Oral Answers to Questions

David T C Davies Excerpts

Wednesday 19th April 2023 Commons Chamber

[Mick Whitley (Birkenhead) (Lab)]

1. What recent discussions he has had with Cabinet colleagues on the cost of living in Wales.

[The Secretary of State for Wales (David T. C. Davies)]

I have regular discussions with Cabinet colleagues on a range of topics. The Government are providing total support of more than £94 billion across the UK to help households and individuals with the cost of living, at an average of more than £3,300 a household. That includes extending energy support by keeping the energy price guarantee at £2,500 for the next three months.

[Mick Whitley]

Last month, we learned that household incomes are falling at the fastest rate since records began, forcing the people of Wales to work even harder for less in return, but Britain’s leading food retailer has gouged more than £3 billion in profits from its customers over the past two years alone. With food inflation now at 19%, does the Minister agree that we are living through a cost of greed crisis? When will this Government get serious about tackling the excessive profiteering that is driving up prices and causing real pain for families across Wales and the UK?

[David T. C. Davies]

The Government are serious about dealing with the cost of living crisis, and that is why I am pleased that inflation is shown to be continuing to fall at the moment. This Government are on track to reach our target of halving inflation over the next year. This Government have always supported the most vulnerable in society, which is why I am pleased that we have made sure that pensions, benefits and the minimum wage have gone up in line with inflation.

[Mr Speaker]

I call the Chair of the Select Committee.

[David T. C. Davies]

My right hon. Friend is absolutely correct. It really is extraordinary that the Welsh Labour party not only wants to spend millions of pounds handing out a universal basic income to people including asylum seekers, but then wants to exempt them from having to pay the same legal bills that the rest of us would be subject to. This Government will continue to support the most vulnerable in society, and that is why I am pleased not only with the raising of pensions, benefits and the minimum wage in line with inflation, but with the extra payments made to those most in need.

[Alex Davies-Jones (Pontypridd) (Lab)]

Last week, in response to the cost of living crisis, the Labour Government in Wales increased the education maintenance allowance to £40 a week. This boost is a lifeline to thousands of students in Wales, and I am proud that we have a Labour party stepping up to help, while the UK Government have turned a blind eye. I am sure that the Secretary of State welcomes the uplift, so can he therefore share what discussions he is having with his Cabinet colleagues to ensure that the UK Government can once again follow the Welsh Labour Government’s lead?

[David T. C. Davies]

I can assure the hon. Lady that there are no circumstances under which the UK Conservative Government would want to follow the lead of the Welsh Labour Government, who are coming forward with policies such as raising taxes by wanting to charge people for using the motorways, bringing in a tourism tax and even scrapping meal deals. How will that help a cost of living crisis?

[Tom Hunt (Ipswich) (Con)]

Just to hammer home the point that has already been made, does the Secretary of State agree that it speaks to the kind of values that the Labour party has that it is prioritising providing huge support for those who have illegally entered our country over maximising cost of living support for Welsh citizens? The same might be the case in England, were a Labour Government ever to be elected.

[David T. C. Davies]

My hon. Friend is absolutely correct. The humanitarian response is to disincentivise people from risking their lives by crossing the channel illegally and arriving in small boats. That is why last night I jointly signed a letter that rejects what the Welsh Labour Government are asking for. We are not prepared to see the Welsh Labour Government handing out universal basic incomes to people who should not be in this country in the first place, and then on top of that providing them with legal funding and lawyers, so that they can challenge the decisions being made by the Government. Those are not the priorities of the Welsh people.

[Mr Speaker]

I call the shadow Secretary of State.

[David T. C. Davies]

Of course, the hon. Lady is correct that we have had financial problems, as a result of having to spend £400 billion during the covid pandemic and the inflation that has been caused by the illegal invasion of Ukraine, and that is why the Government have continued to support the most vulnerable in society. However, the fact of the matter is that the Welsh Labour Government’s response to all of this seems to be to squander taxpayers’ money, with £100 million going to create extra Members of the Senedd, £150 million wasted on plans for a relief road that was never going to be built and now more millions of pounds to be spent on universal basic income and legal fees for asylum seekers.

[Jo Stevens]

The Secretary of State mentioned inflation earlier, but of course falling inflation does not mean that prices are falling—just that the rate of the price rises is slowing. If Cabinet Ministers cannot get a grip on basics like that, it is no wonder the economy is in such a mess. Is it not the reality that his Government continue to fail households right across Wales, while protecting and rewarding the super-wealthy by refusing to abolish non-dom status and giving a huge pension bung to the top 1%?

[David T. C. Davies]

First, of course, the so-called top pension bung was for doctors, which is actually something that Labour Members had called for themselves. If the hon. Lady is seriously worried about food prices, perhaps she could explain why the Welsh Labour Government want to scrap meal deals and stop people enjoying a drink and a packet of crisps with their food. The fact of the matter is that we will prioritise our help towards the most vulnerable, while the Welsh Labour Government continue to squander it on people who do not need it.

