(9 months, 3 weeks ago)
Commons ChamberRead Hansard Text Watch Debate Read Debate Ministerial Extracts
Carolyn Harris (Swansea East) (Lab)
Wayne David (Caerphilly) (Lab)
The Secretary of State for Wales (David T. C. Davies)
The UK Government fully recognise the challenges posed by cost of living pressures that have come about as a result of the covid pandemic and the invasion of Ukraine. That is why they are providing £104 billion over 2022 to 2025 to support households and individuals across the UK—an average of £3,700 per household.
Carolyn Harris
On Monday evening, ITV News featured a Bevan Foundation study on pensioner poverty in Wales. With nearly a quarter of Wales’s population being over 65, more pensioners are experiencing poverty in Wales than anywhere else in the UK. The “make do and mend” generation, who experienced imposed rationing as children, are now self-denying, with one in 10 pensioners skipping meals and one in five going without heating at some point this winter. What do the UK Government intend to do about this dire situation?
David T. C. Davies
The UK Government fully recognise the importance of supporting pensioners. That is why we have committed to the triple lock and made sure that, even through the difficult crises we have faced over the past few years, pensions have risen in line with inflation. On top of that, there has been an extra payment of £300 for pensioners, and the UK Government’s policy of bringing down inflation is going to help everyone in Wales and the UK, including all pensioners. I hope the hon. Lady will agree that that is a much better focus than, for example, bringing in road user charging, which is going to hit pensioners who want to drive cars in Wales.
Wayne David
Citizens Advice Cymru has stated that during 2023, it referred over 21,000 people to food banks in Wales, almost double the number for 2021. What does that say about the impact of the Government’s policies on ordinary people in Wales?
David T. C. Davies
As I have just outlined, the UK Government are absolutely focused on supporting those with the least in Wales and across the United Kingdom. That is why the UK Government’s policy of bringing down inflation to around half has helped everyone, and it is why the UK Government have made sure that benefits have risen in line with inflation. Households where there are benefits have received a £900 payment, and households where there is disability have received a £150 payment. I do not for one moment doubt the fact that many people are facing serious difficulties at the moment, but this Government are committed to helping them. When I visit food banks, I am told that all sorts of people have to go and visit food banks on a temporary basis—they should not be used to score cheap political points.
Sarah Atherton (Wrexham) (Con)
Welsh Labour’s reduction of business rates relief from 75% to 40% is already having an impact, with small businesses in Wrexham saying that they are going to fold. Despite the UK Government maintaining the rate at 75%, the Welsh Government are focusing more on wasting £140 million on a 20 mph scheme and increasing the number of Senedd politicians. Does the Secretary of State agree that the Welsh Labour Government should focus on what the people of Wales need, not what socialist Senedd politicians want to dictate?
David T. C. Davies
My hon. Friend is absolutely right. It is disgraceful that pubs in Wales are going to be paying, on average, thousands of pounds more in business rates because the Welsh Senedd Government have not passed on the money that has been given to them by the UK Government, and it is disgraceful that small tourism businesses are facing a tourism tax levy. If the Welsh Government want to focus on the priorities of small businesses and communities in Wales, they should indeed scrap the plan to spend £140 million on extra Senedd Members.
Virginia Crosbie (Ynys Môn) (Con)
Does my right hon. Friend agree that one of the best ways in whichthe Welsh Labour Government can help with the cost of living is by helping businesses create jobs and supporting employers, such as the iconic Lobster Pot on Anglesey, rather than increasing business rates punitively and increasing the number of Senedd Members by a staggering 60%?
David T. C. Davies
My hon. Friend is absolutely right. She is a huge champion of businesses in her constituency, and it is a shame that the Senedd does not look to her example of championing businesses instead of imposing all sorts of extra taxes, while—as she mentioned—wasting money on schemes such as creating extra Senedd Members and bringing in road charging on the M4. Even my own Labour council is suggesting bringing back Severn bridge tolls.
Jessica Morden (Newport East) (Lab)
Some 8,000 homeowners in Wales face the Tory mortgage bombshell this month, with households projected to pay an extra £240 per month as their fixed-rate deals come to an end. Despite the Conservative party’s opposition, the Welsh Government have put in place measures to prevent repossessions, and a UK Labour Government would require banks to protect homeowners. What is the Secretary of State doing to help homeowners facing massive bills caused by the Conservative party’s economic mismanagement?
