Oral Answers to Questions

Jo Stevens Excerpts

Wednesday 6th November 2024 Commons Chamber

[Adam Thompson (Erewash) (Lab)]

11. What steps she is taking with Cabinet colleagues to support the steel industry in Wales.

[The Secretary of State for Wales (Jo Stevens)]

Steelmaking is key to our missions to grow the economy and deliver clean power by 2030. We are committed to providing up to £2.5 billion for steel in addition to the £500 million already earmarked for Tata to build its electric arc furnace at the Port Talbot steelworks. I was pleased to reaffirm at the Budget £80 million of funding for the Port Talbot transition board, which I chair. We will continue to deliver this money to people and businesses affected.

[Carolyn Harris]

Unlike the previous Government, this Government are fully committed to enabling the £800 million transition fund to support former steelworkers. I recently visited the steelworkers’ support centre in Port Talbot, in the constituency of my hon. Friend the Member for Aberafan Maesteg (Stephen Kinnock). In its opening four weeks, it has helped almost 600 individuals, many of whom will be from Neath and Swansea East. Will the Secretary of State join me in thanking Community union and the other organisations that have set up the centre, and provide an update on the transition fund?

[Jo Stevens]

I completely agree with my hon. Friend that the hub is great. I opened the hub last month, and Community union and others have done a fabulous job with this one-stop shop to help support workers affected by the changes at Tata. This Government are determined to do everything we can to support workers and businesses. That is why this renewed partnership of Governments, unions and the local council is working together to ensure that the town gets what it needs. Funding from the UK Government is already making a difference via the transition board. We know that there is a huge amount of work to do, but we are already seeing people successfully placed in new jobs as a direct result of the £13.5 million that we have made available so far.

[Adam Thompson]

I thank the Secretary of State for her hard work to support our steel industry and our general steel communities, including in Port Talbot, since she has been in post. I was pleased to see the Chancellor confirm in the Budget £80 million of funding for the transition board, which the Secretary of State chairs. Will she tell the House why that was necessary?

[Jo Stevens]

In my first week as Welsh Secretary, I discovered that the £80 million promised by the previous Conservative Government for the transition board was part of the £22 billion of unfunded promises they had made. That shocking dereliction of duty threatened to leave workers and businesses high and dry without the support they needed. I have therefore made it my mission to fight tooth and nail for that money on behalf of our steel communities, and I would not have left them unsupported. I am pleased to be able to confirm that under this Labour Government the transition board is fully funded, and we are getting on with the delivery.

[Mr Speaker]

I welcome the new shadow Secretary of State for Wales.

[Mims Davies (East Grinstead and Uckfield) (Con)]

Thank you, Mr Speaker. At the outset, as I come to the Dispatch Box for the first time in this role for Wales questions, may I please pay tribute to my former private secretary in the Wales Office, Debbie John, who was taken at a tender age due to pancreatic cancer? She and her family are in my thoughts today as I take up this role. She is much missed and very fondly remembered.

The right hon. Lady clearly needs to acknowledge to the House that the deal for Tata steel recently re-announced by her UK Government is identical to the one negotiated by my right hon. Friend the Member for North West Essex (Mrs Badenoch), who is now Leader of the Opposition.

[Jo Stevens]

I welcome the hon. Lady to her place and join her in her comments about her former private office secretary.

I think the hon. Lady needs to read the deal reached by the Government. The £1.25 billion transformation project at Port Talbot will deliver a state-of-the-art electric furnace, the contract for which has just been signed. In just under 10 weeks, without providing any additional funding beyond the £500 million previously announced, we delivered a better deal that secures the immediate future of Port Talbot and lays the foundations for future investment, as well as enhanced protections for the workforce in Port Talbot, Llanwern, Trostre and Shotton.

[Mims Davies]

I am delighted that the right hon. Lady has read the deal that we wrote, but the facts are simple: despite the protesting, this is the same deal that was previously negotiated by the last Conservative Government, involving the same amount of money to build the electric arc furnace and the same cash for the transition board. It is ludicrous for her or others to continue to claim that no support was in place and that it somehow appeared when she found it down the back of the sofa. She is fully aware that the cash had been sitting there the whole time. Perhaps an apology is needed for that, and for claiming that Port Talbot supplies the defence industry with materials.

