Spring Budget 2024: Welsh Economy

Nia Griffith Excerpts

Wednesday 17th April 2024 Westminster Hall

[Dame Nia Griffith (Llanelli) (Lab)]

I am afraid the Conservative spring Budget was a real smoke-and-mirrors affair, and people in the Llanelli constituency are not taken in by it. The Prime Minister, and indeed the Minister, may boast that they have cut the rate of national insurance, but people in Llanelli know that we do not get something for nothing. They feel worse off, and that is because they are worse off. We have had the biggest fall in living standards in our history, with the UK economy remaining stagnant. The latest Office for National Statistics figures show that GDP per person has fallen in each of the last seven quarters—the longest period of stagnation since the 1950s.

People in Llanelli and across the UK are worse off under the Conservative Government, and they are now bearing the highest tax burden in 70 years. For every 5p the Conservative Government have given back in tax, they have in fact taken away 10p. People have pointed out to me that they have been hit by the freezing of the tax threshold. As their incomes have increased over the past few years—although never by enough, of course, to keep up with the rampant inflation that this Conservative Government have presided over—people have found that they are reaching the tax threshold for the first time or that more of their income is now subject to tax.

The freezing of the basic threshold has brought 3.7 million more people across the UK into paying tax, and more taxpayers are being squeezed by having to pay the higher rate of tax as more of their income is in that bracket, often because of a pay rise that has not even kept pace with inflation. So there is a double whammy of more tax and less purchasing power.

We have seen another sneaky trick: the devolution of the increasing cost of the burden of public services to the Welsh Government and local councils. As we know, a large proportion of what councils spend on local services comes from central Government—UK Government—taxation, to which we all of course contribute, whether it is allocated directly to councils in England or via the Welsh Government to councils in Wales. As the Conservative Government have squeezed and squeezed the Welsh budget, with the latest Welsh Government settlement some £3 billion less than if it had grown with GDP since 2010, the Welsh Government have had to pass on swingeing Conservative cuts to Welsh councils. Local councils in Wales are faced with the difficult balancing act of having to either cut services or raise council tax, at a time when councils, just like households, face huge inflation in their costs.

[Alex Davies-Jones (Pontypridd) (Lab)]

My hon. Friend is making a really powerful point about the cost burdens being imposed on local councils. My own local council of Rhondda Cynon Taf faces some of these burdens, and we have the extra burden of having to fund the remedial work to improve coal-tip safety in Wales—a legacy that predates devolution. We have had hundreds of years of mining in Wales, and that work should be the responsibility of the UK Government, but they are failing to take responsibility for the costs, which should not be borne by my constituents when it was the UK that benefited from the coalmining industry of south Wales.

[Dame Nia Griffith]

Indeed—my hon. Friend is absolutely right to bring up that point. It is something that we have been raising, and I hope the Minister, who has some former mines in her own constituency, will take that message back to her colleagues.

As I was saying, councils are having to make very difficult decisions; in fact, they have to both cut services and raise council tax. But make no mistake—these cuts in services and rises in council tax are a direct result of the way in which central Government have squeezed the Welsh budget. That leaves people in Wales paying more for poorer services.

Not only is the Welsh Government budget for 2024-25 £3 billion lower than if it had grown in line with GDP since 2010, but it is £700 million lower in real terms than was expected at the time of the 2021 spending review, which of course means that the Welsh Government have to manage even more cuts than had been expected. The Minister may point out that the Welsh Government will receive an additional £168 million in resource funding for 2024-25, but that is the result of spending decisions made in England and relates to funding for NHS pay and local government adult social care, which have already been factored into Welsh Government spending plans.

People in Wales are still seeing costs rise. Although inflation may have slowed, there is still inflation, which means that prices are still rising, and the price rises are for essential household costs such as food. That has left people really struggling.

Some 62,000 homeowners in Wales are also facing a mortgage bombshell as fixed-term agreements come to an end, because of the totally irresponsible mini-Budget the Tories pushed through—collectively—in the autumn of 2022, when the right hon. Member for South West Norfolk (Elizabeth Truss) was Prime Minister, which sent interest rates soaring. Homeowners will have to find hundreds of additional pounds year on year to cover their mortgage interest, which of course has a knock-on effect on rents as well, with increasing numbers of people finding that their rent is simply unaffordable.

People in Wales also face higher energy bills, and the UK Government’s failure to roll out renewables more quickly has made that situation all the worse, which has meant the loss of yet more precious time in the race to bring down bills and combat climate change. Last year, the fiasco of the UK Government’s handling of the bidding process meant that no proposals came forward for floating offshore wind projects.

There is no help for the least well-off. The Conservative Government have been squeezing household incomes for 14 years. Back in 2011, the Tories increased VAT to 20%, which increased household bills, hitting the poorest in particular. In an unprecedented move, they also broke the historic link between benefits and inflation. They have cut and cut the benefits paid to the least well-off in society, many of whom, of course, are in work, leaving many people with not enough to live on and not even enough to cover their essential costs. It is shocking that the Joseph Rowntree Foundation and the Trussell Trust have had to call for the implementation of an essentials guarantee to ensure that those in receipt of universal credit are able to meet their essential costs. Benefits should always cover essential costs.

On regeneration and the replacement of the European structural funds, it is disappointing that the UK Government have rowed back on devolution and cut the Welsh Government out of the consultation on the way that funds should be used and managed. The result is a tendency for the money to go to one-off projects in specific geographical areas, rather than us looking at the real levers that will drive up GDP and prosperity, such as apprenticeships and skills training.

What worries me in particular is that there is little in the Budget to suggest that the UK Government are serious about growth. Every Conservative Budget since 2014 has promised higher wages, higher skills or higher growth, but a year on from the so-called Budget for growth, the economy has actually shrunk, as have wages. We have some world-class manufacturing in Llanelli—Tata Steel, car component companies such as Gestamp, engineering firms that supply companies such as Aston Martin and so on—but the international competition for business and investment is fierce.

The lack of a UK Government industrial strategy makes it difficult to compete for investment with other geographical locations abroad, whether that is because of cheaper energy costs in neighbouring European countries or the Inflation Reduction Act in the US, where we now see growth forecast to be twice that of any other country in the G7. The Government are investing £500 million in an electric arc furnace in Port Talbot, but there has been no attempt by the Government to encourage investment in the technologies needed for green primary steel production.

We see Tata investing in such facilities at our competitor plant at IJmuiden in the Netherlands. I understand that one reason for not bringing that investment to Wales is our high energy costs—something we have been warning this Government about for years. Labour has pledged to invest £3 billion to secure green primary steelmaking in the UK, as well as a national wealth fund, bringing public and private funding together to invest in the green industries of the future, thus creating quality jobs as well as tackling climate change.

People in Llanelli and across Wale are desperate for change and for hope of a better life. That is why we need a Labour Government that will slash energy bills for households and industry, invest in the new green technologies of the future, and invest £3 billion to ensure that we develop primary green steelmaking in Wales—the sooner, the better.

--- Later in debate ---

[Jessica Morden (Newport East) (Lab)]

I congratulate my neighbour, my hon. Friend the Member for Newport West (Ruth Jones), on securing this very important debate; in fact, I believe that this is the second year running that she has secured it. As always, she made her points well, as did all the speakers so far. I echo her comments on Gaza and the middle east. We share the city of Newport, and I know that that is a matter of great concern.

