Oral Answers to Questions

Alun Cairns Excerpts

Wednesday 8th May 2024 Commons Chamber

[David T. C. Davies]

My hon. Friend raises a very interesting point here. The Development Bank of Wales, which is owned ultimately by the Welsh taxpayers, should be there to support businesses through cost of living pressures. It was able to make a £400,000 loan to a company that was then able to turn round and add £200,000 back into a political donation to enable the First Minister to win the Welsh Labour leadership election. It is a very good question, but it is not a question for me; it is one that should be answered by those on the shadow Front Bench. On this matter, they have been very silent indeed.

[Alun Cairns (Vale of Glamorgan) (Con)]

Small businesses, particularly those in retail and hospitality, are directly affected by cost of living challenges coming from covid and the energy price spike from the Ukraine conflict. The Chancellor has, therefore, introduced a 75% business rate relief scheme in England, which is supporting businesses in England. Does my right hon. Friend the Secretary of State share my concern that that funding is not being used to the same degree in Wales, and that business rates in Wales are only being relieved at a rate of 40%, so businesses are paying more in tax?

[David T. C. Davies]

My right hon. Friend is absolutely right. The UK Government made certain that the money for the business rate discount was passed on to the Welsh Labour Government, but instead of passing it on to the pubs, restaurants and small businesses that are so vital to communities in Wales, they have decided to spend it on other matters, such as the one they are voting on today. As a result, the average pub in Wales is paying thousands more in business rates than a pub just across the border in England. That is absolutely scandalous, and I urge the Welsh Labour Government to think about where their priorities are.