David T C Davies
Main Page: David T C Davies (Conservative - Monmouth)Department Debates - View all David T C Davies's debates with the Wales Office
(3 years, 8 months ago)
Commons ChamberMy right hon. Friend the Secretary of State has been in regular discussions with Welsh Ministers about the UK shared prosperity fund before and after the announcement of the spending review. Further engagement will take place as further details of the fund are announced.
I thank the Minister for that response. It has been suggested in the other place that the management of the UK shared prosperity fund will involve advisers jointly appointed by the UK and devolved Governments, yet the past few months have shown that this Government do not see themselves as an equal partner to the devolved nations and that they are instead wrongly centralising power to Westminster at the expense of devolution. What guarantees can he give to the devolved nations that they will have a cast-iron equal say on the governance of the UK shared prosperity fund? This is particularly pertinent, given the shocking contempt shown by the Government in trying to railroad through the United Kingdom Internal Market Bill.
The Prime Minister is showing his commitment to the importance of powers for the Scottish and Welsh Governments at this very moment in Brussels, where he is standing up against those bureaucrats who are trying to take powers away from the Welsh Government and the Scottish Government. It is this Conservative party and this Government who are standing up for the devolved settlement, and of course the UK Government will be looking forward to working in partnership with the devolved Administrations around the United Kingdom to ensure that the shared prosperity fund is properly spent.
As well as providing no certainty on the trading arrangements in just three weeks’ time, the Government have also ducked and dived on questions about the funding that Wales will receive in future years. Despite the Tory promise that Wales will not lose a single penny, the actual figures tell a different story. Wales alone was due some £350 million of new money for projects next year, but the Treasury is providing only £220 million for the whole UK. With Wales losing not just pennies but millions of pounds, how can the Government say they have kept their promise?
The Government have kept their promise, because, of course, some of the funding that goes to Wales will still be coming from the European Union after we have left the transition period. If we take the total amount of money that is going to be spent, we will find it is the same. The Government have met their commitment to ensure that the same level of funding is spent in Wales, and we will meet our commitment to ensure that the money is better spent and not wasted, as the Wales Audit Office recently reported on agricultural spending, and is used to level up communities across the whole of Wales.
I am not sure whether that is a conclusive answer, but we are now nearly four and a half years on from the referendum and the Government still cannot provide clear answers on funding, so let me ask the Minister about the criteria on which the funding will be allocated. As he knows, the Welsh Government and local councils have agreed a framework for regional investment in Wales, so can he confirm that his Government will support that framework and not ride roughshod over devolved agreements or make up the spending criteria as they go along?
We are certainly not going to make it up as we go along. Of course, the UK Government have been heavily involved in regional partnerships through the growth deals, which have been working very successfully in Wales as a result of funding from the UK Government. We have already demonstrated our commitment to working in partnership not just with the Welsh Government but with local authorities, because we are absolutely determined that the money that replaces European funding is not wasted, as it has been previously, but is spent on the most needy communities in Wales.
The Government are steadfast in their support for Welsh agriculture, and that is why we have provided the same level of funding for Welsh farmers in 2021-22 as they received in 2019: £337 million a year. That meets our manifesto commitment to guarantee the annual budget for farmers, a commitment that applies for the whole of this Parliament.
We all want to see farmers in Wales and right across the United Kingdom prosper outside the European Union, but how can my hon. Friend ensure that farmers in my Eddisbury constituency will be able to compete with Welsh farmers just over the border who will continue to receive their area payments in the early years of the agricultural transition, whereas all English farmers will see their basic payment scheme payments of £230 per hectare halved by 2024?
As a Government who are committed to the devolved settlement, we obviously will not be telling devolved Governments what they can do with the money; we will simply make sure the money is there. Of course, the United Kingdom Internal Market Bill has been brought forward to make absolutely certain that we do not see a situation where one part of the United Kingdom is able to compete in an unfair fashion with another part of the United Kingdom, and that is why I hope all Members will support that Bill.
My constituency in the Scottish borders is the second-highest recipient of common agricultural policy payments in the United Kingdom. Indeed, four of the top five recipients are in the devolved Administrations. How will the Government support the devolved Administrations with these payments in the future?
