Welsh town's parliamentarian returning penniless (8)
I believe the answer is:
pembroke
'welsh town's' is the definition.
(I've seen this before)
'parliamentarian returning penniless' is the wordplay.
'parliamentarian' becomes 'MEP' (Member of the European Parliament).
'returning' says the letters should be written in reverse.
'penniless' becomes 'broke' (I've seen this before).
'mep' written backwards gives 'pem'.
'pem'+'broke'='PEMBROKE'
(Other definitions for pembroke that I've seen before include "Oxford college; small table" , "Welsh port" , "Former Welsh county" , "An Ox., a Camb. college; Welsh town, castle" , "Two Oxbridge colleges; a shire" .)