Autumn Budget as it Relates to Wales (Morning sitting) Debate

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Department: Wales Office
Alun Cairns Portrait Ysgrifennydd Gwladol Cymru/the Secretary of State for Wales (Alun Cairns)
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Diolch Mr Cadeirydd. Cynigaf,

Bod y Pwyllgor wedi ystyried Cyllideb yr hydref mewn perthynas â Chymru.

Mr Owen, diolch am y cyfle i agor y drafodaeth heddiw. Mae’n bleser gwasanaethu o dan eich cadeiryddiaeth unwaith eto. Rwy’n falch o fod yn siarad gyda chi i gyd heddiw yn yr iaith Gymraeg. Mae’r iaith yn bwysig i mi, yn bwysig i’r gymuned rwyf yn ei chynrychioli ac yn ganolog, yn amlwg, i hanes a diwylliant Cymru.

(Translation) I beg to move,

That the Committee has considered the matter of the autumn Budget as it relates to Wales.

Thank you, Mr Owen, for allowing me to open the debate. It is a pleasure to serve under your chairmanship. I am proud to speak to the Committee in the Welsh language, which is important to me and to the community that I represent and is integral to the history and culture of Wales.

Susan Elan Jones Portrait Susan Elan Jones (Clwyd South) (Lab)
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Wnaiff yr Ysgrifennydd Gwladol ildio?

(Translation) Will the Secretary of State give way?

Alun Cairns Portrait Alun Cairns
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Os gai wneud bach mwy o dro.

Rwy’n gwybod bod llawer o Aelodau ar y Pwyllgor heddiw wedi ymgyrchu ac wedi galw am y newid hwn ers blynyddoedd, ac hoffwn gydnabod bob ymdrech gan bob aelod. Mae heddiw yn ddiwrnod hanesyddol i’r Senedd ac i Gymru ac, yn uniongyrchol, hoffwn sôn am y Gweinidog dros Swyddfa’r Cabinet a Changhellor Dugiaeth Caerhirfryn, a wnaeth gefnogi’r alwad drawsbleidiol a ddaeth ar y pryd.

Mae’n bwysig ein bod yn dod at ein gilydd yma, yn fforwm yr Uwch Bwyllgor Cymreig, ac mae’n bleser agor y drafodaeth hon trwy drafod Cyllideb yr hydref mewn perthynas â Chymru. Hoffwn amlinellu’r gwaith mae’r Llywodraeth yn ei wneud i sicrhau ein bod yn mynd i’r afael â’r heriau economaidd mewn ffordd sy’n codi’r economi ym mhob rhan o’r Deyrnas Unedig, gan gynnwys Cymru. Dyna pam y bydd y mesurau yng Nghyllideb yr hydref—fel y cynlluniau i wella cysylltiadau rheilffyrdd yng Nghymru, buddsoddi mewn bargeinion dinesig a thwf, a chyllid ychwanegol i Lywodraeth Cymru—yn rhoi rhagor o bŵer gwario i Gymru a fydd yn rhoi hwb i’r economi leol ac yn galluogi Cymru i ffynnu.

(Translation) Let me make a little progress.

Many Committee members have campaigned for this change for many years, and I pay tribute to every Member’s work. This is a historic day for Parliament and for Wales. My right hon. Friend the Minister for the Cabinet Office and Chancellor of the Duchy of Lancaster backed the cross-party call for this change. It is essential that we come together in the forum of the Welsh Grand Committee, and it is a pleasure to open this debate on the matter of the autumn Budget as it relates to Wales.

I want to outline the work that the Government are doing to ensure that we meet economic challenges in a way that increases prosperity in all parts of the UK, including Wales. The measures in the autumn Budget, such as plans to improve Welsh rail links and to invest in city and growth deals, and of course the additional funding for the Welsh Government, will provide Wales with greater spending power, which will bolster the local economy and enable Wales to thrive.

Susan Elan Jones Portrait Susan Elan Jones
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Rwyf yn ddiolchgar i’r Ysgrifennydd Gwladol ac yn ddiolchgar hefyd ddaru’r Llywodraeth newid ei meddwl ynglŷn â defnydd yr iaith Gymraeg yn y Pwyllgor yma. A ydy’r Ysgrifennydd Gwladol yn meddwl bod hynny, efallai, yn arwydd bod y Llywodraeth yn barod i newid ei meddwl, er enghraifft, ynglŷn â’n haelodaeth o’r undeb tollau? Mae hynny’n hynod o bwysig i ni.