David T. C. Davies
The UK Government have put in place a number of measures to support any mortgage holders facing difficulties at the moment, but the most important measure has been to bring down inflation. Inflation actually peaked at a higher rate in Europe than in the United Kingdom. Inflation is now down at 4%—much less than half of what it was previously—which will have a beneficial impact on mortgage interest rates over the longer term. I ask the hon. Lady whether, in all fairness, she thinks that her party’s plans to borrow £28 billion a year, which is going to increase inflation and have a very bad impact on mortgage interest rates, will be good or bad for homeowners?
Liz Saville Roberts (Dwyfor Meirionnydd) (PC)
Diolch yn fawr, Llefarydd. The Government’s own estimates warn that new Brexit border checks will increase the cost of fresh imports by £330 million and worsen food inflation. The Secretary of State used to dismiss warnings of Brexit border controls as scare stories. Will he now admit how wrong he was, and recognise that the best way to reduce food inflation, which sits at an eye-watering 8%, would be to rejoin the single market?
David T. C. Davies
I make no apologies for rubbishing the scare stories that came out before Brexit took place. We were told that it was going to lead to the collapse of the economy, to the collapse of house prices, to the end of fresh fruit and veg being sold in shops, and even to no more Magnum ice creams. I think we were even going to run out of Viagra as well at one point. The reality is that none of those scare stories has happened, but it is a bit ironic that the right hon. Lady, the leader of the Plaid Cymru group, is demanding that we rejoin the European Union while at the same time wanting to take Wales out of one of the most successful financial unions—
Mr Speaker
Order. Secretary of State, I am this way, not that way, and you are getting a little carried away. There are a few more questions, and Liz Saville Roberts has another one for you.
Liz Saville Roberts
That is a Brexit fantasy, and now we look at the wonder of the UK. Northern Ireland is set to receive over £3 billion and a fairer funding settlement from the Treasury, which I welcome. That includes millions of pounds to help balance budgets. Meanwhile in Wales, councillors face a budget black hole of £646 million, which is set to decimate our social services over the next three years. These cuts will be devastating for people left without resources during the cost of living crisis. As Wales’s man in the Cabinet, what has the Secretary of State done to demand equivalent fair funding for Wales?
David T. C. Davies
First, I must point out to the right hon. Lady that, since leaving the European Union, our growth rate has been better than that of Germany, and our manufacturing has now exceeded that of France. As far as fair funding for Wales is concerned, we receive 20% more per head to spend on devolved services than is spent in England. One thing the right hon. Lady and I might agree on is that it is high time the Welsh Labour Government explained why we have longer waiting lists and lower educational standards, despite having more money to spend on devolved services.
Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
Anna McMorrin (Cardiff North) (Lab)
The Parliamentary Under-Secretary of State for Wales (Fay Jones)
That was lively, Mr Speaker.
The UK has a secure and diverse energy system, and Wales continues to play a key role. The UK Government are going further to ensure our energy security by supporting our oil and gas industry, and investing to scale up our renewable energy production, such as floating offshore wind in the Celtic sea.
Stephen Doughty
Many of my constituents make the long journey round to work at Hinkley, yet we have had this Government in power for 14 years and we have seen no new nuclear delivered in Wales, despite our proud history of generation, with its significant opportunities to lower energy bills, deliver high-quality jobs and reduce carbon emissions. Where on earth is their plan, and why are they not getting on with delivering it?
Fay Jones
I very much welcome the hon. Gentleman mentioning nuclear. I seem to recall that, when his party was in power, Labour did next to nothing to advance the cause of nuclear energy in this country. It gives me ample opportunity to pay tribute to the work of my hon. Friend the Member for Ynys Môn (Virginia Crosbie), who has committed the Government to everything we have done on Wylfa so far. Progress is being made, in stark contrast to the record of his party.
Anna McMorrin
We have had 14 years of successive Tory Governments, who have all had the chance to invest in the transition to net zero. Instead, they have chosen to backslide on climate commitments, and it is working people across my constituency of Cardiff North who are paying the price. With this Government intent on issuing new oil and gas licences, what does the Minister say to families in my constituency who are now paying treble for their energy bills?
Fay Jones
I would point out that it is this Government who stepped in with £96 billion of support to mitigate the impact of those energy bills. I completely disagree with the hon. Lady’s assessment of our record on net zero, and I would point out that, when her party was in power, 7% of our energy supply came from renewable sources.
