Oral Answers to Questions

David T C Davies Excerpts

Wednesday 6th December 2023 Commons Chamber

[Sarah Atherton (Wrexham) (Con)]

3. What assessment he has made of the impact of the autumn statement on the Welsh economy.

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

The autumn statement set out the UK Government’s plans to grow the economy and incentivise work so that economic growth can be felt throughout the United Kingdom. That will include a national insurance tax change from January, which will put £324 back into the pockets of 1.2 million workers across Wales.

[Sarah Atherton]

North Wales has always been the poor relative to south Wales, where the Welsh Labour Government in Cardiff fund their voter bases. However, thanks to the foresight of this Conservative Government, money is now flowing from Whitehall to Wrexham—£13 million from the levelling-up fund, £20 million from the towns fund, £24 million from the shared prosperity fund and the prospect of a £160 million investment zone. We are working on a civil service hub. Does the Secretary of State agree that, after 20 years of neglect from the Welsh Labour Government, this Conservative Government have put Wrexham firmly on the map?

[David T. C. Davies]

I am absolutely delighted to agree with my hon. Friend: the UK Government are putting Wrexham on the map. I was, of course, delighted with the £160 million investment zone across Wrexham in Flintshire, which was marked by a visit from the Chancellor to the area. The £20 million towns fund for Wrexham will ensure long-term certainty and investment for the area and for the growth deal. I believe that the freeport in north Wales will also benefit my hon. Friend’s constituents.

[Richard Thomson (Gordon) (SNP)]

According to research from the Bevan Foundation, nearly one in four Welsh children have reported having recently been worried about being cold, and around one in eight have worried about being hungry. What are the Government going to do about that?

[David T. C. Davies]

The UK Government have spent £96 billion on measures to help the least well off across the United Kingdom throughout the difficult times brought about by the covid pandemic and the war in Ukraine. On top of that, in the autumn statement we were able to announce a cut in national insurance, which will put more money into people’s pockets. I hope that the hon. Gentleman will be talking to his constituents, who are no doubt hit by the highest taxes in the whole United Kingdom as a result of the policies of the Scottish National party Government.

[Madam Deputy Speaker]

I call the shadow Minister.

[Jessica Morden (Newport East) (Lab)]

May I join others in paying tribute to Glenys Kinnock, who was much loved by us all?

Earlier this year, the Secretary of State told my hon. Friend the Member for Cardiff Central (Jo Stevens) that his Government would prioritise helping the most vulnerable, yet Welsh households still face the consequences of 13 years of his Government’s economic failures, with a historically high tax burden and his own constituents paying on average £240 more each month on their mortgages. Can he explain, then, why his Conservative colleagues in the Senedd are calling for the Welsh Government to withdraw their £40 million mortgage support scheme for those at risk of repossession?

[David T. C. Davies]

The UK Government have already brought forward a mortgage charter to support anyone getting into difficulties. I hope that the hon. Lady agrees that the fact that the Government have delivered on their pledge to halve inflation over the past year will mean that everyone in Wales is better off; that the cut to national insurance will mean that everyone in Wales is better off; and that the increase in the living wage as well the Government’s commitment to ensuring that pensions and benefits are uprated in line with inflation will mean that everyone on low salaries is better off.

[Kevin Foster (Torbay) (Con)]

4. What recent discussions he has had with the Welsh Government on the potential financial impact of proposals to implement a visitor levy for Wales on the tourism sector.

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

The UK Government are investing in Wales and in the Welsh tourism industry, which has been evidenced most recently by the decision to allocate £500,000 to the Hay Festival—a project championed by my hon. Friend the Under-Secretary. It is a pity that the Welsh Government are not taking the same view about the importance of the tourism industry and are introducing a tax that signals that Wales is closed for business.

[Kevin Foster]

I thank my right hon. Friend for his answer. It is no surprise that hitting tourists with a tax is likely to deter them from wanting to visit Wales, despite the natural beauty of places such as Snowdonia and the attractions of visiting locations such as Anglesey. Alongside highlighting the folly of this move from the Welsh Labour Government, will he ensure that anyone advocating for a tax on tourism anywhere else in the UK is reminded of the negative impact that it would have on our tourism sector?

[David T. C. Davies]

I can assure my hon. Friend that not only will I be reminding the Welsh Labour Government about the importance of supporting the tourism industry and the folly of introducing a tax, but my Conservative colleagues in the Senedd will also be making that point. I hope that the Welsh Labour Government will listen to them and also listen to the Wales Tourism Alliance, which has said that this tax will be a tax on jobs and a tax on an industry that employs one in 10 people in Wales.

