Autumn Budget as it Relates to Wales

Chris Ruane Excerpts

Wednesday 7th February 2018 General Committees

[Chris Ruane (Vale of Clwyd) (Lab)]

I am going to take the advice of the hon. Member for Dwyfor Meirionnydd and try the limited Welsh that I have learned in Welsh lessons here in Parliament over the past three months.

Mae’n bleser mawr i wasanaethu o dan eich cadeiryddiaeth heddiw, Mr Hanson. Mae’n ddiwrnod hanesyddol: y tro cyntaf i’r Gymraeg gael ei defnyddio yn y Welsh Grand. Llongyfarchiadau i bawb sydd wedi siarad yn Gymraeg heddiw—y rheiny sy’n siarad yn rhugl ac, yn arbennig, y rhai sy’n dysgu’r iaith! Rwyf yn talu teyrnged i Aelodau ar draws y Tŷ sydd wedi lobïo’n galed er mwyn siarad Cymraeg yma heddiw. Da iawn.

(Translation) It is a great pleasure to serve under your chairmanship today, Mr Hanson. It is a historic day: the first time that the Welsh language has been used in the Welsh Grand. I congratulate everyone who has spoken in Welsh today—those who are fluent speakers and particularly those who are learning the language! I pay tribute to Members from across the House who have lobbied very hard for the right to speak Welsh here today. Well done.

There have been many varied and interesting speeches today. The hon. Member for Carmarthen East and Dinefwr gave a great macro-economic picture of the economy and stated that the UK economy needs to be tilted away from London towards Wales and the north. I concur with that. My hon. Friend the Member for Cardiff West spoke powerfully about the legacy of Rhodri Morgan for Wales and the Welsh language, and the importance of this historic day when we are able to speak in Welsh for the first time in the Welsh Grand here in Parliament.

The right hon. Member for Clwyd West spoke about the need for a rejuvenated north Wales economy. He urged that the dithering over the tidal lagoon is ended and progress is made, which again I completely concur with. As peace breaks out, I would also fully support him on his attitude towards the all-party group on the Mersey-Dee alliance.

My hon. Friend the Member for Clwyd South spoke passionately about the importance of the Welsh language. She spoke in English in the hope of attracting the attention of leftie, liberal, lentil-eating journalists who support diversity and all minority languages in the world, except Welsh.

My hon. Friend the Member for Rhondda raised the idea of apprenticeships for workers who will work on the refurbishment of the House of Commons, with apprentices drawn from around the UK. That is an excellent idea and we should expand on it to make sure that produce from around the United Kingdom is used when this House is rebuilt and refurbished. I put in a bid for Welsh slate for the roof.

The hon. Member for Montgomeryshire mentioned the historic decline in the Welsh language and the growth deal. The hon. Member for Arfon mentioned universal credit and the impact on the most vulnerable in society. The hon. Member for Brecon and Radnorshire said that everything is hunky-dory in Brecon and Radnorshire. He took a Lib Dem seat at the election in 2015, and like a Lib Dem, he was facing both ways on the tidal lagoon, so da iawn.

My hon. Friend the Member for Cardiff North rightly made reference to Jack Sargeant’s election victory and contrasted the Welsh Government’s investment in Wales with the Tory Government cuts. My hon. Friend the Member for Swansea East is one of the greatest campaigners in the House, on the WASPI issue and on payment for children’s funerals.

My hon. Friend the Member for Newport West, author of “Commons Knowledge”, made reference to the tidal lagoon, which he fully supports. My hon. Friend the Member for Merthyr Tydfil and Rhymney mentioned the pay cap, community safety and MOD contracts. Finally, my hon. Friend the Member for Swansea West berated the Government for their lack of clarity on Brexit.

Many wise words have been spoken today, and I hope that the Secretary of State for Wales will listen. In the short time that I have, I would like to concentrate on one or two issues. The first is Brexit. Our relationship with the EU and EU countries is not viewed through the lens of what is good for the UK, but what is good for the Tory party. Businesses, universities, unions and the public are begging for leadership and direction from the Government; all they are getting is infighting and political poison. On Brexit, Cabinet members and Members on the Front Bench are like rats in a sack. That is not good enough. We are less than 13 months away from leaving the EU. We want clarity.

