(1 day, 23 hours ago)
Commons ChamberRead Hansard Text Read Debate Ministerial Extracts
John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)
The Parliamentary Under-Secretary of State for Wales (Dame Nia Griffith)
The UK Labour Government have announced the largest nuclear building programme in a generation, investing £14.2 billion in Sizewell C and selecting Rolls-Royce SMR to build the UK’s first small modular reactors. The memorandum of understanding between the Welsh Government and Sizewell C Consortium could bring £900 million-worth of jobs into the Welsh nuclear supply chain. The Government also recognise Wylfa as one of the UK’s top sites for future nuclear development.
John Lamont
I thank the Minister for that answer. Nuclear must be an important part of our energy security strategy. It is both clean and reliable, and creates good jobs for local communities. What more can the Secretary of State do to encourage and incentivise new nuclear power in Wales and across all parts of the United Kingdom?
Dame Nia Griffith
As the hon. Gentleman will know, Great British Energy Nuclear has confirmed that, subject to final Government approvals and contract signature, it has selected Rolls-Royce SMR to build the UK’s first small modular reactors. No decisions have yet been taken on siting. We will be setting out our plans in due course. Further to that, as I have already mentioned, the project at Sizewell C will create enough power for 6 million homes and in the peak of construction support 10,000 jobs. It will boost supply chains across the UK. Some 70% of the construction value is predicted to go to 3,500 British suppliers, including companies such as William Hare Group in south Wales, supporting new jobs in construction, welding and hospitality.
Claire Hughes (Bangor Aberconwy) (Lab)
I was thrilled to hear that Boccard will today be opening its new nuclear manufacturing facility in north Wales. Does the Minister agree that north Wales has the skills and the sites to realise the economic potential of our nuclear industry, and two Labour Governments ready to deliver on it?
Dame Nia Griffith
Absolutely; I agree with my hon. Friend. I am very pleased indeed today that Boccard is opening its new nuclear manufacturing facility in Deeside. This is an example of the UK Government and the Welsh Government working together to onshore our nuclear supply chain, thus safeguarding 59 jobs in this instance and creating in excess of 150 new positions.
Christine Jardine (Edinburgh West) (LD)
Ben Lake (Ceredigion Preseli) (PC)
The Secretary of State for Wales (Jo Stevens)
Through the spending review, we are providing a record £22.4 billion per year on average for the Welsh Government; investing at least £445 million in Welsh rail; investing £211 million a year in local growth funding; and providing £118 million of new funding for coal tip safety. This Labour Government are investing in Wales’s economy, public services and people. We have ended Conservative austerity.
Christine Jardine
I was pleased to see funding for a number of transport projects in Wales in the spending review, not least because my city of Edinburgh is now linked directly by rail to the Secretary of State’s city of Cardiff. Lumo, which runs services in Scotland through open access, is hoping to begin a service through south Wales. Does the Minister agree with me that the spending review presents a fantastic opportunity for such projects, which create jobs, strengthen the Union and boost the UK’s economy?
Jo Stevens
I very much agree with the hon. Lady about the benefits to the Union of the significant investment that this Government are making in transport. I am very happy to take away her comment on Lumo and open access, and talk to the Rail Minister on her behalf.
Ben Lake
I was pleased to hear the Secretary of State explain in evidence to the Welsh Affairs Committee last week that Wales will receive a Barnett consequential of some £200 million as a result of transport announcements for English mayoral combined authority areas made in the lead up to the spending review. Could the Secretary of State clarify whether she was referring to the transport for city regions funding, which was announced on 4 June? The Chief Secretary to the Treasury stated in an answer to a written question that it was not possible to identify the specific Barnett consequential arising from that programme.
Jo Stevens
My understanding is that the just over £200 million figure that I referred to in my evidence to the Welsh Affairs Committee relates to the combined mayoral authority announcements that were made prior to the spending review.
Ruth Jones (Newport West and Islwyn) (Lab)
I am delighted that the £500 million announced for the steel industry in the spending review has already been translated into boots on the ground and high-vis jackets with the commencement of the building of the electric arc furnace, safeguarding 5,000 jobs. Will the Secretary of State join me in welcoming the fantastic progress that has already been made in the steel industry and in supply chains all across Wales?
Jo Stevens
I thank the Chair of the Welsh Affairs Committee for her question. Monday was a really significant day for Welsh steelmaking. I was at the groundbreaking ceremony to begin construction of the electric arc furnace, which will be one of the largest in the world, securing 5,000 jobs and the future of steelmaking in Port Talbot for years to come. It has been made possible by £1.25 billion of investment, including £500 million from this Government, as well as our £80 million to support workers and the wider steel community, and will benefit not just Port Talbot but downstream sites. This has been a really challenging time for steelworkers across Wales, but I think this week marks a real turning point, securing a bright future for years to come.
