Cost of Living in Wales

Nia Griffith Excerpts

Tuesday 22nd February 2022 Westminster Hall

[Jessica Morden]

Before the vote, I was talking about the soaring household gas and electricity prices and about how households in Wales and the UK would see their energy bills rise to nearly £2,000 a year from April, when the energy price cap lifts. I agree with the excellent intervention by my hon. Friend the Member for Neath (Christina Rees) about the interventions of the Welsh Labour Government in Cardiff and how they have used the levers at their disposal to do all they can to ease the cost of living crisis for Welsh people. I will talk more about that later.

The proportion of households spending at least 10% of their budget on fuel bills will be trebling from 9% to 27% and, on top of that, taxpayers will be asked to foot an estimated £120 a household to shoulder the extra costs of the energy companies that have gone under in the last year. Based on that increase alone, National Energy Action Cymru estimates that 280,000 households in Wales could be in fuel poverty come April. That is a further 100,000 households since October 2021, and all that at a time when pay is not keeping pace with rising prices. When we factor in inflation, average weekly pay packets across Britain fell in December by 1.2% and TUC research suggests that real wages are set to fall by £50 a month this year, after taking into account the cost of living, with incomes after tax forecast to drop by 2%. That represents the biggest fall since records began in the 1990s. Although the national living wage may be going up, the proliferation of insecure, casual jobs and cuts to in-work benefits mean that a higher minimum wage does not mean higher living standards.

[Nia Griffith (Llanelli) (Lab)]

Does my hon. Friend agree that, although many people think of benefits as going to people who are not in work, there are in fact a lot of benefits that go to people who are in work? The fact is that there have been swingeing cuts to tax credits since 2010, and even though there was some adjustment to the taper last year, that alone is not enough. With rampant inflation, there now needs to be a real effort to make sure that those tax credits are actually worth something, to make it worthwhile to be in work. At the moment, people face horrendous poverty because of that accumulation of 12 years of cuts.

[Jessica Morden]

I thank my hon. Friend for that intervention. She is absolutely right: the levels of in-work poverty are really terrifying, and it is those on the lowest incomes who are feeling the squeeze most acutely. As she said, that is made worse by the Government’s £20 cut to universal credit in the autumn, which impacted 8,630 households in my constituency. Research from Wales TUC and the Bevan Foundation suggests that Wales was particularly hard hit by the cuts to universal credit and working tax credit, especially when it comes to the in-work poverty that she mentions.

Of the 280,000 individuals in receipt of universal credit in Wales, around 104,000, or 37%, are in work—the highest proportion of any nation or region in the UK. In April, universal credit will increase by 3.1%, just as inflation is predicted to peak at 7.25%. As the Child Poverty Action Group has highlighted, that means that the real value of universal credit for families with children will fall by around £570 a year on average.

Oral Answers to Questions

Nia Griffith Excerpts

Wednesday 9th February 2022 Commons Chamber

[Nick Smith (Blaenau Gwent) (Lab)]

2. What recent steps the Government have taken to tackle the impact of inflation on households and businesses in Wales.

[Nia Griffith (Llanelli) (Lab)]

8. What recent steps the Government have taken to tackle the impact of inflation on households and businesses in Wales.

[Anna McMorrin (Cardiff North) (Lab)]

12. What recent steps the Government has taken to tackle the impact of inflation on households and businesses in Wales.

--- Later in debate ---

[Simon Hart]

I can only refer the hon. Member to my earlier comments. We want to be extremely sure, just like him, because Conservative Members have a similar dynamic in our own constituencies, that we are putting in place everything we can, whether that is the universal credit taper, the increase in the living wage, an increase in the tax threshold, or indeed the jobs-led recovery I have mentioned. The fact is that the economic prospects for the UK, including Wales, are actually growing at a reasonable pace, although it can always be faster and greater. I am hoping I can reassure his constituents, just as I am attempting to reassure mine, that we have their best interests at heart when it comes to food poverty.