Stephen Crabb (Preseli Pembrokeshire) (Con)
My hon. Friend mentions the new industry of floating offshore wind, which has huge potential to create a large number of high-quality jobs in places such as Milford Haven and Port Talbot. The two ports both have bids in with the UK Government to the FLOWMIS port infrastructure scheme, which will be key to seeing this vision realised. When can the ports expect to hear back about those bids?
Fay Jones
I thank my right hon. Friend, the Chair of the Select Committee, for that question. I am delighted that today the Crown Estate is hosting a bidders day to drive forward plans for innovative floating wind projects in the Celtic sea. The UK Government are supporting FLOW through our contracts for difference scheme, securing a long-term pipeline of projects in the Celtic sea. I would be happy to write to him with a further update on when more progress can be discussed.
Jo Stevens (Cardiff Central) (Lab)
On the issue of the energy mix, the Tata workers I met last week know that the virgin steel they make is vital to supporting our renewable energy aspirations, such as offshore wind in the Celtic sea, so the loss of 3,000 jobs is a kick in the teeth for our proud and skilled Welsh steelworkers. It will devastate local economies and the sovereign steelmaking capacity that would build the wind turbines we need, yet the Business Secretary told us at the weekend:
“It’s not about the job losses”.
Does the Secretary of State agree with her comments?
Fay Jones
I am sorry that the hon. Lady has me replying to that question, not the Secretary of State.
It is important to recognise that the investment from this UK Government has saved thousands of jobs across the United Kingdom. Of course, the transition board is now working with the individuals affected in Port Talbot, which is the proper and right thing to do. I am glad that both the UK and Welsh Governments are working towards that; it is absolutely the right outcome. We need to think about these things in the wider context, which is our responsibility.
Jo Stevens
The Minister boasts about the transition board, but that only exists because of the Government’s failure to protect jobs and vital industries. Each year, Port Talbot provides enough virgin steel to deliver the UK’s 2030 wind targets by itself. Can she tell the House where that steel will come from when her Government’s intervention shuts the blast furnaces early? Will it come from India? If so, we will be surrendering our ability to create jobs, investment and cheaper bills here in Britain.
Fay Jones
Mr Speaker, it will not surprise you to learn that I completely disagree with the hon. Lady’s assessment. I would point out that this Government have provided the transition board with £80 million. We have not seen any of the £20 million that the Welsh Labour Government have promised, but indications so far are that moving away from steelmaking would not have a direct impact on national security.
Dr James Davies (Vale of Clwyd) (Con)
Scott Benton (Blackpool South) (Ind)
The Secretary of State for Wales (David T. C. Davies)
The Welsh Government’s policy on the blanket 20 mph speed limit is damaging communities and businesses across Wales. All of us support 20 mph limits if there is a safety reason outside schools, hospitals or old people’s homes, but the blanket 20 mph limit is, by the Welsh Government’s own figures, going to create a £4.5 billion hit to the Welsh economy.
Dr James Davies
In my constituency, bus services no longer serve Dyserth’s high street or the Tweedmill shopping outlet in Trefnant, which impacts on some of the most vulnerable people. Arriva has stated that the Welsh Government’s 20 mph policy is a key reason for that. Does the Secretary of State agree that the Welsh Government have failed in multiple ways to properly consider the impact of their policy and that they should repeal it in full?
David T. C. Davies
My hon. Friend is absolutely correct. Not only have the Welsh Government not considered the impact of this policy on the economy, businesses and commuters, but they have failed to consider the impact on users of public transport. We are seeing bus timetables across the whole of Wales being ripped up because of this daft policy. The Welsh Labour Government seem determined to apply a handbrake to the Welsh economy.
Scott Benton
Blanket 20 mph zones do not command widespread public support and, as a consequence, are widely ignored and unenforceable. Furthermore, there is very little evidence that they improve road safety or air quality. The roll-out of the scheme in Wales has proved to be an utter farce. Does my right hon. Friend share my concern that the Labour party has not learned its lesson and would no doubt seek to impose this costly and disastrous policy in England were it to be elected?
David T. C. Davies
My hon. Friend is correct. Not only have the Welsh Labour Government not considered this policy, but they have ignored the fact that 468,000 people have signed a petition calling on them to reconsider—the largest petition in the history of the Senedd. He is also correct to say that if a Labour Government were ever elected in this country—I certainly hope that will not happen—it is inevitable that they would pursue anti-motorist policies such as the 20 mph speed limit, a ban on new roads being built, and congestion charges and emission zones being set up all over the place.
