Commons Sense

House of Commons · Ministers' Questions

Budget 2024: Businesses in Wales

Wednesday 13 March 2024 · 8 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 2 Partly answered 5 Not answered 0

Key points

  • The UK Government raised the VAT threshold and provided tax reliefs for the creative industries in the Budget 2024.
  • The Welsh Labour Government's policies are cited as the reason for increased business rates for pubs and small businesses in Wales.
  • The UK Government extended business rate relief in England, but the Welsh Government did not pass this benefit to small businesses in Wales.

Topics (select to filter)

Questions & Answers

Q1 Stephen Crabb Con
Economy Wales Business & Trade
Context

The UK spring Budget 2024 was introduced, and concerns arose over its effects on Wales.

Question

What assessment has the government made of the potential impact of the spring Budget 2024 on businesses in Wales?

Answer from David Davies

The UK Government are backing our small businesses by raising the VAT threshold, delivering tax reliefs for the creative industries and investing in high-growth industries such as advanced manufacturing. This is in stark contrast to the anti-business agenda of the Welsh Labour Government.

Partly answered

Not addressed: Did not provide a specific assessment or statistics regarding the budget impact on Welsh businesses

How: Blaming Welsh Labour

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Get updates like this by email
Q2 Stephen Crabb Con
Business & Trade Local Government
Context

Pubs and restaurants in Wales are closing faster than elsewhere.

Question

Sadly, pubs and restaurants are closing at a faster rate in Wales than in any other part of the UK. The measures in the Budget that the Secretary of State mentioned will bring some relief, but does he agree that what is pushing many businesses to close right now is Welsh Labour's slashing of business rates support?

Answer from David Davies

My right hon. Friend is absolutely correct. The UK Government have made sure that pubs and other small hospitality businesses receive a 75% discount on their business rates, but the Welsh Labour Government has slashed this policy, meaning that pubs and small businesses pay thousands of pounds more under the Welsh Labour Government.

Answered
Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Get updates like this by email
Q3 Chris Bryant Lab Rhondda and Ogmore
Housing Transport Wales
Context

The Chancellor distributed funding to constituencies, excluding the Rhondda tunnel project.

Question

May I return the Secretary of State to the issue of the Rhondda tunnel? The Chancellor doled out bits and pieces of money but did not allocate any for the Rhondda tunnel. So where should we now apply for money for the Rhondda tunnel?

Answer from David Davies

There have been three rounds of levelling-up funding, with growth deals across every constituency in Wales. There are special projects being backed in areas such as Newport and an investment zone and a freeport in Port Talbot. Constituencies the length and breadth of Wales have benefited from many projects this Government has put forward.

Partly answered

Not addressed: Did not specify funding for Rhondda tunnel

How: Talking About General Benefits

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Get updates like this by email
Q4 Alun Cairns Con
Scotland Business & Trade Local Government
Context

English businesses receive business rate relief at a higher percentage than Welsh businesses.

Question

My right hon. Friend is well aware that the Chancellor has extended business rate relief here in England, but of course the Welsh Government are refusing to pass this on to small businesses. Does he not think it completely unfair?

Answer from David Davies

My right hon. Friend is absolutely correct. It is extraordinary that the Welsh Labour Government, receiving funding to support small businesses in Wales, are failing to pass it on. As a result, the average pub in Wales will pay more than £2,000 more in business rates than a pub in England.

Answered
Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Get updates like this by email
Q5 Chris Evans Labour (Co-op) Caerphilly
Economy Taxation
Context

Monetary policies impact interest rates for Welsh businesses and households.

Question

Has the Secretary of State met the Governor of the Bank of England recently? If not, will he invite him to Wales to see the impact of his policies on the Welsh economy?

Answer from David Davies

The hon. Gentleman will surely be aware that the Bank of England sets interest rates independently, as a result of a policy brought in by the former Labour Government. As a result of policies being pursued by this UK Government in conjunction with the Bank of England, inflation has dropped drastically from over 11% to 4%, and I would like to think that interest rates will soon follow.

Partly answered

Not addressed: Did not address meeting or invite Governor to Wales

How: Talking About Monetary Policy

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Get updates like this by email
Q6 Jessica Morden Lab Newport East
Policing & Resources Crime & Law Enforcement
Context

Retailers face daily incidents of theft and violence.

Question

The Budget will do nothing to deliver a better future for retailers and their customers. The British Retail Consortium members face 45,000 incidents of theft and 1,300 incidents of violence and abuse every day. Why are the Government failing to tackle shoplifting?

Answer from David Davies

The UK Government have provided for an extra 20,000 police officers across the whole United Kingdom. We have repeatedly brought forward legislation to increase prison sentences and punishments for offenders, but that legislation has often been voted against by members of her political party.

Partly answered

Not addressed: Did not address tackling shoplifting directly

How: Blaming Opposition

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Get updates like this by email
Q7 Liz Saville-Roberts PC Dwyfor Meirionnydd
Transport Wales
Context

The Government pledged £1 billion to electrify the north Wales main line, but details are unclear.

Question

This Government pledged £1 billion to electrify the north Wales main line. How can the Secretary of State explain that phase 1 goes no further than Llandudno?

Answer from David Davies

The UK Government have already shown a commitment to transport in Wales, spending £390 million on improved rail infrastructure over the last control period. In addition, there has been the south Wales metro, part of a joint-funded growth deal. The Prime Minister was clear about our commitment to the electrification of the north Wales rail line.

Partly answered

Not addressed: Did not explain why phase 1 does not go further than Llandudno

How: Talking About General Transport Commitments

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Get updates like this by email
Q8 Liz Saville-Roberts PC Dwyfor Meirionnydd
Wales
Context

The question addresses concerns about the impact of holiday homes on communities in Wales, specifically mentioning opposition to an overnight tourism tax proposed by the Welsh Labour Government.

Question

The Tory leader in the Senedd opposes moves to tackle the effects of excessive numbers of holiday homes in our communities. He goes on about 'anti-tourism and anti-English policies being imposed on the Welsh tourism industry'. Now that the Tory Westminster Government are abolishing tax breaks for holiday lets, would the Secretary of State claim that his Chancellor is anti-tourism?

Answer from David Davies

I would not. My friend in the Senedd has spoken out repeatedly about the Welsh Labour Government's plans for an overnight tourism tax, which will have a detrimental impact on tourism businesses across Wales. The hon. Lady's party is in partnership with the Welsh Labour Government, and if she really wants to support the Welsh tourism industry, I suggest she tells it that her Members will vote against Welsh Labour's Budget, to prevent that tax from coming in.

Not addressed: The Secretary of State did not address whether abolishing tax breaks for holiday lets is anti-tourism but instead focused on the opposition's stance on an overnight tourism tax proposed by the Welsh Labour Government.

How: Changing Subject To Another Policy

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Get updates like this by email