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.

Covid-19 Economic Support Package

Alex Davies-Jones Excerpts

Wednesday 14th October 2020 Commons Chamber

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

It is an honour to follow the hon. Member for Midlothian (Owen Thompson); I share a lot of his concerns, and I think it is vital that we recognise that the numbers often quoted in this place relate to real people, with real bills to pay and real children to look after.

Given the Chancellor’s absence yesterday, he may not be aware that my local authority of Rhondda Cynon Taf has been under local coronavirus restrictions for some weeks now, so I can speak from specific experience. Hundreds of people across Pontypridd feel utterly failed by the Chancellor and this Government. As colleagues from across the House will know, this is not the first financial hardship my community has faced this year. Pontypridd, along with the communities represented by my hon. Friends the Members for Cynon Valley (Beth Winter) and for Rhondda (Chris Bryant), was hit only eight months ago with some of the worst flooding ever recorded. Storm Dennis decimated parts of our constituencies earlier this year, and the Prime Minister said that funds would be passported to help us rebuild. Where is that money? It just shows how much stock can be placed in a promise from this Government: all these months later, we and our communities are still waiting. That is absolutely disgraceful, and shows just how little care this Government have for the people of Wales.

This Government are still pursuing a one-size-fits-all approach to protecting jobs during this pandemic. For months now, the Labour party has been calling for a sector-specific support deal, and still this Government have not accepted responsibility and have not put in place a plan to support these industries. We know that the aviation sector is facing specific and substantial challenges because of the virus. In Pontypridd, major employers including GE Aviation in Nantgarw and British Airways in Llantrisant have sadly been forced to make redundancies. Across this country, 1.6 million people’s jobs and livelihoods rely on the aviation sector. We cannot just let those jobs disappear.

The coach industry, too, is facing specific challenges as a result of the coronavirus pandemic. Like aviation, this is a seasonal industry that is very reliant on tourism. Industry experts estimate that up to four in 10 companies could go bust and 27,000 jobs could be lost if no support is made available. This will hit communities hard, as many of these companies are family-owned small businesses, such as Edwards Coaches and Ferris Coach Holidays in my constituency. It really does not have to be this way: this Government have the opportunity to save jobs with sector-specific support packages, but have instead decided to proceed with an economic support package that is clearly not fit for purpose.

The high street is also feeling the strain. Just this week, the group that owns Peacocks, a significant employer in my constituency, announced that it is appointing administrators. That puts 24,000 jobs across the country at risk, and other well-known high street brands are also feeling the strain. River Island recently closed its store on Pontypridd’s high street after being doubly hit, first by flooding from Storm Dennis and then by the coronavirus pandemic, and Pontypridd’s high street is sadly not alone.

Then, there is still the problem of all the people who have been left out of Government support altogether. Earlier this week, I asked the Minister about support for people who have been excluded from the Government’s support schemes. His response was that the Government had covered the issue. Well, the 3 million people who have been excluded from UK Government support during the coronavirus pandemic do not feel like this issue has been covered at all. When will the Government take some responsibility? They cannot govern with eleventh-hour announcements and leaks to the press. People in areas under local restrictions need clarity and guidance, not slapdash announcements that have not even been thought through. I urge the Chancellor and the Minister to consider their priorities deeply going forward, because our constituents all deserve a secure economic future, and people across Wales deserve better than to be consistently forgotten and betrayed by this Government.

Public Health Restrictions: Government Economic Support

Alex Davies-Jones Excerpts

Tuesday 13th October 2020 Commons Chamber

[Steve Barclay]

The most important thing for businesses in tier 2 is that we are able to control the virus. That is why the Government are investing as heavily as we are in track and trace—over £12 billion so far—and enabling businesses in tier 2 to retain their staff, which, again, is what the winter plan and the job support package is doing. The Government have made targeted interventions in support of businesses in tier 2, but we need to balance that against the wider fiscal position that we face.