[Nia Griffith]

People do understand the need to provide more money for health and social care, but Welsh businesses and workers—they now face rampant inflation, bringing escalating costs and reduced consumer spending power—are angry that the UK Government are hitting them with the national insurance rise while the Chancellor has simply written off billions. What talks has the Secretary of State had with Cabinet colleagues about implementing concerted efforts to recover the £5 billion of taxpayers’ money taken fraudulently by criminals in covid support, and about engaging with companies that were vastly overpaid by the UK Government for personal protective equipment contracts on recognising their corporate social responsibility and returning excess profits, rather than hitting workers and businesses across Wales with this national insurance rise?

[Simon Hart]

The hon. Lady raises an important point about fraud. All I can tell her is that the Treasury is a world leader in tracking down, eliminating and reducing the risk of fraud, and I think she should give it some credit for the remarkable work that it has already done in that respect.

Strengthening the Union as it Relates to Wales (First sitting)

Nia Griffith Excerpts

Tuesday 18th January 2022 General Committees

[Simon Hart]

I am very grateful for the intervention, because I would like to thank a number of people. I do not think this scheme was the particular brainchild of any one group of people or other, but it was an urgent response to a serious and potentially catastrophic issue, so I extend my thanks to anybody who may have had a stake in that process. However, I particularly commend the Treasury. In all our time as Members of Parliament, we have probably not always thought of it as an organisation that moves at lightning speed, but on this occasion it did move at lightning speed, and it has saved hundreds of thousands—millions—of jobs in the process. The Chancellor took decisions that nobody thought possible at the time and implemented a scheme at a speed that nobody thought feasible at the time, and one in three of our constituents on the payroll in Wales had their job secured as a result.

[Nia Griffith (Llanelli) (Lab)]

Will the Secretary of State give way?

[Simon Hart]

May I give way to the hon. Member for Arfon before coming to the hon. Member for Llanelli?

--- Later in debate ---

[Simon Hart]

I am not going to give way again, because I said that I would give way to the hon. Member for Llanelli.

[Nia Griffith]

Indeed, actions were taken quickly by the Treasury, but what happened in October and November 2020, when there was a huge delay? The Welsh Government recognised the need to use that half-term to have that firebreak, yet there seemed to be no movement by the UK Treasury. Where was the close working there? Where was the good relationship? Are there not ways, now, in which we could improve that relationship and make it work better, so that the UK Government take more notice of what the Welsh Government are saying and work better with them?

[Simon Hart]

Our intergovernmental relations paper was published last week. That would probably help me to answer the hon. Lady’s question. I think I am right in saying that back at the time of the example that she gives, the Treasury did make absolutely clear to the Welsh Government what was possible and what was not in that timescale. I am afraid to say that the Welsh Government, in that case, completely ignored the information that was given by the Treasury, and then made what I thought was a rather salacious effort to exploit that in the press, when they knew very well that the Treasury was working to the fastest legal speed that it was able to. That was one of those cases where there was a little bit of political opportunism at a time when the nation was looking to us for a practical solution.

--- Later in debate ---

[Stephen Crabb]

Yes. [Interruption.] “Baroque eccentricities” is the phrase that the Prime Minister used to describe some of the Welsh Government’s decisions.

I will draw my remarks to a close in a moment. What most concerns me about the posture of the Welsh Government during the pandemic is just how divisive they have been. There have been times when I felt they tried to politicise the border and to lean into what I describe as nationalist sentiment. The Secretary of State opened his remarks by saying that the majority of people in Wales support Unionist parties, but is the Welsh Labour party really still a Unionist party? I look at that agreement that it signed with Plaid Cymru in the Senedd—Plaid and Welsh Labour Members are sitting together almost seamlessly this morning—I hear the First Minister when he appears before the Welsh Affairs Committee and says that the Union is finished, and I look at some of the other decisions taken by the Welsh Government to create space between themselves and the United Kingdom, and I question what kind of journey Welsh Labour is on. Welsh Labour used to be an absolute bastion of the Union and could be relied on to defend the United Kingdom. I question what kind of journey it is on, because I do not see it as that same Unionist party.