[Jo Stevens]

If an apology is due, it is to the people of Port Talbot for promising £80 million for a transition board that operated for nine months under the previous Secretary of State for Wales, and delivered not a single penny to the people of Port Talbot, and now we know why: the £80 million did not exist.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[David Chadwick (Brecon, Radnor and Cwm Tawe) (LD)]

The closure of the last blast furnace at Port Talbot has resulted in the loss of several thousand highly skilled jobs across south Wales, prompting another economic contraction across our region. The global centre for rail excellence at Onllwyn is one project that could reverse the trend of deindustrialisation and bring back good, well-paid jobs to south Wales. Will the Secretary of State confirm that the UK Government intend to make further investments in that project, and give an update on what conversations she has had to ensure that the project gets going?

[Jo Stevens]

The hon. Gentleman will know from both the Budget and the international investment summit that significant investments are being made in Wales as a result of this Government’s work: £63 billion was announced at the investment summit, £1 billion to Shotton Mill in north Wales—the biggest investment in Wales for decades. That will secure 300 jobs and mean that we will have the largest UK paper manufacturing site in the whole United Kingdom. We are growing the economy, creating jobs and delivering significant investment. I will write to him about the rail project.

[Tonia Antoniazzi (Gower) (Lab)]

2. What steps she is taking to strengthen the Union.

[Mark Ferguson (Gateshead Central and Whickham) (Lab)]

3. What steps she is taking to strengthen the Union.

[The Secretary of State for Wales (Jo Stevens)]

We have reset our relationship with the Welsh Government. Our approach is based on trust and mutual respect, and is spearheaded by the new Council of the Nations and Regions, which met for the first time last month. My regular meetings with the First Minister of Wales are also driving forward our new partnership, which is already delivering for Wales. That was evident in the biggest ever real-terms Budget settlement delivered for the Welsh Government last week.

[Tonia Antoniazzi]

The Secretary of State has been clear that this Labour Government will build a new partnership with the Welsh Government based on co-operation, respect and delivery. Will she say how the Government will give meaning to the manifesto commitment to strengthen devolution?

[Jo Stevens]

The previous Conservative Government ran roughshod over the devolution settlement, including by legislating in devolved areas without consent on numerous occasions. This Government will respect the devolution settlement and work in partnership with all devolved Governments. We will honour our manifesto commitment to do that by strengthening the Sewel convention, including a new memorandum of understanding between our Governments, ensuring that the petty squabbles of the past are confined to history and we can focus on delivering for the people of Wales.

[Mark Ferguson]

The Secretary of State has been very clear about the much-needed reset between the Welsh and UK Governments. Can she also make clear how the recent Budget has contributed to that reset?

[Jo Stevens]

Our Budget delivered for Wales for the first time in a generation, because the £21 billion settlement announced last week is the largest settlement in real terms since the dawn of devolution. It will provide a record boost for the Welsh Government to support vital public services in Wales, such as the NHS. It includes £25 million to maintain work to keep coal tips safe, and £320 million for investment zones in north and south Wales to power our sector strengths, which include the creative industries, life sciences and advanced manufacturing—for example, our world-leading compound semiconductor cluster. That shows the difference of Labour Governments working together.

[Tom Tugendhat (Tonbridge) (Con)]

First, may I pay tribute to my hon. Friend the Member for East Grinstead and Uckfield (Mims Davies), who has just taken on the role of shadow Secretary of State for Wales? It is a fantastic opportunity for her to champion a vital part of our Union. Secondly, may I ask the Secretary of State, who is newly in her post, what she will do to ensure that the power that brings our Union together comes out of Ynys Môn—that is Anglesey to her—so that she can ensure that the nuclear projects that keep us safe are properly invested in and not dropped, as they have been by this Labour Government? Labour Governments control both sides of the M4 now, and it is about time they delivered.

[Jo Stevens]

I wonder whether the right hon. Gentleman has ever been to Anglesey—or Ynys Môn, as he describes it. I am eager to see new nuclear developments in north Wales that will provide high-quality jobs across the region and drive economic growth. We recognise that a nuclear future at Wylfa could help to deliver several of our strategic objectives, achieving net zero energy independence and restoring economic prosperity across our nations and regions. Great British Nuclear completed the purchase of the site in June this year, and we will make further announcements about it very soon.

