Oral Answers to Questions

Lindsay Hoyle Excerpts

Wednesday 31st January 2024 Commons Chamber

[David T. C. Davies]

My hon. Friend is absolutely right. She is a huge champion of businesses in her constituency, and it is a shame that the Senedd does not look to her example of championing businesses instead of imposing all sorts of extra taxes, while—as she mentioned—wasting money on schemes such as creating extra Senedd Members and bringing in road charging on the M4. Even my own Labour council is suggesting bringing back Severn bridge tolls.

[Mr Speaker]

I call the shadow Minister.

[Jessica Morden (Newport East) (Lab)]

Some 8,000 homeowners in Wales face the Tory mortgage bombshell this month, with households projected to pay an extra £240 per month as their fixed-rate deals come to an end. Despite the Conservative party’s opposition, the Welsh Government have put in place measures to prevent repossessions, and a UK Labour Government would require banks to protect homeowners. What is the Secretary of State doing to help homeowners facing massive bills caused by the Conservative party’s economic mismanagement?

[David T. C. Davies]

The UK Government have put in place a number of measures to support any mortgage holders facing difficulties at the moment, but the most important measure has been to bring down inflation. Inflation actually peaked at a higher rate in Europe than in the United Kingdom. Inflation is now down at 4%—much less than half of what it was previously—which will have a beneficial impact on mortgage interest rates over the longer term. I ask the hon. Lady whether, in all fairness, she thinks that her party’s plans to borrow £28 billion a year, which is going to increase inflation and have a very bad impact on mortgage interest rates, will be good or bad for homeowners?

[Mr Speaker]

I call Liz Saville Roberts.

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

Diolch yn fawr, Llefarydd. The Government’s own estimates warn that new Brexit border checks will increase the cost of fresh imports by £330 million and worsen food inflation. The Secretary of State used to dismiss warnings of Brexit border controls as scare stories. Will he now admit how wrong he was, and recognise that the best way to reduce food inflation, which sits at an eye-watering 8%, would be to rejoin the single market?

[David T. C. Davies]

I make no apologies for rubbishing the scare stories that came out before Brexit took place. We were told that it was going to lead to the collapse of the economy, to the collapse of house prices, to the end of fresh fruit and veg being sold in shops, and even to no more Magnum ice creams. I think we were even going to run out of Viagra as well at one point. The reality is that none of those scare stories has happened, but it is a bit ironic that the right hon. Lady, the leader of the Plaid Cymru group, is demanding that we rejoin the European Union while at the same time wanting to take Wales out of one of the most successful financial unions—

[Mr Speaker]

Order. Secretary of State, I am this way, not that way, and you are getting a little carried away. There are a few more questions, and Liz Saville Roberts has another one for you.

[Liz Saville Roberts]

That is a Brexit fantasy, and now we look at the wonder of the UK. Northern Ireland is set to receive over £3 billion and a fairer funding settlement from the Treasury, which I welcome. That includes millions of pounds to help balance budgets. Meanwhile in Wales, councillors face a budget black hole of £646 million, which is set to decimate our social services over the next three years. These cuts will be devastating for people left without resources during the cost of living crisis. As Wales’s man in the Cabinet, what has the Secretary of State done to demand equivalent fair funding for Wales?

--- Later in debate ---

[Fay Jones]

I thank my right hon. Friend, the Chair of the Select Committee, for that question. I am delighted that today the Crown Estate is hosting a bidders day to drive forward plans for innovative floating wind projects in the Celtic sea. The UK Government are supporting FLOW through our contracts for difference scheme, securing a long-term pipeline of projects in the Celtic sea. I would be happy to write to him with a further update on when more progress can be discussed.

[Mr Speaker]

I call the shadow Secretary of State.

[Jo Stevens (Cardiff Central) (Lab)]

On the issue of the energy mix, the Tata workers I met last week know that the virgin steel they make is vital to supporting our renewable energy aspirations, such as offshore wind in the Celtic sea, so the loss of 3,000 jobs is a kick in the teeth for our proud and skilled Welsh steelworkers. It will devastate local economies and the sovereign steelmaking capacity that would build the wind turbines we need, yet the Business Secretary told us at the weekend:

“It’s not about the job losses”.

Does the Secretary of State agree with her comments?