[Nia Griffith]

Will the right hon. Gentleman give way?

[Stephen Crabb]

I will give way to the hon. Member because I like her a lot.

[Nia Griffith]

Will the right hon. Gentleman acknowledge that, time after time, the First Minister has referred to the fact that, during the pandemic, Wales gave personal protective equipment to England, and Wales benefited from PPE coming from England to Wales? Most recently, Wales has given 10 million tests to England. Time after time, the First Minister has emphasised the importance of working together across the United Kingdom.

[Stephen Crabb]

I thank the hon. Lady for the intervention. I have heard Vaughan Gething describe himself as a Unionist. I may be wrong, but I am not sure I have heard the First Minister describe himself as a Unionist. I think there is a division at the heart of Welsh Labour that should concern us all, as it is in perpetual government in Cardiff Bay. I will leave that thought hanging. I thank Committee members for their time.

Oral Answers to Questions

Nia Griffith Excerpts

Wednesday 17th November 2021 Commons Chamber

[Simon Hart]

My hon. Friend is absolutely right that every single area of Wales has benefited from these schemes, which was not the case under the previous funding arrangements. It has been a joy to have the feedback and contributions we have had from local authorities across Wales, which really welcome and are getting engaged with this process.

[Nia Griffith (Llanelli) (Lab)]

You would never guess, would you, Mr Speaker, that the allocation of funding can be quite controversial? However, with meaningful consultation, we can reduce the risk of that. Let us suppose that two thirds of the levelling-up fund was allocated to the one third of seats held by Tory MPs in Wales. We could ensure less risk of things being called political bias. In the light of the Institute for Government’s recommendation that the UK Government should consult the Welsh Government at every stage on the shared prosperity fund, and bearing in mind the scathing report by the Public Accounts Committee on the allocation of the towns fund, what in-depth discussions has the Secretary of State had with the Welsh Government on the shared prosperity fund, and when can we expect more information?

[Simon Hart]

The hon. Lady fixates a bit too much on the shared prosperity fund when there are so many other funding sources out there too. Aside from stressing that there is consultation on a range of these things, and I am hoping to meet the First Minister later this week to discuss them, I remind the hon. Lady that the Welsh Government are not the only game in town; we are engaging with more people, in more parts of Wales, than has ever been the case before, and the funding settlements reflect their priorities as much as anything else. I am astonished that she is not welcoming that.

[Nia Griffith]

I am sure the House will be well aware that the Welsh Government have always had a strong relationship with the local government sector in Wales and have always consulted on the sharing out of EU funds. Turning to the amount of those funds, the figures are indisputable: EU funding for Wales would have meant at least £375 million in new money for this year. So with just £46 million for the community renewal fund, the Tories are leaving Wales £330 million worse off, and that is not even counting the £137 million cut in the farm support. So will the Secretary of State now stand up for Wales and pledge that in this transition to the shared prosperity fund Wales will receive not a penny less than we had under EU funding?

[Simon Hart]

I think you would probably reprimand me if I went through all the numbers again, Mr Speaker, so I will have to leave it to the Official Report to enable the hon. Lady to check her figures and work out exactly how well Wales has done with the record settlement. It is beholden on the shadow Secretary of State for Wales to portray a rather more optimistic picture of the future of Wales. If we are interested in attracting investment and creating jobs in Wales, she should be championing our country, not denigrating it at every opportunity she has.