Carolyn Harris (Neath and Swansea East) (Lab)
As a result of the UK Government’s half a billion pound investment in the future of steel in Port Talbot, construction has now begun on the new electric arc furnace. Will the Secretary of State share what this fantastic news means for Port Talbot and the surrounding communities, like my own of Neath and Swansea East?
Jo Stevens
The Government’s investment in the electric arc furnace shows how serious our commitment is to the steel industry, not just in south Wales but across the UK. It is why we have slashed energy costs for steel producers and other energy-intensive industries through the industrial strategy, strengthened procurement rules to use even more UK steel in construction, ensured that the UK is the only country in the world not paying 50% tariffs to the United States, and boosted trade defences to protect the sector against foreign imports. The steel strategy, which we will publish later in the year, will also deliver up to £2.5 billion of investment to help to maintain jobs and growth.
David Chadwick (Brecon, Radnor and Cwm Tawe) (LD)
The UK Government say that Wales is getting record-breaking funding to tackle NHS waiting lists, but for my constituent Melanie Walker, the reality is the opposite. After waiting 59 weeks for a hip operation, she has now been told she must wait another 45, because Powys Teaching Health Board is artificially extending waiting times for patients treated in Shropshire and Herefordshire to match lower Welsh averages—a cost-cutting move driven by the Welsh Government. Does the Secretary of State think that is fair to Melanie or consistent with her Government’s pledge to reduce waiting times?
Jo Stevens
I am very sorry to hear about Melanie’s situation. However, I would say to the hon. Gentleman that his party were in government with the Conservatives during the coalition years. That Government delivered horrible austerity on Wales, which lead to public services in Wales being degraded. His party was the architect of that.
Liz Saville Roberts (Dwyfor Meirionnydd) (PC)
The Chancellor says that cutting red tape for bankers will trickle down to households. [Interruption.] The 2008 financial crash taught us that that is utter nonsense. [Interruption.] The Secretary of State has just mentioned things that happened in the past; in 2023, she said:
“12 years of ‘trickle-down’ and ‘trickle-out’ growth strategies have failed to deliver for Britain.”
Does she stand by what she said in opposition, or does she now toe the line for the sake of the Chancellor’s friends in the City?
Jo Stevens
I apologise to the right hon. Lady; I am afraid I did not hear the start of her question. On tax and what the Chancellor has talked about, we stand by our manifesto commitment not to increase income tax, employee national insurance contributions or VAT. The Chancellor has said that it would be irresponsible to write future Budgets months in advance, especially given the global situation. There are clearly costs and implications to every decision this Parliament makes, but we remain focused on growing our economy in Wales and across the UK.
Liz Saville Roberts
That is one way of avoiding answering the question, Mr Speaker. My point is that Labour’s skewed sense of fairness does not stop at prioritising the interests of the banks over others; it is also hitting our farmers and rural communities. The Farmers Union of Wales has warned that Labour’s planned reforms to agricultural property relief will do irreversible damage to the Welsh family farm. Looking ahead to next week’s Royal Welsh Show, will the Secretary of State agree at last that what we really need is a tax on extreme wealth, instead of a tax on those who feed us and sustain our rural economies?
Jo Stevens
At the autumn Budget, we demonstrated our commitment to our fiscal rules while maintaining high levels of investment to rebuild our public services—an investment in farming as well—after the mess that the Tories left behind. We have repeatedly said that those with the broadest shoulders should bear the greatest burden, and that has been reflected in the decisions that we have taken so far. Tax changes, as the right hon. Member knows, are a matter for the Chancellor.
Sarah Edwards (Tamworth) (Lab)
The Parliamentary Under-Secretary of State for Wales (Dame Nia Griffith)
Our industrial strategy will unlock growth right across Wales and support tens of thousands of new jobs. We will target areas of strength from aerospace in north Wales to the world’s first compound semiconductor cluster in south Wales. We have announced a new centre for doctoral training in compound semiconductors led by Swansea university, plus a new defence growth deal and £30 million for a local innovation partnership fund—to name just a few developments.
Sarah Edwards
Like many Members in this House, I welcome the Government’s industrial strategy and its focus on growth for our local communities. Across Wales, we have a number of former mining towns, which face the challenge of retraining and upskilling their local workforce. My constituency of Tamworth, a former mining town, faces similar challenges. Will the Minister tell me how the industrial strategy will support former mining towns across Wales and in my constituency of Tamworth?
Dame Nia Griffith
There are many job opportunities coming to Wales through the industrial strategy. We are also ensuring that local communities have the money available to secure the safety of the coal tips, which is the industrial legacy of those communities. That means £118 million of additional funding on top of the £25 million that we have already dedicated to those areas. As my hon. Friend will know, we are also forging ahead with the industrial zones and freeports in Wales and also the supply chains for the various industries that I mentioned in my previous answer, and they will include, I know, industries in Tamworth.
