Budget Resolutions and Economic Situation

Beth Winter Excerpts

Tuesday 9th March 2021 Commons Chamber

[Beth Winter (Cynon Valley) (Lab) [V]]

The Chancellor has boasted that this Budget will create jobs, revive high streets, reinvigorate the economy and level up the regions and nations of the UK, but as the Counsel General for Wales, Jeremy Miles, has said,

“this UK Government has an appalling record on providing Wales with even a fair share of UK spending, let alone the kind of funding needed to ‘level up’.”

Rhondda Cynon Taf, the local authority within which my constituency of Cynon Valley is located, has the third-highest covid death rate in the UK. Poverty and ever-widening inequality are the root cause of the high death toll, and they have been made worse by the past 11 years of Tory Government austerity.

I am angry that the levelling-up fund will be centrally managed. That goes against the express position of the Welsh Government and is contrary to previous announcements by the UK Government. It is not new money, it is not ring-fenced to Wales, and it represents a fraction of the funding that we need. It bypasses the democratically elected structures in Wales, which are best placed to understand the issues facing our country.

I am pleased that the furlough scheme has been extended, even though it was a last-minute announcement. The Prime Minister said last week that 3,400 people in my constituency are reliant on the scheme, but due to the Government’s short-sightedness, they are now facing a cliff edge in six months’ time.

I have just returned from a meeting with the aerospace industry in my constituency. Those jobs should be supported by the Government, but instead the industry is on the brink of collapse. Since the pandemic started, GE Aviation has cut almost 500 jobs, and there is fear for the future. As Ross Williams, a constituent of mine and a senior shop steward, states,

“if the sector isn’t protected and a sector specific deal provided the impact will be devastating. These are one of the last highly skilled and well paid jobs in the south Wales valleys. There’ll be nothing left for my son and future generations if these jobs go”.

The Chancellor’s decisions surrounding benefit payments are damaging all round. The much-needed uplift to universal credit will only be a temporary measure. For thousands of my constituents, that uplift is the difference between feeding their families and going hungry. One of my constituents, Emma, told me:

“I didn’t ever expect to get sick but you know, I have. And I’m suffering. I’m living on the breadline, and my mental health is suffering. I feel like I’m being punished.”

If the Chancellor understood the hardship that so many endure, he would have made the uplift permanent and extended it to those on legacy benefits. How does he see my constituents managing in six months’ time when furlough ends and he proposes to end the £20 uplift to universal credit? How will that help to create demand in the economies of Mountain Ash or Aberdare in my constituency?

It does not have to be this way. We are the fifth richest nation in the world. There is a different way: introduce a wealth tax and a windfall tax, adopt a jobs guarantee scheme, properly invest in a green industrial revolution, increase statutory sick pay in line with the living wage and introduce a universal basic income. The new normal must incorporate a tax system that ensures that the wealthy pay their fair share and a welfare system that ensures that no one is left behind, but to level up in communities such as mine, Westminster must respect the democratic structures in Wales and ensure we get our fair share of funding. Diolch yn fawr.