Spring Budget: Wales

Philip Hollobone Excerpts

Wednesday 29th March 2023 Westminster Hall

[Mr Philip Hollobone (in the Chair)]

Prynhawn da. I call Ruth Jones.

[Ruth Jones (Newport West) (Lab)]

I beg to move,

That this House has considered the Spring Budget and Wales.

Diolch yn fawr iawn, Mr Hollobone, and thank you for your introductory remarks in Welsh. I am sad to say that I will not be able to continue in that vein, but it is a pleasure to serve under your chairmanship, and I do so with the voices, views and concerns of the people of Newport West and the whole of Wales at the forefront of my mind.

This afternoon is an important opportunity for colleagues representing Wales to speak up and speak out about the failing economic policies of this Government. The recent Budget could and should have been a unique opportunity to unlock Britain’s promise and all the potential that we see in and around our communities. Instead, it was more decline and decay. It is clear to everyone—and, I suspect, to the Minister too—that this Government have decided to continue papering over the cracks after 13 years of Conservative economic failure, rather than giving us the change we need. Indeed, as I have said in the House, that papering over the cracks was exemplified by yet another handout for the richest 1%. There was no regard for the livelihoods and wellbeing of my constituents in Newport West, or the livelihoods of people across Wales, whether they call home Ceredigion or Conwy, Bangor or Bridgend. Wales is a nation of people who work hard, pay their taxes and simply need real change and real investment in their communities.

I noted from a report that the UK Treasury has recently taken back more than £155 million from the Welsh Government. The reason the Treasury gave for this smash and grab was that the Welsh Government had not spent it fast enough, which is an arbitrary change of tune from previous years. This callous approach is both unacceptable and unwise, and I echo the Welsh Government Finance Minister, Rebecca Evans MS, in calling on Westminster to give Wales our money back.

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[Ruth Jones]

Absolutely. My hon. Friend makes a powerful point, because steel is integral to the industry and heart of Wales. In my constituency, in the last week we have had issues with a steel company, which I will be talking to my hon. Friend about shortly. We all want steel to thrive and grow in Wales.

Only with strong, inclusive growth, including in the steel industry, will Wales get the good jobs and productivity gains for which our people are crying out. It is not rocket science; in fact, it is pretty simple. Despite all the claims from the Chancellor, the Office for Budget Responsibility downgraded the UK’s long-term growth forecast; there are downgrades in each of the last three years of the forecast period. We will be the only country that will see negative growth. No other G20 economy, apart from Russia, is forecast to shrink this year. The OECD has confirmed that the UK will be the weakest economy in the G7 this year. What a ringing endorsement of 13 years of Tory Government! The blame for that lies squarely with the Tories, their Prime Ministers, and the current Chancellor—and the one before, obviously. They are the party of economic mismanagement.

It is worth noting that the average French family is now a 10th richer than their British counterparts, while the average German family is a fifth richer. After 13 years of Tory Government, and a failed spring Budget, our people are paying more, earning less and bearing the overwhelming brunt of this Conservative cost of living crisis. This Government have let down the people of Newport West, and of Wales. The spring Budget was a wasted opportunity for Wales; it delivered a tax cut for the richest and nothing for the many. It continued a Conservative agenda of delay and decline. As my constituent Dawn Jones wrote in her heart-rending correspondence:

“This should not be allowed to happen in this day and age, these conditions are not acceptable.”

The best way—the only way—to change course, to deliver for our people and to move forward is with a UK Labour Government, and the sooner the better.

[Mr Philip Hollobone (in the Chair)]

Diolch yn fawr. The debate can last until 4 o’clock. I am obliged to call the Front-Bench spokesmen just after half-past 3, but until then we are in Back-Bench time, and I am determined that everybody will get in. There is no need for a time limit if everybody is sensible.