As my hon. Friend and neighbour set out, this is a Government clinging on to power, having presided over 14 years of managed decline. They lack the interest, vision and appetite to deliver the fundamental change that our country needs. We have had some excellent contributions from Members who will have had direct feedback from their constituents, be it on the doorsteps in places such as Monmouth, or in their surgeries. I certainly have: over the Easter recess we carried out a cost of living survey in Newport East, and people told us very strongly just how held back they feel by this failing Tory Government.

My hon. Friend put it well when she said that “never have a British Government asked their people…to pay so much for so little.” Having played fast and loose with the public finances, the Conservative party is passing on the cost of its incompetence to those who can least afford it just as public services, on which so many of them rely, are crumbling under the weight of its cuts. My hon. Friend the Member for Llanelli (Dame Nia Griffith) is quite right: the spring Budget is smoke and mirrors, and people are not taken in by it.

Let us take ourselves back to 2019, when those on the Government Benches stood on manifesto commitments not to raise taxes; to reduce debt; to reduce poverty; and to help people with cost of living pressures. Three Prime Ministers and five Chancellors later, and with the Tory chaos almost halving the Government’s parliamentary majority, those promises lie in tatters. As hon. Members have already said, it is the case, despite cuts to national insurance, which we support, that the income tax threshold freezes mean that taxes are rising at a record pace. They are now at a 70-year high, and rising in each year of the spring Budget’s forecast period. That will make households in Wales £700 worse off, as my hon. Friend the Member for Newport West said. I was very struck by what was said to me by a constituent I met in Magor on Saturday on the issue of the income tax threshold freezes, which was raised by my hon. Friend the Member for Llanelli. The constituent described to me how her small monthly pension was hit by the impact of that and how unfair that was.

[Dame Nia Griffith]

I am sure that my hon. Friend will mention what I forgot to mention, which is that pensioners do not pay national insurance, so they have had no benefit whatever from the NI cut.

[Jessica Morden]

I thank my hon. Friend for making that very pertinent point. There is a big impact on pensioners, as she has said.

The UK debt to GDP ratio is at its highest in 70 years, with no sign of falling. The number of people living in absolute poverty is expected to increase this year to 12 million, with 4.2 million children living in poverty. This year, 62,000 householders in Wales will face the Tory mortgage bombshell—which hon. Members have mentioned—as their fixed-term rates expire, with the average homeowner expected to face a £240 hike in their monthly bill. As hon. Members have said, this is the first Parliament on record for which living standards are set to be lower by the end than they were at the beginning. The Tory Government are breaking promises and breaking records—and all to the detriment of Welsh people struggling to make ends meet. The Prime Minister has joined his predecessor in backing the sort of enormous and entirely unfunded tax cuts that led to the swift demise of her premiership—this time in the form of the abolition of national insurance. Perhaps the Minister will explain to us in this debate, because the Prime Minister could not—he repeatedly failed to answer the question at Prime Minister’s questions today—what the Tory Government will cut to find the £46 billion needed every year for their new policy, or whether they plan to extend their tax-raising record by piling further costs on to Welsh working people.

Not only have the tired Tory Government lost any semblance of economic competence—driving down business confidence—but they have lost their moral compass. Over the last few days, my constituents Colin and Janet Smith have been sharing with the media the story of their decades-long fight for justice for their son, Colin, who tragically died aged seven, having contracted AIDS and hepatitis C from contaminated blood administered by the NHS. For years after his death they faced bullying, abuse and the loss of employment, due to the stigma surrounding his illnesses. I know the family very well, and the absolute tragedy of what he was put through. Members of the House will know that the Smith family’s story is not unique. They have campaigned tirelessly alongside so many others for the truth and for just compensation, so I would like the Minister to tell us why, despite the final recommendations on compensation having been delivered to Ministers by Sir Brian Langstaff, chair of the inquiry, more than a year ago, when he said the Government could get on with making the compensation payments, there is not a single word about it in the spring Budget. I think that is an absolute disgrace.

Welsh steelworkers are right to feel betrayed by a Government willing to countenance 3,000 redundancies across south Wales while our European steelmaking competitors make historic investments in green steel. The almost-overnight end to our virgin-steelmaking capability in Port Talbot is not an inevitability. Rather than relying on imports from across the world, exposing us to the same global risks that precipitated the energy crisis, Ministers must revisit the multi-union plan, described by Tata itself as credible, to work with our steelworkers towards a just transition to the greener future for steel that we all want.

As my hon. Friend the Member for Llanelli mentioned, a Labour Government in Westminster would invest £3 billion in green steel within the first term, protecting livelihoods and the future of our sovereign British steel manufacture, which is vital for our plan to make Britain a clean energy superpower by doubling onshore wind, tripling solar and quadrupling offshore wind.

It is not too late for the Government to change direction on this, and it would be particularly important for my hon. Friend the Member for Newport West, with the Llanwern steelworks in Newport. It would not be the first time a Conservative press release has sounded suspiciously familiar to Labour colleagues. Whether it is the narrowing of the non-dom tax loophole or the half-hearted levy on oil and gas giants, the Prime Minister appears to be slowly realising that the path to a fairer, brighter future for Wales and Britain is through the progressive policies of a Welsh Labour Government working with a Labour Government in Westminster.

The consequential funding that will flow from a UK Labour Government to Welsh public services will be critical. Importantly, my hon. Friend the Member for Pontypridd (Alex Davies-Jones) mentioned the cost burden on local government too. Our public services face intense challenges, particularly in the context of the value of the Welsh Government’s budget having dropped by £1.3 billion in real terms as a result of the Tories’ economic mismanagement.

Some progress was to be welcomed from the spring Budget. We have repeatedly called on the Government to get a move on with the new nuclear site at Wylfa. The purchase of the site is therefore good news, but we are still nowhere near seeing the prospect of clean energy and thousands of good jobs returning to Anglesey. Had they not dithered for five years, we could have seen the plant 50% complete, with up to 8,500 construction jobs under way, around 900 permanent jobs to follow and £400 million for the local economy in wages.

What we saw in the spring Budget was a Conservative Government without a proper plan to grow the economy, without an industrial strategy to match the ambition of our talented Welsh workforce and without the appetite for investment in a greener Wales. Those will only be achieved with a UK Labour Government working with a Welsh Labour Government and a Secretary of State for Wales who stands up for Welsh interests.

--- Later in debate ---

[Fay Jones]

Indeed. It shows what Welsh women can do when we get together.

Turning to the matter at hand, it is absolutely clear that the Conservative Government have a plan to deliver the long-term change that our country needs and that that plan is working. We have seen yet again today that inflation has fallen by over half its recent peak. The cost of living pressure is easing, and economic growth is more resilient than previously suggested. Debt is also forecast to fall. But the recovery is not over yet, and it is at risk from other political parties that do not have a plan for the economy and are instead making unfunded promises that will take us back to square one.

With the economy now turning a corner, the Chancellor has been able to make further tax cuts responsibly to boost growth across Wales and the UK by ensuring that working people keep more of their hard-earned money. Thanks to announcements made in both the autumn statement and the spring Budget, we have seen national insurance cuts benefit 1.2 million workers in Wales.

[Dame Nia Griffith]

Does the Minister accept that while national insurance cuts help all working people, they give a lot of money to the better off and are therefore a very blunt, not at all targeted way of helping people?

[Fay Jones]

The hon. Lady will not be surprised to know that I do not agree. I point her to the fact that at the end of 2010, a worker earning a wage of £15,000 was paying around £1,700 in taxation. Today—after 14 years of a Conservative Government—that amount is around £500. That shows that the Conservative party will deliver for working people.