(Translation) I am grateful to the Secretary of State for giving way, and to the Government for changing their mind on the use of the Welsh language in the Committee. Does he believe that that is a sign that the Government are willing to change their mind, for example, on our membership of the customs union, which is very important to us?

Alun Cairns Portrait Alun Cairns
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Rwyf yn ddiolchgar am yr ymyrraeth gan y Foneddiges anrydeddus. Mae’r hen rheolau wedi bod yn eu lle dros ddegawdau ac roeddwn felly yn falch iawn bod y Llywodraeth yma wedi cefnogi’r newidiadau a ddaeth ar lefel drawsbleidiol.

Ni all y Llywodraeth weithredu ar ei phen ei hun i gyflawni’r newidiadau sydd eu hangen ar Gymru. Dyma pam rwyf am bwysleisio fy awydd i gydweithio’n agos gyda Llywodraeth Cymru er budd Cymru. Rwy’n annog Llywodraeth Cymru i ddefnyddio ei phŵerau ei hun a’r Cynulliad i gyflawni buddiannau economaidd tebyg i Gymru.

Rwyf yn edrych ymlaen at drafodaeth ddiddorol a bywiog heddiw yma yn y Pwyllgor.

(Translation) I am grateful to the hon. Lady for her intervention. The orders have been in place for decades, so I was pleased that this Government supported the changes that came about on the basis of cross-party support.

This Government cannot act alone to deliver the changes that Wales needs, so I reiterate my desire to work closely with the Welsh Government in the best interests of Wales. I urge the Welsh Government to use their powers and the Welsh Assembly’s powers to deliver similar economic benefits to Wales.

I look forward to an interesting and stimulating debate.

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Alun Cairns Portrait Alun Cairns
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Rwyf eisiau tynnu cymunedau at ei gilydd: yn amlwg cymunedau o Geredigion ac o Bowys, ond hefyd rwyf yn gobeithio bydd cyfleoedd i rai o’r siroedd yn Nghymru ac ar yr ochr arall i gydweithio er mwyn denu buddsoddiant newydd i’r ardaloedd ac er mwyn cefnogi’r economi. Mae hynny’n golygu y byddai pob rhan o Gymru yn cael budd o’r gefnogaeth leol a phenodol y mae bargeinion dinesig a thwf yn ei chynnig. Ac mae hyn, wrth gwrs, ar ben y fformiwla Barnett newydd sydd wedi ei chytuno.

(Translation) I am very much in favour of bringing communities together, whether they be the communities of Ceredigion or of Powys, but I am also eager to give opportunities to some of the counties of Wales—and those on the other side of the border too—to work together to attract new investment into those areas and to support the economy. Our policy means that every part of Wales will benefit from the local, targeted support offered by the city and growth deals. That is above the new Barnett formula that has been agreed.

Susan Elan Jones Portrait Susan Elan Jones
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Rydym yn croesawu bob cyhoeddiad am fargen twf gogledd Cymru, ond byddwn yn ei chroesawu’n fwy pan fydd yn digwydd. Pryd mae’n mynd i ddigwydd?

(Translation) I welcome any announcement on a north Wales growth deal, but I will welcome it more when it happens. When will it happen?

Alun Cairns Portrait Alun Cairns
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Rydw i’n falch fod y Foneddiges anrhydeddus wedi gofyn y cwestiwn. Y peth sydd wrth wraidd y cynlluniau twf a’r bargeinion dinesig yw bod y grym yn nwylo’r awdurdodau lleol a busnesau lleol. Felly, rydym yn rhoi cyfle at ei gilydd ac, yn amlwg, yn gobeithio bydd y Foneddiges anrhydeddus yn fodlon cydweithio gyda’r cymunedau a’r busnesau er mwyn eu bod yn cyflawni’r cynlluniau ac i ddod â realiti i’r broses wrth ei bod yn datblygu.

Fel Aelodau Seneddol o bob cwr o Gymru, mae’n bwysig ein bod i gyd yn rhan o’r broses hon. Felly, rwyf yn falch iawn y llwyddodd gymaint ohonoch i ymuno â Swyddfa Cymru cyn y Nadolig i glywed yn uniongyrchol gan ein partneriaid lleol ynglŷn â’u cynnydd yng ngogledd Cymru. Yn amlwg, mae angen mwy o waith i gefnogi’r gwaith da sydd wedi mynd o’i flaen.