Mims Davies (East Grinstead and Uckfield) (Con)
Let us have some reality. Today, inflation hit 3.6%, the highest across the G7. This UK Labour Government have a glossy shine on their so-called industrial strategy, but it is simply proving that their actions and ethos deliver only worse outcomes for Wales. Businesses across Wales are now facing a disgraceful double whammy, as just this week Labour in Cardiff passed plans to impose a dire tourism tax. Has the Minister actually carried out any meaningful assessment with the Welsh Government of how many jobs will be lost, as the vital 100,000-strong Welsh tourism sector will be impacted by this tax and by the failing approach to Wales by the two Labour Governments?
Dame Nia Griffith
The Welsh tourism sector is thriving. Last year, British residents took over 7 million overnight trips to Wales and spent more than £2 billion. As the shadow Secretary of State will know, more than 40 countries and holiday destinations around the world, including Greece, Amsterdam, Barcelona and California, have introduced a form of visitor levy, and many of us have paid taxes abroad without even noticing. If a visitor levy were introduced by all Welsh local authorities, it could raise up to £33 million, which would help support the long-term thriving industry in Wales, as well as provide facilities such as toilets that local people can use. I am confident that the Welsh Government will work with businesses and tourists alike to get this right.
Mrs Elsie Blundell (Heywood and Middleton North) (Lab)
Dave Robertson (Lichfield) (Lab)
The Secretary of State for Wales (Jo Stevens)
We are investing at least £445 million—an historic investment—in Welsh rail, to right the years of underfunding by previous Conservative Governments and to unleash Wales’s economic potential. This funding will support the permanent closing of level crossings on the north Wales main line, enabling increased services across north Wales that will improve cross-border connectivity, create jobs and boost economic growth.
Mrs Blundell
The Chancellor’s announcement of at least £445 million for Welsh rail will be transformative for Welsh passengers and Better Connect workers with jobs across north Wales and Manchester, but only if we are pulling in the same direction. What steps will be taken by the Wales Office to ensure that national Governments, devolved Governments and our combined authority in Greater Manchester are working together to improve connectivity and bring the people of the north-west and north Wales closer together?
Jo Stevens
My hon. Friend is absolutely right. That is why I was pleased to see the Welsh Government’s Cabinet Secretary for Transport, Ken Skates recently launch Network North Wales in Wrexham. That really exciting plan will better connect communities in north Wales and north-west England through more rail and bus services and greater integration. Benefits will include 50% more timetabled services on the north Wales main line, boosting cross-border connectivity and driving economic growth between north Wales and north-west England. In addition, the investment in rail infrastructure will boost capacity on the Wrexham to Liverpool line.
Dave Robertson
Bore da. Does the Secretary of State agree that the introduction of the midlands rail hub project, which will see an additional train per hour from Cardiff in south Wales to the midlands, is a great sign that this Government are investing not just in Wales and the midlands but in the whole country?
Jo Stevens
I thank my hon. Friend for his question—and for his very good Welsh. The first phase of the midlands rail hub will enable additional trains between Birmingham and south Wales, strengthening cross-border connectivity between Wales and England. That is absolutely what this Government’s investment is about: creating jobs and growth and connecting Wales and England.
Mims Davies (East Grinstead and Uckfield) (Con)
Let us have another reality check. Information provided to us by the Department for Transport confirms that Conservative expenditure on Welsh rail exceeded £5 billion over our time in office, underpinned by our plans to deliver the north Wales main line. Yet in a January sitting of the Welsh Affairs Committee, the Welsh Secretary roundly criticised Welsh rail before claiming:
“That is a direct consequence, I am afraid, of the last 14 years of underfunding”.
As usual, this Government’s words and beliefs and the reality are poles apart. This Labour Government are now offering peanuts—just a miserable £400 million over an entire decade. Will the Secretary of State retract her past claims to the Welsh Affairs Committee and the similar ones that have been made on the Wales Office Government social media accounts?
Mr Will Forster (Woking) (LD)
The Secretary of State for Wales (Jo Stevens)
The hon. Member will know that that was an error made under the previous Conservative Government. Heavy rail infrastructure is reserved in Wales and, like every heavy rail project in England, Barnett consequentials do not apply. The UK Government’s rail network enhancements pipeline funds East West Rail—or Ox-Cam rail, as it is more commonly known—and also directly funds projects in Wales, such as the historic at least £445 million investment in rail in Wales that was announced in the June spending review.
Mr Forster
The Government have claimed that listing the Oxford to Cambridge rail line as “England-only” on past documents was just an accounting error by the Conservative Government and that the project has not been reclassified to deprive Wales of funding, but four separate Government documents list it as “England-only”, and over £1 million in Barnett consequentials were already paid to Wales on that basis. Does the Secretary of State honestly stand by her claim that it has just been reclassified and that this is not intended to deprive Wales of fair funding?
Jo Stevens
As I have just explained, an error was made by the previous Conservative Government. Heavy rail was and always is reserved. The Welsh Government will not be required to re-pay any Barnett consequentials provided to them as a result of any error that took place under the Conservative Government.
