(2 weeks, 3 days ago)
Commons ChamberThis is the right Budget at the right time. It delivers immediate relief, but also the long-term investment necessary to bring hope back to Britain. I welcome the further steps announced by the Chancellor to provide additional breathing room to households, which is essential. Energy bills will be cut, food tariffs will be slashed, the carer’s allowance cliff edge will be abolished, standing charges will be scrapped, parental pay will be expanded, and fuel duty will be frozen again, because Labour is on the side of working people. We recognise that times are tough, especially with the ongoing energy price spikes driven by Putin’s illegal invasion of Ukraine and, of course, the unnecessary US-Iran war.
This Government’s ability to support hard-working families while continuing to provide up-front investment in our public services is testament to our careful economic management. Our careful stewardship has been commended by the IMF and has allowed us to enjoy the joint highest growth in the G7 while keeping public debt under control. The cost of living relief announced today by the Chancellor only builds on that already announced by the Prime Minister in his first 100 days—taking VAT off energy bills, a £2 bus fare cap, business rates relief, and tackling rogue tradespeople and repeat subscription scams.
I am disappointed, though, that where this support relates only to England, the minority Plaid Cymru Welsh Government have not shown the same ambition or understanding of the everyday pressures facing households. We need to see that £2 cap on bus fares in Wales, as well as the extension of £1 fares for under-21s. I look forward to Plaid Ministers announcing how they will match the UK Labour Government’s reduction in bus fares—let us hope they do it quickly. Barnett consequentials on spending announcements are worth an additional £450 million to the Welsh Government, and I suggest that they spend it wisely, as people in Wales also want to benefit from this Budget for working people.
With my constituency being home to the Welsh semiconductor cluster, and as the chair of the APPG for semiconductors, I am extremely proud of this Government’s commitment to manufacturing. I recognise the role that reindustrialisation can play in bringing well-paid jobs to every postcode, including the £20 million to support UK reindustrialisation and high-value jobs. That builds on the existing strengths of the semiconductor cluster in Newport West and Islwyn.
Boosting manufacturing and the Prime Minister’s ambition to bring good growth to every postcode are particularly important in Wales, where we felt the impacts of 40 years of neo-liberalism at their hardest. Well-paid union jobs in our industrial heartland and coalfield communities disappeared and were never replaced. Despite the damage done by decades of Conservative Governments, Wales remains a proud manufacturing nation. The evidence is clear from my own constituency, with world-leading manufacturers choosing Wales for investment. Advanced manufacturing must be at the heart of a future Welsh economy. This Budget backs that ambition.
This Budget is another big win for reversing 14 years of Tory under-investment in Welsh railways. Last year, we saw £445 million of funding for new stations, and now we have an additional £30 million for the Cardiff Parkway station site. As my constituency neighbours that site, I particularly welcome that announcement. It will provide meaningful alternatives for commuters and shoppers wanting to travel between Newport and Cardiff. I look forward to further announcements at the spending review on the delivery of this Government’s £14 billion commitment to transform Welsh rail infrastructure, including the additional five stations across Newport.
I will carry on, because I am conscious that there are others who want to speak.
Labour’s investment-led approach stands in stark contrast to that of the minority Plaid Government, who propose to close a number of the M4 junctions across Newport. That will improve traffic flow by just 3% but will have a massive impact on air and noise pollution for those living in my constituency.
I welcome the Chancellor’s announcement today that tax-free mileage rates will now permanently be set at 55p a mile for the first 10,000 miles, which will go a long way to helping those who drive as part of their work, especially those providing domiciliary care. We need the Welsh Government to show the same ambition in making sure that when we push funding and powers from Westminster, it is not just hoarded in Cardiff Bay but is brought even closer to our communities. In my home city of Newport, we have a bold, ambitious Labour council led by Councillor Dimitri Batrouni that is ensuring that Newport is one of the fastest-growing areas of the UK. Think of what we could achieve by giving more powers and funding directly to local areas. This Budget marks another major step forward in delivering breathing space today and fresh hope for the future, and I support it.
(6 months ago)
Commons ChamberIt is a pleasure—well, it is always interesting to follow the hon. Member for Runnymede and Weybridge (Dr Spencer), and I thank him for his speech, although I am not sure that I learned anything from it. I pay tribute to my hon. Friend the Member for Bradford West (Naz Shah) for her poignant and clear proposal of the Humble Address, and I thank my hon. Friend the Member for Harlow (Chris Vince) for his witty seconding of it. I wish him well in his future marathons.
I welcome the firm focus in the King’s Speech on the day-to-day security of British families. It puts the cost of living front and centre of the Government’s priorities. This Labour Government have already increased the minimum wage, boosted pensions, and ensured that wages are rising faster than prices for the first time in over a decade, and the removal of the two-child cap will benefit more than 2,000 families in my constituency. Now we are moving further and faster to deliver the change that our country needs, bearing down on the costs facing ordinary families.
There is no clearer expression of the cost of living squeeze than people’s energy bills, which doubled under the last Government. The latest energy crisis highlights the danger of Britain’s continued reliance on volatile fossil fuel markets, which would only be exacerbated under the Conservatives and Reform. Genuine energy independence cannot be achieved through continued exposure to volatile global fossil fuel markets. The fastest way to improve energy security, while meeting the UK’s climate and nature obligations and bringing down bills, is through the expansion of renewable energy and the roll-out of energy efficiency and electrification measures. I urge my right hon. Friend the Secretary of State for Energy Security and Net Zero to go further and faster, looking not just at solar and wind—onshore and offshore—but at tidal, including wave energy and lagoons.
