Levelling Up: Project Delivery
Debate between Lord Wigley and Baroness Penn(1 year ago)
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Baroness Penn (Con)
The Government are really focused on ensuring that the levelling-up funds deliver value for money and provide transformative outcomes for the local areas that they deliver for. The Government set out a really clear approach to the evaluation of these projects to make sure that they do just that.
Lord Wigley (PC)
My Lords, I draw attention to my interest chairing the slate quarrying levelling-up fund on Gwynedd Council, which is also facing the challenge of meeting the deadline of April 2025. If indeed the pressures arise from a systematic shortage—a capacity shortage—within the system, will the Government lean towards giving the flexibility of an extra year to ensure that worthwhile projects are not lost?
Baroness Penn (Con)
My Lords, as I have highlighted, the department is very happy to speak to any project that sees that it is facing perhaps unavoidable delays in delivery. Our first priority should be looking at what we can do to reduce those delays, but, as I have said, we have also put in place flexibility in the system to extend some of the deadlines.
Gross Domestic Product: Wales and the UK
Debate between Lord Wigley and Baroness Penn(1 year, 4 months ago)
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Lord Wigley
To ask His Majesty’s Government what are their latest figures for the gross domestic product per head of population for (1) Wales, and (2) the United Kingdom.
The Parliamentary Secretary, HM Treasury (Baroness Penn) (Con)
My Lords, the latest Office for National Statistics data show that in 2021 gross domestic product—GDP—per head, at current prices, was £25,665 for Wales and £33,745 for the UK. The UK Government have made significant interventions aimed at boosting GDP in Wales and across the UK, including the £4.8 billion levelling-up fund, the £2.6 billion UK shared prosperity fund and delivering on investment zones and freeports.
Lord Wigley (PC)
My Lords, do these figures not speak volumes? They underline the failure of successive Governments to close the gap between Wales and England. With the relevant economic levers being shared between Whitehall and Senedd Cymru, is it not essential that the two co-operate on these economic matters? Does the Minister appreciate how much this is undermined by the refusal of the Chief Secretary of the Treasury to attend the Senedd’s finance committee? Is she aware that her colleague, the noble Lord, Lord Bourne, told that committee in Cardiff last week that a duty should be placed on the Chief Secretary to attend such committees when required? He said that
“if it needs putting on a statutory basis … that needs to happen”.
Does she agree?
Baroness Penn (Con)
My Lords, perhaps I can provide a little reassurance to the noble Lord. Yes, the gap between GDP per head in Wales and the rest of the UK is too large, but Wales has had the highest growth in GDP per head since 2010 of all regions and nations across the UK, increasing by 15.7% compared with 6.9% across the UK. He talked about the Welsh Government and the UK Government working together. That is something that we have done successfully on city and growth deals across Wales that were developed jointly by the UK Government and the Welsh Government. This included £500 million for the Cardiff capital region and over £100 million in north Wales and Swansea. On his point about the Chief Secretary to the Treasury, he works hard and closely with the devolved Administrations—I know that is something he is very committed to—but I will take the noble Lord’s specific point away.
European Structural and Investment Funds and the European Agricultural Guarantee Fund
Debate between Lord Wigley and Baroness Penn(1 year, 8 months ago)
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Baroness Penn (Con)
My noble friend is right that, in both schemes, as the EU funding falls away, the UK funding comes in to replace it. We are seeking to do that in as smooth a way as possible. When it comes to support for farmers, we will continue to set out next steps on our environmental land management schemes, including the sustainable farming initiative, Countryside Stewardship and landscape recovery. On the shared prosperity fund, I reassure my noble friend that that fund is ramping up as EU funding falls away; its profile is faster than the way in which previous EU funding had been distributed.
Lord Wigley (PC)
My Lords, is the Minister aware that, when Wales first received structural funds from the European Union in 2000, that money was accepted by the Treasury in the UK and was not initially passed over to the beneficiaries, on the basis that they were already getting adequate money from the Treasury? It needed the intervention of Michel Barnier, the regional commissioner at that time, to get the Treasury to pass that money over. Will she give a guarantee that all money that is supposed to be equivalent to structural funds will be additional to the base spending for the areas that need it?
Baroness Penn (Con)
My Lords, the commitment that the Government have made is that the replacement of EU funding in each nation will meet the levels that they previously received. That is the commitment that we are delivering through the shared prosperity fund.
