Oral Answers to Questions

Llinos Medi Excerpts

Wednesday 6th November 2024 Commons Chamber

[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 We will deliver our manifesto commitment to work with the Welsh Government to address the outdated fiscal framework.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.]

--- Later in debate ---

[Mr Speaker]

I call Llinos Medi.

[Llinos Medi (Ynys Môn) (PC)]

Q12. Diolch, Llefarydd. Representatives of Glan Rhos nursing home in my constituency tell me that the Budget changes mean a 10% increase in their in-year costs—a staggering £127,500 extra. Will the Prime Minister reconsider the rise in employer national insurance?

[The Prime Minister]

What we did in last week’s Budget was ensure that no one would face tax rises in their payslip. We had to deal with the £22 billion black hole, but when we did so, we protected the smallest businesses and charities. We doubled the employment allowance to £10,500, meaning that 40% of employers will not pay employer national insurance contributions. Companies with four employees or fewer on the minimum wage will pay no employer NICs at all, and half of businesses that pay NICs will see no change or pay less after the Budget.