Oral Answers to Questions

Jo Stevens Excerpts

Wednesday 3rd December 2025 Commons Chamber

[Kirsty Blackman (Aberdeen North) (SNP)]

1. What recent discussions she has had with the Welsh Government on the potential impact of the Budget 2025 on Wales.

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

I work closely with the Welsh Government on our shared priorities, and our two Labour Governments work together for the people of Wales. This Budget delivered for Wales by investing in public services, cutting the cost of living and shrinking the national debt. We have scrapped the Tory and Lib Dem two-child limit, benefiting 69,000 children in Wales, and slashed energy bills by £150 per household. We have also announced further increases to the minimum and living wage, building on last year’s increases, which have already helped 160,000 of the lowest-paid workers in Wales.

[Kirsty Blackman]

The autumn Budget made minor tweaks to Wales’s borrowing limits. Scotland has stronger borrowing powers, allowing us more flexibility for investment in capital projects. Can the Secretary of State tell us why the tweaks to Wales’s powers were so small? Why have those tweaks not even made up for the inflationary losses since those limits were first set?

[Jo Stevens]

The UK Government are providing the Welsh Government with nearly £6 billion in additional spending power over the spending review period as a result of changes to the fiscal framework, additional funding through the Barnett formula and the largest settlement in devolution history. We are righting the injustice of how Wales has been funded, and delivering on our manifesto commitment to update the fiscal framework. Crucially, these changes mean that the Welsh Government will be able to invest more funding in our hospitals, schools and other public services.

[Mr Speaker]

I call the Chair of the Welsh Affairs Committee.

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

The Welsh compound semiconductor cluster in my constituency is a real Welsh success story in terms of this year’s Budget. It has attracted more than £1 billion-worth of investment over the last decade and has supported almost 3,000 jobs, and plans to create 1,000 more jobs are well on the way. What conversations is the Secretary of State having with UK and Welsh Government colleagues to ensure that the Welsh compound semiconductor cluster continues to grow, and to create more well-paid jobs across south Wales?

[Jo Stevens]

My hon. Friend rightly championed the Welsh compound semiconductor cluster from the minute she arrived in this place, and I have seen its success for myself on a number of visits. In last week’s Budget, the Chancellor announced £10 million for semiconductor activities in south Wales. That funding will focus on the technology that is central and critical to artificial intelligence and data centres, in order to support innovation, strengthen supply chains and develop the skills needed for future growth. Just two weeks ago, I was with the Secretary of State for Science, Innovation and Technology at Cardiff University—a key partner for the cluster—to announce the south Wales AI growth zone, which will create more than 5,000 new jobs for local communities, including in my hon. Friend’s constituency.

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

We all know why the Chancellor went to Wales on Monday: she was seeking to avoid scrutiny over a self-inflicted controversy, but it does not end there. There has been criticism of the Chancellor’s claim that additional funding for Scotland was given

“because Anas Sarwar asked us to.”—[Official Report, 26 November 2025; Vol. 776, c. 388.]

There was no mention of the Welsh First Minister, Eluned Morgan. There is a mechanism for Barnett funding; it is not a gift. Will the Secretary of State commit to honesty about how Wales is funded, rather than insulting our intelligence?

[Jo Stevens]

I am surprised at the right hon. Lady’s tone. While this Labour Government make record investment in Wales, Plaid Cymru’s response is to be the same old stuck record, with its miserable grievance politics. It really is the Victor Meldrew of Welsh politics. It still has not explained which taxes it would raise and which public services it would cut to pay for its disastrous independence plan, which would cost every single person in Wales £7,000 a year, every single year.

[Liz Saville Roberts]

That was desperate. We all know that the Secretary of State has been using figures that we cannot extrapolate from, and cannot use to show what independence will do. I wish she would keep up, because Plaid Cymru is actually talking with Labour in Cardiff about how to improve public services and the NHS. The people of Wales want facts, not spin. A year after the announcement of inheritance tax changes, the UK Government have still failed to release data on the impact on family businesses and farms in Wales. She knows that the cross-party Welsh Affairs Committee has called for the changes to be delayed until a full Wales-specific impact assessment is published. What have the Government got to hide?

[Jo Stevens]

The Government have absolutely nothing to hide.

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

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

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[Frank McNally (Coatbridge and Bellshill) (Lab)]

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

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

Growth is the No. 1 mission of this Government. We are creating tens of thousands of jobs in every corner of Wales, including through billions of pounds of investment in nuclear power in Anglesey, two AI growth zones, a defence growth deal, two freeports and two investment zones, which will deliver further economic growth to Wales.

[Gareth Snell]

Because of decisions made by the UK Labour Government, the minimum wage and the living wage will increase, boosting wages for thousands of workers across this country, including 160,000 people in Wales. Could the Secretary of State set out what impact she thinks this critical announcement will have on the economy and people of Wales?

