(1 week ago)
Commons ChamberIn 2024, British residents took over 7.5 million overnight trips in Wales, and during these trips they spent a total of £2.24 billion. Wales’s tourism sector is thriving, as was clear to see last month during the visit of the Under-Secretary of State for Wales, my hon. Friend the Member for Llanelli (Dame Nia Griffith), to Elan Valley Lakes, which will benefit from an £11.8 million investment from both the UK and Welsh Governments. According to the Welsh Government, if a visitor levy were to be introduced by all Welsh authorities, that could potentially raise up to £33 million.
With the Welsh bottle deposit scheme going down the same disastrous dead end as the Scottish bottle deposit scheme, and now more costs are being added to Welsh tourism, making staycations more expensive, the Government appear to be creating a hostile environment for business. Add in the review of the UK internal market, which is meant to make doing business across this great land of ours easier. Why are the Government loosening the bonds of our great Union?
Wales is the second-best recycling nation in the whole world.
Investment in Cardiff airport is a matter for the Welsh Government. I recognise the importance of Cardiff airport to the economy of the South Wales region, with thousands of jobs stemming from the airport and the economic ecosystem supported by it. Airlines such as Tui and Vueling have recently added several new destinations and extra flights from Cardiff airport. In the light of the Welsh Government’s sustained support for Welsh tourism, I am delighted to welcome today’s news that Tui is expanding its services at Cardiff, with more new routes and an increase in flights to places such as Tenerife and Mallorca.
Yesterday, Wales lost a musical icon with the passing of Mike Peters from The Alarm. Mike had an extraordinary relationship with his fans, and he brought thousands of visitors from across the world into the area for his annual event, the Gathering. Mike Peters, his warmth and his music put north Wales on the map for visitors from far and wide. Will my right hon. Friend join me in paying tribute to Mike and to the power of music to bring people together like nothing else?
Order. I am sure that the answer will be about the impact of the levy.
Music tourism is a huge part of the Welsh visitor economy, and I was very sad to hear about Mike Peters’ death. Mike and The Alarm were the sounds of my teenage years when I was growing up in north Wales. He was a proud Welshman, a hugely talented musician and a man of incredible resilience. As well as bringing music tourism to north Wales, he dedicated much of his life to charitable work to support blood cancer patients, and I know he will be missed.
We are negotiating a new partnership with the EU and believe that securing a broad-based security partnership, bringing closer co-operation on law and order and tackling barriers to trade will boost our economies, keep us safe and improve families’ finances. Since coming into government, I have worked with UK and Welsh Government colleagues to drive more than £1.5 billion in private investment into Wales from the likes of Eren Holding and Copenhagen Infrastructure Partners, creating hundreds of jobs and laying the groundwork for thousands more.
Only this Government can deliver cold comfort and warm words all in the same sentence. The fact of the matter is that, after the Labour-Tory hard Brexit, the Welsh economy suffered by £4 billion, trade has gone down by £1 billion and Wales has lost £1 billion in European structural and development funding. On top of that, the Labour Budget has kicked Wales even further down the track. When will the Secretary of State stand up to her Westminster masters and finally do something in the interests of the people of Wales?
Welsh businesses both large and small tell us time and again that they are being held back by red tape. We need to tackle the barriers to trade in order to help drive investment, jobs and growth for both the UK and EU economies. Nationalists can continue their obsession with the constitution, putting up borders instead of breaking down barriers, and raising taxes on working people, as they have done in Scotland.
Closer collaboration between the UK and the EU on defence and defence spending is an important part of strengthening our relationship and will be important for the Welsh economy, including for companies such as EnerSys, which I visited recently, which produce specialist batteries for defence and other applications. Will the Secretary of State say a bit more about how increased defence spending will aid the Welsh economy and companies such as EnerSys, particularly in advanced manufacturing and supply chains?
My hon. Friend is absolutely right about the potential for growth. This Government’s commitment to increase defence spending means that our strong defence manufacturing base in Wales and the skilled jobs it supports has real potential for growth. The top five suppliers to the Ministry of Defence all have a footprint in Wales, and alongside that is a strong supply chain. The forthcoming industrial strategy will set out more details as to how that advanced manufacturing base will get Government support.
Reports of a new UK-EU strategic partnership to reduce trade barriers will, at last, be a welcome boost to Wales’s food and drinks producers, given that 75% of the sector’s exports go to the EU. All producers from farm to fork of our wonderful Welsh produce make a vital contribution to Wales’s economy. Will the Secretary of State join me in celebrating all Wales’s food producers and farmers, especially those at Sioe Nefyn—Nefyn Show—on Monday, and even more so those from Sir Gâr, or Carmarthenshire, here today?
I am delighted to support the Welsh food and farming industry, and I absolutely concur with the right hon. Lady’s comments.
