Budget Resolutions and Economic Situation

Llinos Medi Excerpts

Wednesday 28th October 2026 Commons Chamber

[Llinos Medi (Ynys Môn) (PC)]

This was Labour’s opportunity to show the people of Wales that it is listening, following the Senedd election last May. Instead, it has delivered one of the worst funding settlements for Wales in years. The £450 million over three years announced by the UK Government today is a real-terms cut to the Welsh budget. The Welsh Government needed a further £350 million in one year for a standstill budget. That means a cut to public services. In addition, the capital budget will be cut by 10% in real terms by the end of the decade, because of decisions made here in Westminster.

This Budget should have begun to address the long-standing injustice of Welsh rail funding. Wales has around 10% of the UK rail network, yet it receives just 1% of the rail enhancement spending. To address that, we were promised a £14 billion rail pipeline, but today, Leeds gets £300 million for one station, and the entire Welsh rail network gets £30 million.

The Government should go further to support investment. In north Wales, we are fortunate, and I thank the Labour Government for their decision on Gwyndod. Gwyndod has the potential to reindustrialise north Wales, strengthen our energy security and create thousands of high-quality jobs, but that will only happen if the Government ensure that the manufacturing jobs and supply chain investments from that project are created in Wales. Today’s announcement that the M-SParc science park on Ynys Môn will be supported is a step in the right direction when it comes to supporting economic growth, but we must make sure that Ynys Môn and north Wales benefit fully from Gwyndod.

[Dr Scott Arthur (Edinburgh South West) (Lab)]

As always, the hon. Lady is speaking very passionately. She has talked about energy security in Wales. Would it not be a lot easier to achieve that if the Welsh Government did not proceed with their plan to ban electricity pylons?

[Llinos Medi]

I think those conversations will take place in every community where there is a grid connection, and it is respectful to have those conversations. Since being elected to this place, I have been having conversations about having a robust connection, which should include undergrounding, to respect our communities. Communities that are hosting nationally significant energy projects should also be getting energy transmission in a fairer way.

Another measure that should have been announced today is energy support. Wales has some of the oldest and hardest to heat housing stock in western Europe, and official figures show that one in four households are living in fuel poverty. As has been mentioned today, many households across rural Wales remain off the gas grid—including 52% of those on Ynys Môn—with many of them reliant on heating oil. Businesses, too, remain exposed to volatile energy costs, without the protection of a price cap. The Chancellor announced that standing charges on gas will not be removed until the end of 2027, so households will not see the benefits of that decision this winter. The Government have not taken immediate steps to end unfair electricity standing charges, leaving households in north Wales paying the highest standing charges anywhere in the United Kingdom.

The people of Wales deserve better—they deserve a Government prepared to match their rhetoric on fairness with meaningful action. We did not get that fair deal for Wales in this Budget.