(13 years, 6 months ago)
Commons ChamberI am grateful to the right hon. Gentleman, because I always remember sitting and listening to him give evidence to, I believe, a House of Lords Committee looking at the Barnett formula. He said that there was no case for reviewing it because it had served well. The fact that the last Government repeatedly ruled out reforming the Barnett formula means that any reforms must be looked at carefully. He is quite right that giving tax-raising powers would involve another referendum, which is something that this Government would look at carefully, because I am not sure whether Wales has an appetite at the moment for another referendum.
The Calman process in Scotland had a wider remit than merely to consider funding arrangements. Given the Labour party’s opposition to decoupling Westminster and National Assembly constituency boundaries, would it not make sense to base the make-up of the fifth National Assembly on 30 regional and 30 constituency Assembly Members?
That is a very interesting thought. Hon. Members are well aware that the Parliamentary Voting System and Constituencies Act 2011 broke the link between Assembly constituencies and parliamentary constituencies. I have agreed that we need to look carefully at the implications of having constituency boundaries relating to different areas and regions for UK and Assembly elections in Wales. I am taking the hon. Gentleman’s question as a recommendation that we have 30 first-past-the-post seats and 30 elected on a list system, and I will look seriously at that suggestion.
(13 years, 8 months ago)
Commons ChamberFirst, may I say to my hon. Friend what an honour it is for me to be able to make the announcement about Royal Wootton Bassett, and how I enjoyed meeting him, the mayor of Wootton Bassett and others connected with the town? Let me make it absolutely clear: they did not ask for any recognition or any form of preferment. They believed that they were honourably and honestly doing a job that the whole country wanted to see done. Now that the route will be different, we need to consider the issues raised by my hon. Friend. Already, quite a demonstration of solidarity and support takes place outside the John Radcliffe hospital, but I will certainly bear in mind what he says.
Q13. Following the emphatic yes vote in the referendum on law-making powers, a series of UK Government Ministers have proposed a Calman-like process for Wales. Will the Prime Minister confirm that reform of the Barnett formula, as advocated by the independent Holtham commission, will be a cornerstone of any wider changes to how the Welsh Government are funded?
We are looking at a Calman-like process for Wales; we think that is right, and we will make some announcements and proposals. Let me just say that because the spending reductions in Wales are less than the spending reductions in England, we will find at the end of this Parliament that the difference in spending per head in Wales will be even greater than it is today, so I do not accept the contention that somehow people in Wales are being unfairly targeted with cuts; they are not. They are getting a better deal than some other parts of the United Kingdom.
(13 years, 9 months ago)
Commons ChamberMy hon. Friend knows that we will be working night and day to restore Wales’s reputation as a good destination for inward investment. Indeed, my right hon. Friends have already started that work by reducing over-regulation on business, reducing the taxes on business, introducing national insurance holidays and rolling back the wicked jobs tax that would have affected business in Wales and all over the United Kingdom.
In the light of last week’s disastrous economic figures, where will the private sector jobs come from to replace the public sector jobs that the Government are intent on slashing?
I think the hon. Gentleman should take a deep breath and not talk Wales down, but talk it up. I was particularly pleased to see this week’s manufacturing figures, which reflect very well on the United Kingdom and are a great source of optimism. I hope he will join me in sending out the message that Wales is open for business and that businesses should look to us for their investment.
(13 years, 11 months ago)
Commons ChamberThe chief constable of Dyfed-Powys police recently wrote to me outlining the fact that the consequence of the comprehensive spending review for the force would be at least a 20% cut in real terms—a £10 million loss to the budget. With 83% of costs relating to staffing, will that inevitably lead to cuts in front-line policing and a reduction in the quality of service provided in the communities I represent?
Again, I have to say that the issue of staffing must be one for individual police forces. The Government are trying to be sensitive about the cuts that are necessary as a consequence of the appalling economic legacy that has been left to the country by the Labour party.
(14 years ago)
Commons Chamber2. What discussions she has had with the Chancellor of the Exchequer on Government policy on the funding for the National Assembly for Wales determined in the comprehensive spending review.
I have discussed the comprehensive spending review with my right hon. Friend the Chancellor of the Exchequer and other Cabinet colleagues. The spending review sets out how the Government will carry out Britain’s unavoidable deficit reduction plan. We have secured a fair settlement for Wales. It is now for the Welsh Assembly Government to decide how to manage the reductions, reflecting their own policies and priorities.
The UK Government refuse to review Wales’s funding settlement, despite four independent reports highlighting the inequity of the Barnett formula, until the proposed March referendum. Will the Secretary of State explain the link between legislative competence for the National Assembly and funding for the Welsh Government, because under the terms of the Government of Wales Act 2006 they are distinct bodies?
The hon. Gentleman knows very well that there have been two recent reports to the Welsh Assembly Government by Gerald Holtham, both of which I have looked at and discussed with the First Minister. We are still waiting to see what the response is from the Welsh Assembly Government to the second report from Gerald Holtham and it is right and proper that we should wait and see what the Welsh Assembly Government say first. As the hon. Gentleman knows, the details in the coalition agreement are quite clear. We have said that the Barnett formula is coming towards the end of its time, but we have a priority to put this economy back into shape after it was left in such a disgusting mess by the outgoing Government.
(14 years, 2 months ago)
Commons ChamberMy hon. Friend has experience of the Welsh Assembly Government and the Welsh Assembly, so I will leave his comments to stand. I agree with him that the situation that we have inherited is shocking across the UK, and it is especially sad in Wales because gross value added per head is the lowest out of all the UK nations and has been that way since 1998. However, I want to be optimistic about the Welsh economy and I have recently visited some very successful businesses that are investing in Wales and looking at creating jobs, including Corus, Sharp and Ultrapharm—the latter is producing wheat-free healthy lifestyle products for Marks and Spencer. I have been impressed by the number of jobs that are starting to appear in the Welsh economy, and I want to encourage more businesses to come and do business in Wales.
With the public sector cuts inevitably having a disproportionate effect on the Welsh economy, what countervailing measures is the right hon. Lady arguing for with the Treasury to stimulate private sector growth in Wales?
I am sad that the hon. Gentleman has to ask such a question, but he knows that he has to because the last Government left this economy in tatters, and it has fallen to this coalition Government to put the economy back together again. As he well knows, we are providing an environment in which business can do business in the UK. We are reducing corporation tax by a penny each year, which will give us one of the lowest corporation tax regimes in the European Union, we have reduced the taxation regime for small companies, and we have incentives on national insurance for entrepreneurs setting up businesses. I can assure him that we are doing everything that we can to create a healthy environment in which businesses and private business can prosper.