Wales has received £9 billion in investment from Europe, match funded by the UK. What will we get after we have left the EU? Those questions need to be answered. Airbus, Toyota and Ford are asking for a soft Brexit. Will they get it? Our Welsh universities want to know what level of co-operation or isolation there will be when we leave. When will they be told? Our Welsh farmers are asking what will happen to Welsh lamb next year, 90% of which is exported to Europe. When will they be told? Our Welsh workers want to know what will happen to their hard-won freedoms and rights, secured through Europe. When will they be told? You may have noticed a theme there, Mr Hanson. Those are right and responsible questions raised by individuals, organisations and sectors. Again, we are only 13 months away. Like us, they want answers, and I urge the Secretary of State to provide them.

The Secretary of State made much of the increase in funding to Wales in the Budget, but his figures were demolished by the shadow Secretary of State for Wales, who rightly pointed out that much of the increase was in the form of loans that have to be paid back. She pointed out that the smoke and mirrors of those announcements cannot obscure the fact that, by 2020, the Welsh budget will be £1.1 billion less than it was in 2010. Let me put that in a historical perspective. When I came to Parliament in 1997, the Welsh block grant was £6.5 billion. By 2010, when Labour left office, it was £15 billion—it had doubled. Over the 10-year period between 2010 and 2020, the Welsh block grant will have decreased by £1.1 billion.

Several speakers spoke about the missed opportunity in the Budget to end austerity. The Government have tried austerity for eight years—it is the only tool in their box—and it has not worked. All we have had is cuts, cuts and more cuts. Other economies have tried a mixture of prudent cuts and sensible, targeted investment. That worked in the 1930s in America under Roosevelt, who was elected four times. It worked under Obama, and it worked in France and Germany. We need to pump-prime our economy. We are eight years on, and our wages are lower than they were 10 years ago. What little growth that exists is channelled into the hands of the rich, who have seen massive increases to their salaries, benefits and bonuses. Targeted pump-priming in Wales could have included the electrification of the rail line to Swansea and Holyhead, and tidal lagoons in four areas around Wales. Those are lost opportunities.

The Secretary of State made much in his introduction of the £600 uplift in the national living wage, which was announced in the Budget. Let us put that in perspective, in terms of the cuts experienced by the vast majority of workers since 2010. It is plain to see that the cuts are aimed at the most vulnerable in our society: 80% have fallen on the backs of women. Is it any wonder that data I uncovered last week reveals that 20% of local authorities have witnessed a decrease in female life expectancy since 2010—this on the anniversary of women’s suffrage. Wages have been frozen in the public sector for years. Teachers are £5,000 worse off now than they were 10 years ago. The cruellest cuts have fallen on the poorest, the disabled, the unemployed and the dying, who have been hit with benefit freezes, the bedroom tax, botched universal credit and a public sector pay cap. It is not just about the cuts; many of those groups have been demonised by the Government. The Government have promoted zero-hours contracts, the gig economy and in-work poverty. Indeed, 66% of those in poverty are actually working. There was nothing for those groups in the Budget.

Those are the statistics. Let me give hon. Members the stories. Don Lane, a DPD courier—self-employed in the gig economy—was fined £150 for attending a medical examination for his diabetes. He later collapsed and died of the disease. That may not have happened in Wales, but every single one of us, regardless of our party, knows of cases like that in our constituencies.

In 2016, Darren Taylor of Connah’s Quay applied for personal independence payments after his wife was diagnosed with breast cancer. The Department for Work and Pensions refused. In January 2017, he reapplied. Despite the fact that the pain his wife was going through left her largely confined to the house, the DWP said that she was not ill enough to qualify for an enhanced rate. The family appealed the decision, but before receiving a tribunal date Belinda Taylor died aged just 44, leaving four children. Three months after she died, the award was made to the family. That is the reality of the Budget that was passed by the Government. It hits the poorest in our communities. I ask the Minister to think again and to take the message back from all these good people on both sides of the Committee that austerity is not working.