Thanks to announcements made at the autumn statement and the spring Budget, we have seen national insurance cuts of about £701. Further tax cuts have been announced, included the freezing of fuel duty for yet another year, further easing cost of living pressures and saving the average car owner about £50 over a year. I believe that that is the 14th time since the Conservatives came to power in 2010 that we have frozen fuel duty. Alcohol duty has also been frozen once again to support Wales’s crucial hospitality industry. There was great news for Welsh SMEs, with the UK Government raising the VAT registration threshold to £90,000, building on last year’s autumn statement announcement that the UK Government are backing Welsh business through the British Business Bank’s £130 million investment fund for Wales.

I have listened to a lengthy list of complaints about the Conservative Government, but I remind Labour Members that while we are backing Welsh businesses, their own Government—their own colleagues in Cardiff Bay—have slashed business rates relief from 75% to 40%, meaning that hospitality businesses in Wales will pay thousands more in comparison to their colleagues in England.

The spring Budget also outlined the UK Government’s commitment to securing a diverse energy system with Wales at its heart, through the decision to purchase the Wylfa Newydd site on Ynys Môn. I welcome the shadow Minister’s rather muted celebration of that announcement. New nuclear developments have the potential to transform the north Wales economy, creating thousands of jobs while contributing to our net zero and energy security ambitions. Beyond nuclear, the renewable energy sector is also flourishing in Wales. The Government are supporting floating offshore wind by securing a long-term pipeline of projects in the Celtic sea and unlocking port infrastructure investment through the £160 million floating offshore wind manufacturing investment system. The Chancellor has also announced that the Crown Estate will bring forward an additional 12 GW of floating offshore wind in the Celtic sea in the 2030s.

The Budget was also a great moment for the creative industries—a sector that is hugely important to Wales’s economy. I am mindful of how many Members represent south Wales, so I am surprised this was not mentioned. Cardiff is now one of the UK’s largest media productions centres outside London. I was thrilled to see that the UK Government continue to back the creative sectors in Wales, with £500 million of new tax reliefs for the UK industry, as well as—a cause close to my own heart —a further £5 million for the agrifood industry in mid and north Wales, supporting research and development in our rural heartlands and helping to develop a more sustainable future for our vital agriculture sector. Again, this stands in stark contrast to the actions of the Welsh Labour Government, who have cut the rural affairs budget.

[Dame Nia Griffith]

Will the Minister give way?

[Fay Jones]

I will not.

Indeed, this Government are working hard to ensure that Wales’s sector strengths are empowered to move to the next level. That is why we confirmed at the autumn statement that there will be two investment zones in Wales: one located across Cardiff and Newport—again, a surprising omission from the speeches of the hon. Members for Newport West and for Newport East (Jessica Morden) ; and a second zone located across Wrexham and Flintshire. The Chancellor confirmed at spring Budget that the programme has been extended in Wales from five to 10 years, with each receiving £160 million in funding over this period. This will supercharge key sectors across both locations, creating jobs delivering growth and prosperity across Wales.

A determination to create new jobs has also been spearheaded by Wales’s freeports programme, and here —the hon. Member for Newport West will be surprised to hear me say this—I will praise the Welsh Government for working hand in hand with the UK Government. The freeports programme was further supported once again at this Budget by the Chancellor when he announced that there would be an extension in tax relief from five years to 10 years, providing greater certainty to businesses looking to invest, delivering growth and jobs, and levelling up the economy.

The Chancellor’s spring Budget has provided Wales with substantial additional funding, as I think was mentioned by a number of hon. Members this afternoon. Back in 2021, a record-breaking £18 billion block grant was secured at the spending review. This year’s Budget announced almost £170 million of additional funding through the Barnett formula for 2024-25. That is on top of the £820 million already provided to the Welsh Government since that record-breaking grant in 2021—blowing away Labour’s and Plaid Cymru’s argument that Wales has been underfunded. This is almost an extra £1 billion in additional funding for the Welsh Government. On top of this record funding, the Prime Minister recently announced £60 million for apprenticeships in England. That will result in yet more money for the Welsh Government.

Despite the negativity of Members opposite, there is no doubt that the Welsh Government are adequately funded to deliver on their responsibilities. It is a question of priorities. While the Conservative Government are pouring billions of pounds into Wales and turbocharging the Welsh economy, it is the decisions of the Welsh Labour Government, propped up by Plaid Cymru, that are undercutting Welsh public services.

I was disappointed by the negative and miserable tone taken by Opposition Members during the debate in relation to levelling-up funding in Wales and was surprised to see them criticise the record amounts of funding received in their own local authorities. An announcement at the Budget added to our commitment of long-term regeneration and growth in Wales. I am thrilled that Rhyl is the latest of five Welsh towns to benefit from £20 million as part of the long-term plan for towns.

Welsh Affairs

Nia Griffith Excerpts

Thursday 29th February 2024 Commons Chamber

[Dame Nia Griffith (Llanelli) (Lab)]

It is a huge pleasure to speak in this debate, and I congratulate the right hon. Member for Preseli Pembrokeshire (Stephen Crabb) on securing it. I have to say to my hon. Friend the Member for Gower (Tonia Antoniazzi) that we have the best views in Wales—she cannot deny that.

I have to confine my remarks to two topics so that there is time for other colleagues to come in, and I would like to talk first about railways. Wales accounts for around 11% of the route length of the rail network in England and Wales, but has had only 1.6% of rail enhancement spending in the last decade. We in south-west Wales have a vital railway link from London to the ports of Pembrokeshire, where ferries provide a link to Ireland, but we desperately need investment in the line.

We have had the fiasco of the stop-start on electrification. When Labour left power in 2010, we had plans to electrify the line all the way from London to Swansea. The Conservative-Lib Dem coalition Government cancelled the section from Cardiff to Swansea, then reinstated it after campaigning from MPs—only to cancel it again. When the right hon. Member for Carmarthen West and South Pembrokeshire (Simon Hart) was Secretary of State for Wales, he stood at the Dispatch Box and claimed that it was not worth doing because the nature of the track meant that there would not be any significant improvement in speed, so the journey time would not be any shorter. That completely misses the point, because electrification of the lines is vital for other reasons.

The first reason is tackling climate change, as using electricity from renewable sources means that we can make a significant contribution to cutting emissions. The second reason is pollution; it is much better to have nice, clean electric trains, rather than the diesel fumes that are currently pumped out into our stations and urban areas. The third reason is noise. In Central Square in Cardiff, the noise and pollution coming from the diesel trains in the station is dreadful, and it is certainly not improving our city centre environment.

Then we come to the state of the railway. Time after time, colleagues and I find ourselves delayed on our journeys to and from London, and all too often it seems to be because of a basic failure of infrastructure. The failure of signalling systems means that some lines are blocked. There is points failure, damage to overhead electrical wires and defective track, with delays and cancellations between London Paddington and Reading. Often we are told that there is congestion through the Slough and Reading areas. There simply does not appear to be the capacity to carry the traffic, yet this is a major railway line linking south and west Wales to London. It provides an international route to Ireland, yet the problems are constant. It is an embarrassment that people coming to our capital city of Cardiff for important events are delayed, and the problem is that it is not an occasional occurrence but a regular problem. I find it easier to count the times that the train is on time than those when it is delayed.