On another note, Policy in Practice shows that nearly half of the 10 UK local authority areas worst hit by Labour’s welfare cuts are in Wales—that is 190,000 people affected in Wales, hitting our post-industrial quarrying and coalmining communities hard. How does the Secretary of State explain to Welsh colleagues why the communities where Labour used to be strongest should now suffer so much because of her Government’s cruel welfare cuts?
As the right hon. Lady might know, none of those reforms has actually gone into effect yet, so nobody has been affected by them. We inherited a Tory welfare system that is the worst of all worlds: it provides the wrong incentives, discouraging people from working, while the people who really need a safety net are still not getting the dignity and support they need and deserve, with the taxpayer funding an ever-spiralling bill. It is unsustainable, indefensible and unfair.
In Wales, the partnership between our two Labour Governments is delivering on the people’s priorities. NHS waiting lists have fallen for three consecutive months. We are creating tens of thousands of jobs in every corner of Wales through our freeports, investment zones, support for steelworkers, inward investments and thriving green industries.
Supporting people into work is the right thing to do, not just economically but morally. I therefore welcome the recently announced UK Trailblazer programme in north Wales, which will do away with the one-size-fits-all approach and will instead meet people where they are, giving them a greater chance to secure stable and good employment. Does the Secretary of State agree that this shows the power of the partnership that we now have, and our commitment that no one, on either side of the M4, will be left behind? Also, will the Secretary of State join me in congratulating Wrexham football team on their historic back-to-back-to-back promotion this weekend to the English football league championship?
Many congratulations to Wrexham. I am delighted to see them promoted, and very sad to see Cardiff relegated. My hon. Friend is right: the Government understand that work is crucial not just to our health and wellbeing, but to improving our living standards. That is why we announced last week a £10 million pilot in Blaenau Gwent, Neath Port Talbot and Denbighshire to support people back into work. We will not sit by and let the Tories’ broken welfare system continue, which has condemned people to a life without work. These Trailblazer projects will help more people in Wales back into secure, well-paid jobs.
Since this UK Labour Government were elected, more than 2 million extra GP appointments have been delivered in England, and thanks to a record- breaking £21 billion Budget settlement, waiting lists in Wales have gone down three months in a row. Does the Secretary of State agree that our NHS and our country are safer and stronger when we have two Governments working together to make devolution work, not to tear our Union apart?
I could not agree more with my hon. Friend. Driving down NHS waiting lists is a shared priority for both the UK and the Welsh Labour Governments. As she says, waiting list have fallen for three consecutive months as a result of our two Governments working together. Meanwhile, the Conservatives and Plaid Cymru voted against an extra £600 million for the Welsh NHS, and Reform would sell off the NHS to the highest bidder.
Does the Secretary of State think that the imposition from tomorrow of a parcels border between Great Britain and Northern Ireland will strengthen the Union, given that parcels, business to business, from Wales or any other part of the UK to Northern Ireland, will now be subject to EU customs declarations and checks? How does that strengthen the Union?
I thank the hon. and learned Member for his question. As I said in reply to an earlier question, we want to make sure that trading is made easier and that we remove the red tape and barriers. Those are the discussions that we are having at the moment with the EU.
Does the Minister agree that what strengthens this Union is the nations of Wales, Scotland and Northern Ireland intertwined with England? It is the Gaelic nations of Scotland, Wales and Northern Ireland and their cultures and history that bring us together. The Union also brings benefits relating to employment, jobs and opportunity. It is about the constitution and our service in uniform. All those things bring us together in a way that nothing else can, and mean that this great United Kingdom of Great Britain and Northern Ireland is better as a Union; we can all do better together.
I thank the hon. Gentleman for his question. I definitely believe that the UK is stronger with the four nations working together.
There is no greater threat to our Union than the feeling that workers in one nation matter less than those in another. People in and around Port Talbot feel that they have had a rotten deal. Can the Minister explain why, under the deal that her Government did with Tata, workers who had been at the company for longer than 25 years did not have that service reflected in their redundancy payments, and why workers wishing to access the retraining elements had to forgo their rights to the enhanced redundancy payment? Is it true that, as has been reported, as of February, only three people had applied for that scheme?
Tata made the decision to close the blast furnaces in January 2024, six months before the general election. It closed the coke ovens in March 2024, when an agreement on the grant for the electric arc furnace had already been made. The hon. Gentleman might remember that blast furnace 5 closed down on polling day. The timeline was fixed for that electric arc furnace to be delivered. In 10 weeks, we negotiated a better deal, with better terms and protections for the whole workforce at Port Talbot. There were no immediate compulsory redundancies. We saw the best voluntary redundancy package ever offered by Tata to its UK workforce. We saved 5,000 jobs, and 385 acres of land are being released for development, regeneration and future opportunities at the site. All in all, this was £1.3 billion investment deal. That is very different from the situation in Scunthorpe.