[Jo Stevens]

From April, a full-time worker on the national living wage will see their annual pay rise by £900, on top of the £1,400 increase that we announced in the previous Budget, and 18 to 20-year-olds working full time on the national minimum wage will get an annual increase of £1,500, which, when added to last year’s increase of £2,500, means £4,000 extra a year. This Labour Government are supporting the lowest-paid workers across the country, with 2.7 million workers in Stoke-on-Trent Central, Cardiff East and every other constituency directly benefiting.

[Paul Waugh]

I was pleased to see Conwy recently selected for this UK Government’s Pride in Place programme. That is alongside the existing funds for Rhyl and Wrexham. Given the north-west’s strong economic and family ties to north Wales, I was proud to secure £20 million for Rochdale through the Pride in Place programme. Can the Secretary of State update the House on the difference that these growth funds and other funds will make to economic development in the region?

[Jo Stevens]

The introduction of the Pride in Place programme has meant good news for Rochdale, as well as for Wales. A total of 14 communities across Wales are each benefiting from £20 million of long-term investment to enable the changes that they want to see in their neighbourhoods. This hyper-local programme will benefit areas that are doubly disadvantaged, having both the highest deprivation levels and the weakest social infrastructure. It is about investing for the long term, and creating safer, stronger and more resilient communities with the facilities and infrastructure that they need to thrive.

[Chris Vince]

It has been a momentous two weeks for my Welsh colleagues, with announcements of new AI growth zones in both north and south Wales, a fleet of small modular reactors, billions of pounds of investment and 11,000 new jobs. Does the Secretary of State agree that this shows that this Labour Government are determined to ensure that there will be growth across the UK, including in Wales?

[Jo Stevens]

My hon. Friend is absolutely right. This Labour Government have backed Welsh business and economic growth since day one, and the results speak for themselves; new nuclear at Wylfa and the two new AI growth zones will mean well over 11,500 new jobs. Add to that the best inward investment results for years, a 30% increase in jobs created, a 23% increase in projects landed, more jobs, wages rising faster than inflation, and more money in the pockets of people across Wales.

[Frank McNally]

The UK and Welsh Governments are rightly prioritising the next generation through apprenticeships and engineering opportunities linked to the Wylfa SMR project. Does my right hon. Friend agree that young people in Scotland deserve access to the same world-class training pathways as those in Wales, and will she work with colleagues to ensure that Scottish businesses can participate fully in the UK-wide nuclear skills pipeline, despite the ideological opposition of the SNP, which prevents similar investments from being realised in Scotland?

[Jo Stevens]

My hon. Friend is absolutely right to raise the ideology of the nationalists. Nationalists in Scotland turn their back on nuclear jobs for Scots, while nationalists in Wales are desperately trying to hide the cavernous split in their party on whether they support new nuclear. This Labour Government are absolutely clear that we want economic opportunities for all parts of the UK, and we want jobs and skills opportunities—including nuclear skills—for people across the UK. Those parties that are hellbent on breaking our country apart are simply exposing the fact that they are willing to put their ideology before jobs, opportunities and economic benefits for the people and communities of these isles.

[Ann Davies (Caerfyrddin) (PC)]

In order to secure rural economic growth in Wales, we need to ensure that our agricultural sector is supported. Every pound spent on agriculture generates £9 by supporting farm workers, vets, feed merchants, machinery sales and repairs, and local shops—I could go on and on. What is the Wales Office doing to support all those who live and work in rural Wales?

[Jo Stevens]

The hon. Lady will know that the Welsh Government have put extra money into farming this year through their Budget. Her party in the Senedd voted against that Budget. We are renegotiating the sanitary and phytosanitary standards deal with the EU, following our deal in May, and we are protecting farmers and food manufacturers across Wales.

[Jim Shannon (Strangford) (DUP)]

If we are to improve economic growth in Wales, we can do that collectively. We can do it with tidal energy—Wales and Northern Ireland share the Irish sea—with wind turbines, and with floating wind turbines in the Irish sea. These are opportunities. We can make it happen with the engineering of those in Northern Ireland and Wales. Does the Secretary of State agree that it is time for us to work together for this great United Kingdom of Great Britain and Northern Ireland? We are always better together.

[Jo Stevens]

The hon. Gentleman eloquently sets out the case for the Union. The nationalists sat in front of him would break this country apart, ruining economic growth in this country. We are definitely all better together.

[Mr Speaker]

I call the shadow Secretary of State.

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

On Monday, it was delightful to observe the Chancellor and First Minister enjoying themselves in one of Wales’s premier hospitality venues, but we had an invisible Secretary of State for Wales once again. That venue is the type of business that must thrive if this Government are to have any chance of achieving anything other than anaemic growth and growing unemployment lines. If she had been there, what would people in the hospitality sector have told her about the minimum wage rise pressures, huge business rates and energy costs, the tourism tax, national insurance hikes and how those are strangling the economy in Wales, along with the bloated red tape and wanton spending from the Labour-run Senedd?

[Jo Stevens]

Britain outperformed growth forecasts this year. Growth was upgraded from 1% to 1.5%, and we are on course to achieve the second-fastest growth rate among G7 countries. The Bank of England has cut interest rates five times since the election. The positive impact that our UK and Welsh Labour Governments are having is clear from how the Welsh economy is changing. In the last year in Wales, wages have increased faster than inflation, employment has risen, inactivity is down and inward investment is up.