[Virginia Crosbie (Ynys Môn) (Con)]

5. What recent discussions he has had with the Welsh Government on the potential impact of the 20 mph speed limit on rural communities.

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

All of us support speed limits in places where there is a risk to life. I have supported speed limits outside schools, hospitals and other places in my constituency, but the Welsh Labour Government’s policy of bringing in a 20 mph speed limit on all 30 mph roads—a blanket speed limit—is damaging for the economy. By their own figures, they have suggested that it could create a £4.5 billion hit to the Welsh economy. They need to think again.

[Virginia Crosbie]

I thank the Secretary of State for his answer. More than 8,700 people on Ynys Môn and almost half a million across Wales have signed the Senedd petition to rescind and remove the disastrous 20 mph law. In fact, more people have signed the petition than voted for Labour in the last Senedd election. Unlike the Welsh Labour Government, will the Secretary of State listen to people across Wales and join me in calling for the Welsh Labour Government to reverse this new, disastrous 20 mph law?

[David T. C. Davies]

I absolutely agree with my hon. Friend and call on the Welsh Labour Government to rescind the policy of a blanket 20 mph speed limit across Wales. At the same time, I call on them to rescind their policy of building no new roads ever again in Wales, and I call on them to scrap their policy of bringing in road charging for using the motorway network. Is it not interesting that not one Labour Member present is willing to stand up to defend their own Senedd Government policy?

[Bob Blackman]

We have already heard about the importance of tourism to the Welsh economy. Has my right hon. Friend made any assessment of the impact on tourism, which will disappear from Wales as a result of this blanket ban?

[David T. C. Davies]

My hon. Friend makes an interesting point. People will now not only have to pay extra money to come into Wales as a result of the Welsh Labour Government’s tourism tax, but find it a lot slower to get around Wales as a result of the Welsh Labour Government’s speed limits. In my constituency of Monmouthshire, the Labour council has recently decided for the first time ever to bring in charges for people who want to use the shops on a Sunday over the Christmas period, meaning that it wants us to slow down, but not to stop.

[Richard Foord (Tiverton and Honiton) (LD)]

Local authorities in Wales have had the opportunity to exempt roads and villages from the blanket application of a speed limit. Devon County Council has had less discretion. In May this year, 105 parishes in Devon applied to the county council to have a 20 mph limit, but only six applications were granted. Does the Minister accept that an opt-in system for 20 mph zones depends on local authorities having enough funding to exercise discretion?

[David T. C. Davies]

The hon. Gentleman’s party is in charge in Powys—I am not sure whether he is aware of that. The reality is that local authorities across Wales need more funding to implement such policies, which have cost £30 million. The Welsh Labour Government are diverting money from local authorities so that they can spend it on their pet schemes, including extra Senedd Members.

[Ruth Jones (Newport West) (Lab)]

6. What discussions he has had with Cabinet colleagues on the impact of the autumn statement on households in Wales.

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

I have regular discussions with Cabinet colleagues regarding UK Government support for households in Wales, so I was absolutely delighted that in the autumn statement the Chancellor announced a 9.8% rise in the national living wage, providing an extra £1,800 to the annual earnings of full-time workers.

[Ruth Jones]

We are all thinking of the lovely Glenys Kinnock and her family, especially my hon. Friend the Member for Aberavon (Stephen Kinnock), at this sad time.

The number of emergency food parcels distributed by the Trussell—[Interruption.]

[Ruth Jones]

Thank you, Madam Deputy Speaker. The number of emergency food parcels distributed by Trussell Trust food banks in Newport West is on the rise. In 2018, the number of parcels distributed was 1,971. In the same period this year, over 3,000 were distributed to families. There was nothing in the autumn statement that would make that situation better. Why not?

[David T. C. Davies]

With respect, I disagree with the hon. Lady. The fact that inflation has been halved will be of benefit to anyone receiving food parcels. The fact that there has been a cut in national insurance will be beneficial for people. The fact that there has been an increase in the living wage will be beneficial for people. The fact that pensions and benefits are going up in line with inflation is going to be beneficial for people in her constituency. What is not going to be beneficial for her constituents is the Welsh Labour Government wanting to spend over £100 million creating extra Senedd Members.