[The Parliamentary Under-Secretary of State for Wales (Stuart Andrew)]

Mae wedi bod yn bleser gwasanaethu o dan eich cadeiryddiaeth, Mr Hanson. Hoffwn ddiolch hefyd i fy Nghyfaill gwir anrhydeddus, Ysgrifennydd Gwladol Cymru am ei ddatganiad agoriadol a’i gyfraniad allweddol, ac hefyd i’n Hysgrifenyddion Seneddol Preifat, fy Nghyfeillion anrhydeddus yr Aelodau dros Sir Drefaldwyn a dros Brycheiniog a Sir Faesyfed.

Rydw i newydd orffen fy mis cyntaf fel Is-Ysgrifennydd Gwladol Cymru ac rydw i’n croesawu’r cyfle i ddathlu’r garreg filltir hon trwy gloi trafodaeth ddiddorol yr Uwch Bwyllgor Cymreig. Hoffwn ddiolch i’r Aelodau anrhydeddus am gymryd rhan yn y drafodaeth hon. Mae’n amlwg i mi ein bod ni i gyd am gael y gorau i Gymru. Rydym ni i gyd am weld Cymru fwy llewyrchus ac, yn anad dim, rydym ni i gyd am weld Cymru sy’n addas ar gyfer y dyfodol.

Gan mai dyma’r tro cyntaf i fusnes seneddol gael ei gynnal yn Gymraeg, rydw i am barchu’r Uwch Bwyllgor Cymreig a thraddodi cymaint o fy araith â phosib yn Gymraeg. Fodd bynnag, gan fy mod i’n ymgyfarwyddo o'r newydd â’r iaith hyfryd hon, dydw i ddim yn teimlo’n ddigon hyderus i draddodi’r araith gyfan yn Gymraeg. Gobeithio y bydd yr Aelodau anrhydeddus yn deall os byddai’n troi i ymateb yn Saesneg.

(Translation) It is a pleasure to serve under your chairmanship, Mr Hanson. I thank my right hon. Friend the Secretary of State for Wales for his opening statement and key contribution to this fascinating debate. I also thank our Parliamentary Private Secretaries, my hon. Friends the Members for Montgomeryshire and for Brecon and Radnorshire.

I have completed my first month as the Under-Secretary of State for Wales and I welcome the opportunity to celebrate that milestone by closing our interesting discussions in the Welsh Grand Committee. I thank hon. Members present for taking part. It is clear that we all want the best for Wales. We all want to see a more flourishing and prosperous Wales and, above all, a Wales that is fit for the future.

As this is the first time that parliamentary business has been undertaken through the medium of Welsh, I want to respect the Welsh Grand Committee by giving as much of my speech as possible in Welsh. However, as I am currently reacquainting myself with this wonderful language, I do not feel confident enough to deliver my whole speech in Welsh. I hope hon. Members will understand if I break off and respond in English.

I grew up in Anglesey, as hon. Members know, and I learned Welsh as a second language—my family do not speak Welsh. I am slightly concerned because—I must confess—I stood for the old Gwynedd County Council in the 1990s. I was not successful.

[Chris Ruane]

Which party?

[Stuart Andrew]

The Conservative party.

I translated my leaflet into Welsh because I thought it was important to have it in both languages. I had it checked by Councillor Goronwy Parry, who was a Conservative councillor in Anglesey, and much to my surprise, he said that most of it was all right. At the last minute, however, I thought I would be clever and put a slogan on the front that said, “A local man for local needs”. Knowing that the word for need is “angen”, I thought I had my Welsh correct, but I put, “Dyn lleol am angau lleol”. Hon. Members will know that that means, “A local man for local death”. That is why I will stick to English for the rest of my speech, if I may.