(1 month, 3 weeks ago)
Commons ChamberI am sure the whole House will wish to join me in sending our deepest sympathy to the family, friends and neighbours of Joanne Penney, who was callously murdered in Talbot Green on Sunday. It is a shocking and horrific crime.
We have protected the smallest businesses and more than doubled the employment allowance to £10,500, meaning that over half of small and micro businesses will pay less or no national insurance contributions at all. In Wales, small and medium-sized companies account for 99.3% of total enterprises.
Businesses across Wales, like those across my constituency of South West Devon, are being hit not only by Labour’s job tax but by the increasing minimum wage, rising costs and other business tax increases. Each of those alone would force many to reduce their workforce, but the combination of all three means that businesses are thinking twice about filling job vacancies or creating new posts. What reassurances can the Minister give to businesses across Wales, and to companies such as Serpells in my constituency, that their business has a promising future between now and the next election, when the Labour Budget shows them the complete opposite?
If the Conservative party cares so much about employment and business in Wales, perhaps the hon. Lady should explain why her colleagues in the Senedd voted last week to block thousands of new apprenticeships and more than £300 million of support for businesses in Wales. Her party voted against that.
Let us go to the shadow Front Bench. I call the shadow Secretary of State for Wales.
Who is the Secretary of State battling for, Kazakhstan or Wales? Labour’s political choices mean countless jobs in Wales are at risk due to the national insurance rise. The damaging impact that is having in the Minister’s back yard is clear, with more than 1,800 jobs reportedly at risk at Cardiff University—in one of the many sectors that are desperately trying to stay afloat due to the Welsh Government’s jobs tax and the Labour Government’s impact on the Welsh economy. With Cardiff University ploughing on with its Kazakhstan campus, can the right hon. Lady be happy with the offshoring of those roles in that sector and many others because of the continued fallout from the autumn Budget?
I am not sure where the hon. Member has got the idea about outsourcing jobs. It was her party that told our universities across the country to go out and recruit international students, which they did. Now, because of that and because of what happened under her Government’s watch, those international students are not coming any more. She should, again, look to her colleagues in the Senedd. There is the education budget; her party voted against it. She needs to talk to her colleagues in the Senedd.
The national insurance increase is set to hit high streets in Wales hard, with many traders saying that they will lay off staff as a result. Last week, the Government announced £100 million of funding to be spent on reinvigorating Welsh high streets, but no towns in the Swansea, Neath or Amman valleys were on that list. Will the Secretary of State clarify the criteria used to select the successful towns and whether areas such as Ystalyfera can expect to benefit from future funding? That is one high street that is certainly worth investing in.
The criterion for the announcement last week is publicly available; I suggest the hon. Gentleman has a look at it.
Diolch yn fawr iawn, Lefarydd. I am sure the House will join me in remembering the Llandow air disaster in which 80 people lost their lives 75 years ago.
Elaine’s Hair and Beauty Salon in Llanrug, Pitian Patian Nursery in Llanwnda and care homes and GP surgeries across Dwyfor Meirionnydd tell me that national insurance hikes coming in just a few weeks will stop them hiring new staff. The Secretary of State’s Government say they are cutting welfare to get people into jobs. What jobs?
Plaid Cymru’s manifesto for the general election had £5 billion of unfunded commitments. If the right hon. Lady’s party were in power, we would be facing the same legacy that we had from the Conservative party: a £22 billion black hole that has meant that we have had to take difficult decisions. Her constituents will want more investment in our NHS, more investment in our public services and more investment to support businesses; her party voted against all that in the Welsh budget.
If the Government agreed with the Secretary of State’s counterpart in Cardiff, we would have the money from the Crown Estate as well. Back in 2015, the Secretary of State and I walked through the same Lobby to vote against what she then described as despicable Tory welfare cuts, and she dared the break the Labour Whip to do so. Given the evidence of her strong convictions on the issue, how can she justify remaining in a Cabinet that is intent on implementing Tory-style welfare cuts?
We inherited a Tory welfare system that is the worst of all worlds: it has the wrong incentives; it discourages people from working; the people who really need a safety net are still not getting the dignity and support that they need; and the taxpayer is funding an ever-spiralling bill. It is unsustainable, indefensible and unfair. Our principles for reform are clear: supporting those who need support, restoring trust and fairness in the system, fixing that broken assessment process and the disincentives and supporting people to start, stay and success in work. The right hon. Lady should support that.
I recently met the Deputy First Minister to discuss a wide range of issues, including the Crown Estate. The UK and Welsh Governments are focused on taking maximum advantage of the opportunities that floating offshore wind in the Celtic sea presents for Wales, which could create over 5,000 jobs and £1.4 billion of investment to the UK economy in the coming years.