[Sir Oliver Heald (North East Hertfordshire) (Con)]

The Minister will be aware that he UK-EU Parliamentary Partnership Assembly has been meeting in Westminster this week. It was made clear by the co-chair, Natalie Loiseau MEP that Glenys Kinnock had made a huge contribution in the European Parliament, particularly in advocating for women’s rights. That was something that she wanted to record, so it is not just in this Parliament that Glenys Kinnock will be remembered for her role in politics.

Does my right hon. Friend agree that the cut in national insurance contributions, the improvement in the national living wage and the cutting of inflation are crucial to Welsh households, as they are across the UK?

[David T. C. Davies]

I agree with my right hon. and learned Friend on all those points—first, that Glenys Kinnock made an enormous contribution to politics in this country, as has her husband, to whom we send our condolences, and as does her son who, at this very moment, is working hard to support steelmaking in south Wales. It is a pleasure to work with him on the transition board in Port Talbot, even though we have disagreements from time to time on political matters. May I add to the tributes and support everything that my right hon. and learned Friend said?

I agree that the recent changes in the autumn statement will be beneficial for people in Wales.

[Selaine Saxby (North Devon) (Con)]

7. What discussions he has had with Cabinet colleagues on expediting the development of floating offshore wind in the Celtic Sea.

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

I have regular—in fact, frequent—conversations with Cabinet colleagues and stakeholders to support the floating offshore wind industry, which will create high-quality jobs in Wales. The Government fully support plans for up to 4 GW of floating offshore wind in the Celtic sea, and we are working to bring forward an additional 12 GW through the 2030s, with the potential to bring forward up to £20 billion-worth of investment.

[Selaine Saxby]

Previous offshore wind developments on England’s east coast have shown that appropriate planning is needed to minimise disruption to communities. Does my right hon. Friend agree that the development of floating offshore wind in the Celtic sea should mean single-cable corridors—one to his side of the water, and just one to the north coast of Devon or Cornwall—to reduce environmental and societal disruption?

[David T. C. Davies]

I know that the electricity systems operator is currently reviewing the design of connections for offshore wind projects. Last week—or possibly earlier this week—I met the Crown Estate, and I have been meeting National Grid to discuss some of the issues around cabling and the reconfiguration of the grid. The decision as to where the cables will go and how many of them there will be is a fairly technical one that I fear I am not qualified to take a view on, but I can assure my hon. Friend that the Crown Estate and National Grid would be more than happy to talk to her about that.

[Jim Shannon (Strangford) (DUP)]

Any onshore and offshore wind in the Celtic sea will affect fishermen in Northern Ireland as well. Can the Secretary of State assure me that, when it comes to plans for offshore wind, the fishing organisations in Northern Ireland, Scotland and Wales will all have input on where it happens, so that fishing will not be affected?

[David T. C. Davies]

The hon. Gentleman makes a good point. In sparking a floating offshore wind industry, certain challenges need to be dealt with together with various other Government Departments—he has made reference to one challenge. I can assure him that I have already had informal discussions about that, and will be looking to have more such discussions with the Department for Environment, Food and Rural Affairs and other Government Departments to ensure that we overcome all the challenges and create a vibrant, sustainable industry for the future.

[Alex Cunningham (Stockton North) (Lab)]

8. What recent discussions he has had with Cabinet colleagues on the cost of energy bills in Wales.

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

I have regular discussions with Cabinet colleagues on a variety of issues, including the cost of energy bills. The Government recognise the challenges posed by cost of living pressures, which is why we are providing on average £3,700 per household from 2022-23 to 2024-25 to support households and individuals with the cost of living.

[Alex Cunningham]

The Minister may not be aware of the very successful Warm Wales programme in the noughties, which saw tens of thousands of homes have their cavities and lofts insulated, saving residents in Neath, Port Talbot and Wrexham hundreds of pounds every year. Do the Government recognise that concentrated schemes of that nature have a major impact on fuel poverty, and will Ministers steal our plans, which would see hundreds of thousands more households benefit?

[David T. C. Davies]

I am well aware that there are a number a renewable energy schemes that could have a positive benefit on householders in Wales, which is why the UK Government have been so supportive of the potential for floating offshore wind in the Celtic sea, and why, in the last round, we arranged higher strike prices for tidal energy. We are looking at a wide range of renewable energy systems that can bring benefits to people in Wales. At the same time, in recognising the cost of living pressures, the UK Government ensured that we were paying around half the average fuel bills for homeowners during the last winter period.

[Alexander Stafford (Rother Valley) (Con)]

9. What steps he is taking to support farming in Wales.