(Translation) I am glad that the hon. Lady asked that question. What lies at the heart of the growth and city deals is that the power lies in the hands of local authorities and local businesses, so we are giving them an opportunity to come together. We hope that she is willing to work with communities and businesses to achieve the deals and to make them a reality as they develop.

It is important that Members of Parliament from all parts of Wales are part of the process. I was therefore delighted that so many of the Members present were able to join us before Christmas to hear directly from local partners on the progress that they are making in north Wales. Obviously, we need more work in that regard to support the good work that has taken place already.

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Christina Rees Portrait Christina Rees
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I am sure the Welsh Government are looking at every area of Wales to increase prosperity, and making every effort to do so.

Susan Elan Jones Portrait Susan Elan Jones
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I am interested by what the hon. Member for Ceredigion said, but he should remember that, around that time, there was a coalition between Labour and Plaid Cymru. There is much consensual working in the Assembly, which I welcome. He should be careful before firing his darts.

Christina Rees Portrait Christina Rees
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I totally agree with my hon. Friend and I thank her for speaking in English, which takes me less time to understand. [Interruption.] I am not going to respond to that. I can imagine what it meant, but I am not going to respond.

As with every Tory pledge, the devil will be in the detail, and we await the detail for the north Wales and mid-Wales growth deals.

The UK Tory Government’s claims of an extra £1.2 billion for Wales are pure smoke and mirrors. The truth is that the real uplift to the Welsh budget is significantly smaller. In 2022, after nearly 12 years of UK Tory Government rule, UK GDP is forecast to be £41 billion, or 3%, lower than previously predicted. The Office for Budget Responsibility has downgraded its growth forecast for each of the next five years. That means that Wales will be significantly worse off than previously thought. That will have an impact on tax receipts, which will be £26 billion lower by 2022, there will be higher borrowing, and less funding will be available for public services.

All that is a direct product of the UK Tory Government’s ideological commitment to the failed and damaging policy of austerity. Despite eight years of Tory austerity, continued cuts to the block grant of more than £1 billion in total and the UK Tory Government continually letting Wales down, the Welsh Labour Government continue to do a remarkable job. They have led the way on sprinklers, plastic carrier bag charges, free bus passes and prescriptions, and opt-out organ donation. Our Welsh Labour Government continue to protect and invest in frontline services, and continue to work to protect our communities against the cruellest excesses of UK Tory Government cuts. That work will be much harder following November’s weak and desperate Budget from a UK Tory Government who simply do not care about Wales. At the end of the day, there is a saying in Wales: “Cymru yn arwain, eraill yn dilyn.”

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Jonathan Edwards Portrait Jonathan Edwards
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Mae hynny’n wir. Roeddwn yn darllen rhywbeth ddoe bod disgwyl y bydd pris defaid, yn enwedig, a chig yn syrthio’n ddifrifol os mae Cymru’n ffeindio’i hunan y tu allan i’r undeb tollau. Mae’r peryglon ar gyfer y sector amaethyddol, sydd yn ein gwynebu yn y dyfodol agos, yn beryglus iawn. Mae ein arweinydd seneddol yn codi pwynt dilys iawn.

(Translation) That certainly is the case. I was reading something yesterday that said that the price of sheep, and of meats in general, is expected to fall significantly if Wales finds itself outside the customs union. The risks for the agricultural sector in the very near future are huge. Our parliamentary leader raises a very valid point.

Susan Elan Jones Portrait Susan Elan Jones
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Rwyf yn cytuno gyda’r Bonheddwr anrhydeddus yn llwyr wrth iddo sôn am yr argyfwng ym myd ffermio, ond ydy e’n meddwl hefyd ein bod yn sôn nid am ffermio’n unig ond hefyd am yr economi wledig gyfan ar ôl Brexit? Mae hynny yn drychinebus, i fod yn onest.

(Translation) I agree entirely with the hon. Gentleman about the crisis in agriculture. Does he believe that we are talking about not only farmers, but the broader rural economy, as a result of Brexit? This truly is a crisis, is it not?