I am sure that my hon. Friend’s constituents, like farmers across the whole United Kingdom, are pleased that the British Government will not implement the 10% cut to agricultural payments, which is being brought about by the European Union. He will be pleased that we have used the most generous exchange rate possible to calculate what those payments will be. If he lived in Wales, he would be pleased to know that the UK Government are providing £1.3 billion of additional funding to the Welsh Government, and we look forward to seeing how much of that will be used on agriculture.
My right hon. Friend the Secretary of State wrote to the First Minister before he announced the closure of pubs in Wales and asked him to consider a tiered structure for covid restrictions, which would have better targeted areas with a high incidence of the virus. Regrettably, at that time the First Minister chose not to do so. I believe he may now be about to follow my right hon. Friend’s advice.
Before the Welsh Labour Government had the bright idea of bringing in a circuit breaker, the infection rate in Wales was 33 per 100,000 head of population. Since then, Wales has had one of the toughest lockdowns. Pubs have to close at six o’clock and they cannot serve alcohol. Infection rates in Wales are now 423 per 100,000. Have Welsh Government Ministers confided in my hon. Friend the reasons for this raging success, and is it perhaps that people in Wales have been so driven to drink with despair that they have to do it at home without social distancing, rather than in pubs?
It is a sad fact that at the moment Wales has the highest number of cases per 100,000 in the UK, the highest number of deaths per 100,000, and the lowest amount of testing, but I do not think my right hon. Friend the Secretary of State and I wish to make any political point out of that. All of the United Kingdom has suffered. What I think we would welcome is a recognition that the Welsh Labour Government do not have some sort of magical answer to this situation which has eluded everybody else. We would welcome Welsh Ministers sitting down and working with the Secretary of State for Health and Social Care and the UK Government, so we can tackle this pandemic together as one nation.
As we have heard, pubs in north Wales have been closed down by the Welsh Government and their trade is being destroyed, despite the fact that infection rates in north Wales are significantly less than in much of south Wales. When my hon. Friend does speak to Welsh Ministers, can he urge them to adopt a more intelligent and nuanced approach to covid restrictions? Otherwise, many of those pubs will never reopen.
As I have just said to my hon. Friend the Member for East Worthing and Shoreham (Tim Loughton), we would welcome the Welsh Government working in tandem with the UK Government to bring in a tiered system, so that in areas with a low incidence of the virus fewer restrictions are put in place. I believe that is an approach the Welsh Government are finally going to adopt. We look forward to sitting down and working with them.
My right hon. Friend the Secretary of State has regular discussions with the First Minister and Welsh Ministers on a range of issues, including the UK shared prosperity fund.
Nadolig llawen i chi, Mr Speaker.
We have heard a lot from the Minister about the shared prosperity fund this morning, but I am still none the wiser on the details. What guarantees can the Minister provide that the long-awaited shared prosperity fund will provide no reduction in moneys received by the Welsh Government compared with current structural funding? What guarantees can the Minister provide that it will be the Welsh Government who decide how the money is allocated in Wales?
We have already made the commitment that the amount of money will match everything that came from Europe. Previously, the European Union held the strings and controlled how the money was spent; now, it will be the UK Government working in partnership with local authorities and the Welsh Government to ensure that the money is spent wisely.
The Minister says that the money will be matched, but when the dealing is done, will the so-called shared prosperity fund in fact turn out to be a pared back austerity fund for Wales, in keeping with normal Conservative practice? Merry Christmas.
The shared prosperity fund will mean more money going into Wales, along with more powers, which will come about as a result of Brexit, going to Wales. We are looking forward to putting our Conservative record before the people of Wales in the elections next May.
If, like the road to hell, this UK Government’s proposals regarding the shared prosperity fund are littered with good intentions, their actions, as with the United Kingdom Internal Market Bill, show that they are most interested in accumulating power to themselves. Please can the Minister explain when exactly we will learn what the mechanism will be for involving the Welsh Government in deciding which people, communities and local businesses will receive the necessary funding to enable them to level up, who will be the final arbiter, how much money will be available and when the process will begin?
We have already said that discussions are ongoing, that the money will be matched, and that the shared prosperity fund will deliver our levelling-up agenda across Wales. The Labour party spent a long time saying that there would not be any money and that there would not be any interest in Wales, but the reality is that we have shown that the money will be there and we want to make sure that it is used properly. Those sorts of arguments might raise a few cheers at Labour party conferences, but the people of Wales will be pleased to know that that money is going to come and that that interest in levelling up the whole of Wales will follow.