He said talks would focus on “freeing up the micromanagement of our affairs” by the UK Treasury, giving more scope to deploy money in an efficient and effective way.
“At the moment, our hands are tied and we don’t get the best value,” he warned.
Prof Drakeford told the committee the Welsh Government has identified £65m to make coaltips in Wales safe as he urged the Labour UK Government to contribute.
The finance secretary said talks with UK ministers about rail funding are also ongoing.
He said if Wales receives additional capital expenditure next year – “and it’s a big ‘if’” – improving NHS efficiency through new equipment and buildings will be a priority.
Prof Drakeford agreed the current “fiscal framework” – which determines how Welsh public services are funded – while he was finance secretary between 2016 and 2018.
He said: “The problem from our point of view has been … that the numbers that were struck – the amount you can borrow, the amount you can put in the Welsh reserve, the amount you can draw down … are still the figures that we agreed as the right figures for 2016.”
Prof Drakeford told the committee meeting on September 25 that he expects the cabinet to debate Welsh rates of income tax but he would need “quite a lot of persuasion”.
“The only way you can raise significant amounts of money from income tax in Wales is by increasing the basic rate,” he cautioned.
The finance secretary said hiking additional and higher rates, which raises untested issues around tax migration, would not bring in a substantial sum.
Local Government
Labour reflect on disastrous Senedd election after Ceredigion Penfro wipeout
FORMER First Minister Eluned Morgan, who failed to secure a seat in the 2026 Senedd elections in Ceredigion Penfro, has spoken of her “honour” to serve in the role.
In the May 7 battle for six seats in the new Ceredigion Penfro constituency, stretching from north of Aberystwyth to Angle in the southwest and Llanteg in the southeast, Plaid Cymru gained three seats, Reform two and Welsh Conservatives one.
The elections saw seismic political changes in Wales with Plaid in the majority and Labour losing heavily across the country, including Ceredigion Penfro where former First Minister Eluned Morgan or any other Labour candidates failed to secure a seat.
Since her loss, Eluned has said it was “the greatest honour of my life to serve as First Minister of Wales and to represent the people of Mid and West Wales in the Senedd”.
In a statement, she added: “Public service is never about one person. It is about the people and communities who place their trust in you, the staff and volunteers who work tirelessly behind the scenes and the shared belief that Wales can always move forward together.
“I want to thank everyone who has supported me throughout this journey – my team, colleagues, campaigners, friends, my family and above all the people of Wales for giving me the privilege to serve.
“To the new Welsh Government, I send my very best wishes. Whatever our political differences, I believe we all want the same thing at heart: a fairer, stronger and more confident Wales.”
Fellow Labour candidate in the Ceredigion Penfro Senedd elections, also a Pembrokeshire county councillor for Narberth, Cllr Marc Tierney described Eluned as “a champion for causes that matter to so many of us — speaking up for those who could not, often without fanfare but with quiet, steady resolve”.
He added: “Both Welsh Labour and UK Labour will now need to take stock. Now is the time to consider, in depth, the significance of the losses suffered, and take genuine and measurable steps to regain the confidence of the public who have placed their trust in us so many times before.
“Eluned has said that she takes responsibility for the defeat. But I believe it is wrong for her to carry that burden alone. Others must examine their role, and the entire movement must work out — in a challenging but respectful way — what must change if we are to offer a real alternative to the politics of division that has featured so prominently of late.
“Welsh Labour and its membership must be brave. Our shared values must underpin the next chapter.”
Eluned Morgan has now been replaced as interim Senedd Labour leader by Ken Skates.
News
Nigel Farage faces standards probe over £5m gift
Reform UK leader denies wrongdoing as parliamentary watchdog examines undeclared payment
NIGEL FARAGE is facing a parliamentary standards investigation over a £5 million gift from a major Reform UK donor.
The Reform UK leader, who has been MP for Clacton since July 2024, was referred to Parliamentary Commissioner for Standards Daniel Greenberg after reports emerged that he had received a previously undeclared payment from Thailand-based cryptocurrency investor Christopher Harborne in 2024.
The investigation is understood to relate to the rules requiring MPs to register relevant financial interests, including certain benefits received in the 12 months before entering Parliament.