[Jim Allister (North Antrim) (TUV)]

Could the Secretary of State explain how it is possible to strengthen the Union while maintaining a partitioning border in the Irish sea at the behest of a foreign jurisdiction and under its laws?

[Jo Stevens]

I refer the hon. and learned Gentleman to my previous answer about the resetting of the relationship with the Welsh Government, and about working together and respecting the devolution settlement with all devolved Governments.

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

The Secretary of State talks about respecting the devolution settlement. Mark Drakeford wrote to the Chancellor before the Budget asking for a review of Wales’s Barnett formula for transport funding, which had fallen from 81% in 2015 to 36% in 2021. However, the Budget revealed a further cut in the Welsh transport comparability factor, which is now down to 33%. How come strengthening the Union under Labour means that every major rail project in England results in Wales losing out?

[Jo Stevens]

We are having ongoing discussions with the Welsh Government about funding flexibilities and their fiscal framework. We will deliver our manifesto commitment to work with the Welsh Government to address the outdated fiscal framework. As the right hon. Lady knows, heavy rail infrastructure is not devolved in Wales as it is in Scotland and Northern Ireland, and the Department for Transport settlement provides a £1.1 billion cash increase to total budgets in 2025-26 compared to 2024-25.

[Llinos Medi (Ynys Môn) (PC)]

4. What discussions she has had with the Welsh Government on the impact of the autumn Budget on Wales.

[The Secretary of State for Wales (Jo Stevens)]

I have regular discussions with the First Minister of Wales on a range of topics, including, of course, the autumn Budget. This Budget has delivered for Wales for the first time in a generation. The Welsh Government are receiving the largest settlement in real terms since devolution, to support public services such as the NHS. More than 100,000 workers in Wales benefit from increases in the national minimum wage and the national living wage each year.

[Llinos Medi]

In the Budget, the Chancellor announced that the Barnett formula would apply to funding for agriculture, rather than the devolved Governments receiving a ringfenced amount. The Farmers’ Union of Wales says that the Barnettisation of funding could lead to a cut of £146 million a year, or more than 40%. Can the Secretary of State say whether that figure is correct, and whether she believes that her Government’s Budget has shown any consideration at all for our farming communities?

[Jo Stevens]

I was very pleased that the Budget was able to protect the current farming budget for the next financial year, despite the difficult decisions that we had to make because the Conservative party had trashed our economy. [Interruption.]

[Mr Speaker]

Order. Mr Griffith, you are continually being a nuisance on the Front Bench. I want you either to restrict it or to go and get yourself that cup of tea.

[Jo Stevens]

Thank you, Mr Speaker. Obviously, farming is devolved in Wales, and the decision on how to spend that budget will be up to the Welsh Government.

[Catherine Fookes (Monmouthshire) (Lab)]

I welcomed last week’s Budget announcements about improving rail transport, and I want to bang the drum for a most excellent project in Monmouthshire, the Magor walkway station, which is ready for investment—indeed, we might even call it oven-ready. Will my right hon. Friend commit to working with the Rail Minister and me, and Welsh Ministers, to deliver the five Burns stations, and will she meet me to discuss progress?

[Jo Stevens]

My hon. Friend is a wonderful advocate for her constituency and for the Burns commission’s recommendations for her constituency, and I would be very happy to meet her to discuss them.

[Mr Speaker]

I call the shadow Secretary of State.

[Mims Davies (East Grinstead and Uckfield) (Con)]

Will the Secretary of State express her regret about the impact of Labour’s Budget on Wales? It will undoubtedly make the people of Wales poorer. Pensioners have been left wondering whether they should turn on their heating this winter, and family farms will be destroyed. The Budget is affecting business confidence and employment across the nation.

[Jo Stevens]

The Budget provides the biggest ever settlement in real terms since the dawn of devolution, a protected £80 million for steelworkers and businesses, £88 million for city and growth deals, £320 million for funding through investment zones, £25 million for coal tips and a protected £440 million for local communities— I could go on. It was a great deal for Wales.

[Mims Davies]

rose—

[Andrew Ranger (Wrexham) (Lab)]

5. What recent discussions she has had with Cabinet colleagues on increasing economic growth in Wales.

[The Secretary of State for Wales (Jo Stevens)]

The growth mission is the central priority for this Government. Our new industrial strategy and national wealth fund will boost economic growth across Wales, creating jobs and driving up living standards. Working alongside ministerial colleagues, I was pleased to confirm £320 million of funding for two investment zones in Wales, the green light on the freeport in the Celtic sea and protection for local community growth funding across Wales.