Devolved Budget for Wales: Inflation
Debate between Lord Wigley and Baroness Penn(1 year, 8 months ago)
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Baroness Penn (Con)
I believe the noble Lord was referring to the Lords Committee on the Barnett Formula in 2009, which called for a review of that, including implementing a needs-based factor. That is exactly what we have done through implementing the recommendations of the Holtham commission, which found that the Welsh Government should have at least 15% more per person than equivalent UK government spending to reflect the Welsh Government’s additional needs. In fact, that figure is 20% more per person in the 2021 spending review, which is about £1 million more each year than the Holtham commission indicated and which the Welsh Government agreed was fair for Wales relative to England.
Lord Wigley (PC)
My Lords, did not the Holtham commission have as one of its three points the need to do away with the Barnett formula as it exists and to replace it with a needs-based formula? That has not been accepted by the Government. Will they please think again?
Baroness Penn (Con)
Instead of removing the Barnett formula, we have amended it to include that needs-based factor. The Barnett formula is simple and efficient and provides a clear and certain outcome. With the addition of the needs-based factor, the people of Wales have the guarantee that funding based on their own needs will not fall below the assessment of where those needs are.
Wales: Additional Financial Resources
Debate between Lord Wigley and Baroness Penn(1 year, 10 months ago)
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Lord Wigley
To ask His Majesty’s Government what additional financial resources they have made available to the government of Wales, over and above the Barnett formula consequential provisions, to meet unforeseen financial needs for which no provision was made in Wales 2022-23 expenditure plans.
The Parliamentary Secretary, HM Treasury (Baroness Penn) (Con)
The Welsh Government are well funded to meet their devolved responsibilities. The 2021 spending review set out the largest annual settlement in real terms since the devolution Act. This is still growing in real terms this year. The Welsh Government also have their own tax and borrowing powers. On top of this, the UK Government are supporting households UK-wide with the cost of living, and supporting businesses, charities and the public sector with their energy bills.
Lord Wigley (PC)
My Lords, is the Minister aware that Wales Fiscal Analysis, at Cardiff University, has shown that, even after taking into account the additional allocations made to the Welsh Government, the higher levels of inflation since the coming year’s budget was set could amount to an impact of £800 million in 2023-24, and that, consequently, real-terms spending on public services in Wales will fall by that amount? Will the Government now allocate an additional £800 million to the Welsh Government for the coming year, to avoid real cuts in essential services in Wales?
Baroness Penn (Con)
My Lords, we have a difference of opinion on the figures. That might be because government budgets are routinely translated into real terms using the GDP deflator, by both the Treasury and independent bodies such as the OBR and the IFS. Using those figures, we see that the Welsh spending settlement is still growing in real terms this year and over the spending review period, even after the higher costs, and we believe that the Welsh Government are well funded to meet their obligations.
National Insurance Contributions
Debate between Lord Wigley and Baroness Penn
Baroness Penn (Con)
My Lords, my noble friend is correct that, as well as seeing record highs in prices recently, we have in recent years also seen record lows. With that came record lows of investment; that is why the Government are very careful before considering questions such as a windfall tax.
Lord Wigley (PC)
My Lords, would it not be more socially equitable if the upper cap on national insurance were removed, so that those on high incomes pay the same marginal rate as those who are earning modest incomes? Would that not be a far fairer way of doing it?
Baroness Penn (Con)
I say to the noble Lord that it is important to take the impact of national insurance and income tax together. When you do that, the combined tax rate for those earning in the lower bracket is 32% and, in the upper bracket, it is 42%. So, overall, we still have a progressive system.
Special Educational Needs
Debate between Lord Wigley and Baroness Penn
Baroness Penn (Con)
My Lords, the Government absolutely recognise that children with special educational needs have been hard hit by the Covid crisis. We are pleased that the vast majority of them are now back in school. I say to the noble Lord that in the other part of that catch-up package—the £650 million to support schools to make up for lost teaching time—specialist settings are getting £240 per funded place in comparison with mainstream schools, which get £80 per pupil. That additional weighting is to reflect the higher costs of specialist settings.
Lord Wigley (PC) [V]
My Lords, I draw attention to my relevant interests in the register. Will the Minister assure the House that the outcomes of the review will not lead to any dilution or reduction of those rights and protections for children and their parents that are provided for in current legislation?
Baroness Penn (Con)
My Lords, without pre-empting the results of the review, I can give the noble Lord that reassurance. The aim of the review is to improve outcomes for children and their families across the country, deliver on commitments that we have made in legislation and improve value for money for the investment that we are putting in.