If the issue is not technical problems, it is flooding in the Swindon area when there is heavy rain, as happened only 10 days ago. That results in a massive detour around Bath, with people packed like sardines on the train. We are told that these storm events are likely to become the norm and not the exception, so solutions should be found and improvements made. I urge the Secretary of State for Wales to lobby the Secretary of State for Transport for the badly needed improvements to the line. The connectivity is vital, and we want people to enjoy coming to Wales—whether for pleasure or business.

Coming further west, yes, we have seen improvements to the Loughor bridge, but we need a real commitment from the Government to invest in and upgrade the railway line all the way through Llanelli and Carmarthen to Pembrokeshire. We need pressure from the Government to ensure that Network Rail maintains its assets to the highest standards, not least to minimise flooding in areas along the coast from Llanelli to Carmarthen, through Ferryside.

I turn to energy. We in the Labour party are absolutely committed to making Wales and the UK a renewable energy superpower. Indeed, the Welsh Labour Government have already facilitated significant investment in wind energy and a range of marine technologies. We all understand that that is massively needed in order to slash people’s electricity bills, power the transport of the future and cut our emissions, as well as to give us energy security so that we are not dependent on foreign despots. We have such potential for renewable energy in Wales. We have continued to develop wind energy, whereas the Tories have banned it in England.

In south-west Wales, we have potential not only for onshore wind, but for offshore wind and floating offshore wind. Floating offshore wind can be deployed further out to sea, in deeper waters, where the wind is stronger and more electricity can be produced. We also have ports such as Milford Haven and Port Talbot, which can be used both in the construction phase and in the maintenance of offshore floating wind, but we face two significant dangers: first, that investors do not come to that part of Wales at all; and, secondly, that we do not maximise the opportunities for a local supply chain.

As colleagues and I have previously said, we had a calamitous result in last year’s bidding process when not a single company made a bid because the Department for Energy Security and Net Zero was either too inept or too stubborn to heed the industry’s warnings about needing to adjust the strike price to take account of the surge in inflation. Although we had no bidders for floating offshore wind, the Irish worked with the industry and had a very successful bidding process.

Then there was the complacency of the Minister for Energy Security and Net Zero, the right hon. Member for Beverley and Holderness (Graham Stuart), who effectively just said, “There’s next time.” That is a whole year in which other countries will be stealing a march on us. This year, I ask the Secretary of State to work with Government colleagues to ensure that we get the very best, including the scale of investment we need in floating offshore wind in the Celtic sea. We need to have a number of different players taking part in the process.

The UK Government need to be aware of the stiff competition we face from other countries around the world. The investment in our ports and infrastructure has to be really attractive, as business wants clear direction, certainty and incentives from the Government. When I look around and see the investment in the United States due to the Inflation Reduction Act, when I see similar initiatives across Europe and when I see how countries such as Oman—countries that have hitherto been dependent on oil—are now investing massively in renewables and clean steel, the UK has to do more to develop a competitive edge. Ministers need to be cognisant that the problem for our ports is that a huge investment has to be made up front before they see any returns.

The other great danger is that of not maximising the supply chain opportunities. We in Llanelli have a strong engineering and manufacturing tradition, and the development of offshore wind should open up supply chain opportunities, but for this we need a very clear commitment and consistency from Government on the size and the timescale for the development of floating offshore wind. We need realistic support for upgrading our ports, a detailed analysis of the factors that will help or hinder the development of the supply chain industries in Wales, and a proper strategy and understanding of what will make it attractive to develop such supply chains in Llanelli, Port Talbot and the surrounding areas, rather than importing components from abroad. The tragic irony is that, just as we have a tremendous opportunity with the development of offshore wind, we could see the end of steel production at the blast furnaces in Port Talbot while the new electric arc furnace is still not up and running, nor is the quality of its product proven for the uses we may require.

Another essential area of UK Government responsibility is upgrading the national grid to provide the connections and transmission to get the electricity generated to the areas where it is needed. I know that the Welsh Government’s Climate Change Minister, Julie James MS, has been raising this matter.

The Crown Estate’s Celtic sea blueprint, published this month, gives a lot of detail on the components that will be needed for floating offshore wind, the port infra- structure required and the shipping needed. The report acknowledges the value of Celsa in Cardiff as the UK’s primary rebar supplier, but it also refers to other steelmakers. The worry is that the capacity will not be there. The report also identifies a need to grow port capacity in the region, and to use it effectively.

I stress that we need a joined-up effort from the Government, particularly from the Department for Energy Security and Net Zero and the Department for Business and Trade, to ensure that we get the maximum benefit from this fantastic opportunity.

[Several hon. Members rose—]

Ann Clwyd

Nia Griffith Excerpts

Tuesday 19th September 2023 Commons Chamber

[Beth Winter]

I thank my right hon. Friend—“persistence” describes Ann in many respects. I have also had the honour of speaking to her longest-standing colleague in Parliament, Lord Campbell-Savours, who referred to Ann as “Clwyd”. He said that “Clwyd was the most courageous woman I have ever met in my life. She was fiercely independent, knew her own mind and refused to be labelled. Clwyd was what I call a real radical.” He repeated the term “radical”—to him, she was the most radical person he had ever met. They were long-standing friends.

I have also spoken to lots of constituents. A local story about Ann’s forthright approach relates to her canvassing in an election. She was using a loudspeaker, which she did very often throughout the Cynon Valley. A local resident came out and started to harangue her, so in very colourful language—not unlike that used recently by the Secretary of State for Education, which I am unable to use here—Ann told him to go away. Unfortunately, she forgot that the loudspeaker was still on, so everybody got to hear Ann’s colourful language. Her language could be colourful at times, as I am sure her family would agree. Another story that I was told was of Ann comparing a Tory MP’s fur collar to a dead cat around her neck when she criticised Ann for her position on late abortions. Ann did a lot of work on abortion rights, which again is an issue that is still in the political melting pot, as women are still having to fight to decriminalise abortion.

Ann had a very deep and personal interest and involvement in health matters over many years, particularly in a personal capacity in her latter years. At one time, she sat as a member of the South Glamorgan health board alongside a Cynon Valley GP, the late Dr Alistair Wilson, who always felt that Ann wanted services to be the best possible for people. She fully supported the national health service, but with a critical eye—and, oh, did she have a critical eye.

Ann did move on the international stage, but that did not prevent her from paying attention to local issues. Like many other people, one young local person—Richard Jones, who is now a disability rights local champion—asked for help. He recalls that when he asked her for help with a school project as a schoolboy, she sent him so much information that he got top marks for it. Later, he was the constituency Labour party chair when she made her retirement speech at the constituency party, so he had known her throughout his life.

[Dame Nia Griffith (Llanelli) (Lab)]

I congratulate my hon. Friend on securing this debate and on her excellent speech. Does she agree that, in addition to her many political achievements, Ann was a true friend to us all? As my hon. Friend has described, Ann took a genuine interest in all our concerns. She commanded our trust and she did that challenging task of showing real leadership as chair of the parliamentary Labour party—quite a task to fulfil. It was that genuine interest in people and the trust that we were able to put in her that enabled her to do that. I do agree with my hon. Friend, and I hope she agrees with me.

[Beth Winter]

I completely agree. Ann did take an interest in people and was very patient when listening to their concerns.

Ann had first-class support from staff in her constituency and in Parliament, and I recognise the importance of that as a Member of Parliament. I have had a conversation with the family today, and I am sure nobody will mind if I make specific reference to one person in particular: her friend, confidant and mainstay in Cynon Valley, Jean Fitzgerald, who was also a great support to myself. Sadly, Jean died shortly after Ann retired, but the closeness between them was so evident, particularly when Ann paid tribute to Jean at her funeral.