[Mr Speaker]

I call the Plaid Cymru spokesperson.

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

My constituents Malcolm Atherton and Beth Cluer run a café in Trawsfynydd, and they have had to face making the heartbreaking decision to hibernate their business in the face of cripplingly high energy bills. Small and medium-sized businesses are the beating heart of the Welsh economy and employ 62.6% of Welsh workers, yet they received no additional support with their energy bills from the Chancellor in the spring Budget. To ensure that Malcolm and Beth can one day reopen their café, will the Secretary of State be urging his colleagues in the Treasury to increase the energy support available to small businesses?

[David T. C. Davies]

The right hon. Lady will be aware that the Government have provided an unprecedented package of subsidies for businesses through this winter worth £18 billion—those were figures set out by the Office for Budget Responsibility—and, in addition, there have been things such as the freeze on fuel duty. I am very sorry to hear about the circumstances that some individual businesses face, but I can absolutely assure the right hon. Lady that supporting businesses through this difficult time remains a priority for this Conservative Government.

[Liz Saville Roberts]

Of course, businesses that are off grid have suffered another experience and a lack of support, but with your tolerance, Mr Speaker, I would like to take the opportunity to raise another matter with the Secretary of State.

Thames Water wastes 630 million litres of water every day through leaky pipes. Rather than fix this environmentally baffling waste, they are planning on moving vast volumes of water from Wales instead. Our natural resources are being diverted elsewhere without recompense, and without consultation with local people either. He says he is Wales’s man in Cabinet. Will he prove it by activating section 48 of the Wales Act 2017 so that decisions about Wales’s resources are made by the people of Wales in Wales?

[Mr Speaker]

Order. Can I just say to the right hon. Lady that I have a lot of people trying to get in and that this is unfair? You do get the two questions. Please do not take advantage of the rest of the Chamber.

[David T. C. Davies]

I am not responsible for Thames Water, but I have regular meetings with Welsh Water, and this is not an issue it has raised with me. One of the things I am sure the right hon. Lady would agree with is that Welsh Water needs to do more to ensure that there is less sewage and less leakage going into our rivers. Holding it to account is of course something for which the Welsh Labour Government are responsible.

[John Mc Nally (Falkirk) (SNP)]

2. What assessment he has made of the adequacy of the funding settlement for Wales.

[Patrick Grady (Glasgow North) (SNP)]

13. What assessment he has made of the adequacy of the funding settlement for Wales.

[The Secretary of State for Wales (David T. C. Davies)]

The Welsh Government are well funded to deliver for Wales. The spending review provided the Welsh Government with a record block grant of £18 billion a year. As a result of the Budget, Welsh Government funding is increasing by a further £180 million over the next two years. This is all on top of the additional £1.2 billion announced at the autumn statement.

[John Mc Nally]

I thank the Secretary of State for that answer, but the UK Government, as he has just alluded to, have recently clawed back £155 million from the Welsh Government Budget, rather than allowing it to be carried forward into the next financial year. I can only assume that, in clawing back these funds, for some bizarre reason the Secretary of State thinks the UK Government are working in the best interests of the Welsh people. Can he tell us if that is so?

[David T. C. Davies]

The funds were not “clawed back”, and there was no “bizarre” reasoning about it. The money was not spent by the Welsh Government; they managed to fail to spend £155 million in the midst of a pandemic, which is extraordinary. The Welsh Government are receiving £1.20 on the NHS for every £1 spent in the United Kingdom, and that money is not being passed on in full. That is why in Wales, under a Labour Government, we wait longer for our ambulances, longer on hospital waiting lists, and we have less access to the treatment that people are now taking for granted in England.

[Patrick Grady]

The Secretary of State is making the case for precisely the kind of financial flexibility that the devolved Administrations require. The reality of inflation and the mishandling of the economy is that the Welsh budget is worth £4 billion less than it was when it was first agreed, and the same thing is happening in Scotland. If the Government will not adequately finance the devolved institutions, why will they not devolve reasonable borrowing powers, so that we can ensure that adequate budgets are set for the benefit of our constituents?

[David T. C. Davies]

If I ever decide that I want to have lessons in sound management of public finances, I probably will not be asking the Scottish National party. The Welsh Labour Government have had a real-terms increase in spending over the spending review period, and it is for others to answer for why they are unable to deliver the same level of healthcare and education, why they are not building roads, and why they are spending the money they are getting on paying the legal bills of asylum seekers.