Mr Alex Barros-Curtis (Cardiff West) (Lab)
The Welsh Government allocated over £1 billion to transport in their recent Budget. This investment comes after 14 years of critical under-investment by the Conservatives, and it should hopefully provide funding to stations such as Ely Mill in my constituency. Can the Secretary of State tell me why the Welsh Conservatives and Plaid Cymru voted against this investment, which would mean extra funding to fix our roads, build new trains and improve our buses?
Jo Stevens
The Opposition’s decision to vote against the additional funding was inexplicable, as was their decision to vote against extra money for the NHS, for education and for businesses—I could go on. They stand here and criticise this Government while they vote against extra money for Wales.
Gregory Stafford (Farnham and Bordon) (Con)
The Parliamentary Under-Secretary of State for Wales (Dame Nia Griffith)
The Government are steadfastly committed to family farms in Wales, which is why we protected the farm budget at its current level and allocated £337 million to the Welsh Government at the autumn Budget. Furthermore, at the UK-EU summit on 19 May the Prime Minister announced that the UK would deliver a new agrifood deal with the European Union. Routine sanitary and phytosanitary border checks will be eliminated, with less paperwork and fewer costs. British goods such as dairy, fish, eggs and red meat currently subject to 100% documentary checks and up to 30% physical checks will see those removed entirely.
Gregory Stafford
Although the aims of the sustainable farming scheme are laudable, many farmers across Wales are expressing real concern about its complexity, the potential reduction in food production and the adequacy of the financial support on offer. What assurances can the Minister give that the scheme will be simplified, sufficiently funded and implemented in a way that supports both the environmental goals and the economic viability of Welsh farming communities?
Dame Nia Griffith
The scheme will have a transition period, with the basic payment scheme available for those not in the SFS, although that will be reduced by 40% next year. The Welsh Government are prioritising their money on the SFS to encourage farmers to join the scheme and start benefiting from it. The Farming Union of Wales has said that the plan provides
“workable payment rates and much needed stability for the sector.”
Catherine Fookes (Monmouthshire) (Lab)
The Welsh Government’s budget contains over £300 million to support Welsh farmers. Is it not the case that Plaid Cymru and the Tories put Welsh farmers’ livelihoods at risk by voting against that crucial money?
Dame Nia Griffith
Indeed, it is absolutely shocking that Plaid Cymru and the Tories in the Senedd voted against a budget that is giving that money to Welsh farmers.
Perran Moon (Camborne and Redruth) (Lab)
The Secretary of State for Wales (Jo Stevens)
In June, the Crown Estate announced that it will partner with Equinor and Gwynt Glas to develop floating offshore wind in the Celtic sea. Those projects will create over 5,000 new jobs and will leverage £1.4 billion in private investment. This will deliver generational change in Wales. We are supporting the industry with an £80 million investment in Port Talbot port and a £1 billion clean energy supply chain fund to support offshore wind across the UK.
Perran Moon
Meur ras ha myttin da, Mr Speaker—or should I say “Diolch yn fawr”? The proposed floating offshore wind farms in the Celtic sea lie between the two ancient Celtic nations of Wales and Cornwall. The Celtic sea not only will be a valuable source of renewable energy but has the potential to create thousands of jobs across south Wales and Cornwall. Does the Secretary of State agree that local funding for economic development is essential to realise that potential and that, working hand in hand with Cornwall, Wales will play a key role in helping to unleash the Cornish Celtic tiger?
Jo Stevens
My hon. Friend is right that floating offshore wind presents significant opportunities for Wales and the UK. In the leasing round that just took place we had a first-mover advantage in this technology of the future. Earlier this month, the Energy Secretary granted development consent for the Mona offshore wind farm, which will bolster north Wales’s offshore wind industry. All of that is contributing to securing our energy independence and bringing down bills for people in Cornwall, Wales and the rest of the UK.
Jim Shannon (Strangford) (DUP)
I know that cheer was not for me, Mr Speaker. When it comes to offshore wind in Wales, the waters in which that offshore wind energy will be generated are the same waters that flow by Northern Ireland, the same waters that flow by England and the same waters that flow by Scotland. Is it not time to have an offshore wind strategy for the whole United Kingdom of Great Britain and Northern Ireland? If we do it together, we will do it better.
Jo Stevens
I always believe that we do things better when we do them together.
Olivia Bailey (Reading West and Mid Berkshire) (Lab)
The Parliamentary Under-Secretary of State for Wales (Dame Nia Griffith)
We are committed to spending 5% of the UK’s GDP on national security by 2035. The spending review invested to keep our people safe, with a £10.9 billion real-terms increase to the Ministry of Defence budget. This will help grow the Welsh economy and our thriving defence sector, which is home to over 160 companies employing more than 20,000 people right across Wales.