Oral Answers to Questions

Nia Griffith Excerpts

Wednesday 5th July 2023 Commons Chamber

[Dame Nia Griffith (Llanelli) (Lab)]

The automotive sector contributes significantly to the economy in Wales, including Gestamp in my constituency, where investment in the latest technology to make lighter, tougher bodywork parts contributes to the safety and energy efficiency of vehicles, including new electric vehicles. However, with the US and the EU offering big incentives to companies to invest in new green technologies, what talks has the Minister had with ministerial colleagues about offering similar incentives to get the investment from automotive companies to ensure that we keep a vibrant automotive sector?

[Dr Davies]

I know that that question is very important to the hon. Member and her constituency. I point her in the direction of the growth deals, which have an important role to play, and regular ongoing discussions are held between the Secretary of State, the Wales Office and other Government Departments.

25 Years of Devolution in Wales

Nia Griffith Excerpts

Tuesday 28th March 2023 Westminster Hall

[Dame Nia Griffith (Llanelli) (Lab)]

I really do not recognise a lot of what the hon. Member for Delyn (Rob Roberts) has laid out. One great thing about devolution is that there has been far greater transparency and that enables him to make some of his analyses. Every region and council in England has things that have not always gone exactly as they should, and which could have been done better. That is obviously the case for Wales as well. People are not always going to get everything right first time. They are not always going to do everything the best way. However, the point is that they are democratically elected and closer to their communities, and they have the opportunity to improve and change things.

I want to put on record the remarkable progress that Wales has made over the last 25 years. Setting up the Senedd—or the Assembly as it was then—from scratch and gaining greater powers has been done in a remarkably short time. Considering that we were faced with the consequences of a world banking crisis seven years after it was set up it has not been an easy time.

In Wales, we have the opportunity to use powers imaginatively and to do things differently. Right from the start, we in the Labour party looked at who was going to represent us. We decided to go for a twinning process and put constituencies together so that we would have an even number of Labour women and men standing for election in winnable seats. Too often, women were confined to less winnable seats. That provided a strong degree of gender equality in the Assembly, which coloured debate. Why is it that Wales led on childcare provision? We have had a strong tradition of women speaking up in the Senedd. Why is it that Wales spends more on social care? Why does it provide better social care and a living wage for all in the care sector? That has been delivered by the Welsh Labour Government because we believe it is very important. Why have those issues been raised? It is because we have more women taking part. There has been a real shift in focus, and a real determination to do things differently within the powers we have. We do not have all the powers, but we use them imaginatively. For example, how did we ban fracking in Wales? We banned fracking through the planning laws, because that is where we have powers.

In Wales, we have taken up long-term issues such as preventive medicine, the results of which will not be seen for a very long time. We were the first to bring in a smoking ban. Smoking is at record lows in Wales. That is good, but it will be years before the long-term benefits to health outcomes are seen. We have concentrated on the foundation phase of education. Again, it may be a considerable time before we see the full benefit of that investment because we are starting with the youngest children. We have a very innovative curriculum.

What is important about devolution is the closeness of the Administration and the Ministers to the people they serve. Time and time again, whether it is business groups, trade unions or stakeholder groups, people in Wales feel that they can access the Welsh Government. They can have meetings with Ministers or officials. They are involved in consultations.

Take the recent consultation on business rates. People have talked about reform of business rates forever and a day across the UK, but the Welsh Government have got on and started consulting. No one thinks that finding a solution will be easy because there will always be winners and losers, but the important thing is having the consultation and the fact that people in Wales feel they have an opportunity to contribute. A good example occurred during covid, when Julie James, a Member of the Senedd who was then in charge of local government, had regular meetings with council leaders across Wales. Even Opposition party leaders recognised the value of that: nothing was a shock for those councils. Local authorities were under stress, having to deliver everything during covid: providing school meals during lockdown, ensuring social distancing in the workplace and preparing schools for reopening, to name but a few—not to mention the delivery of the test and trace programme, which cost so much less and was so much more effective in Wales because it was delivered by local authorities who knew their people well.

[Rob Roberts]

The hon. Lady used the words, “far greater transparency”. I mentioned the covid inquiry; from what she is saying, in Wales, everything was run quite well and all the Ministers made excellent decisions. Is it not therefore incomprehensible that Wales should not have its own bespoke covid inquiry to scrutinise whether those decisions were actually as good as she is making them out to be?

[Dame Nia Griffith]

I find that comment surprising from somebody who purports to want to save money. We can do what the hon. Gentleman suggests at one fell swoop, with one covid inquiry. It can have specific studies of what happened in Scotland, Northern Ireland and Wales; there is absolutely no reason why that should not be the case. The National Audit Office gave Wales a clean bill of health on the way it purchased personal protective equipment throughout covid, whereas we have seen some shocking figures on UK Government money that went astray, and some dreadful accusations of cronyism in who won various contracts; companies in my part of Wales missed out because their emails were never even opened by the Department of Health. I can cite one company that, despite being a trusted supplier to the Ministry of Defence, police forces and health service in Wales, did not even get a look in from the NHS in England.

Getting back to the point, the Minister in Wales talked to the leaders of local councils; they knew that councils were facing the stress of having to deliver measures under covid, so they made sure that councils knew what was coming down the line. That contrasted very sharply with what happened in England; leaders in the north of England found out that their whole areas were being put under covid restrictions literally a couple of hours before it was announced on local radio. That was an utter disgrace. The situation in Wales reflects what can be achieved in a more devolved situation, where people can have greater access. We cannot expect people to have that same sort of access in a UK Government situation, in which we would clearly be dealing with a much larger country. However, there could have been a great deal more co-operation on covid restrictions and with councils.

There was a shocking disregard for the powers of the devolved Governments during covid. They were often not apprised of what was happening at Cobra meetings and found out about things very last minute. There could have been much better consultation, much better dialogue and actual interaction on how things could be done better. The same situation was repeated in the United Kingdom Internal Market Act 2020; instead of constructing a situation in which there would be proper consultation and discussion, the UK Government pushed through legislation that effectively ignores devolution and rides roughshod over the devolution settlement.

That has likewise happened in the distribution of levelling-up funding and the shared prosperity fund. It is quite extraordinary, because nobody logical would ever think of missing out the Welsh Government when deciding how to use the levelling-up fund and the shared prosperity fund. The Welsh Government have been central in the distribution of European funding, and they already have established partnerships with the local authorities. It is absolutely bizarre; there can only be a political motivation. Nobody in their right mind would think of missing out a layer of Government as important as the Welsh Government when managing those funds.

The other thing that the Welsh Government are prepared to do is step in. Again, that is one of the benefits of their being close to people, and being transparent. A Government can step in when they can see what is happening and what is not going right. In Ynys Môn, for example, the Welsh Government stepped in because the local council was failing. The Welsh Government have stepped in with Betsi Cadwaladr. The important thing is that they are being proactive and getting in there. Nobody pretends that everything is perfect; the important thing is that a Government be prepared to act and do something. They should not wait 20 years for somebody to produce a report on how terrible things are, particularly with hospitals. It is important to get in there now and work with the people there to improve things.

[Rob Roberts]

rose—

[Dame Nia Griffith]

I think the hon. Gentleman has said enough on that issue; I am going to have my say. Perhaps I will let him come in on another topic.

