Budget Resolutions and Economic Situation

Christina Rees Excerpts

Monday 8th March 2021 Commons Chamber

[Christina Rees (Neath) (Lab/Co-op) [V]]

The Chancellor’s Budget has created a new cliff edge at the end of September. The furlough scheme stops at the end of September. It should be extended and be flexible. The 5% VAT reduction for food and drink in pubs and restaurants stops at the end of September. It should be extended and include the close contact service industry. The universal credit £20 uplift stops at the end of September. It should be made permanent and include legacy benefits. The Office for Budget Responsibility forecasts peak UK unemployment of 6.5% at the end of September. That is 2.2 million people without jobs at a time when coronavirus and flu may be overwhelming.

The Chancellor’s Budget is rhetoric over substance, playing down his £4 billion of cuts. Austerity is not over in Wales. While we wait for his rhetoric to turn into substance, the Welsh Labour Government have stepped in again to protect public services, build a greener future and create positive change for a more equal Wales, filling in the Chancellor’s gaps in support to move Wales forward. The Welsh Labour Government’s £2 billion economic resilience fund is the most generous coronavirus support package in the UK, securing 141,000 jobs in Wales.

Hospitality, leisure and tourism businesses in Wales that are affected by ongoing coronavirus restrictions will have an extra £30 million. If restrictions are extended in next week’s Welsh Government review, an extra £150 million will be available through the non-domestic rates scheme, with each business receiving up to £5,000. The business rates holiday for retail, leisure and hospitality in Wales will be extended for 12 months, with a targeted, responsible £380 million for businesses with rateable value up to £500,000, plus charities. Together with the small business rates relief scheme, that ensures that more than 70,000 businesses will not pay rates in 2021-22. Kate Nicholls, chief executive of UKHospitality said:

“The Welsh Government has again listened directly to our constructive proposals for more vital support and the new money will play a leading part in continuing to save local jobs and local businesses”.

One potential investment for Neath is the Chancellor’s announcement of £30 billion for the global centre for rail excellence in Onllwyn. Since 2016, the Welsh Labour Government have partnered with current landowners Celtic Energy, the rail industry, academics and Neath Port Talbot and Powys local authorities, and had positive consultations with local communities. Let us hope that this announcement is substance, not rhetoric.