Mr Farage has strongly denied wrongdoing and has said the money was a personal, unconditional gift connected to his safety and security, not his political activity.
A Reform UK spokesman said: “Mr Farage’s office is in communication with the Parliamentary Commissioner for Standards.
“He has always been clear that this was a personal, unconditional gift and no rules were broken.
“We look forward to this being put to bed once and for all.”
Mr Harborne has previously been identified as a significant donor to Reform UK. Reports say the £5 million payment was made before Mr Farage announced he would stand in Clacton at the 2024 general election.
The opening of an investigation does not mean Mr Farage has been found to have breached parliamentary rules.
However, the case is politically sensitive because of the size of the payment and because of Mr Farage’s prominent role as leader of Reform UK.
If the commissioner ultimately finds there has been a breach, the matter could be dealt with by correction in less serious cases, or referred to the Commons Standards Committee in more serious circumstances.
In the most serious cases, MPs can face suspension from the House of Commons. A suspension of ten sitting days or more can trigger a recall petition, potentially leading to a by-election if enough constituents sign it.
Mr Farage has previously been subject to a standards rectification process over late declarations of financial interests. The latest inquiry comes at a time of heightened scrutiny over political donations and party funding, with Reform UK under growing attention as it seeks to build on recent electoral gains.
Mr Farage remains entitled to the presumption that no breach has occurred unless and until the parliamentary standards process reaches a conclusion.
News
Undoing Brexit? Critics say new King’s Speech bill could reopen EU divide
Ministers accused of paving the way for closer EU alignment without full Commons scrutiny
THE UK GOVERNMENT has unveiled plans which critics claim could quietly reverse key parts of Brexit by allowing EU rules to be adopted into British law without a full parliamentary vote.
The controversial proposal was included in King Charles III’s speech to Parliament on Wednesday (May 13), through legislation titled the European Partnership Bill.
The Bill is designed to create a legal framework allowing future agreements between the UK and the European Union to be implemented more quickly — including planned deals on food standards, energy emissions and youth mobility.
Government officials argue the legislation is needed to support economic growth and strengthen ties with Europe after years of strained post-Brexit relations.
However, Brexit supporters and several commentators have warned the powers could allow ministers to sidestep meaningful scrutiny by MPs when adopting future EU-aligned regulations.
The move comes as Prime Minister Sir Keir Starmer signals a major shift in Britain’s relationship with Brussels following Labour’s difficult local election results last week.
Speaking earlier this week, Starmer said he wanted Britain back “at the heart” of Europe and described upcoming UK-EU agreements as a “big leap forward.”
Food, youth mobility and emissions deals planned
Negotiators are expected to meet in Brussels this summer for the second annual UK-EU summit, where both sides hope to agree new co-operation arrangements.
Among the proposed deals are:
• A new veterinary and food standards agreement designed to reduce border checks and ease imports and exports
• A closer emissions trading arrangement with the EU
• A youth mobility scheme allowing young Britons to live and work more easily across Europe
The Government claims the food agreement alone could boost the UK economy by £5.1 billion, with wider agreements potentially worth up to £9 billion overall.
Business groups including the British Chambers of Commerce have welcomed the proposals, arguing they could reduce costs for firms and consumers.
William Bain, the BCC’s head of trade policy, said quicker and simpler trade with Europe was essential for economic growth and lowering household prices.
Brexit fears reignited
Critics say the legislation could represent the clearest sign yet that Labour intends to gradually realign Britain with EU structures.
During questions from journalists this week, Starmer declined to rule out future membership of either the EU single market or customs union appearing in a future Labour manifesto — both previously ruled out under earlier Labour leadership.
That has fuelled speculation that Britain could move steadily closer to the EU over the coming years, despite Brexit remaining one of the most divisive political issues in modern British history.
The proposed youth mobility scheme has also drawn criticism from some immigration hardliners, who argue it could become a backdoor route to restoring freedom of movement.
The Government insists the plans are about practical co-operation rather than reversing Brexit itself.
But with ministers now seeking powers to rapidly introduce EU-linked regulations into domestic law, opponents say the political battle over Brexit may be far from over.
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