Oral Answers to Questions

Nia Griffith Excerpts

Wednesday 30th June 2021 Commons Chamber

[Simon Hart]

It will not surprise the hon. Gentleman that I do not agree with his comments. We have engaged devolved Administrations and numerous other stakeholders during the whole course of the various free trade agreements that have been reached, in particular the Australia trade deal. It would be nice if we could reach some kind of consensus between us about the opportunities that these trade deals offer, not only for businesses in Wales but for businesses in Scotland.

[Nia Griffith (Llanelli) (Lab)]

We all support new export opportunities for Welsh businesses, but free trade deals must also be fair. There really is widespread concern that this proposed deal with Australia will disadvantage Welsh farmers, because they will be forced to compete against producers with lower animal welfare and environmental standards. So I ask the Secretary of State again: if he is unable or unwilling to protect our farmers, why will he not let Welsh Government Ministers take part fully in trade talks, so they can stand up for them instead?

[Simon Hart]

The hon. Lady makes an interesting point. Of course, we have involved numerous stakeholders in the preparation of these deals. That includes the Welsh Government and some very positive responses from farmers in Wales, who, by a majority, voted in favour of leaving the European Union in 2016. They accept, as I do, that there are numerous opportunities. We have built into this process some protections—a 15-year transition period—as well as taking note of the fact that the Australians themselves say they cannot even fulfil their existing markets, let alone start flooding ours.

[Nia Griffith]

It is not just selling out our farmers. Today, the Government are choosing to bury their head in the sand and pass up the last opportunity to renew vital steel safeguards. With our industry now dangerously exposed to cheap imports and the news that a deal is imminent that will grant exemption to EU exports going to the US, our steel exports are going to be desperately trying to compete. What will the Secretary of State now do to ensure that his Government negotiate a similar deal that will protect our steel exports and enable them to enter the US without tariffs? How soon can we have news on that?

[Simon Hart]

The hon. Lady and colleagues across the House have been resolute champions of the steel industry in Wales. I hope the UK Government’s support of Celsa Steel in Cardiff during the pandemic is an indication that we, too, are prepared to put our money where our mouths are as far as supporting the industry, for all the reasons she has rightly highlighted. It would be rash of me to predict what the statement or announcement might be on this, other than to say that I expect it later today, so she, and colleagues across the House, should get clarity on this matter before close of play today.

Oral Answers to Questions

Nia Griffith Excerpts

Wednesday 19th May 2021 Commons Chamber

[David T. C. Davies]

In addition to the £7.4 billion of additional support through the welfare system, the UK Government provided the Welsh Government with an extra £8.6 billion-worth of support, and the Welsh Government were free to use that in any way they wished. They were free to give it out to local authorities and allow them to make grants to anyone who had been badly affected, so we completely acknowledge that people have suffered as a result of the pandemic. That is why there was £8.6 billion of support for the Welsh Government, why Welsh businesses received £2.75 billion of support and why we supported 466,000 Welsh workers through the furlough scheme.

[Nia Griffith (Llanelli) (Lab)]

Families across Wales will have appreciated the recent easing of covid restrictions, made possible, of course, by First Minister Mark Drakeford’s cautious, evidence-driven approach, but rising concerns about new variants of coronavirus remind us that the pandemic has not gone away. The vast majority of people want to play their part to keep us all safe, but the UK Government’s failure to increase statutory sick pay is forcing many on low incomes to choose between going to work to support their families or staying at home to keep us safe. What pressure can the Minister bring to bear on the Chancellor to put that right?

[David T. C. Davies]

I am sure that the hon. Lady would acknowledge that Mr Drakeford has been able to work very closely with the UK Government because he has been present at all the Cobra meetings and Welsh Government Ministers have been present at all the ministerial implementation group meetings, very much as part of a joint approach towards tackling the pandemic. The Chancellor and Prime Minister have always been clear that people will suffer as a result of the pandemic. We have not been able to help everyone, but we have, as I said, provided an extra £8.6 billion for the Welsh Government, £2.75 billion for Welsh businesses and supported 466,000 Welsh workers on furlough—plus the mortgage holidays, the cuts in VAT and the cuts in business rates. In Wales alone, we have already created 5,000 extra jobs through the kickstart scheme.