[Mims Davies]

Clearly something more important than economic growth in Wales came up for Labour’s Wales Office. Can Ministers explain? The biggest rise in unemployment in the UK was in Wales, at 1.4%. Frankly, that is no surprise, given the Governments’ joint refusal to build the M4 relief road or the north Wales main line. That does not exactly match the Chancellor’s boasts about world-class infrastructure at the summit. Among the hobnobbing and backslapping, did any Ministers spare any thought for the desolate owners and workers of businesses in tatters in Monmouth and more widely? Did Ministers work on the ask for extra help to save those people’s livelihoods?

[Jo Stevens]

There was a smörgåsbord of questions there. I just say to the shadow Secretary of State that her party wrecked the economy, starved our public services and exacerbated the cost of living crisis. Our Labour Budget is reducing the cost of living, investing in public services and shrinking the national debt—the Conservatives increased it—while at the same time lifting thousands of children out of the poverty that the Tories created.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

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[David Chadwick]

This Government keep claiming that offshore wind will bring down bills for people in Wales and drive economic growth, but research from Greenpeace shows that the opposite is happening. The Crown Estate is pushing up bills by running uncapped auctions that force energy companies to pay huge fees just to use the seabed. Those extra costs are added straight on to the energy bills of families and businesses across Wales, meaning that Welsh households pay more. The profits are taken out of Wales, while the Crown Estate’s chief executive officer pockets £1.9 million a year. Why are the Government allowing the Crown Estate to drive up energy bills, and why will not they force the Crown Estate to manage Welsh natural resources in the public interest, rather than its own?

[Jo Stevens]

At every session of Wales questions, the hon. Gentleman talks about how he does not want infrastructure to be built in Wales. His party was one of the architects of austerity and the crushing poverty faced by so many people across the United Kingdom. This Labour Government have turned the page on that austerity legacy, bringing down energy bills, increasing the minimum and living wages for about 160,000 Welsh workers, and scrapping the two-child cap.

[Sarah Bool (South Northamptonshire) (Con)]

3. What steps she is taking with the Home Secretary to help tackle grooming gangs in Wales.

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[Steve Witherden (Montgomeryshire and Glyndŵr) (Lab)]

5. What steps she is taking with Cabinet colleagues to help create new jobs in Wales.

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

Announcements made over the past month demonstrate that our industrial strategy is working. In November alone, the Government announced investments to create more than 11,000 jobs in Wales, and just this week, the Wales investment summit showcased investments totalling £16 billion, which are expected to bring tens of thousands of jobs to Wales.

[Steve Witherden]

Montgomeryshire and Glyndŵr is home to the largest one-day livestock market in Europe, just off the Buttington roundabout in Welshpool. Will my right hon. Friend join me in welcoming the 55 jobs that have been created on the roundabout in the last month alone, and would she consider joining me for a milkshake in one of the numerous places in Buttington where we could now obtain one together?

[Jo Stevens]

I am very pleased to hear about the new jobs created at Buttington Cross, and I should be delighted to join my hon. Friend for a milkshake—strawberry, please. Our landmark May deal with the European Union included a commitment to a comprehensive sanitary and phytosanitary agreement, which we are now actively negotiating, and which will reduce paperwork, delay and costs for Welsh farmers exporting their animals and produce to the EU. This Government are backing our farmers and food manufacturers.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

We have heard about the benefits that small modular reactors can bring to Wales and, indeed, to England. Does the Secretary of State agree that it would be a very good idea if she and I invited Mr John Swinney to come to Dounreay to hear from the workforce how badly they want one up there?

[Jo Stevens]

I absolutely do not understand why the SNP Government are not willing to see the creation of jobs and opportunities for people in Scotland because of their ideology around new nuclear.

[Mr Speaker]

I call the shadow Secretary of State.

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

The Office for National Statistics has revealed that a scandalous 1,000 jobs are being lost every single day across the country, meaning that Aston Martin is not immune to this Government’s economic recklessness and could soon be forced to make over 100 job losses because of the poor trade deal that Labour struck with the US. The deal includes absolutely no guarantee that small-volume car makers, like Aston Martin, will get fair access to the 10% tariff rate from 2026, meaning that they could face the imposition of an eye-watering tariff of 27.5% if they are squeezed out of the 100,000 car quota to the US. What will the Secretary of State do? Will she turn up to ensure that iconic Welsh car makers get fair access to US trade?

[Jo Stevens]

I have been in discussions with Aston Martin, as have Cabinet colleagues. We are doing everything we can to protect the car industry in this country. One of the biggest problems in the car industry arises from the Conservatives’ botched Brexit deal, for which the hon. Lady and her Government were responsible.

[John Cooper (Dumfries and Galloway) (Con)]

7. Whether she has had discussions with the Welsh Government on the potential impact of the proposed visitor levy on the Welsh economy.