I will move on to the situation that we are in now. We are clearly facing a major climate crisis. What are the Welsh Government doing? We are moving forward. We are moving forward on renewables very quickly, and we have set up a company to help drive investment in renewables because we recognise the challenge. We also recognise that we have some of the heaviest and dirtiest industry in the UK, so we have an even greater challenge. Of course we in Wales will find it more difficult to reduce our carbon footprint than areas without those challenges will, but we are motoring ahead.

I want to draw the attention of the hon. Member for Delyn to the Advanced Manufacturing Research Centre in north Wales. The Welsh Government plan to encourage investment in it. Most importantly, the Welsh Government are trying hard to work with people in Wales; we are trying to consult them and take them with us. That is why we have had fewer strikes in Wales than in England. Railway workers have not gone on strike in Wales because they have already managed to agree something, whereas they have carried on with strike action in England. Likewise, we have had a more constructive approach to workers in the health service; we recognise that standards can be raised only through partnership with everybody involved. That is important.

We could score points forever, looking at what is good in one place and better in another. The fact is that England is a large place. Many rural parts of England have similar challenges and difficulties to Wales; in those places, it is difficult to attract specialist staff. Difficult decisions have to be made about how to provide ultra-specialist services when there is not the population to support the models we have in places such as London, where lots of specialist hospitals are very close together. There are huge challenges, not just in Wales, but in parts of rural England. The same can be said about rural transport.

Let us be clear about some of the things we have done in Wales. We were the first UK health service in Europe to put nurse staffing levels into law, making a real difference to patient outcomes, experiences and quality of care. We were the first country in the UK to introduce a single cancer pathway, making sure everyone gets the best possible care and treatment, and cancer survival rates in Wales are increasing. We were the first part of the UK to introduce special, non-invasive tests for babies before they are born, helping to reduce the risk of miscarriage, and we were the first UK health service to commit to ending new cases of HIV by 2030. As I have mentioned, Wales was the first to ban smoking in public places, and the first to change the law for presumed consent for organ donation. Of course, we championed prescriptions, which continue to remain free in Wales despite many economic pressures.

I could go on, but the important point is that co-operation and consultation matter. We have a new curriculum in Wales. It is imaginative and different. It is not so focused on a narrow set of examination results; it is a much broader education. It reflects a lot of what is going on in many other European countries. It will take time for us to see its results, but it has been developed with teachers, pupils, communities and, most importantly, business and industry, looking at the rounded skills that are so often needed in addition to straight examination results.

As we move forward into the next decade and the challenges that it will produce, the important thing is that people have an opportunity to make their views known at the polls—to elect the people they want to serve them in Wales and on their local councils. To roll back on devolution—to try to centralise things—will not serve people’s best interests.

Oral Answers to Questions

Nia Griffith Excerpts

Wednesday 23rd November 2022 Commons Chamber

[David T. C. Davies]

I absolutely agree with my hon. Friend, and that is why we have allocated £1.3 million to 17 projects in Wales to make vital improvements to changing room facilities and artificial grass surfaces. Sports clubs are at the heart of every community in Wales, and Wales is at the heart of every decision taken by this Government and this Prime Minister.

[Dame Nia Griffith (Llanelli) (Lab)]

As people up and down Wales celebrate Wales’s success and wish them the best for the next couple of matches, this is an ideal and unparalleled opportunity to galvanise that enthusiasm and develop grassroots football in Wales. The Football Association of Wales tells me that £12 million has been earmarked by the Department for Digital, Culture, Media and Sport for the development of the sport over the next few years, but it could be threatened by the cuts announced last week by the Chancellor. Will the Secretary of State please speak to the Secretary of State for Digital, Culture, Media and Sport and beg her to safeguard that money for the development of grassroots football in Wales?

[David T. C. Davies]

The Government have already shown their commitment to sport—not just football but many other sports—through the funds disbursed by DCMS across the United Kingdom. I am sure that right hon. colleagues will have heard the hon. Lady’s comments, but I assure her of our commitment to grassroots sports across Wales and the United Kingdom. I look forward to joining her to support tîm Cymru a’r wal goch wythnos nesaf. Diolch. (Translation: I look forward to joining her to support team Wales and the red wall next week. Thank you.)

Oral Answers to Questions

Nia Griffith Excerpts

Wednesday 19th October 2022 Commons Chamber

[Sir Robert Buckland]

It is a Conservative Government who, through Help to Buy, have helped more than 361,000 first-time buyers on to the housing ladder. It is a Conservative Government who led to unemployment at record lows. It is a Conservative Government who have increased the national living wage to £9.50 an hour. And it is a Conservative Government who will lead to interest rates being controlled, which will help mortgage holders, too. The hon. Gentleman’s hyperbole does not serve him well.

[Dame Nia Griffith (Llanelli) (Lab)]

6. What recent estimate he has made of the differential in domestic energy costs between Wales and the rest of the UK.

[The Secretary of State for Wales (Sir Robert Buckland)]

Most recent data demonstrates that households in Wales pay a price broadly on par with the average across Great Britain for variable unit costs and standing charges for gas and electricity. Our energy price guarantee will save households hundreds of pounds this winter compared with current wholesale cost projections.

[Dame Nia Griffith]

My constituent Mr Evans in the town of Kidwelly cannot benefit from a lower tariff for the electricity he uses in off-peak times because, as the engineers have explained to him, the smart meter he needs will not function owing to the almost non-existent mobile phone signal in the area, which is due to the UK Government’s failure to roll out mobile phone technology, while allowing smart meters that work only on mobile phone signals. Will the Secretary of State now have urgent talks with ministerial colleagues to put it right and end this discrimination?

[Sir Robert Buckland]

I will be interested to take up that case in more detail with the hon. Lady. However, the Government, in acting radically on energy price intervention and with our Energy Prices Bill, which seeks to break the link between electricity and gas prices, are taking the sort of action that is absolutely necessary to help households such as her constituent. Of course, I will be happy to talk further about the particular disadvantage that her constituent faces.

Oral Answers to Questions

Nia Griffith Excerpts

Wednesday 6th July 2022 Commons Chamber

[Dame Nia Griffith (Llanelli) (Lab)]

In spite of parliamentary questions, we still have no answers about how people who have their permanent residence in park homes or similar in Wales, who receive their energy bills via a third party, can receive the £400 discount. Will the Minister speak to his ministerial colleagues to sort that out so that those people can receive the money in a timely fashion?

[David T. C. Davies]

The hon. Lady has not actually contacted me about the issue previously, but it is a reasonable one to raise and I would be happy to see any correspondence from her on it.

Oral Answers to Questions

Nia Griffith Excerpts

Wednesday 25th May 2022 Commons Chamber

[Simon Hart]

My right hon. Friend has made a good point. The Government recognise the importance of the line to which he has referred, and I know that Liverpool City Region Combined Authority and Transport for Wales have been discussing the opportunities presented by battery-powered trains.

My right hon. Friend also made a good point about cross-border connectivity and the need for us to view these areas as economic regions and not be disrupted in any way by the artificial boundaries that devolution sometimes creates. I assure him that we will have further meetings with the Department for Transport about this issue.

[Nia Griffith (Llanelli) (Lab)]

This Government cancelled Labour’s plans for electrification of the line to Swansea, citing the pretext that it would not speed up journeys. However, there is an urgent need for electrification to combat climate change and decrease reliance on imported fossil fuels. Will the Secretary of State talk to his colleagues about reinstating the plans for electrification of that line, extending electrification further west through my constituency to the Pembrokeshire ports, and supporting these moves through increased investment in renewable forms of electricity generation?