[Nia Griffith]

On a different matter, without delving into the chaos of this Government’s foreign travel policy, the reality for many airlines is that this summer will be nowhere near a return to normal. The whole aviation sector faces irreparable harm. We have already seen Welsh jobs lost in the sector and Aerospace Wales has warned that thousands more are on the line. What sector-specific financial support will the Government provide to the aviation industry in Wales to get it through yet another difficult summer and ensure that it has a strong future?

[David T. C. Davies]

I very much welcome the hon. Lady’s support for the airline industry. Her stated view that we should get people back on to planes and flying around as much as possibly is in stark contrast to the extreme environmental view, which some people in her party seem to take, that nobody should ever get on a plane.

I can assure the hon. Lady that we meet the airline industry regularly; I spoke to the aerospace trade body about 10 days ago and met Airbus online a few days ago. We have not taken up sector-specific support, because the UK Government believe that we should be able to go out there and help all businesses that have been affected by the pandemic. That is why we have already put down £2.7 billion for Welsh businesses, which I hope she will welcome.

Oral Answers to Questions

Nia Griffith Excerpts

Wednesday 17th March 2021 Commons Chamber

[Simon Hart]

Absolutely. I start by reminding my hon. Friend—not that I need to—that Bridgend is a priority 1 area for the levelling-up fund, which means that it has potential access, with his assistance, to significant sums. Each local authority will get £125,000 of capacity funding to make those bids to the central fund. I hope he will recognise that there is a real focus on exactly the kind of town and area that he represents as part of the levelling-up project, which will produce jobs and livelihoods in a way that has perhaps been difficult in the past.

[Nia Griffith (Llanelli) (Lab)]

Highly skilled workers in the aerospace industry across Wales, such as those at AIM Altitude, are now facing redundancy or even factory closure, as this sector will take years, not months, to recover. While overseas competitors are giving their companies support so that they can up production when the sector recovers, the UK Government still have not brought forward a specific aerospace package some 12 months after the pandemic started. Is the Secretary of State just going to sit there and watch these industries fold, or can he persuade his Cabinet colleagues to put in the long-term support that these high-value industries need?

[Simon Hart]

The hon. Lady’s comments are not reflected by large companies, such as Airbus, whose judgment I trust in these particular circumstances. I simply repeat what I said in answer to an earlier question: the UK Government have provided £5.2 billion for the Welsh Government; £2.75 billion for businesses in Wales; another £1.5 billion in bounce back loans and £500 million in CBILS loans. If that is not an indication of how committed we are to this particular sector, which I absolutely recognise is going through an especially difficult time, I do not know what is.

[Nia Griffith]

But if we are going to retain these industries and rebuild for the future, then we need a comprehensive UK-wide plan. However, this Government have just shelved their industrial strategy, scrapped their advisory council and are now preparing to rip up their industrial policy, so when will the Secretary of State and his Cabinet colleagues develop a forward-looking, far-reaching UK industrial policy that will build on our fantastic skill base to guarantee the new green jobs of the future?

Welsh Affairs

Nia Griffith Excerpts

Thursday 25th February 2021 Commons Chamber

[Nia Griffith (Llanelli) (Lab)]

I echo colleagues’ kind words about Dr Hywel Francis, a great socialist, historian, campaigner, internationalist and friend, and I extend my condolences to his family.

St David’s Day, coming in the springtime, is always a time of hope and celebration, but particularly so this year—and not just because we can begin to see an end to the pandemic thanks to the amazing work of our scientists and our NHS workers in rolling out the vaccine. This year has been a most extraordinarily difficulty year, and I express our enormous gratitude to all our key workers in Wales. I pay tribute to First Minister Mark Drakeford and the Welsh Government for their skill and commitment in handling the biggest health emergency in a century—keeping people safe, working closely with local government to keep vital services running, providing the most generous support package for businesses anywhere in the UK, and, of course, protecting our NHS.