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[Virginia Crosbie]

That is simply not the case. I will highlight the way that north Wales has been treated by Labour. In the past six months, it has been deprived of one of the two bridges connecting it to the mainland. It has seen abject failures in the devolved health service, and suffered over 700 job losses with the closure of 2 Sisters in Llangefni. While Labour MPs sit there and complain about our Budget, let us look at the actions their own Welsh Government, in co-operation with Plaid, have taken to support my already deprived community through these challenges. They have refused to compensate the businesses that suffered significant losses as a result of the closure of the Menai suspension bridge—a closure that, I hasten to add, resulted from failures in its maintenance programme. They stalled on funding a much-needed GP co-location in Holyhead, which would have helped people who have struggled for years with a health board that is in and out of special measures. With their £155 million underspend, they could have stumped up the funding for some of those 700 people who lost their job at 2 Sisters in Llangefni to travel to another plant and continue working for a few months. They chose not to.

The only reason why Labour MPs are unhappy is because they cannot face the fact that the UK Government are delivering on their promises to the Welsh people in a way that Labour has abjectly failed to. I commend the Budget and the difference it will make to people across Wales, particularly in my constituency of Ynys Môn. Diolch, Mr Llefarydd.

[Mr Philip Hollobone (in the Chair)]

I call Beth Winter.

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[Beth Winter]

I am just coming on to the university sector, where I worked for 10 years as a researcher and a trade union representative. Indeed, universities in Wales have been at the forefront of green growth and research in Wales and internationally, but with EU structural funding coming to an end, they face the loss of more than 1,000 skilled jobs, as the right hon. Lady said.

Swansea University, where I worked for many years, has been delivering on 50 projects awarded total grants of £150 million from EU structural funds. We have only to look at some of those projects—ASTUTE 2020 and SPECIFIC 2—to get a sense of that cutting-edge research. I was involved in lots of those projects; outstanding work is being undertaken. Universities have written to the Welsh Affairs Committee to say that there is little emphasis on research and innovation within the shared prosperity fund, and wider reforms of the funds are needed.

However, there was absolutely nothing in the Budget to deal with the failings of so-called levelling up and the shared prosperity fund. As the right hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts) said, I am interested to hear the Minister’s response on how the Government will address the shortfall, with all those jobs at risk from the end of this month, as I understand it. Over 1,000 jobs could be lost in Wales.

Moving on to the legacy of the coal mines, the UK Government continue to benefit unduly from their share of the national mineworkers’ pension scheme. They should be paying that money to former mineworkers and their families, many of whom live in Cynon Valley. It is a continued failure of this Government that they have not funded the £600 million legacy costs of making the coal tips safe in Wales. As I said, we created the wealth in the south Wales valley. People sacrificed their lives in many instances. We deserve our fair share of that wealth back.

The UK Government’s record on housing is one of failure. The Bevan Foundation, which has been cited, has undertaken comprehensive research. Evidence shows that there is a shortage of properties to rent, and the local housing allowance rates set by the Tories do not cover real-world market rents. The data found that 75% of Welsh local authorities did not have a single property available at LHA rates, and just 1.2% of rental market properties advertised across Wales were available at LHA rates. The Bevan Foundation has called for rates to be uplifted, and for the collection of better, more comprehensive data from the private rental sector, yet the Budget again said nothing. I want to hear the Minister’s response to the issues with the LHA in Wales, which is a reserved matter.

On transport, the UK Government have continued the lie of designating not only HS2, but now Northern Powerhouse Rail as England and Wales projects, which should result in a total of £6 billion for the Welsh economy.

The Budget shows how urgently we need a change of Government in the UK. We need a completely different economic approach to deliver a new funding settlement for public services, and fully funded, inflation-proof pay rises for workers. We need the wealthiest in society finally to pay their fair share of tax. While the Tories will not do it, Wales requires fair, needs-based funding to be able to do what we want to do, which is to address the levels of inequality that are completely unacceptable and completely avoidable. The UK Government need to stop riding roughshod over the devolution settlement. The Budget showed why we need a UK Labour Government, who will work hand in hand with the Welsh Government to deliver and level up, lifting incomes and living standards and building an economy for future generations. Diolch yn fawr.

[Mr Philip Hollobone (in the Chair)]

I call Jonathan Edwards.