[Andrew Ranger]

I thank the Secretary of State for her answer. Universities in Wales, such as Wrexham University in my constituency, are crucial not just for the educational and research outcomes they provide, but for the economic opportunities they give our towns and cities, with a recent report by Universities Wales showing that their contribution to the economy stands at £11 billion. At a time when we are firmly in pursuit of economic growth, can the Secretary of State tell me what conversations she has had to ensure that universities in Wales are partners in this mission? Will she agree to visit Wrexham University with me to see at first hand the brilliant work that it is doing in collaboration with local businesses?

[Jo Stevens]

I would be delighted to go back to Wrexham and visit the university with my hon. Friend. Welsh universities will benefit from record levels of investment in research and development, which will be worth over £20 billion next year. The Budget confirmed £160 million of funding for the Wrexham and Flintshire investment zone, which was chosen due to the presence of world-renowned research institutions such as Wrexham University and Bangor University.

[Carla Lockhart (Upper Bann) (DUP)]

We say the phrase “no farmers, no food” so often, but never has there been a need for such emphasis as in the wake of the autumn Budget. Farmers in Wales, in Northern Ireland and right across this United Kingdom are reeling from the change in agricultural property relief and the impact it will have on the future of family farms. What is the Secretary of State doing to support farmers and make this case to the Treasury?

[Jo Stevens]

This Government continue to provide significant tax relief for farmers. For example, farming parents are able to pass up to £3 million to their children free of tax. They then pay half of the normal inheritance tax rates on anything over £3 million, and they have up to 10 years to pay it. The vast majority of farms will be unaffected by the changes in the Budget and will continue not to pay inheritance tax.

[Ruth Jones (Newport West and Islwyn) (Lab)]

6. What discussions she is having with the Welsh Government on collaborative efforts to improve healthcare in England and Wales.

[The Secretary of State for Wales (Jo Stevens)]

Cutting waiting lists is a top priority for both this Government and the Welsh Government. Last week’s spending review provided the Welsh Government with the largest real-terms settlement since devolution, including an additional £1.7 billion for 2025-26, enabling them to spend more on public services such as the NHS. I continue to collaborate with ministerial colleagues in both Governments, with the aim of driving down waiting lists.

[Ruth Jones]

I welcome this new partnership between the Welsh and UK Governments, which represents a real opportunity to share best practice and help to cut NHS waiting lists in England and Wales. Will the Secretary of State expand on how she will ensure that patients on both sides of the border get access to the best healthcare possible in a timely matter?

[Jo Stevens]

Both Governments are working collaboratively to make the NHS fit for the future. We provided a £1.75 billion boost for the Welsh Government to spend on public services such as the NHS, and the Welsh Government have just announced £28 million to cut NHS waiting times. Both Governments are sharing best practice and will consider more cross-border arrangements where capacity allows. The Welsh Government’s ministerial advisory group on NHS performance and productivity has been established to support improvements and bring down long waiting lists.

[Robin Swann (South Antrim) (UUP)]

The Secretary of State will know that health is devolved across all the nations. Can she reassure me that the Secretary of State for Health will work with all the devolved Health Ministers to make sure that we can truly engender a national health service for the likes of mental health provision?

[Jo Stevens]

I know that the Health and Social Care Secretary wants to ensure that the national health service across all of our four nations is fit for the future.

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

The British Medical Association in Wales says that GP funding has decreased as a percentage of the Welsh Government’s budget by over 2.6% since 2005. Treflan surgery in Pwllheli cannot afford to fill key staff roles, and Budget measures will cost it an extra £19,000. The Secretary of State for Wales knows the state of the NHS in Wales, so why is she instrumental in Labour at both ends of the M4 threatening GP surgeries?

[Jo Stevens]

We are not threatening GP surgeries. If the right hon. Lady does not think that the £1.7 billion additional funding to spend on the NHS in Wales as a result of the Budget is a great idea, she needs to say what she would do instead.

[Clive Jones (Wokingham) (LD)]

7. What discussions she is having with the Welsh Government on support for the farming industry in Wales.