Economy Update

Alex Davies-Jones Excerpts

Thursday 5th November 2020 Commons Chamber

[Rishi Sunak]

My hon. Friend is absolutely right, and she will of course know this well from her own experience. We welcome the independent scrutiny of institutions such as the IMF—they are helpful in providing accountability for the Government in our economic response—and I am delighted that it was so positive about what we have done. She is also right that it said, correctly, that over the medium term, we must restore public finances to a sustainable position. Now is the time to provide fiscal support through a very weak period, but we want to build resilience for future crises so that when the next one of these comes along, we can respond in the same strong and generous way that we have been able to do this time.

[Alex Davies-Jones (Pontypridd) (Lab) [V]]

I am pleased to see the Chancellor finally in his place today, but for constituents of mine in Pontypridd and for everyone across Wales, his words are a case of too little, too late. I am aware that the UK Government have confirmed that devolved Administrations will receive Barnett consequentials in respect of new funding. However, I know from experience that people in Wales cannot and should not rely on yet another promise from this UK Government. The Chancellor will also be aware that this is not the first time funding has been promised to the people of Pontypridd. I would like to take this opportunity to remind him of the devastating flooding that decimated communities across Rhondda Cynon Taf earlier this year, and it would be most irresponsible of this Government and utterly unfair for people in Wales if they are left behind once again. This Government have already blocked the Welsh Government from using both the coronavirus job retention scheme and the job support scheme, and businesses in Wales are suffering now. Will the Chancellor therefore finally commit to fair funding for people in Wales, and will he agree to meet me and fellow MPs who represent Rhondda Cynon Taf to allow our constituents the best possible chance as we move through the coronavirus pandemic?

[Rishi Sunak]

I am glad that over 10,000 of the hon. Lady’s constituents have had their jobs supported by the furlough scheme the UK Government have provided. I am also glad that the Welsh Government will now have received £5 billion in up-front funding guarantees for Barnett—£600 million more as a result of announcements today—and I am sure she can talk to the Welsh Government about how they plan to use that money to support her constituents.