Office for National Statistics Labour Market Data
Debate between Lord Wigley and Lord Katz
Lord Katz (Lab)
The noble Baroness is absolutely right. AI is very much at the forefront of all our minds as we continue to grapple with the long-term impact that it will have on our economy. That is why, in January, we announced that every adult in the UK is eligible to take free courses to gain practical AI skills for work. This programme has already upskilled 1 million workers. Our ambition is to upskill 10 million by 2030. The noble Baroness mentioned research. We have already launched the AI and future work programme and are establishing an AI economic institute, which will lead cross-government analysis to monitor the emerging impact of AI on the economy and co-ordinate the Government’s response.
Lord Wigley (PC)
My Lords, the Minister will be aware that the GDP per capita of Wales historically ran 20% below that of the UK, largely because of depressed activity rates arising from the work patterns in heavy industries, such as coal and steel. That has persisted. Now, there is a crying need for the activity rates to be raised in order to ensure that the standard of living in Wales can rise to be nearer the UK average. Will the Government undertake to co-operate with the next Government of Wales to give priority to getting this right?
Lord Katz (Lab)
The Government have always worked closely with the current Government of Wales and we will continue to work with any future Government in Wales. It will help if they continue to be led by the Labour Party, but we will see what the electorate decide. We are constantly aware that we must do more to support people into work. That is why we are going further with our jobs and careers services, the youth guarantee and pathways into work across the country.
Small Farms
Debate between Lord Wigley and Lord Katz
Lord Katz (Lab)
I thank the noble Baroness for that question. To be clear, I do not know whether the Treasury has done precisely that analysis, but I can say that at the Budget last week, the Chancellor announced that any unused allowance for the 100% rate of agricultural property relief and business property relief will be transferable between spouses and civil partners from 6 April next year. We have taken this action after listening to feedback from many stakeholders who called strongly for the change to planned reforms to reduce complexity and remove an unfairness for widows and widowers. This change will double the tax-free allowance for agricultural business property available to estates of those widowed before 6 April 2026. It is worth pointing out that almost three-quarters of estates claiming agricultural property relief, including those that also claim business property relief, are not expected to pay more tax as a result of the changes in 2026-27, based on the latest available data.
Lord Wigley (PC)
My Lords, is the Minister aware that the farming pattern in Wales is very different from that in the majority of England? Most farmers may be capital rich but are income poor, with average incomes under £25,000 a year. In these circumstances, will the Government either exempt all agricultural holdings from capital gains tax where they are transferred from family to family for an ongoing agricultural purpose, or enable Senedd Cymru to introduce a new agricultural taxation system in Wales to safeguard our traditional family farms?
Lord Katz (Lab)
I thank the noble Lord for that question. It is probably a little outside my bailiwick to talk about changing the devolution settlement with the Senedd. To reassure him, we are working with farmers in all parts of the country and in all farming sectors to ensure that they have fairer, more equitable supply chains, which is of course a really important factor in ensuring that businesses are viable. We have already introduced fair dealing regulations for pig and dairy farmers to ensure that small businesses are treated fairly in their contractual dealings with large buyers. We are currently developing those regulations in other sectors, such as the milk/dairy sector, and I can tell him that the egg sector regulations are well advanced: we are getting cracking with it.
Lord Katz (Lab)
My Lords, this is a subject of the utmost seriousness. I cannot commit to publishing data without understanding that the data is available to be published in a correct and statistically reliable format. This is something that the Government take very seriously. The noble Lord will be aware that, since May 2024, Defra has funded the farmer welfare grant, which provides half a million pounds to support charity projects focused on improving the mental health and well-being of farmers in England. That fund runs until next March; we are currently evaluating how it works to see whether it is possible to extend and expand this fund post 2026.
In the wider NHS, we have hired 8,500 new mental health support workers, which will help access for anyone in distress. It is important that we do not politicise mental health issues across society, particularly when we have sectors that are impacted by it. This Government stand behind their farming sector. We understand that the changes that we had to make in last year’s Budget, which we have ameliorated in this year’s Budget, are tough on farming businesses, but it is important that we make decisions that put farming on a firm footing and are fair by the public finances.
Lord Wigley (PC)
My Lords, following my earlier question, I wish to ensure that my interests in matters regarding agriculture, which are in the register, are drawn to the attention of the House.
Water: Supply and Infrastructure
Debate between Lord Wigley and Lord Katz
Lord Katz (Lab)
I thank the noble Lord for his question. Sir Jon Cunliffe is leading the Independent Water Commission in a once-in-a-generation review of the whole water supply system, including regulation. On its terms of reference, it can go wherever it wants in its inquiries. I am sure the noble Lord, given his interest in this area, will have made his own representations in response to the call for evidence. Again, all I can say is that we have secured over £100 billion of investment to spend on improving the water supply. I wish I could stand here and say there are many more reservoirs in train instead of just one, but there are not, and we are where we are. This Government will pick up and clean up the mess the last Government left.
Lord Wigley (PC)
My Lords, the Minister will be aware that several conurbations in England, including Liverpool, Birmingham and London, get their water supplies from reservoirs in Wales. In these circumstances, should permission not be given to obtain increased levels of water capacity from reservoirs in Wales only with the agreement of the Welsh Government?
Lord Katz (Lab)
I did not expect to get on to the balkanisation of water supply, but I will say that the independent commission led by Sir Jon Cunliffe is undertaken on behalf of the UK Government and the Welsh Government. If the noble Lord has concerns about water supply from Wales into England, I am sure that he will be making representations to the Cunliffe review. This is a national water system; it must serve all companies, all businesses and all households in the United Kingdom.