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Durham councillors Lyndsey Fox, Nicole Brown and Paul Sexton quit Reform to sit as independents.
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Reform's Welsh deputy leader is the favourite to take over from Dan Thomas, who was arrested on Sunday.
Politicians vote against a motion to have a residents' poll on abolishing the post of mayor.
Shadow chancellor Andrew Griffith says UK taxes are forcing young people to "seek their fortune" elsewhere.
Welsh Labour leader Ken Skates makes early years programme Flying Start a red line in negotiations.
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