Autumn Budget as it Relates to Wales

Gerald Jones Excerpts

Wednesday 7th February 2018 General Committees

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

Diolch yn fawr, Mr Hanson. I pay tribute to my hon. Friend the Member for Swansea East for the passionate and compassionate way in which she has organised her campaign. I hope that the Government will take the time to listen to her campaign. It is a pleasure to speak in this historic Welsh Grand Committee and it is sad that it is only the second to be held in the two and a half years since I was elected to this place.

The Prime Minister and her UK Tory Government have slashed funding to Wales by more than £l billion per annum, and have imposed a public sector pay cap that impacts on Welsh workers and those across the UK in our most vital public services. We have heard time and again that the Government have refused to invest in vital Welsh infrastructure projects such as the Swansea bay tidal lagoon and rail electrification. Unfortunately, the Chancellor did not use the opportunity of his autumn Budget to address those shortcomings and to invest in Welsh infrastructure, to end the Tories’ failed austerity agenda or to lift the public sector pay cap. This Budget really felt like missed opportunities for Wales. It is clear that this Tory Government have proven time and again that they have little or no respect for Wales.

I would like to concentrate briefly on three areas, the first of which is the public sector pay cap. As the shadow Secretary of State, my hon. Friend the Member for Neath, touched on this morning, although the UK Government have made pay offers in excess of 1% for some sectors, the pay cap effectively remains in place for the vast majority of public sector workers. It is important that the Government do not cherry-pick pay rises for some public sector workers in what could be seen as an attempt to divide. We need to see an end to the public sector pay cap, with a fully funded pay rise for all those working in our public services.

Local authorities have tried to help to ease the situation. The two local authorities serving my constituency, Merthyr Tydfil County Borough Council and Caerphilly County Borough Council, decided during the previous council term to become living wage employers, thus helping to mitigate the pay cap. Across Wales, the Welsh Government have indicated their support for our public sector workers and have repeatedly called on the UK Government to end the cap on public sector pay and to give workers across the UK a much-deserved, properly funded pay rise. The Welsh Government have stated:

“The UK Government must do the right thing and lift the pay cap right across the UK public sector as part of a wider strategy to end their damaging policy of austerity.”

There are suggestions that the Welsh Government could take more action, but if they did lift the public sector pay cap unilaterally, every 1% above it would take £110 million from frontline services. Clearly, that would threaten thousands of public sector jobs in Wales and is not a practical or sensible way forward. With huge cuts to the Welsh budget and local government funding in recent years, the Welsh Government are clearly unable to take further action without funding from the UK Government. It is therefore incumbent on the UK Government to take action, do the right thing and remove the pay cap across the UK. The Welsh Government have already committed to use any funding consequentials they receive from the UK Government as a result of public sector pay rises more generally to raise the pay cap for public sector workers in Wales.

Secondly, I highlight the impact of the Tory Budget and the austerity agenda on keeping communities safe in Merthyr Tydfil and Rhymney, across Wales and across the UK. The evidence is that the Tory Government are failing to keep our communities safe. That is apparent from new figures, which reveal that crime in the South Wales police and Gwent police force areas is increasing. The new crime figures show the highest annual rise in police-recorded crime since comparable records began in 2002.

Two thirds of my constituency is covered by South Wales police and the remaining third by Gwent police. In the South Wales police area, violent crime rose by 15%, sexual offences by 42% and total recorded crime by 11%. In the Gwent police area, violent crime rose by 20%, sexual offences by 31% and total recorded crime by 14%. At the same time, we know that the Tory cuts have sent police officer numbers nationwide to their lowest level in three decades. Since 2010, South Wales police have lost 257 officers, while Gwent police have lost 283. It is shameful that the public are now being forced to pay the price for the risk that the Tories took with community safety by slashing 21,000 police officers across England and Wales.

I and many other Members have built close relationships with our local forces—in my case, South Wales police and Gwent police—and have raised police cuts numerous times in parliamentary debates. I have had the privilege to spend a number of shifts with officers in both Merthyr Tydfil and Rhymney, seeing at first hand the officers’ dedication and the excellent work they are doing to keep our communities safe, despite their diminishing resources. Our police officers are working extremely hard in very difficult circumstances. However, the Government must realise that cuts have consequences, and the latest figures certainly reveal that the Tories are failing in their duty to protect the public.

Finally, I raise the issue of jobs and public procurement. In the Budget and the Brexit negotiations, the Government constantly claim that they are working hard to protect jobs and the economy. However, in recent months, there has been much speculation about Ministry of Defence contracts for the new mechanised infantry vehicles—MIVs—being awarded to German firms on a single-source-contract basis. That is deeply concerning to me as the representative of Merthyr Tydfil and Rhymney, where we have General Dynamics starting to assemble the new generation of armoured vehicles. General Dynamics has a long and proud history in south Wales, based for many years in the constituency of my hon. Friend the Member for Islwyn. The additional base in Merthyr Tydfil demonstrates General Dynamics’ commitment to the area and to Wales.

I believe that General Dynamics is well placed to compete for those contracts, and should at the very least have the opportunity to compete in an open and transparent tender process. I hope that the Secretary of State will today confirm that the Wales Office is doing all it can to ensure that the MOD will give Welsh firms, including General Dynamics, the opportunity to bid for that work, to support and sustain hundreds of Welsh jobs. I hope he will have had the opportunity to have a discussion with his colleague, the hon. Member for Aberconwy, who was the previous Wales Minister before he went to his new role as the Minister with responsibility for defence procurement.

Finally, there are many other areas where the Government need to take stock and listen. Their austerity agenda is failing—it is failing Wales and it is failing the UK. If the Government are unwilling or unable to do what is necessary to improve the lives of our constituents, they need to move aside and make way for a Government who will.

[The Chair]

Until no later than 3.30 pm, I call Geraint Davies.