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

The Minister will surely know by now that my local authority of Rhondda Cynon Taf has had local restrictions imposed on it for some weeks now. The Chancellor, when he can be bothered to show up, talks a good game, but it is clear that this Government do not care about people in communities across Wales. It was only earlier this year that Pontypridd was decimated by the worst flooding for many decades, and the UK Government simply sat on their hands and watched as homes and businesses were devastated. The Minister now has an opportunity to redeem himself and this Government. We need action now on the money that was promised, so what are his plans to finally assist the 3 million people who have been excluded from the Government support packages thus far?

[Steve Barclay]

On the issue of the excluded campaign, we have covered this pretty much every time we have come to the House, for the reasons we have set out. On support for Wales, the point the hon. Lady makes is at odds with the reality; in the urgent question last week, the hon. Member for Rhondda (Chris Bryant) raised the issue of some specific flood damage support, and between then and now we have addressed it, and I have written to him indicating the support available. The hon. Lady makes a point about the wider support without any mention of the guarantee on Barnett consequentials that has been given. It is unprecedented for the Government to give a guarantee up front on Barnett consequentials, yet she does not even mention it in her question.

Finance Bill

Alex Davies-Jones Excerpts

Report stage & Report stage: House of Commons & Report: 1st sitting & Report: 1st sitting: House of Commons
Wednesday 1st July 2020 Commons Chamber

[Taiwo Owatemi (Coventry North West) (Lab)]

The coronavirus pandemic has revealed much of what we already knew about our jobs market and the deeply entrenched structural problems in our economy: insecure work, low-paid jobs, wages that are not rising as much as they should and our reliance on debt and consumer spending. However, this crisis offers an opportunity to provide a remedy to these problems and for the Government to act—to act decisively, to act now and to act in the interests of my constituents in Coventry North West and across the country, so that even more people do not lose their jobs and we can boost their incomes and recover from this crisis.

There are 13,100 people in my constituency who are on furlough and there were 4,630 claimants for unemployment benefits in May. These figures are staggering, and my constituents, as well as the millions who have lost their jobs across the country, demand action. I welcome the introduction of the furlough scheme. Labour called for the introduction of the scheme, which has provided a lifeline for my constituents. We need to ensure that businesses can keep workers on furlough.

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

My hon. Friend is making some important points. The Bill is not just about job creation; it is about job protection. So many people are being abandoned by this Government, and they desperately need saving to secure their livelihoods and protect their jobs now and for the future.

[Taiwo Owatemi]

I have been contacted by many residents who are extremely worried about the changes to the furlough scheme and their potential impact on unemployment. One of my constituents, James, recently got in touch with me to say that the company that his partner works for has already announced that it will be letting almost 40 employees go. The reason the company gave, I am told, was that the Government have asked employers to share the load of the furlough scheme from August. As can be imagined, staff at the company have been left heartbroken and have said that they feel this is completely wrong and runs contrary to the much repeated idea that a furlough scheme was a job retention scheme. James has said to me that while he understands that companies must ensure that they can continue to operate on a sustainable financial footing, it seems very unethical of the company to make the decision to reduce its numbers two months before that would start to become a significant financial burden on it.

The Prime Minister has repeatedly said that companies should not use the scheme just to keep employees on their books, only to get rid of them later, but should use it as a scheme to retain jobs. This compounds my view that the furlough scheme masks the true extent of the crisis in our jobs market. Since the start of the crisis, the Government have been too slow to take these threats seriously. We have seen very little from the Government around preventing unemployment since their economic package was created. If we do not take action now, we could see even more people lose their jobs.

This crisis requires a regional response, so that places such as the west midlands are not left behind. The Government’s one-size-fits-all approach fails to understand how our economy works. My own city has seen a devastating impact, with mass redundancies coming at Coventry College. Last week, I spoke about the impact on the aviation industry, with job losses at Rolls-Royce Ansty and in the arts and small businesses such as Exhibit 3Sixty. We need to protect our industries in the west midlands. That is why we need decisive rapid action to boost the economy, to provide small and medium-sized firms with the support they need, and to give businesses the strongest incentive to start creating jobs again.