Jonathan Edwards Portrait Jonathan Edwards
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Mae’r Foneddiges anrhydeddus yn codi pwynt hollol sylfaenol. Mae amaeth yn ganolog i’r economi wledig. Os yw amaeth yn dioddef, bydd sectorau eraill yn dioddef, megis twristiaeth a phob math o sectorau. Gallen i fynd i fewn i araeth hir iawn am beth sydd angen gwneud i amddiffyn ein sector amaethyddol, ond dwi’n credu byddaf yn mynd ychydig y tu allan i gwmpas y Gyllideb. Rwyf wir yn credu bod Brexit yn bwynt mor ganolog y dylai’r Uwch Bwyllgor yma gwrdd eto yn fuan iawn i drafod polisi’r Llywodraeth. Credaf mai hwn, o bell ffordd, yw’r prif her sy’n ein gwynebu.

(Translation) The hon. Lady raises a fundamental point. Agriculture is a focal point for the rural economy. If agriculture suffers, other sectors will suffer, such as tourism and others. I could make a lengthy speech about what needs to be done to protect our agricultural sector, but that might be outside the scope of the Budget. I truly believe that Brexit is such a fundamental point that this Welsh Grand Committee should meet again very soon to discuss the Government’s policy. That is the major challenge facing the Government.

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Susan Elan Jones Portrait Susan Elan Jones
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Mae’n bleser mawr i ddod i’r Pwyllgor hwn heddiw ac i allu defnyddio’r iaith Gymraeg.

(Translation) It is a great pleasure for me to come to this Committee today and to be able to use the Welsh language.

I will not surprise my colleagues too much by saying that I will make the bulk of my speech today in Welsh. I am conscious that I have something like two and a half minutes before this session breaks. I want to say a few words in English in case a producer on “Newsnight” is listening and wondering how we are coping with the hindrance of having a bilingual Welsh-English debate, or in case a journalist from The Guardian is chewing away somewhere at their lentil sandwich and wondering whether they should be writing another article about minority rights or documenting the plight of those to the west of Offa’s Dyke who have the temerity to want Wales to be a truly bilingual nation. I make the point in jest: I have nothing against “Newsnight”, The Guardian or even lentil sandwiches, but I do have something against the media and academic commentators, especially those who declare themselves on the left or centre left, when they speak up for every other minority language and culture and downright denigrate our Welsh language and culture. Our language and culture belongs to everyone. I say that as someone who comes from a family where some members speak Welsh and others do not. All I ask of those wonderful progressives who traipse our land, if they really do believe in equality and diversity, is for similar respect and that they treat us in that vein.

Mae symboliaeth ddwfn i’r ffaith y gallwn ddefnyddio'r Gymraeg yn y ddadl hon ac yn y pwyllgor hwn heddiw. Yn y lle hwn ganrifoedd maith yn ôl fe benderfynwyd na fyddai'r Gymraeg yn iaith swyddogol i Gymru. Ond yn y lle hwn hefyd, yn 1967, gyda’r diweddar Cledwyn Hughes fel Ysgrifennydd Gwladol Cymru, fe basiwyd y Ddeddf Iaith Gymraeg gyntaf. Yn y lle hwn hefyd, nid yn unig gallwn ddefnyddio’r iaith Gymraeg yn ein Pwyllgor, ond gallwn ddweud yn wir yn ein Huwch Bwyllgor Cymreig bod yr iaith Gymraeg yn un o’n hieithoedd swyddogol yn y lle hwn. Felly, mae’n ddiwrnod pwysig iawn i ni gyd. Mae gennym bwynt pwysig i’w ystyried: y Gyllideb. Dros Gymru a Phrydain gyfan, rwyf yn credu fod gennym rai o’r gweision cyhoeddus gorau yn y byd: y bobl sy’n dysgu yn ein hysgolion, y bobl sy’n gweithio yn ein hysbytai, ein diffoddwyr tân a’n heddlu, y bobl sy’n gweithio yn ein lluoedd arfog, ac eraill hefyd.

(Translation) There is deep symbolism, of course, to the fact that I can use the Welsh language in this debate and this Committee. In this place, so many years ago, it was decided that the Welsh language would not be the official language for Wales. In 1967, the first Welsh Language Act was passed when the late Cledwyn Hughes was the Secretary of State for Wales. Not only can we use the Welsh language, but we can truly say that Welsh is one of the Welsh Grand Committee’s official languages. It is therefore a very important day for us all.

We have an important topic before us today: the Budget. Throughout Wales and all of the UK, we have some of the best public servants in the worldthe people who are teaching in our schools, the people who are working in our hospitals, our firefighters, our police officers, the people working in our armed forces and others.