Our health service workers deserve a special thank you for the way that, in spite of the pressures, they have gone above and beyond to treat every patient with care and compassion. But of course our risk of catching the virus is not equal: poverty; poor diet; damp, cold, cramped living conditions, and greater workplace exposure all increase the risk. Inequalities are not new, but the pandemic has highlighted all too vividly the real life-and-death consequences of inequality, and in so doing it has shown how the principles on which we base our policies have a profound impact on outcomes.

We in the Labour party believe passionately in the principles of co-operation, respect, sharing wealth and working together for the greater good. The Welsh Labour Government’s determination to tackle inequalities means that in Wales we have seen support targeted at the most disadvantaged. In contrast with the Conservatives in England, Welsh Labour has retained the Flying Start scheme, retained the education maintenance allowance, guaranteed free school meals during the school holidays all this year and into next, and supported the most disadvantaged students. But let us not forget the appalling impact of 10 years of Conservative tax and austerity policies, with massive cuts to tax credits, which have led to a huge increase in in-work poverty and exacerbated inequalities.

For all its talk of levelling up, I do not think that the Conservative party really does understand, or wants to understand, what is really needed to tackle inequalities—both geographical and within our communities. Yes, we need infrastructure, but not fanciful ideas that never get delivered; we need immediate, practical measures to improve connectivity and productivity. We need real commitment from the UK Government to invest in our railways in Wales, in better broadband and in upgrading the national grid to harness our huge potential for renewables and drive the green transformation in Wales and beyond.

We also need investment in our communities to develop the skills and jobs for the future. That is why the Welsh Government have been working with local authorities to develop a framework for the shared prosperity fund. What is going on? Is it through pure incompetence or more sinister reasons that the Secretary of State and his Government have still not confirmed the full details of the SPF? All we have seen so far is a fraction of the amount of the EU finance that the fund is supposed to replace. What happened to “not a penny less”? Will the Secretary of State now commit to delivering the full equivalent of EU funding to Wales, to respecting the work that the Welsh Government have already done, and to working closely with them to get the best outcomes for the people of Wales? On the so-called levelling-up fund, will the Secretary of State also clarify how he intends to respect the devolution settlements and work with the Welsh Government to put those funds to most effective use?

I would like to touch a little more on respect for Wales and respect for the powers devolved to the Welsh Senedd. The past year has brought into people’s living rooms across the UK a snapshot of devolution as they see the four nations make decisions appropriate to their communities. They have been able to see the calm, measured approach of Welsh Government Ministers determined to make the best decisions for the people of Wales after listening to the scientists and consulting with health boards, local government leaders, trade unions and business. Yet shockingly, the Welsh Conservatives have repeatedly voted against the coronavirus measures, which are designed to protect people and save lives.

We have seen the Welsh Government and local councils promoting better protection against covid in the workplace, while the UK Government have failed to ensure that managers at the DVLA respond promptly and effectively to concerns about covid security raised so often by MPs. We have also seen the contrast with the close collaboration between the Welsh Labour Government and our local councils, who know their communities and have a public service ethos, which has enabled the development of a really effective test and trace system. The Tories have given millions of pounds of public money to their cronies, whose private companies have neither local knowledge nor the ethos to deliver.

This year has also highlighted the Tories’ lack of respect —indeed, disdain—for consultation and co-operation with the devolved nations or with council leaders in England, as we saw when the Welsh Government approached the Chancellor about support for businesses in Wales for the proposed October firebreak, only to be ignored, as council leaders across the north of England had been before us.