My office has already started this work. Working alongside Coventry City Council, we are getting ahead of the response. I will not sit idly by while people in my community lose their jobs and vital skills. I have been holding a series of meetings with employment and skills agencies, as well as with Coventry and Warwickshire chamber of commerce and other business groups, to discuss supporting businesses during this time and upskilling people so that they can secure jobs for the future and find new work now. As part of its employment and skills priority for Coventry, the city council has been working with partners to host a series of virtual jobs fairs, with thousands of views and impressions to give people a head start. But this effort cannot be left up to us. The Government must do everything in their power to create support systems for those who become unemployed as well as new opportunities. We need to see the Government working with employers, unions and local government, with a joint approach across government to maximise job creation and comprehensive support to tackle unemployment.

Economic Update

Alex Davies-Jones Excerpts

Tuesday 17th March 2020 Commons Chamber

[Rishi Sunak]

As I said, the Secretary of State for Housing, Communities and Local Government will have already been in touch with my hon. Friend’s local council through MHCLG. They will be the ones processing these grants. There is no reason why that cannot happen as swiftly as a council is able to act.

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

In the past few weeks, businesses in my constituency, and across Rhondda Cynon Taf, have been devastated by unprecedented flooding and are still trying to recover. Many are faced with the bureaucracy of insurers and are trying to rebuild their livelihoods. They are now faced with the prospect of closing for good because of the loss of business due to coronavirus. What conversations is the Chancellor having with the Welsh Government to secure financial relief for all these businesses in the UK?

[Rishi Sunak]

The hon. Lady asked about flooding. In last week’s Budget we outlined a variety of packages to help the communities affected by that. First and foremost, there was £120 million to rebuild flood defences that have just been destroyed, as well as £200 million of new resilience funding for communities that are repeatedly flooded and £5.2 billion, which represents a doubling of the amount that we spend every year to build new flood defences. That will protect 300,000 people and it comes on top of the work by the Secretary of State for Housing, Communities and Local Government in activating the Bellwin scheme and providing immediate relief for communities that have been impacted by local flooding.

Beer and Pub Taxation

Alex Davies-Jones Excerpts

Wednesday 5th February 2020 Westminster Hall

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

Diolch, Mr Gray. I am sure many people will offer to buy the hon. Member for Dudley South (Mike Wood) a pint after this debate. As a south Walian MP, it will come as no surprise to Members that I have numerous breweries, big and small, in my constituency that I know will be impacted by the proposed changes to beer duty.

Along with rugby and music, pubs and clubs are a vital part of our community across Rhondda Cynon Taf. They were at the heart of our miners’ institutes, and today they serve as a common meeting place for a range of people and remain at the heart of our communities. Long may they continue to do so. When Wales plays at the Principality Stadium, one would be hard pressed to find a pub that was not full to the brim of passionate fans, full of hwyl, eager to support our team on the turf. I promise not to mention the weekend scores.

Although I am lucky to have small breweries such as the Bragdy Twt Lol and the Glamorgan Brewing Company in my constituency, I know that they face immense pressures and tax burdens. We all know that UK beer duty is among the highest in Europe. It has already been mentioned that there is a 5% beer duty on a UK pint. It is 54p compared with 5p in Germany. For Bragdy Twt Lol in Treforest in my constituency, where a team of five led by Philip Thomas produce a quarter of a million pints every year, the duty has a massive impact.

Like other colleagues, I am also concerned by the review of the small brewers relief, which has allowed breweries specialising in British independent craft beer to grow and thrive. If the relief is reduced, or the production level lowered, it will make the market extremely challenging for the small breweries that are so central to the local economy, in south Wales and beyond. Smaller breweries are often denied access to markets because larger breweries are often tied to pub chains, and I am aware that some larger breweries are using what we might call more aggressive approaches, offering incentives to pub landlords in return for buying all their beer through their brewery chain.

I am sure that all colleagues will agree that we need to support small businesses that produce beer unique to our areas and heritage. I fear that if beer duty is reduced it will be the local economy across Rhondda Cynon Taf that will suffer. Far from being just about output, small breweries such as those in my constituency often support local talent and other local companies, procuring their services for a range of purposes. Small breweries in Rhondda Cynon Taf are also regularly involved in charity events. As others have said, they make a vital contribution beyond just their beer production. I shall continue to work ceaselessly with breweries in my constituency to oppose any plans to reduce the small brewers relief. It must not happen, if we are to continue our proud heritage of brewing craft beer in Pontypridd and beyond.