Councils warn £6.4bn Welsh Government funding plan still leaves schools and care services under pressure

The provisional figures, published today, promise an average 2.7% increase in funding for local authorities, with a guaranteed minimum uplift of 2.3%. Newport receives the largest rise at 4.3%, reflecting growth in its school‑age population. But the Welsh Local Government Association (WLGA) says the overall £169m cash increase falls far short of the £560m shortfall councils expect to face next year.

Education and social care at the sharp end

Education already accounts for nearly 40% of council spending in Wales, and the strain is visible locally. Carmarthenshire, which will receive £384.8m next year — up £8.9m, or 2.3% — has embarked on a programme of school closures and mergers in recent years, citing rising costs and falling pupil numbers.

Swansea, meanwhile, will receive £494.1m, an increase of £16.1m, also at the minimum 2.3% uplift. Neither council has yet commented publicly on the draft settlement, but WLGA modelling suggests that even a 3% increase would still leave councils hundreds of millions short, raising the prospect of further cuts or tax hikes across Wales.

Leaders warn of structural pressures

WLGA Labour Group Leader Andrew Morgan OBE said the settlement “offers a degree of stability” but warned that “social care, homelessness, education and workforce costs continue to rise faster than resources can keep up.”

Independent Group Leader Mark Pritchard described the gap between demand and resources as “untenable,” warning redundancies would be inevitable without additional support. Plaid Cymru’s Gary Pritchard said many councils were already operating at the limits of what is safe or sustainable, and called for reform of the funding formula. Liberal Democrat Group Leader Jake Berriman added that rural and semi‑rural areas face higher delivery costs that a flat percentage uplift “simply doesn’t reflect.”

Political pressure mounts

Plaid Cymru’s Heledd Fychan MS warned the settlement could lead to “council tax increases of 22% or 14,000 job losses,” while Welsh Conservative shadow local government secretary Joel James said the figures showed the need for “fundamental change” to the funding system.

The Welsh Government said the draft budget marked only the start of negotiations. Cabinet Secretary for Housing and Local Government Jayne Bryant said the settlement was designed to give councils “the stability they need to set budgets which protect and deliver core frontline services.” Finance Secretary Mark Drakeford added that ministers would work closely with councils and opposition parties to ensure the final budget “safeguards jobs and protects frontline services.”

The final settlement is expected in January following consultation and Senedd negotiations.

#budget #cllrAndrewMorgan #councilBudget #councilTax #garyPritchard #heleddFychanMs #jakeBerriman #markDrakeford #markPritchard #welshGovernment #welshLocalGovermentAssociation #wlga

Call to scrap VAT on sunscreen as skin cancer rates rise in Wales

The South Wales West politician pressed Finance Secretary Mark Drakeford in the Senedd this week after earlier calls to treat sunscreen as a health essential rather than a cosmetic product.

Mr Drakeford confirmed that Treasury officials had told Welsh Government there were “no plans” to change VAT rules. But he added he was prepared to raise the issue again with new ministers in London, following Ms Williams’ intervention.

“Not a luxury”

Ms Williams said sunscreen should be seen as a life‑saving product, not a luxury item:

“Skin cancer is almost entirely preventable, and yet it currently accounts for almost half of all cancers in Wales. The high cost is stopping some people from practising good skin safety – trying to make it go further by not applying enough, not regularly enough, or not at all.”

She added that removing VAT could encourage more people to use sunscreen properly and reduce pressure on the NHS.

Cancer rates and cost concerns

• Wales has the highest rate of skin cancer of any UK nation, according to Public Health Wales.
• Research by the charity Melanoma Focus found half of people in the UK think sunscreen is too expensive, while one in ten don’t use it at all because of the cost.

What happens next

Mr Drakeford told the Senedd he would be “willing to raise the point” again with the Treasury, given the arguments put forward and recent changes in personnel.

Campaigners say the move could make a practical difference to families struggling with the cost of living, while also helping to cut avoidable cancer cases.

Related sun safety stories

New study says Welsh primary school pupils need to get ‘sunproofed’
Swansea University research found fewer than half of Welsh primary schools have a sun safety policy in place for pupils.

Boots will no longer sell its own-brand sun cream with an SPF lower than 15
High street chemist Boots phases out lower SPF products to encourage safer sun protection, in partnership with Macmillan Cancer Support.

Popular sunscreens failing to live up to sun protection claims, Which? reveals
Consumer tests found some big-name products did not meet their advertised SPF or UVA protection levels.

Health board issues warning after child sunburn cases at Swansea hospital burns unit
Doctors at Morriston Hospital urged parents to take extra care after several youngsters were admitted with severe sunburn.

#HMTreasury #MarkDrakeford #MelanomaFocus #PublicHealthWales #SionedWilliamsMS #skinCancer #sunscreen #suntan #suntanLotion #tax #UKGovernment #VAT #WelshGovernment

Ministers weigh up fast‑track powers to rewrite Welsh tax laws

A green paper published in Cardiff sets out options for reforming the process for altering Land Transaction Tax and Landfill Disposals Tax, which together raise substantial sums for Welsh public services.