My right hon. Friend the Secretary of State for Wales touched on some remarkable points in his opening statement and I want to convey how significant they are for Wales. With my roots firmly in Anglesey, I welcome the north Wales growth deal and I am delighted that formal negotiations have begun. I look forward to working with local partners to ensure that we agree on a deal that is right for the whole of north Wales.

The Budget delivers for Wales through a range of commitments, such as the fair funding settlement for the Welsh Government, a city or growth deal to cover all parts of Wales, an increase in rail infrastructure investment, further work on sector deals and the development of cross-border opportunities.

We have shown that Wales is open for business. There has been a positive response to the planned abolition of the tolls, and I am looking forward to that building new links between the south of England and the south of Wales. The Budget not only helps to shape Wales but helps every individual by saving them money by abolishing tolls and freezing fuel duty and by providing them with extra funds by increasing the personal allowance and the national living wage.

References have been made to two people who I, too, want to comment on. When my Welsh was much better, I used to spar with Rhodri Morgan on Welsh-language politics shows. He was always a most courteous man, and very kind to a very young person. I will also offer my congratulations to Jack Sargeant on his election last night; I wish him well in the job that he is doing.

I want to touch on the economy. We have heard mention of the north Wales growth deal, and the tributes and compliments paid to Ken Skates. I am yet to meet him, but I plan to do so. I have written to him to say that I am keen to meet him to see how we can work together to progress the north Wales growth deal. It is important and I look forward to that constructive engagement and co-operation. I have already met the leaders of the north Wales growth deal, Councillor Aaron Shotton and Councillor Dyfrig Siencyn. We had a very constructive meeting and I look forward to working with them in the future.

I am acutely aware, and hon. Members have mentioned, that we must ensure that the growth deal is as beneficial to north-west Wales as it is to north-east Wales. As someone who grew up in Anglesey but then moved and lived in Wrexham, I can see the qualities of both those areas, and I look forward to working with them. Equally, we must get on with the mid-Wales growth deal. I look forward to working with hon. Members so that we can build on the successes of the Cardiff and Swansea deals and maximise opportunities presented by the toll changes.

We talk about the corridors of power in this Parliament, but I hope that north, mid and south Wales will become the true corridors of power for England and Wales. A big part of that will be improving connectivity, particularly broadband, and I am acutely aware of the need for us to spread that out further. It is good news that 95% of premises in Wales are connected, but we have to do more for rural areas in particular.

I want to talk about universal credit, which a number of Members have raised. It is important that we recognise that the benefits system was in need of some major changes. The hon. Member for Arfon talked about that very sensibly. We have to make sure that people do not get themselves trapped on benefits. I do not mean that in the sense of some political language that people may use. Genuinely, it cannot be right that somebody who works a minute over 16 hours is in danger of losing all their benefit. That is the idea behind this. In the Budget, we listened to the concerns people raised and we brought about changes to make it a better system. As far as I am concerned, as we roll this out we should continue to learn lessons from the people we work with, and we will continue to do so. It is important to recognise that unemployment has come down in Wales by 73,000 since 2010. We have brought in a national living wage, and the personal allowance is helping 61,000 Welsh workers out of tax altogether. We should celebrate that. Those figures relate to 2017-18 and compare favourably with just two years ago.

I now want to come to the points raised by the hon. Member for Swansea East about child burial fees. I spent most of my life before coming here working in the children’s hospice movement, and I am acutely aware of the really difficult time that parents go through when they lose a child. I have not been blessed with the fortune of being a father myself, but I have seen the real difficulties that families go through. While cross-Government work is looking at the support that can be offered to bereaved parents, by simplifying the payments and so on, on a personal level I would like to meet her to see what I can do going forward.

I am conscious that I have about a minute left. I will finish by saying that, yes, there has been talk about austerity and about the payments for Wales, but let us not forget why we are in this position in the first place. [Interruption.] I have 30 seconds—I had better shut up! I thank all hon. Members for their contributions. I look forward to having many more debates with them in the future, when I hope my Welsh will be much improved and I can speak even more.

Question put and agreed to.

Resolved,

That the Committee has considered the matter of the Autumn Budget as it relates to Wales.