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Spring Budget: Wales — [Mr Philip Hollobone in the Chair]
29 March 2023
Lead MP
Ruth Jones
Newport West and Islwyn
Lab
Responding Minister
James Davies
Tags
TaxationClimateWalesEnergyBenefits & WelfareChildren & Families
Word Count: 13661
Other Contributors: 9
At a Glance
Ruth Jones raised concerns about spring budget: wales — [mr philip hollobone in the chair] in Westminster Hall. A government minister responded.
Key Requests to Government:
The Labour Party aims to secure high sustained growth in G7 economies, which would be beneficial for Wales. The Government needs to address economic mismanagement and provide real investment in communities instead of tax cuts for the richest.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
The Government's economic policies have led to decline in Wales. The recent Spring Budget was a missed opportunity for real change, with no regard for the livelihoods of constituents. The UK Treasury has taken back over £155 million from the Welsh Government, which is unacceptable and unwise. Steel industry issues highlight the need for growth and productivity gains. Rising inflation, energy bills, and food costs are worsening conditions for people in Wales.
Ben Lake
PC
Ceredigion Preseli
Mr Ben Lake criticised the spring Budget for not going far enough in addressing rising energy costs and supporting off-grid households. He highlighted that small businesses were left without additional support, with 74% of properties in his constituency disconnected from mains gas grids. He called for a further round of the alternative fuel payment to assist these households and urged the government to consider extending the energy bills discount scheme or require energy companies to renegotiate contracts early. Additionally, he emphasised the importance of fibre-to-the-home technology and Project Gigabit funding to improve digital connectivity in rural areas, advocating for faster roll-out of gigabit broadband.
Beth Winter
Lab
Cardiff Central
Noted that Wales receives substantially less funding through the levelling-up fund compared to EU membership, citing evidence from the Welsh Government which shows a £1.1 billion shortfall. Ms Winter criticised the UK Government for failing to address Wales's cost-of-living crisis and underfunding public services. She highlighted research showing people in her constituency going without food and unable to pay bills, noting that wages are lower than 13 years ago and local government services continue to be cut. Ms Winter also mentioned a £155 million deduction from the Welsh reserve fund, calling it 'theft', and criticised the levelling-up fund for not reaching Wales's valleys. She expressed concern about job losses in universities due to EU structural funds ending, and the lack of support for former mineworkers and their families. Asked for a categorical assurance that the £71 million bridging fund will be provided in time to save over 1,000 jobs at risk in Wales's higher education sector.
Christina Rees
Lab
Neath
Ms Rees highlighted the inadequacy of local housing allowance and universal credit, noting that in Neath, no properties fully covered by LHA were available without additional qualifications. She called for an 'essentials guarantee' to ensure people can afford basic essentials, citing research showing 90% of households on universal credit are going without essentials.
Montgomeryshire
The OBR report suggests a stagnating economy with UK growth projected at 1.75% by 2028, likely even lower in Wales due to low business investment and productivity. The hard Brexit policy exacerbates the situation, projecting long-term productivity 4% lower than pre-Brexit EU frameworks. Inflation is expected to cause real household disposable income to fall 2.6% this year, following a decline of 2.5% last year, impacting living standards significantly in Wales.
Dwyfor Meirionnydd
Asked if there is a discrepancy in how unspent UK Department funds are handled compared to Welsh Departments, suggesting that under rational devolution settlement, unused funds should remain within Wales. Concerned about a constituent facing a £150 monthly rent increase, as local housing allowance is set at 25% of private rents. Suggested raising the allowance to 30% by Westminster to support people in private rental arrangements. Expressed concerns about Welsh universities facing job cuts and research project closures due to the end of European structural funds, asked the Minister if a £71 million bridging fund would be provided. There is a risk that we keep repeating ourselves, but there is a reason for us to do so. In Scotland, the Crown Estate 12 miles out to sea is devolved to Scotland, so that policy can be made in relation to it and the profits that arise from the Crown Estate remain in Scotland. Why, if it is good enough for Scotland, is it not good enough for Wales? There are proposals for a national medical isotope centre at Trawsfynydd known as Project ARTHUR. The Minister was asked about discussions with the Welsh Government to bring this forward due to concerns over shortages in medical isotopes.
Stephen Crabb
Con
Beaumaris
Responded to a point about the £155 million, criticising the Welsh Government for mismanaging funds allocated during the pandemic peak and describing their handling as scathing. Asked the hon. Lady how she would respond to local authorities across Wales, especially Labour councils, sitting on large reserves without investing in necessary priorities despite current difficulties.
Stephen Kinnock
Lab
Aberafan Maesteg
Agreed with a point about growth strategy needing to include a vibrant steel industry and criticised UK Government for not providing necessary support, proposing Labour's £3 billion clean steel fund.
Virginia Crosbie
Con
Ynys Môn
Prynhawn da. It is a pleasure to serve under your chairmanship, Mr Hollobone, in this important debate... The Budget was overwhelmingly positive for nuclear in the UK: there was the launch of Great British Nuclear, and the labelling of nuclear as environmentally sustainable in the green taxonomy.
Wayne David
Lab
Caerphilly
Noted the Bevan Foundation report which showed that it is primarily the poorest people, elderly, disabled and those renting socially who are suffering most from the cost of living crisis. Welcomed the Government's announcement on Great British Nuclear but questioned if it is certain, asking for a specific date when nuclear power at Wylfa will be given approval. There is a direct correlation between low income and poor health, which creates enormous pressure on the health service. My hon. Friend shares concern that local authorities might be unable to spend allocated moneys, leading to a potential clawback by the Government. Asked if the new arrangements will benefit not just doctors, but also wealthy individuals.
Government Response
James Davies
Government Response
It is a pleasure to serve under your chairmanship, Mr Hollobone. I congratulate the hon. Member for Newport West (Ruth Jones) on securing this important debate. The recent spring Budget by my right hon. Friend the Chancellor includes funding for multiple projects that will specifically benefit Wales, such as £20 million for restoring Holyhead breakwater and up to £20 billion over two decades for carbon capture, utilisation and storage (CCUS). There are plans for two freeports in Wales which will bring jobs and investment. The programme of 12 investment zones across the UK includes at least one in Wales with up to £80 million over five years to grow a cluster in key future sectors. The shared prosperity fund is intended to replace EU funds, and I argue that Welsh Government officials broadly accept the approach taken by the UK Government, with an additional record level of investment coming from the UK Government. To support employment in Wales, we are helping parents on universal credit who are moving into work or looking to increase their working hours by making sure they have upfront support for childcare.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.