[Simon Hart]

The hon. Lady has raised, quite reasonably, a point that she has raised before. I agree with her on most of the issues that she has raised, apart from the background to the cancellation of electrification, a decision which, as she knows, was taken in the context of bimodal trains as an equally beneficial alternative. However, her general views about rail infrastructure and net zero are entirely shared by the Government. I hope that she might be able to make the same compelling case to her colleagues in Cardiff as she makes to us.

Welsh Affairs

Nia Griffith Excerpts

Thursday 3rd March 2022 Commons Chamber

[Mr Jones]

Obviously we should commend the Welsh Government for doing that, and we should commend everyone who is lending their resources to the Welsh national effort. Wales is a generous nation, and its generosity is demonstrated by all the stories we are hearing in this debate.

North Wales potentially has a huge role to play in helping to secure the energy supply of this country. It is well placed to become an energy powerhouse, and not only in relation to what I would describe as the low-hanging fruit of wind energy. I am sure my hon. Friend the Member for Ynys Môn (Virginia Crosbie) would wish me to draw attention to the potential of Anglesey as an energy island, which should be developed as a priority.

The Prime Minister has said it is his ambition to see a new nuclear power station started in this Parliament, and there could be no better location for it than Wylfa on the north Anglesey coast. I was once told by a senior nuclear engineer at Hitachi, which previously had an interest in Wylfa, that it is the best site he has seen anywhere in the world for a nuclear power station, and I strongly urge the Government to pursue the development of Wylfa with appropriate private sector partners as a priority. I am pleased that the Nuclear Energy (Financing) Bill will soon become law, as it will provide a financing model, the regulated asset base, that should prove more attractive to domestic investors.

Similarly, I suggest that Trawsfynydd should be considered for the location of a new fleet of small modular nuclear reactors. That proposal has the support of the local authority, it has significant local expertise and it has a lot of the necessary infrastructure. Siting an SMR in Trawsfynydd would present the prospect of a new north Wales-developed industry that could relatively quickly be rolled out across the country and, indeed, internationally, putting north Wales ahead of the game.

We should also look seriously at the concept of tidal lagoons. Sadly, as we know, the proposed Swansea lagoon did not proceed.

[Nia Griffith (Llanelli) (Lab)]

Will the right hon. Gentleman congratulate the Labour-controlled city and county of Swansea on how they have turned around the Swansea tidal lagoon to make it a financially viable project that will provide energy at reasonable prices to over 800,000 homes in the Swansea area?

--- Later in debate ---

[Nia Griffith (Llanelli) (Lab)]

I congratulate my hon. Friend the Member for Caerphilly (Wayne David) on securing this debate and thank him for the huge amount of work that he did in government as a Minister in the Wales Office, and also for his work in defence, in foreign affairs, on the constitution, on Scotland and so on. As we all know, he has brought many, many talents to the House and we wish him well for the future.

This year marks 100 years since Labour became the party of the majority of people of Wales, winning 18 out of 35 seats at the general election in 1922, with the Liberals taking 10 and the Conservatives six. For Labour politicians, being an elected representative is about trying to improve the lives of our constituents, strengthening the cohesion of our communities, making sure that we value each and every one, and looking after those who fall on hard times.

The Llanelli constituency has been represented continuously by Labour MPs since 1922. I am privileged to follow three distinguished parliamentarians: Dr J. H. Williams, Jim Griffiths and Denzil Davies. A party can only bring about radical universal change when it is actually in government—be that at UK level, Senedd level or council level.

I pay tribute to Jim Griffiths, who was described by James Callaghan as “one of Wales’s greatest sons”. If we look back at some of Griffiths’ achievements, we can see how relevant they are to some of the problems that we face today. In that radical Government of 1945, he brought in family allowances. They were to be paid to the mother, which is something that campaigners had been wanting for a very long time. He saw the poverty and malnutrition in his constituency and was determined to look after people who fell on hard times. He brought in the National Insurance Act 1946, which ensured unemployment benefit and sickness benefit, and the National Assistance Act 1948, which ensured that those who were unable to make the contributions necessary to be eligible for those benefits—people who had disabilities; people who had been unable to make enough contributions to cover their old age—were covered. He also brought in the Industrial Injuries Act 1946 to look after those who were injured at work, those who needed a disablement pension for life, and indeed money for the dependants of those who were killed at work.

We need to think hard about how we look after the poorest in our society today. It is 12 years since the Conservative Government came to power. In that first year, they broke the benefits link to inflation that had always been there. Even Margaret Thatcher did not break that link. We have seen 12 years of erosion in the value of benefits, plus, of course, the £20 cut that we saw earlier this year. It is all very well to say that that was additional, but we must bear in mind those 12 years of erosion. It was hardly a fair compensation for that, and that money did not even go to those people on legacy benefits. Then there were the cuts in tax credits. It is all very well to talk about the softening of the taper on tax credits, but that does not make up for the amount of cuts that there have been to them.

I fear now that, with rampant inflation, we will see malnutrition return. We are already talking about people having to choose between eating and heating. If that goes on for more than a few weeks, children will suffer—their development will suffer—and, sadly, we will risk returning to a pre-1945 state. I urge this Government to look again at how we treat the poorest in our society, particularly in respect of the cost of living crisis.

Jim Griffiths was also known for his work in developing what we now know as the Wales Office, a precursor to the whole idea of devolution. We have been able to do things differently in Wales with a Welsh Labour Government. Gradually, we have had more powers, and we have developed and implemented policies that reflect Welsh Labour principles. The Development Bank of Wales, for example, has supported many businesses and helped them grow, working to the priorities of the Welsh Government, including growing the missing middle—those medium-sized businesses that we are still short of in Wales.

The Welsh Government have been not only providing support for the foundation economy, which is home-grown local businesses feeding into the local economy, but using public procurement to support the local economy and promote ethical procurement—not using firms that blacklist or trash workers’ right. We also have a social partnership approach—a partnership between Welsh Government, businesses, industry and trade unions. Interestingly, because the Welsh Government gave out more money than usual during the pandemic, they were able to increase the number of firms that are involved in a partnership that has conditionality attached to it for having that money from the Welsh Government. That conditionality is about saying that there will be growth and job provision, about saying that there will be fair work and workers’ rights, about looking after the wellbeing of the workforce, including mental health, and about having a commitment to tackling climate change.

It is very noticeable that the National Audit Office gave the Welsh Government a clean bill of health on the way they had gone about procuring supplies during the pandemic, while the UK Government, sadly, wasted billions by giving contracts to cronies. Frankly, we are all very ashamed of that. It is also shameful because all of us paid for that.

Public transport is a real challenge for us in a very large country. It is vital to help people get better access to education, training and job opportunities. I know that the Welsh Government are committed to building on their work for Transport for Wales, by taking over the railway franchises and by ensuring that we have a better bus service that is more responsive to people’s needs and that looks at ways to make fares more accessible. I know people in rural areas of my constituency who are very dependent on buses with quite high fares to get any job opportunities, because the mining villages that once offered such opportunities now do not, so they have to travel to towns such as Carmarthen and Llanelli for work.