Worse than that, with the UK Internal Market Bill we saw the Conservatives casting aside the productive work between the four nations on the common frameworks and preferring instead to ride roughshod over the devolution settlements, in what was nothing short of a power grab. That appalling behaviour is not only a betrayal of trust, but it fuels resentment. Now more than ever is a time when our energies at all levels of government must focus on recovering from the pandemic and building back better and greener. It is not a time for stirring up disunity or for indulging in the fantasies of independence, which bear no resemblance to the chaos that would ensue.

For Labour, the Union is strengthened when we value the strength of our common endeavour and foster a co-operative approach between the nations of the UK and a sharing of wealth according to need. We can achieve so much more when we work together to tackle the challenges of inequality, injustice and climate change at both UK and international levels.

I now turn to the issue of coal tip safety. Some 40% of the UK’s remaining coal tips are in Wales; with our steep-sided valleys, we have a higher proportion of those that pose greater risk. With climate change and more violent weather patterns, we are seeing renewed threats. Fortunately, no lives were lost in last year’s dramatic landslip at Tylorstown, but it is a salutary reminder of what can happen. The Welsh Government stepped in and worked with Rhondda Cynon Taf to deal with the immediate situation and set up the coal safety taskforce. But coal tips are clearly a legacy from pre-devolution days, so will the Secretary of State persuade his Government to join the Welsh Government and play their full role in providing funding to tackle coal tip safety, recognising the huge contribution made by Welsh mining communities to UK prosperity?

In conclusion, the pandemic has hit people in very unequal ways. As we look to foster economic recovery, people across Wales want us to work with compassion and determination to create a fairer, greener and more prosperous society. That is what the Welsh Labour Government are determined to do.

Oral Answers to Questions

Nia Griffith Excerpts

Wednesday 3rd February 2021 Commons Chamber

[Simon Hart]

That is a slightly strange question, given that the relationship between the Treasury and the Welsh Government, particularly around covid recovery, has been conducted on a daily, if not hourly, basis, with vast sums of money being made available to businesses and individuals of Wales, very much in the spirit of collaboration and co-operation. Rather than trying to make cheap political points, the right hon. Lady should acknowledge the fact that, in these very difficult times, two Governments have worked quite well together and the Union, which is perhaps the point that she does not like me to make, has been particularly crucial in that process.

[Nia Griffith (Llanelli) (Lab) [V]]

Before I start, on behalf of the Labour party, I would like to pay tribute to Captain Tom Moore and send our deepest condolences to his family.

Cockle-gathering in both north and south Wales is not just a job, but a way of life, dating back generations. Gatherers, who are already alarmed at DEFRA advice that they could not resume the export of shellfish until April, now feel not just forgotten, but utterly betrayed to discover that UK Ministers knew all along that the EU ban on importing non-decorated UK shellfish would be indefinite. What urgent action will the Secretary of State and his Government take to facilitate the resumption of shellfish exports and save this traditional industry from disappearing forever?

[Simon Hart]

I join the hon. Lady in her tribute. My right hon. Friend the Prime Minister will be making a more formal statement in a few minutes’ time, but I do recognise—as does the whole House—the comments she makes.

On the industry and sector to which the hon. Lady refers, I am in close contact with my right hon. Friend the Secretary of State for Environment, Food and Rural Affairs, the Cabinet Office and, indeed—through the Government—the EU, to make the distinction between teething issues that might be arising out of the particular subject to which she refers, and perhaps more permanent structural matters that may need a longer-term solution. I assure her and the industry that we are very seized of the challenges that the industry currently faces.

--- Later in debate ---

[David T. C. Davies]

The UK Government have already provided £5 million of extra funding to the Welsh Government to ensure that they have adequate funds to support businesses and individuals who have been affected by the covid pandemic, and of course the Welsh Government also have tax-raising powers. The reality is that this Government have spent hundreds of billions of pounds supporting businesses and individuals throughout this country, such is our commitment to ensuring that no one is left out as a result of the impact of this terrible pandemic.