In the 2011 Scottish National party manifesto, we committed to have the equivalent of 100% of Scotland’s electricity generated from renewables. The SNP met that target and then some, thanks to the devolution of the Crown Estate and to working with industry. It is now delivering jobs and clean, green energy to Scotland and throughout the UK. Why should Wales not have the same opportunity?
I will not take any lectures on the Crown Estate from the hon. Member, whose party’s mismanagement of the Scottish seabed resulted in Scottish assets being sold off on the cheap. We are focused on doing whatever it takes to secure more than 5,000 jobs in Wales and the billions of pounds of investment that the Crown Estate can unlock for Wales.
Does the Secretary of State agree that the Government’s priorities should be ensuring that the Crown Estate can unlock thousands of new well-paid jobs in Wales that will come with floating offshore wind, rather than being distracted by calls to devolve the organisation in the middle of this national mission, which would risk the investment, jobs and lower energy bills that Wales desperately needs?
My hon. Friend is absolutely right. Like her, I want people in Wales to benefit from those 5,300 new jobs, particularly young people, so that they do not have to leave Wales, where they have grown up, to earn or learn. I want that £1.4 billion boost to the economy. We are not prepared to put all that at risk of market fragmentation, undermining or potentially destroying developer confidence in FLOW, and have to watch that investment go elsewhere in the world.
Wales has a world-class tourism offer. I fully support the Welsh Government’s support for the tourism sector through Visit Wales and other initiatives. Last month, the UK Government announced a £15 million investment for Venue Cymru in Llandudno and the Newport transporter bridge. These are two key projects that will help to boost the tourism and culture sector in Wales.
The tourism and hospitality sector in the UK is one of the most heavily taxed in Europe. Will the Secretary of State press the Chancellor to reduce the tax burden in this area to help drive local economies that rely on tourism in Wales and in constituencies such as mine on the Isle of Wight?
I would gently remind the hon. Gentleman that his party in government put the highest tax burden in 70 years on the people and businesses of this country, leaving a £22 billion black hole that we have had to try to sort out.
More than 40 countries and holiday destinations around the world have introduced a form of visitor levy, including Greece, Amsterdam, Barcelona and California. What work is the Secretary of State doing with the Welsh Government to support our vital tourism industry?
My hon. Friend has one of the most beautiful constituencies in Wales, and I know that tourism is critical to his local economy. Indeed, tourism probably remains the only way to see a Conservative MP in Wales after the general election. The visitor levy is set to raise up to £33 million for the tourism sector across Wales. Last week, Conservatives in the Senedd voted to block £15.6 million of support for Welsh tourism.
Sadly, there will be no more Easter family fun at Oakwood, which has made it clear that its final demise, after covid, is due to Labour’s looming tourism tax, the job tax and sky-high business rates from the Senedd, meaning that it is all over. How many more tourist and hospitality businesses need to tell the UK Government that their “closed” signs will be going up and staying up due to decisions made by the Treasury? Will the Secretary of State stand up for the businesses and jobs in Wales who know that they are being taken for the worst ride possible—frankly, even more vomit-inducing than Megafobia—by this Government of broken promises?
Last week, the hon. Lady’s colleagues in the Senedd voted against extra money for tourism—[Interruption.] They did! Maybe she should have a conversation with Darren Millar, her colleague in the Senedd, but I do not think they are having that sort of conversation at the moment because they are still arguing about who is leading the Tories in Wales.
I regularly meet the First Minister to discuss a wide range of matters, including NHS waiting lists. The latest data shows positive progress in reducing long waiting times and the size of the waiting list, thanks to investment by both the UK and Welsh Governments.
I am appalled to hear that Plaid Cymru voted against £600 million of extra investment to bring down NHS waiting list in Wales, but I am afraid that this is a familiar story for our Scottish Members. Does the Secretary of State agree that nationalist parties will always prioritise niche constitutional distractions over delivering priorities for working families and what they need and deserve?
I could not agree more with my hon. Friend. Plaid Cymru Members will have to explain to their constituents why they voted against £600 million extra for the NHS last week, blocking crucial funding from reaching our hospitals, NHS staff and patients in Wales.
One of the issues with waiting lists in Wales, as is the case all across the United Kingdom, concerns those who have been waiting first for diabetes diagnosis and then for treatment. There used to be a strategy in Westminster that encompassed not just England, but Scotland, Wales and Northern Ireland. Would the Secretary of State support a similar strategy for the four regions together to address diabetes and what it is doing to this country?
We are talking about nations and regions, rather than just regions, but I would be happy to have a discussion with the hon. Gentleman outside the Chamber about that matter.