Hywel Williams (Arfon) (PC)
The South Wales Argus of 28 December 2022 informs us that the Secretary of State for Wales outlined his “anger” that the 20 mph speed limit in Caerwent was not being enforced properly by the police. Is he still angry?
David T. C. Davies
I began my response earlier by saying that all of us in this House support 20 mph speed limits where there is an issue of safety, and I could not be more clear about that. What I do not support is a blanket 20 mph limit. Alongside that blanket 20 mph limit on 30 mph roads, the Welsh Labour Government are using underhand methods to bring down the speed limits on perfectly safe dual carriageways from 70 mph to 50 mph. That is what lies in store if Labour is ever elected to government in the rest of the country.
Jim Shannon (Strangford) (DUP)
Clearly the 20 mph speed limit that is being enforced in Wales will restrict people in their movement. Has the Minister had any discussions with the Welsh Assembly on providing more buses to take people out of their cars, and will there be more provision for cyclists? If there is not that provision, this system cannot work.
David T. C. Davies
Unfortunately, Welsh Senedd Ministers do not seem interested in reconsidering the policy. Frankly, there is an anti-motorist agenda with the Welsh Labour Government, which has seen blanket 20 mph speed limits, speed reductions on dual carriageways, congestion charges being considered and charging to use the M4. Most shockingly of all, my own Labour council is considering bringing back Severn bridge tolls.
Karin Smyth (Bristol South) (Lab)
The Parliamentary Under-Secretary of State for Wales (Fay Jones)
I have regular discussions with colleagues across Government on rail infrastructure. The UK Government are committed to building a strong rail infrastructure network across Wales, which will improve connectivity and drive economic growth. We have provided over £390 million for Welsh rail in recent years, and we recently announced a further £1 billion to fund the electrification of the north Wales main line.
Karin Smyth
The Welsh Affairs Committee highlights the need for greater connectivity between Swansea, Cardiff and Bristol, which would be of huge benefit, particularly for sports and music fans coming to Ashton Gate in my constituency. Why has the Wales Rail Board failed to initiate recommendations and other further improvements?
Fay Jones
The hon. Lady’s constituents will be greatly affected by the project that she mentions and by the performance of Great Western Railway, which is not sufficient. The Office of Rail and Road has launched an investigation into poor train punctuality and reliability in Network Rail’s Wales and western region, and we await the recommendations of that review. I add that industrial action has affected things.
Michael Fabricant (Lichfield) (Con)
Will my hon. Friend join me in congratulating Network Rail and its subcontractors on completing the repair works on the longest wooden rail bridge in Europe across the Mawddach estuary in Gwynedd?
Fay Jones
I certainly will join my hon. Friend, and I am delighted that he takes such keen interest in Welsh rail infrastructure and raises it here on such a regular basis. He is right to flag that project, which is an example of this Government’s record investment in rail infrastructure in Wales. I was pleased to visit the project and give it my full support.
Chris Elmore (Ogmore) (Lab)
Alex Cunningham (Stockton North) (Lab)
The Secretary of State for Wales (David T. C. Davies)
The Government are investing £500 million to secure the future of steelmaking in Port Talbot for generations to come. It is one of the largest UK Government support packages for steelmaking in history, and it will protect 5,000 jobs directly with Tata and many thousands more in the supply chain.
Chris Elmore
Last week, the Secretary of State stated in the steel debate that he understands
“the devastation that people will feel in Port Talbot—the whole community, but especially those people who face the loss of their jobs”—[Official Report, 23 January 2024; Vol. 744, c. 264.]
at the plant and beyond. Why is it, then, that the Secretary of State or the Business Secretary did not put in a red line on job losses while this work was being done, especially given that Tata has this morning doubled down on those losses at the Welsh Affairs Committee? It is nothing short of a disgrace.
David T. C. Davies
As the hon. Gentleman knows, Tata approached the UK Government and said it was intending to pull out of the United Kingdom. If Tata had pulled out completely, that would have immediately cost 8,000 jobs and many thousands more in the supply chain. The Government therefore acted to take the only deal available, which was to build the electric arc furnace and save thousands of jobs.
Alex Cunningham
I do not think that thousands of jobs will be saved at all. The people of Teesside, who saw the Tory Government abandon them and end virgin steelmaking at Redcar, leading to the loss of 3,000 jobs, will sympathise with those in Wales. The failure of the same Government will see virgin steelmaking also ended in Wales, with the loss of another 3,000 jobs, and leave the UK even more reliant on imports, as they are surrendering the market to other countries. Why would the Government want to do that when steel is a foundation industry and, with the introduction of new technologies, could have a bright future?
