Economic Growth

Beth Winter Excerpts

Tuesday 14th November 2023 Commons Chamber

[Beth Winter (Cynon Valley) (Lab)]

The King’s Speech is yet another lost opportunity to deal with the cost of living crisis, the climate catastrophe and the scandalous underfunding of public services in my country of Cymru, Wales, and across the UK. This Government’s priority remains tax cuts for a wealthy minority of the type that crashed the economy last year, which the shadow Chancellor’s amendment today seeks to prevent. As the TUC has said:

“The UK is stuck in a Conservative doom loop”—

which amounts to—

“low growth, terrible living standards, and repeated doses of austerity.”

Our distorted economy is still able to deliver millions of pounds to a few at the top, just so long as millions at the bottom accept living on a few crumbs here and there.

The King’s Speech did nothing to deal with those problems. On pay, the Government should have pledged to legislate so that they always deliver pay rises for public sector workers that at least match inflation and provide pay restoration. We must ensure that our hard workers do not receive real-terms pay cuts again and that their salaries match real value in society. The Government must address that issue and do that in the autumn statement. On social security, we need payments to rise, but we hear that the Government plan to make new savings. They are reportedly planning to cut £4 billion from health-related benefits, which will, according to more than 100 disability organisations, plunge disabled people into poverty and could lead to unnecessary deaths. On energy bills, we have heard the Energy Secretary tell us the oil and gas stunt in the speech will not

“necessarily bring energy bills down”.

What we should be doing is cutting out the vast waste of shareholder dividend payments and restoring energy provision to the public sector.

Unlike the hon. Member for Delyn (Mr Roberts), who spoke earlier, I strongly believe that we need more devolution in Wales. We need a fair needs funding settlement, devolution of the Crown Estate and the £5 billion owed to us in consequentials from the HS2 England-only project—I could go on.

I want to focus my final comments on public sector funding. The Welsh Government have announced in recent weeks that they have to find savings of £600 million to balance their budget and maintain health spending. That is solely down to UK austerity and a Conservative economic agenda that harms our Welsh economy, Welsh public services and the living standards of Welsh people. One in four people in Wales are eating smaller meals or skipping meals altogether. Almost 3 million people in Britain are using food banks. As usual, it is the poorest in society who are paying the highest price, which is why I am supporting our local TUC in organising a hunger march later this month. Communities such as mine in Cynon Valley and across Rhondda Cynon Taf organised the first hunger march to London back in 1927, and it is a sad reflection on, and indictment of, our society that we are having to do the same again in 2023.

The impact of repeated rounds of austerity and the extractive nature of the economy means that there is a need and a desire to look at new economic models, at integrated community-based economic and social development. In Wales, this is being done under a vision of “Cymunedoli which translates as “communitisation” and is similar to community wealth building.

Cymunedoli is an economic model that ensures that communities own and manage their resources and labour, rather than being exploited for the benefit of others, as has long been the case throughout Welsh history. A fair, inclusive, prosperous and sustainable economy is created for the benefit of everyone, through generating and retaining wealth within local communities. The examples of cymunedoli that are being pursued in Wales are successful: local investment in jobs, paying for local training, paying local suppliers and staff, and finances recycled and retained within the local community, rather than extracted. We need to see more of that.

The Tory Government have spent 13 years cutting services and creating a cost of living crisis. That has to stop now and we need the Tories out. Diolch yn fawr.

[Mr Deputy Speaker (Mr Nigel Evans)]

Those who have participated in the debate should aim to be in the Chamber for about 6.30pm.