[Nia Griffith (Llanelli) (Lab) [V]]

The last year has been immensely challenging for many Welsh families, who have seen their lives completely upended by the virus. Despite welcome progress on vaccinations, the pandemic is not going away overnight, and many still feel grave uncertainty about the future of their jobs and their family finances, so why do the Government think that now is the time to cut universal credit by £1,000 a year, hitting more than 200,000 Welsh families who are doing their best to get by?

[David T. C. Davies]

I have not yet been promoted to the Treasury, and I cannot possibly predict what might happen in the Budget that may or may not come in a few months’ time. Perhaps the hon. Lady knows something that the rest of us do not, but I can tell her that the Government have been steadfast in their commitment to supporting all those who have been left out. May I just point out that we will come through this crisis quickly as a result of the Government’s wise decision not to take part in the European Union vaccination scheme, which is why we have now vaccinated 14% of the population of the United Kingdom?

[Nia Griffith [V]]

Anyone who took the initiative and started their own business within a year of the pandemic hitting was completely shut out of the self-employment income support scheme when it was announced last March. Many turned to universal credit as their only option. Now, nearly a year on, and with last year’s tax returns submitted to HMRC, will the Government think again, close the gaps in support and give the newly self-employed the help that they deserve?

[David T. C. Davies]

The hon. Lady knows very well that I am not responsible for the policies of the Treasury, but I simply point to the fact that we have provided more than £9.3 billion of additional support through the welfare system for people affected by covid, including the £20 a week increase in the universal credit standard allowance. The Government’s commitment to supporting all those who have been affected by this pandemic is very clear to all.

Oral Answers to Questions

Nia Griffith Excerpts

Wednesday 16th December 2020 Commons Chamber

[David T. C. Davies]

The Prime Minister is showing his commitment to the importance of powers for the Scottish and Welsh Governments at this very moment in Brussels, where he is standing up against those bureaucrats who are trying to take powers away from the Welsh Government and the Scottish Government. It is this Conservative party and this Government who are standing up for the devolved settlement, and of course the UK Government will be looking forward to working in partnership with the devolved Administrations around the United Kingdom to ensure that the shared prosperity fund is properly spent.

[Nia Griffith (Llanelli) (Lab)]

As well as providing no certainty on the trading arrangements in just three weeks’ time, the Government have also ducked and dived on questions about the funding that Wales will receive in future years. Despite the Tory promise that Wales will not lose a single penny, the actual figures tell a different story. Wales alone was due some £350 million of new money for projects next year, but the Treasury is providing only £220 million for the whole UK. With Wales losing not just pennies but millions of pounds, how can the Government say they have kept their promise?

[David T. C. Davies]

The Government have kept their promise, because, of course, some of the funding that goes to Wales will still be coming from the European Union after we have left the transition period. If we take the total amount of money that is going to be spent, we will find it is the same. The Government have met their commitment to ensure that the same level of funding is spent in Wales, and we will meet our commitment to ensure that the money is better spent and not wasted, as the Wales Audit Office recently reported on agricultural spending, and is used to level up communities across the whole of Wales.

[Nia Griffith]

I am not sure whether that is a conclusive answer, but we are now nearly four and a half years on from the referendum and the Government still cannot provide clear answers on funding, so let me ask the Minister about the criteria on which the funding will be allocated. As he knows, the Welsh Government and local councils have agreed a framework for regional investment in Wales, so can he confirm that his Government will support that framework and not ride roughshod over devolved agreements or make up the spending criteria as they go along?

[David T. C. Davies]

We are certainly not going to make it up as we go along. Of course, the UK Government have been heavily involved in regional partnerships through the growth deals, which have been working very successfully in Wales as a result of funding from the UK Government. We have already demonstrated our commitment to working in partnership not just with the Welsh Government but with local authorities, because we are absolutely determined that the money that replaces European funding is not wasted, as it has been previously, but is spent on the most needy communities in Wales.