Olivia Bailey
This Government’s commitment to spending 5% of GDP on national security will be transformational for Wales and for my constituency, where thousands are employed in the defence sector and where we welcomed a £15 billion boost for the Atomic Weapons Establishment. Do the Secretary of State and the Minister agree that both our national security and our local economies are better off with Labour?
Dame Nia Griffith
Absolutely; our ambition is to become a defence industrial superpower by 2025. We are making defence an engine for growth, boosting prosperity, jobs and security for working people across the UK. As part of this, we will establish the UK defence innovation fund, with £400 million to fund and grow UK-based companies. We are also launching the new regional defence growth deals across the UK, including a cluster in Wales.
Jacob Collier (Burton and Uttoxeter) (Lab)
The Prime Minister (Keir Starmer)
There has always been support across this House for the United Kingdom fulfilling our obligations to Afghans who served alongside British forces. We warned in opposition about Conservative management of this policy, and yesterday the Defence Secretary set out the full extent of the failings that we inherited: a major data breach, a super-injunction and a secret route that had already cost hundreds of millions of pounds. Ministers who served in the Conservative Government have serious questions to answer about how this was ever allowed to happen. The Chair of the Defence Committee has indicated that he intends to hold further inquiries. I welcome that and I hope that those who were in office at the time will welcome that scrutiny.
President Macron’s state visit last week saw us secure historic agreements: co-ordinating our nuclear deterrents; a major investment in Sizewell C; and a landmark returns deal, which is a crucial next step in restoring order to our immigration system. Tomorrow I will host Chancellor Merz for further talks on our security and the economy. This morning I had meetings with ministerial colleagues and others. In addition to my duties in this House, I shall have further such meetings later today.
Jacob Collier
Families in Burton and Uttoxeter are watching their smart meters like hawks, and dreading the moment when their energy bill lands on the doormat. I therefore welcome Labour’s warm home discount, which will mean £150 off energy bills for millions of people across this country, providing meaningful support in these difficult times. Will the Prime Minister set out how that will help support families in my constituency and across the country?
The Prime Minister
I met my hon. Friend’s constituent Nicola in her kitchen, and she told me how hard she is working to support her three children, but that the past decade has let her down, with false promises and public services a wreck. She told me about the difference the warm home discount will make, and that £150 off her energy bills—she had a meter in her kitchen, if I recall, recording how much energy she was using—would make all the difference to her. I promised Nicola and my hon. Friend that there is much more to come.
Mrs Kemi Badenoch (North West Essex) (Con)
Yesterday, the head of the Office for Budget Responsibility warned the Government that higher and higher levels of taxes are bad for growth. Does the Prime Minister agree?
The Prime Minister
Mr Speaker, I will tell you what is bad for growth: 14 years of a Tory Government. That meant stagnant growth for 14 years, leaving a £22 billion black hole. In the first quarter of this year we have achieved: the highest growth in the G7, which we promised before the election; investment of £120 billion in this country, which is a record in the first year of any Government; and three trade deals, all of which will boost growth.
Mrs Badenoch
The Prime Minister is talking about what he has achieved, but we have just heard that inflation is up again—the worst in the G7. We left him with 2% inflation. We have borrowing up, unemployment up and taxes up under his Government. The fact is that the Prime Minister does not get it, so let me tell him. His Budget last year had high taxes. That is why the economy is contracting. The Government have said that they will not put up taxes for people on modest incomes, but they also seem incapable of explaining who is in that category, so can the Prime Minister clear up the confusion and tell us what he thinks a modest income is?
The Prime Minister
I think of the working people across this country who put in every day and do not get back what they deserve. That is who we are working for, and that is who we are fixing the country for. They are the sort of people that work hard but have not necessarily got the savings to buy themselves out of problems. That is who we are working for, and that is why we put the national living wage up, with an extra £1,400. The national minimum wage is up, with an extra £2,500 a year. The triple lock means pensions went up by £470. And of course, we are extending childcare, opening free breakfast clubs and extending free school meals. We know exactly who we are working for. The right hon. Lady comes here every week and just talks the country down.
Mrs Badenoch
I am not talking of the country down; I am talking the Prime Minister down. I asked him what a modest income was. He answered with what a working person is. He does not know what a modest income is, and they cannot even define who working people are. The Chief Secretary to the Treasury said that working people are people who get a payslip, but millions of self-employed people do not get a payslip, so are the self-employed next in line for a Labour tax raise?
The Prime Minister
The self-employed were the very people who suffered repeatedly under the Conservatives’ watch, particularly during covid, as I remember, when they did not get the support that they needed. The right hon. Lady talks the country down and she cherry-picks. Since we have been in government, we have created 380,000 jobs, the employment rate is up and inactivity is down—the complete opposite of what we inherited.