At present, some changes require a full Act of the Senedd, while others can be made through regulations. Ministers say the current system can be too slow to respond to urgent issues such as tax avoidance schemes or changes to equivalent UK taxes.

One option under consideration is an annual Welsh finance bill — the equivalent of Westminster’s Finance Act, which is the legislation that follows the UK Government’s Budget and turns tax measures into law. This is separate from the Budget speech itself, and is the formal process by which changes announced by the Chancellor each year are enacted.

Other options include expanding existing powers under the Welsh Tax Acts (Power to Modify) Act 2022, allowing ministers to make more changes by regulation — a proposal likely to spark debate over scrutiny and accountability.

Finance Secretary and former First Minister, Mark Drakeford said:

“Our Welsh taxes play a crucial role in funding the public services that matter to people across Wales. It’s important we have the right mechanisms in place to keep our tax system fair, effective and responsive to change. At the same time, we must ensure that the mechanism is appropriately scrutinised by the Senedd.

This consultation is about finding the best way forward for Wales – whether that’s through annual tax bills, different legislative processes, or improving our current system. I encourage anyone with an interest in how Wales manages its finances to have their say.”

The consultation runs until 28 November 2025, with findings due early next year. Any reforms could have a lasting impact on how quickly — and by whom — tax rules in Wales are rewritten.

#landTransactionTax #LandfillDisposalsTax #MarkDrakeford #Senedd #tax #WelshFinanceBill #WelshGovernment

Tourism tax gets Senedd approval: councils to decide on £1.30-a-night levy from 2027

The Visitor Accommodation (Register and Levy) Etc. (Wales) Bill was approved by 37 votes to 13, paving the way for a £1.30 per person per night charge on hotel, B&B and self-catering stays, plus VAT. A reduced rate of 75p will apply to hostels and campsites, with under-18s exempt from the lower rate.

The Welsh Government says the levy will help fund improvements to local tourism infrastructure, including toilets, footpaths, beaches and visitor centres, with all revenue reinvested in the communities where it is raised.

Finance Secretary Mark Drakeford described the measure as a “small contribution that will make a big difference,” adding:

“Visitor levies are used successfully all over the world… We want the same for Wales.”

The bill also establishes a national register of visitor accommodation providers, laying the groundwork for future licensing and offering better data on the sector’s scale and impact.

If implemented across all 22 Welsh councils, the levy could raise £33 million annually, though only Cardiff and Anglesey have so far indicated plans to adopt it. Other councils are expected to consult locally before making a decision.

The move follows Swansea Bay News’ earlier coverage of the debate surrounding the tax, which has divided opinion across the tourism sector and political spectrum. Critics warn the levy could deter visitors and harm the economy, particularly in rural areas reliant on seasonal trade.

Sam Rowlands, Conservative shadow finance secretary, called the bill “bad for Wales and bad for the Welsh tourism sector,” citing industry concerns and potential job losses.

But supporters argue the measure will help balance the pressures of tourism with the needs of residents. Plaid Cymru’s Luke Fletcher said:

“There is a genuine opportunity here for us to create a sustainable tourism sector that works with both our communities and businesses.”

Labour’s Jenny Rathbone added:

“Why should poor people rather than visitors have to pay?”

The legislation marks the first locally designed tax in Wales for over 500 years, and comes as part of the Welsh Government’s broader investment in tourism, including a £50m Wales Tourism Investment Fund and new weather-proofing grants.

For more background on the debate, see our earlier report: Will it support tourism or devastate the sector?

#JennyRathboneMS #LukeFletcherMS #MarkDrakeford #SamRowlandsMS #tourism #tourismTax #WelshGovernment

I would put money on that they do, and I don't gamble.

#Wales #MarkDrakeford #UKpol #UKpolitics #GE2024 #Devolution #Labour

ICYMI, the brilliant @HiraethPod just released a bonus episode to discuss #WelshLabour and #MarkDrakeford (including a possible successor). Insightful contributions, also from someone at @waleslink 👏 https://toot.wales/@HiraethPod/111578417132377993 https://soundcloud.com/hiraethpod

Straight after hearing that one, I was delighted to hear #MatthewHexter on the @newstatesman pod, educating listeners from further afield about the same thing! 🏴󠁧󠁢󠁷󠁬󠁳󠁿

@mimosacymru
@walespolitics

#Welsh #firstminister and #LGBTQ+ #ally #MarkDrakeford #resigns

“When I stood for the leadership, I said that, if elected, I would serve for five years. Exactly five years have passed since I was confirmed as first minister in 2018,” Drakeford told reporters.

#Women #Transgender #LGBTQ #LGBTQIA #UK #Wales #Politics #Representation #Culture #Allies

https://www.thepinknews.com/2023/12/13/welsh-first-minister-and-lgbtq-ally-mark-drakeford-resigns/