[Virginia Crosbie (Ynys Môn) (Con)]

Under this UK Government, my constituency has been awarded £17 million from the levelling-up fund to regenerate Holyhead, £20 million to refurbish the Holyhead Gateway, £16 million from the shared prosperity fund, £2.7 million from the culture recovery fund, hundreds of new jobs at the inland border facility, £175 million for the RAF Valley, and now Anglesey has freeport status, with the potential to create 13,000 jobs and £1 billion to the economy. Does the Secretary of State agree that this Conservative UK Government are determined to level up places such as Anglesey in north Wales that have been forgotten by Labour in Cardiff—

[Mr Speaker]

Order. Can we try to help? I want to get more people in, and the only way I can do that is with shorter questions.

[David T. C. Davies]

Others in the House may try to shout down my hon. Friend, but they will not succeed, because she has been unstinting in her support for her constituency. It is no coincidence that the Prime Minister wanted to make Ynys Môn the first place he visited as Prime Minister, to celebrate the announcement of growth deals that will deliver growth and levelling up across the whole of Wales and the United Kingdom.

[Mr Speaker]

I call Michael Fabricant.

[Michael Fabricant (Lichfield) (Con)]

Many of my constituents, including me, visit Tywyn in Gwynedd. Is my right hon. Friend aware that people need healthcare there, funded of course by the grant, yet Tywyn Hospital has closed its minor injuries unit and its in-patient ward? Will he speak to the Welsh Minister for Health and Social Services and discuss how English tourists will get proper healthcare when they are on holiday in Wales?

[David T. C. Davies]

I am, as ever, grateful to my hon. Friend for his comments, but unfortunately I am unable to give a detailed answer because the national health service is devolved in Wales. I very much hope that Welsh Labour Ministers will want to explain why, with all the extra money they are getting, above the money that is given to the national health service in England, they are unable to deliver the same standards of healthcare, or for that matter education, as those we take for granted under a Conservative Government run in Westminster.

[Mark Tami (Alyn and Deeside) (Lab)]

3. What discussions he has had with Cabinet colleagues on the impact of rising private rental costs on renters in Wales.

--- Later in debate ---

[Ashley Dalton (West Lancashire) (Lab)]

12. What recent discussions he has had with Cabinet colleagues on rail infrastructure in Wales.

[The Secretary of State for Wales (David T. C. Davies)]

I regularly engage with Cabinet Ministers on a range of transport measures. Over £390 million has already been provided for rail improvements in Wales since 2020, including at Bow Street Station, with the electrification of the Severn tunnel and through Cardiff Crossrail.

[Liz Twist]

Avanti chaos has hit services between Holyhead and Crewe. For communities in north Wales and the north-west of England, the line is an ongoing nightmare. What guarantees will the Secretary of State provide that those services will be restored?

[David T. C. Davies]

The hon. Lady has a point. A number of complaints have been made about Avanti by Members of Parliament of all parties and I think there is a recognition that things could be a lot better than they are. Avanti is well aware of that and has been told that it needs to improve the service quickly. I can assure her that the Department for Transport is well aware of the problems she raises.

[Ashley Dalton]

Rail connectivity is crucial to the border communities of Wales and England, such as connections between Wrexham and Merseyside. Furthermore, Merseyside is just as inaccessible for some communities in the north of England as it is in Wales. Skelmersdale in my constituency is a community of 40,000 people, but has been left without access to a train station since 1958. Will the Secretary of State tell me how the Government plan to make sure our communities on both sides of the border have access to rail services?

[David T. C. Davies]

I welcome that question from the hon. Lady. I am sure the people of north Wales would welcome many more of her constituents coming down to visit and spending money in the local tourism industry, if they can afford the tourism tax imposed by the Welsh Labour Government. To answer her question simply, there will be a rail network enhancements pipeline review out shortly. I believe it will contain good news for rail users across Wales, which will benefit travellers from across the United Kingdom.

[Kevin Foster (Torbay) (Con)]

With meal deal bans, tourism taxes and road charges, it is no surprise that many Welsh residents will be thinking of getting the train for a holiday in Torbay to avoid all of them. What discussions is the Secretary of State having to ensure that the rail infrastructure between south Wales and the south-west of England will be able to cope with the demand?

[David T. C. Davies]

I am sure that Torbay is a wonderful place, but I would still recommend that people come to Wales instead to enjoy its coastline. To do that, they would need to go either by train or by car, so it is unfortunate that the Welsh Labour Government have also decided to stop all road building, whereas the United Kingdom Government are getting on with building roads and railways.

[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

One of the most important rail links into mid-Wales is through Shrewsbury. We are proud to be a border community, and of our links with Wales. We are campaigning for electrification of the line from Birmingham to Shrewsbury and beyond to Wales. Will the Minister take an interest in our project to try to electrify this vital artery for residents in mid-Wales?

[David T. C. Davies]

I will take an interest in that matter, but it is more for the Department for Transport than for my good self. I have taken an interest in the fact that a great deal of work is going on in the Forest of Dean area to ensure that commuters on both sides of the border can enjoy more reliable rail travel.

[Robbie Moore (Keighley) (Con)]

5. What assessment he has made of the potential impact of the Spring Budget 2023 on Welsh communities.