David T. C. Davies
I hope that the hon. Gentleman will be aware that 100% of the materials—the iron ore and coke—used to produce steel in Port Talbot are imported from abroad. At the same time, we are exporting 8 million tonnes of scrap steel, so building an arc furnace to make use of that scrap steel will make us less dependent on other countries for our steel.
As far as job losses are concerned, the UK Government have put aside a budget of £80 million, combined with £20 million from Tata, to support anyone who loses their job. Thus far, we have not had one single penny towards that from the Welsh Labour Government—who, by the way, are able to find £100 million to create a whole load of extra Senedd members in Cardiff Bay. I know where my priorities are: with the steelworkers.
Chris Clarkson (Heywood and Middleton) (Con)
Steelmaking is essential to our national security, as is reaching net zero. The problem is that the Welsh Labour Government cannot make their mind up about which is more important. After trying to kill off the steel industry with their green measures, they now complain that the UK Government are not doing enough to support that industry. Does the Secretary of State think that they do not really know their ACAS from their NALGO?
David T. C. Davies
My hon. Friend makes a good point. The Government have looked carefully at this, and very little steel being produced by Port Talbot is going into the defence industry, but the defence industry is being supplied with steel from an electric arc furnace by Sheffield Forgemasters. There is absolutely no reason why an electric arc furnace built at Port Talbot, using UK Government support, cannot help support our defence industry in the years to come.
Emma Hardy (Kingston upon Hull West and Hessle) (Lab)
The Parliamentary Under-Secretary of State for Wales (Fay Jones)
I have regular discussions with ministerial colleagues on a range of topics including on justice matters. The Government are committed to supporting victims. By 2025, we will have quadrupled funding in England and Wales for victim and witness support services from 2010 levels.
Emma Hardy
Nine in 10 crimes went unsolved in Wales in the last six months. What does the Minister say to the victims of the 82,000 unsolved crimes?
Fay Jones
I would point to the Government’s record on crime. Last week’s Office for National Statistics crime survey shows drops in all major crime types, with an average reduction of about 50%. Violent crime is down by 51%, neighbourhood crime is down by 48%, and theft is down by 46%. That is due in part to the fact that the Government have met their commitment to provide 20,000 extra police officers. My own force, Dyfed-Powys, has now got an extra 143 officers.
Robin Millar (Aberconwy) (Con)
The Secretary of State for Wales (David T. C. Davies)
I have regular discussions with Cabinet colleagues and delivery teams in the Department for Levelling Up, Housing and Communities on the progress of levelling-up fund projects in Wales. I look forward to hearing more about the projects taking place in my hon. Friend’s constituency.
Robin Millar
The Môr i’r Mynydd—sea to mountain—active travel route in the Conwy valley received an £18.6 million boost through levelling-up funds The projects will make a positive difference to communities in Glan Conwy, Betws-y-Coed and Trefriw. Apart from unlocking the Conwy valley to visitors, it will help young people get to school safely and workers to their jobs. I meet regularly with Conwy County Borough Council about the progress of those projects. What is my right hon. Friend doing to ensure that levelling-up funds are being delivered effectively in Wales?
David T. C. Davies
I congratulate my hon. Friend on being such a champion of levelling-up fund schemes in his constituency. The levelling-up funds have allowed us to keep our post-Brexit promise to ensure that Wales continues to be generously funded. That is one of many such projects, such as the levelling-up funds, the freeports and the investment zones that are ensuring that Wales levels up.
Grahame Morris (Easington) (Lab)
Like the towns and villages I represent, coalfield communities in Wales are still bearing the brunt of deindustrialisation. I am delighted that we will have a debate tomorrow on miners and mining communities, and I encourage Welsh colleagues to attend. Can the Minister tell us what steps he is taking to ensure that levelling-up funding in Wales and across the coalfields in the UK is targeted at the most deprived, left-behind areas, which have suffered most?
David T. C. Davies
The hon. Gentleman is absolutely right to say we need to target the areas most in need, but that is exactly what this Government have been doing. It is not just about levelling-up funds; we have had four growth deals across the length and breadth of Wales, three rounds of levelling-up funding, two investment zones, two freeports, an electrified rail line in north Wales and an electrified arc furnace in south Wales. The reality is that while we are committed to levelling up, the Welsh Labour Government are committed to levying further taxes on people and businesses on Wales.