Mrs Badenoch
I do not know where these 3,000 jobs are coming from. Unemployment has gone up every month under his Government. Perhaps the Prime Minister should speak to farmers and small business people and find out what those working people think about his Government. But that is not all, because we know that the Chancellor is launching a review into pension contributions. It is as clear as day why this is. It is because the Government are considering taxing them. Does the Prime Minister agree with me that a tax on pension contributions is a tax on working people?
The Prime Minister
We made absolutely clear manifesto commitments, which the right hon. Lady asked me about last week, and we are keeping to them. I am not going to write the Budget months out from the Budget. I am proud of the decisions that we took to invest in our NHS and to invest in our public services—all decisions that the Conservatives opposed. It is no wonder that after the first year of a Labour Government, business confidence is at a nine-year high. That is longer than she has been in government—[Hon. Members: “Withdraw!”] I am not withdrawing that; I am going to repeat it. Business confidence is at a nine-year high.
Mrs Badenoch
The Prime Minister says that he is not going to write the Budget, but his Chancellor is on the front of the Daily Mirror talking about what she is going to do on taxes, so why can he not do the same in the Chamber? I asked him about pension contributions. The truth is that he does not want to talk about pension contributions. It is all right for the Prime Minister, because he has his own special law to stop his personal pension from being taxed. But let us be honest: this is really about choices. My party knows that there is an alternative to tax rises: cutting spending—something that the Government are too scared, or perhaps too weak, to do. We offered to work with him to reform welfare and make meaningful savings, but his refusal sent a signal and now the cost of borrowing is rising. The Budget is in November, which is months away and the markets may not wait. What will the Prime Minister be doing over the summer to get a grip on the cost of borrowing?
The Prime Minister
The Conservatives left the most incredible mess in the economy, and now they think that they can lecture others. Just last week their chairman said that they had done the necessary apologising for the 14 years of failure. I did not hear an apology for the lowest living standards in living history. I did not hear an apology for the £22 billion black hole. I did not hear an apology for the Liz Truss mini-Budget. Maybe the right hon. Lady would like to stand up and make that apology now.
Mrs Badenoch
The Prime Minister is not planning to do anything this summer to fix the economy. The shadow of the last Budget is hanging over the entire country. Just yesterday, only the Conservatives supported the two-child benefit cap, because only the Conservatives believe in living within our means—not Labour, not the Liberal Democrats, not Reform.
But it is the end of term, so why don’t we go through the Prime Minister’s end-of-term scorecard? The economy is contracting, inflation is the highest in the G7, unemployment is up every month under this Government, spending is out of control, borrowing costs are more expensive than in Greece—and this is just the first year. The Labour party should be ashamed of what it is doing to the country. [Interruption.] Labour Members can shake their heads as much as they like, but the fact is that this summer they will have to go to their constituents and explain why the Government have been making such a mess over the past 12 months. And is it not the case, given that this is just their first year, that the worse is yet to come?
The Prime Minister
We are happily going to go to our constituents. We will tell them that we promised 2 million extra NHS appointments and have delivered 4 million extra appointments. I have to upgrade that—it is now 4.5 million extra appointments, so we will tell our constituents that. Then we will tell them about the free school meals we are rolling out, the free breakfast clubs, the free childcare, and school uniform costs. We will tell them about that. When we have done that, we will move on to affordable houses and tell them about the £39 billion we are investing. When we are finished with that, we will tell them about the rail and road upgrades across the country, the £120 billion investment and, of course, the three trade deals—and we are only just getting started.
Colum Eastwood (Foyle) (SDLP)
The Prime Minister will never know exactly how much it meant to victims of the troubles in Northern Ireland, from right across society, when he came, looked them in their eyes and promised them that no murderer would be immune from prosecution. Can he tell us when he last spoke to the Taoiseach about the shared approach to this issue, and will he recommit today to those victims, to ensure that no murderer will be seen to be above the law?
The Prime Minister
This is a really important issue, and can I begin by saying that I have a profound respect and debt to our veterans who served? This is a complicated issue and we have to get it right. Veterans are at risk because of the false promises of the last Government. Let us be clear: the last Government made a false promise of immunity that does not exist. It was unlawful, it was struck down, and it was undeliverable. Their failed legacy Act leaves veterans exposed with no settled process. We will create a secure, transparent system that protects veterans from unjustified persecution and gives victims, families and survivors the confidence they need in the process.
Ed Davey (Kingston and Surbiton) (LD)
May I associate myself with the Prime Minister’s words about the shocking Afghan data breach under the previous Government, which was kept secret for three years? He will have our support if he decides to pursue a public inquiry.
I know that the Prime Minister will agree that the shocking rise of antisemitism that we have seen since Hamas’s 7 October terror attacks has no place in our society. British Jews should not have to live in fear of hatred, racism and abuse on our streets or online. A new report from the Board of Deputies’ commission on antisemitism, chaired by Lord Mann and Dame Penny Mordaunt, has set out 10 recommendations to tackle this appalling scourge. Will the Prime Minister study this report, and will his Government respond to it in full?