Of course, it is not just the infrastructure that we need to look after; we must also invest in our people. That is something the Welsh Government have taken seriously, with initiatives such as all-age apprenticeships, workplace learning and better digital inclusion. Levelling up is a huge challenge, and I do not pretend that the UK Government have an easy job to do. Working out how to spread power, wealth and opportunity is really difficult. It is not only about getting the appropriate structures in place, but about getting the appropriate ethos and the right relationship between one layer of government and another.

I must say, however, that the way the Conservatives are running the levelling-up fund and the community renewal fund shows brazen disregard for the devolution settlement. The Tory UK Government are completely ignoring not only the Welsh Government, but the partnership work done between the Welsh Government and Welsh local government leaders on strategic priorities. Instead, we have an England-focused Department for Levelling Up, Housing and Communities, which has not dealt with Wales since pre-devolution days in 1999, and which has allowed previous Tory Ministers to give money to each other’s constituencies, to the detriment of more disadvantaged areas. Will the current Secretary of State be any better?

Again, that contrasts with the close working relationship that the Welsh Labour Government have with the leaders of the 22 Welsh unitary authorities, whatever their political colour, throughout the pandemic, recognising the vital role and burdens that councils have shouldered. We can contrast that with what we hear from council leaders in England about the lack of consultation with the Tory Government. In dealing with the covid pandemic, time after time there was no real consultation, nor even sometimes any communication from the UK Tory Government to the other nations of the UK. Perhaps that should not surprise us, given the poor communication even within the Tory Cabinet and the Prime Minister’s absence from Cobra meetings, but it has serious consequences. It is not only a poor way to run the UK; it also fans the flames of separatism.

It is important that we pin the blame clearly on the Conservative Government for the way they behave, rather than allowing the idea to take hold that it is the existence of a UK Government that is the problem. As we talk about a better balance of power, wealth and opportunity across the UK, we must also celebrate the huge benefit that comes with being part of the UK and being able to tackle big problems such as climate change together.

What is really needed is to put that relationship between the UK Government and devolved institutions across the UK, whatever form they take, on a firm statutory footing. The relationship between areas and different levels of Government should be one of mutual respect. As the Welsh Government have clearly set out, the UK Parliament should not normally seek to legislate for a territory in relation to matters within the competence of the devolved legislature of that territory without that legislature’s explicit consent.

Instead of pitting areas against each other, we should look at ways that different areas can complement each other, perhaps by developing different industrial specialities. That means developing effective funding mechanisms to get away from competitive bidding and ministerial interference—simply creating systems that work better than what we have at present.

The Welsh Government have not grabbed power to themselves; they are using their power to enable local authorities. What we have seen this year in the local government settlement is a very generous settlement to local councils across Wales: a 9.4% increase in core revenue, in recognition of the huge work that local councils have done throughout the pandemic.

On test and trace, Wales used local councils with local knowledge and local people with a public service ethos to provide a service—we might joke that the Welsh are all very nosy, so we would know where so-and-so was on a Saturday night and who he or she might have been meeting. It is so much better to have that ethos than to have the billions wasted in England on contracting out to firms all over the country that did not even manage to train up or employ their people half the time. If we have that ethos and local knowledge, the service can be delivered so much better.

The financial settlement will help to put our local services on a firm financial footing—firmer than has been the case for a long time, as we have had to absorb the swingeing Tory cuts to the Welsh budget. The settlement is the result of months of constructive dialogue between Ministers, leaders and officials in local government and the Welsh Government. Councillor Andrew Morgan, the leader of the Welsh Local Government Association, commented:

“Investment in councils is more than figures on a spreadsheet. It’s about investing in our communities, our people and in our vital services that help improve and change lives, whilst continuing to respond to two global challenges: the pandemic and climate change.”

I hope we can all work towards those ends.

--- Later in debate ---

[Craig Williams]

The hon. Member makes an interesting point given that I have just given him two hard figures. The latest schemes coming out of the United Kingdom Government show that this is not about words, but action—actual funding leaving the Treasury and the levelling-up unit and going into Wales. We have 23% from the community renewal fund going straight into schemes across Wales and 7% from the levelling-up fund—way above any Barnettised formula. The figures are there, so he need not ask for them. Now we need to work together.

The hon. Member for Aberavon (Stephen Kinnock), who is not in his place, talked about an attack on devolution. With the objective 1 funding, we qualified once, we qualified twice, and we continued to qualify. That was not a great thing to continue doing, as countries in eastern Europe managed to use the funding programmes organised by the European Union to grow their GVA and so no longer qualify because their prosperity, skills and poverty indicators were all going the right way. In Wales, we are still under the Welsh European Funding Office. This is not just a political assertion from the Conservative Benches. The Audit Wales, Committees of this House and the European Union itself wanted to know time and again why the European funds that were going to Wales were not getting any better outcomes than countries in eastern Europe—the outcomes that our constituents wanted. I remember during the referendum, when we were on the same page, wondering why the response was so bad in the south Wales valleys.

[Nia Griffith]

Does the hon. Member accept that many of the financial levers are not in the control of the Senedd, including the whole taxation and benefits system, which affects the GVA of the population of Wales very significantly? Therefore, there are 12 years in which the Conservatives share responsibility for whatever deficit he is referring to in terms of where he thinks the development should have gone to? In addition, why is there this aversion to including the Welsh Government together with his Government and local government to talk about the priorities of the levelling-up fund and the community renewal fund, instead of just ignoring them?

[Craig Williams]

I could make a 10-minute speech on the irony of that intervention, but I can see the Deputy Speaker looking at me funny so I will not. Most of those arguments could be made for most of the eastern European regions, as they have different constitutional settlements and local government as well. We could go back and forward on that, on an academic level, for a while.

Going back to the attack on devolution, I have seen the discussions around what mutual respect means for Labour Members. They do not mean mutual respect; they mean that they want the Welsh Government to control all decisions. It is not about putting things together; it is about having a veto over what this Government are doing. I find that completely frustrating, given what I have described as happening with former European programmes. The leader of Powys County Council has been unequivocal in welcoming the levelling-up fund and community renewal fund—schemes that, for the first time ever, provide real investment in mid-Wales. This is hugely significant.

I reflect on the exchange between the hon. Member for Cardiff North (Anna McMorrin) and my hon. Friend the Member for Clwyd South (Simon Baynes). Looking at the political map of this place, above the Brecon Beacons there is beginning to be a political discourse of two countries—or three with mid-Wales—where there is a palpable feeling of neglect coming from the south Wales Labour party, as we see it.

[Nia Griffith]

rose—

[Craig Williams]

Two speeches are enough.

I would push back heavily on the willingness of communities in north, mid, and, no doubt, south Wales to access funding directly from the UK Government to work with us on strategic issues. Mutual respect is always chucked around in this Chamber, but in the Union connectivity review, for the first time ever, the UK has looked at taking responsibility for connecting the United Kingdom. When the European Union did that through its trans-European network, there was not a single utterance in this place. In fact, there probably were some utterances from the Conservative Benches, for a very different reason. It was absolutely fine for Welsh Labour and the Welsh Government to have the European Union dictating where infrastructure spend should go in the United Kingdom in connecting the whole of Europe, but the second the United Kingdom Government say how to connect our great four nations together, there is outrage, saying it is an attack on devolution. [Interruption.] That intervention from Scottish Members will feature independence, I am sure.

Montgomeryshire has a strongly cross-border population. A good chunk of the workforce, if not the majority, cross the border to work every day. Our district general hospital is in Shrewsbury in England. Our sixth-form colleges are over the border. We are a community that certainly does not see, or want, the huge policy divide that is being asserted on the Opposition Benches.