Oral Answers to Questions

Debate between Stephen Kinnock and Llinos Medi

Wednesday 4th November 2026 Commons Chamber

[Llinos Medi (Ynys Môn) (PC)]

2. What assessment he has made of the potential impact of the autumn Budget 2026 on Wales.

[The Secretary of State for Wales (Stephen Kinnock)]

This was a proudly Labour Budget that provides people in Wales with breathing space for today and hope for tomorrow. We are helping Welsh families with the cost of living by extending 0% VAT on electricity bills, getting rid of gas standing charges and removing the 4% tariff on heating oil to support 105,000 households in Wales.

[Llinos Medi]

The autumn Budget will deliver real-terms cuts to Welsh public services, because it fails to “compensate for higher inflation.” Those are not my words, but those of Cardiff University, which says that Wales now faces “difficult choices”, including cuts to local authorities such as mine on Ynys Môn. Can the Secretary of State explain why this UK Labour Government are imposing cuts on Welsh public services?

[Stephen Kinnock]

I genuinely do not know where Plaid Cymru is getting these numbers from. This Budget provides the Welsh Government with an additional £450 million for public services, meaning that the Welsh Government settlement continues to grow in real terms over the spending review period. In addition, the UK Government are providing a £6.5 billion increase in Welsh Government spending power as a result of changes to the fiscal framework, additional funding through the Barnett formula and the largest settlement in the history of devolution. This generational increase in 2025 was the largest settlement for Wales since devolution began in the late 1990s.