The need for change is pressing. A third of all households across Wales live in fuel poverty, amounting to approximately 9,000 households in Newport and 12,000 in Caerphilly county borough, and that can only be tackled by bringing down bills for good. I am disappointed to see that the Welsh Government in the Senedd have tied themselves in knots over decarbonising Wales’s energy supplies, because Plaid Cymru’s policy of undergrounding cables at all costs will mean cancelled projects and higher household bills. They need to rethink that as a matter of urgency. The Bill proposed in the King’s Speech shows that Labour is clear that the UK’s future is in clean, cheap power. The energy independence Bill is a decisive step towards energy security, warmer homes and reforming our broken energy market.
Does the hon. Lady recognise that the communities in which energy infrastructure is placed, be it large or small, must start seeing real advantages from that energy? In parts of Wales, we pay the highest standing charges in the United Kingdom, yet we have historically exported energy and still do so. That has to change in order to make a difference to people’s lives, and in order that people welcome having the infrastructure that we need in Wales and possibly in the rest of the United Kingdom too.
I do not disagree with the right hon. Lady, because we absolutely need to make sure that our prices are fair. That means looking across Wales as a whole, but also benefiting from the renewables that we know Wales has in abundance. The energy independence Bill is a decisive step, as I said.
Another major scourge of bill payers that is firmly in the sights of this Government is our failing water companies, including Welsh Water, and I welcome the urgent steps being taken by the Government to reform our broken water system through a new water Bill. In March, Ofwat published its finding that Welsh Water breached its legal obligations in operating its waste water treatment works and network. Ofwat found that Welsh Water failed to operate, maintain and upgrade its waste water assets adequately to ensure that they could cope with the flows of sewage and waste water. We know that Welsh Water discharged raw sewage into rivers, lakes and seas for over 968,000 hours in 2024. Water pollution in Wales has reached emergency levels, so I welcome the water Bill. I look forward to seeing water bosses being held to account, and to the clean-up of our rivers and waterways.
I welcome further action by this Government to back British Steel. Whereas the Tories left our steel sector unsupported, Labour is taking action. That includes nationalising British Steel and protecting domestic production from international dumping and uncompetitive subsidies. UK Steel has said that the Government’s steel strategy is the most significant intervention to support UK steel competitiveness in over a decade. The Government’s new target for at least half of steel used in Britain to be made here is a major boost for Welsh steel, with Welsh manufacturing expected to account for half of future steelmaking. We must not forget about Port Talbot and Llanwern in south Wales, and I pay tribute to my constituency neighbour, my hon. Friend the Member for Newport East (Jessica Morden), for the sterling work that she has done to promote and protect our steel at Llanwern.
The Conservatives’ botched Brexit deal has been disproportionately damaging to the Welsh economy, because Wales remains a significant manufacturing economy, with 60% of our exports going to the European Union—that is 10% higher than the UK average. Although negotiations on the EU trade Bill are ongoing, I urge the Government to commit to securing a carve-out on animal welfare, like that secured by Switzerland in a similar deal. The UK is proudly a nation of animal lovers and a world leader in animal welfare standards, and we were the first country in the world to ban fur farming. A future trade deal, involving dynamic alignment in key sectors, must not risk watering down UK commitments to ban the sale of foie gras or end the import of fur.
I gently say to those on the Government Front Bench that there is a lack of legislation on animal welfare in this King’s Speech. I said that we are a nation of animal lovers, and the Government could have some easy wins. We are committed to the animal welfare strategy, and we could use it to ban the use of snare traps, bring forward a close season for hares, and bring into effect the Animals (Low-Welfare Activities Abroad) Act 2023. These are small pieces of legislation, but they could make a huge difference to wild, domestic and farmed animals, both here and abroad.
I will move on to small businesses. The Federation of Small Businesses has estimated that 50% to 54% of SMEs regularly experience late payments, which cost the average SME £22,000 a year. On average, businesses spend 86 hours a year chasing invoices. This is a massive problem for businesses in my constituency of Newport West and Islwyn, and I am pleased that we are taking action to stop it happening.
Looking ahead to Great British Railways, this Labour Government’s new railways Bill will transform the railway network in Wales as we deliver our £14 billion plan to improve Wales’s railways. Front and centre of that is the £90 million investment in five new stations between the Severn tunnel and Cardiff, including new stations at Newport West in my constituency and Cardiff Parkway next door. These new stations will support over 12,000 new jobs across Monmouthshire, Newport and Cardiff. South Wales is also set to benefit from an additional £40 million investment to upgrade two sets of rail tracks, which will improve service reliability and capacity for additional services. Labour’s railways Bill will also give the Welsh Government a new statutory role, to ensure that Wales-wide strategies feed into cross-border plans by Great British Railways. This will be a key pillar of the constructive and professional relationship between the two Governments as they work together for the benefit of people in Wales.
I turn now to the Timms review. I would welcome the Government’s continued ambition to support more young and disabled people into work by reforming the welfare system, but the changes must be based on compassion and provide effective support mechanisms for people to move into work, building on the already introduced right to try. I agree with His Majesty that we must have a system that is fair and fit for the future.
Finally, I turn to the conflict between Israel and Palestine. I welcome this Government’s continued commitment to supporting a two-state solution. We urgently need to work with partners to ensure a viable Palestinian state, alongside a secure Israel. In supporting peace efforts in the middle east, I press Ministers to call on Israel to end its continued bombing in Lebanon, which has seen over a million civilians displaced from their homes.