The Prime Minister
Yes, we will. We must fight antisemitism wherever we find it, as we must fight all hate offences, crimes and incidents wherever we find them.
Ed Davey
I thank the Prime Minister for that reply. I hope that we will see more action to tackle antisemitism.
Turning to the middle east, the world is looking on in horror at the scenes from Gaza, and now Netanyahu’s Ministers want to lock the whole population of Gaza into what is effectively a giant prison—a plan that would clearly amount to ethnic cleansing, as former Israeli Prime Minister Olmert has said. Does the Prime Minister agree that that is utterly abhorrent and unacceptable? Will he make it clear to the Israeli Government that the UK will not stand idly by and will act, starting by sanctioning Prime Minister Netanyahu himself?
The Prime Minister
I am appalled by the suggestions in relation to Gaza, just as I am appalled by the reports of yet more civilians being killed while trying to access aid. On both fronts, I am appalled by what we are seeing and hearing, and we raise that regularly, as the right hon. Gentleman would expect. In relation to the civilians being killed, I would expect that to be fully and transparently investigated, with full accountability for any failings. Israel must clearly put in place measures that properly protect civilians, in line with international law, and that is the case that we are pressing repeatedly. Alongside that, we want to see an immediate ceasefire, so that the remaining hostages can be brought out, aid can be got in at volume and at speed, and a political process can be opened, which in my view is the only way in which we are going to get a lasting solution.
Andy MacNae (Rossendale and Darwen) (Lab)
The Prime Minister
I send my deepest condolences to Eli’s friends and family. I join my hon. Friend in urging the new Reform council to think again and change its mind on damaging cuts that hit children and young families. My hon. Friend is doing a much better job than his predecessor, the Conservative party chairman under Liz Truss, who has now joined Reform. That proves once again that if people vote Tory they get Reform, and if they vote Reform they get the Tories. While both parties are cutting services at home, we support families with free school meals and free breakfast clubs, and by extending free childcare.
Sir Desmond Swayne (New Forest West) (Con)
The Prime Minister
The failed legacy Act was struck down by the courts in Northern Ireland, and that leaves veterans exposed. We are creating a secure, transparent system that protects veterans from unjustified persecution, but that also gives victims, families and survivors the confidence that they need in the process.
Paul Waugh (Rochdale) (Lab/Co-op)
The Prime Minister
My hon. Friend is an excellent champion for Rochdale and, I know, a strong supporter of his local police and trading standards teams. Since we came to power, we have ramped up enforcement raids on illegal working. Arrests have gone up by 50%, and we are tightening the law on delivery drivers. Digital ID will help us to tackle illegal working, and we are rolling out the use of e-visas to have digital records of immigration status and allowing on-the-spot checks of anybody’s right to work.
James MacCleary (Lewes) (LD)
The Prime Minister
I thank the hon. Gentleman for raising this really important issue. I am obviously incredibly sorry to hear about the tragic case that he mentions. As he will know, the availability of this drug is regulated across the NHS by the National Institute for Health and Care Excellence, which makes decisions on which treatments provide the best care for patients while maintaining value for money for the taxpayer. I will make sure that he gets a meeting with the relevant Minister to see what more can be done to get this treatment to patients who need it.
Navendu Mishra (Stockport) (Lab)
The Prime Minister
We are delivering the biggest boost to social and affordable housing in a generation, and we are proud to do so. Our £39 billion investment will deliver around 300,000 social and affordable homes, with at least 60% of homes delivered for social rent. While we do not intend to remove the right to buy, which helps social tenants to get on the property ladder, we are reforming the scheme to protect social housing stock and encourage councils to deliver more new homes.
Sir Julian Smith (Skipton and Ripon) (Con)
The Prime Minister
I thank the right hon. Gentleman for that contribution, because parents and children have been failed far too often. We are committing an additional £1 billion to SEND, but there must be meaningful reform alongside it, and new teachers must have the appropriate training. We are committed to reviewing that and to working with parents and teachers, and we will take away his suggestion. I invite him and others across the House to work with us on this important reform, because I think this issue has been raised with me more than any other at Prime Minister’s questions. It is clearly a broken system; it needs reform. If we can work together across the House to get it right, I think that is the least we owe to parents and children across the country.
Tim Roca (Macclesfield) (Lab)
The Prime Minister
I thank my hon. Friend for his work on the all-party parliamentary group on arbitrary detention and hostage affairs, championing the plight of British nationals facing the most difficult circumstances overseas? We routinely raise these cases with international counterparts, as he would expect, and we are deeply committed to getting them home and united with their loved ones. As part of our work to strengthen support for British nationals overseas, we are working at pace to get the envoy role set up, and I will make sure that he is kept updated about that.
Blake Stephenson (Mid Bedfordshire) (Con)
The Prime Minister
The hon. Gentleman’s points about good value for money and accountability are really important. They are embedded in the work we are doing with the NHS at the moment, which is improving on our watch—not only the waiting lists, but in other respects. The 10-year plan for the NHS, which is intended to ensure that the NHS is fit for the future, has a number of principles, including the principle of local accountability.
Brian Leishman (Alloa and Grangemouth) (Lab)
The Prime Minister
I am grateful to my hon. Friend for raising this matter. It is a deeply concerning time for the workers and their families in Falkirk. I agree with him, and we are working with mayors and local leaders to develop a pipeline of future orders for zero emission buses, which is an important aspect of this issue. The Minister for local transport, my hon. Friend the Member for Wakefield and Rothwell (Simon Lightwood), is hosting an urgent meeting of the bus manufacturing expert panel.
While Labour mayors in England are ordering Scottish buses, the SNP is ordering buses from China, just like it ordered ships from Turkey and Poland, not from Scottish shipyards. The SNP should be backing Scottish workers.
Graham Stuart (Beverley and Holderness) (Con)
Graham Stuart
Could the Prime Minister recommend a summer recess read, in order to take all our minds off the calamitous journey on which he and the Chancellor have embarked?
The Prime Minister
From looking at the Opposition Benches, I think most Conservative Back Benchers are already on their summer recess. We are very proud of our manifesto—it was a very successful manifesto, giving us a landslide victory—and now we are very proud to be implementing it.
Imran Hussain (Bradford East) (Lab)
The Prime Minister
As I said earlier, I am appalled by reports of more civilians being killed in Gaza, particularly when they are trying to access aid. Each of those incidents needs to be fully and transparently investigated, with accountability for any failings. That, of course, has to happen alongside the ceasefire that is desperately needed and that we are working hard with others to achieve, in order to release all of the hostages who remain, but also to protect civilians and get much more aid into Gaza at speed and at volume.
Lincoln Jopp (Spelthorne) (Con)
Mr Speaker
Order. If this carries on, there will be no more. Come on, Lincoln Jopp.
Lincoln Jopp
Thank you, Mr Speaker. Following the magnificent success of the England cricket team earlier this week and the triumphal return of Mr Jofra Archer, does the Prime Minister agree that what he needs from his Ministers over the next 12 months is more pace and less spin?
The Prime Minister
My Ministers have delivered on the NHS, on the economy, on rail, etc. The hon. Gentleman needs a break.
Emma Foody (Cramlington and Killingworth) (Lab/Co-op)
The Prime Minister
My hon. Friend is doing a superb job for Northumberland, and I am happy to set out what we have delivered. We have delivered more than £400 million of funding for Northumberland county council this year—a 5.8% increase—as well as an 80% increase in the number of homes on which construction has started in my hon. Friend’s area, a near £13 million increase in funding for Northumbria police, and 14 free breakfast clubs in Northumberland, supporting more than 3,000 children. That is the difference that a Labour Government makes.
Martin Wrigley (Newton Abbot) (LD)
The Prime Minister
I thank the hon. Gentleman for raising this matter. We are proud to have offered or extended sanctuary to more than 300,000 Ukrainians and their families throughout the operation of the visa scheme since the invasion in 2022. We do need to provide certainty and security for Ukrainians in the United Kingdom, and we will provide an additional 18 months’ permission to remain in the UK as well as continued rights to live, work and study here.
Mr James Frith (Bury North) (Lab)
In 2017 I led a Select Committee inquiry that warned of an emerging disaster in special educational needs and disability services. Those warnings went unheeded by the Conservatives, who left behind a broken system, which even they have since admitted is, “Lose, lose, lose.” Can the Prime Minister confirm that this Labour Government’s rebuilt SEND system will be shaped by listening to the needs of SEN families, never again ignored but served in the best traditions of a Labour Government?
The Prime Minister
My hon. Friend is right. I think there is general agreement across the House that the system is broken, just like almost everything the Conservatives touched at the end of 14 miserable years. It does not work for parents and it lets children down, and we will reform it. We are already investing an additional £1 billion, but we need a system that truly supports every child. We are developing proposals, and I want to work across the House in order to secure the right outcome.
Pippa Heylings (South Cambridgeshire) (LD)
Yet again, we are suffering record-breaking heatwaves and drought. That is worrying people in my constituency, which is both the fastest-growing and the most water-stressed area in the country. The proposed fens reservoir is important, but will provide water only for the already ambitious house building plans, not the thousands of new homes that the Government propose. Does the Prime Minister agree that the water crisis in Greater Cambridge is a deal-breaker for the Government’s growth plans, and will he, as a matter of urgency, help me to convene a ministerial roundtable with the Cambridge water scarcity group?
The Prime Minister
The hon. Lady is right to draw attention to the drought and, more generally, the question of reservoirs. It is shocking that a new reservoir has not been built for a very, very long time—none at all in the previous 14 years. We are building now, and we are doing that alongside the infrastructure and housing that we also need to build. We will work across the House on that.