Wales
What steps she is taking with Cabinet colleagues to help reduce the cost of living in Wales.
The Secretary of State was asked—
Let me begin by congratulating all the Welsh recipients of King’s birthday honours, which were announced over the weekend—particularly my hon. Friend the Member for Newport East (Jessica Morden).
We are doing everything we can to tackle the cost of living. We are increasing wages faster than inflation, creating thousands of jobs, helping people into work, and increasing pensions and universal credit, and we are going even further to ease the pressure on families this summer, because tackling the cost of living is the core purpose of this UK Labour Government.
The Great British summer savings scheme announced by the Chancellor will have a positive impact on families across my constituency of Ayr, Carrick and Cumnock. More people will be able to save money while taking up opportunities to visit businesses and contribute to the local economy. Can the Secretary of State update the House on the impact that these measures will have in Wales?
My hon. Friend is right. What matters for families is not just getting by, but being able to enjoy time together without worrying about the next bill. The Great British summer savings scheme is cutting VAT on, for instance, children’s meals, tickets for cinemas and theatres and other attractions, and we are cutting the cost of the weekly shop by lowering tariffs on more than 100 staple products. All of that will ease pressure on household budgets, support parents during school holidays, and back Welsh businesses.
This Government removed the two child cap, which took 5,000 children in my constituency out of poverty. Will the Secretary of State please explain how that is helping children in Wales?
As my hon. Friend knows from his constituency experience, poverty scars children’s lives and life chances. That is why we announced the child poverty strategy, including the removal of the two child limit, which will benefit nearly 70,000 children right across Wales. We have also increased universal credit for 320,000 families in Wales and raised the minimum and living wages, and, as I mentioned earlier, we are slashing VAT on days out to help families not just get by but enjoy the summer, as everyone should. Meanwhile, what can Welsh families expect from the new minority Plaid Government in Wales? Well, the First Minister has announced a steering group, and has promised to come up with a plan at some point soon. That is the difference between Labour and Plaid: we act and they talk.
Funnily enough, in the first 100 days of this Labour UK Government the Prime Minister cut winter fuel payments for vulnerable pensioners, whereas in the first 100 days of the Plaid Cymru Welsh Government, an extra £55 million is being invested in free childcare for parents. Does the Secretary of State concede that, unlike Labour, Plaid Cymru is focusing on making a difference to people’s lives and lowering the cost of living for households in Wales? Actions speak louder than words.
I have to say that it has been rather amusing to hear the new minority Plaid Cymru Welsh Government bragging about what they have done since the election. They have started a review, they have set up a steering group, they are working on a plan for another plan, they have set a target, and they are thinking about things. Meanwhile, this Government have invested £134 million in the Cardiff capital region, approved seven new youth hubs across Wales, launched the summer savings scheme to cut the cost of living, announced a new ban on social media to keep our children safe, given a pay rise to over 3,000 armed forces personnel in Wales, and expanded the Valour programme for veterans. That is the difference between us and Plaid: we are getting on with the job.
I call the Liberal Democrat spokesperson.
A few months ago I met farmers in Merthyr Cynog, in Brecon and Radnorshire, who warned me about the growing pressures that they were facing. Since then, Trump’s reckless war with Iran has sent fertiliser prices soaring by up to 45% and red diesel prices by up to 30%. Does the Secretary of State accept that unless urgent action is taken, higher costs for Welsh farmers will ultimately mean higher food prices for families across Wales and the UK?
As the hon. Lady will know, red diesel has been slashed to its lowest rate for over 20 years. We have protected farming budgets, all the trade deals that we have signed have helped farmers, and we are looking at all the measures that we can introduce to tackle the cost of living and the impact of the Iran war—in which we did not want to get involved, and we decided not to get involved, despite the protestations of some parties in this House. We are making sure that the economic impact is mitigated.
Creating high quality jobs across Wales is a priority for this Labour Government, which is why we are backing major growth sectors across the country. We have delivered £2.5 billion for small modular reactors at Wylfa, supporting at least 3,000 jobs. Alongside that, new AI growth zones in north and south Wales are expected to create more than 8,000 jobs.
The UK Labour Government are investing across the UK in initiatives that are creating jobs and fuelling economic growth, such as Parkwood Springs and Special Melted Products in my constituency of Sheffield Brightside and Hillsborough. Will the Minister update the House on the difference that UK Government growth funding is making in Wales?
The UK Government growth funding has been transformational across Wales, delivering jobs in local communities across all parts of the country. Last week, we announced £134 million for the Cardiff capital region, which has already created 7,000 jobs and is fast on its way to delivering 25,000 jobs for the region. This latest investment will help cement Wales’s place at the forefront of technology and innovation, helping even more businesses to thrive and grow the Welsh economy.
Universities in Wales and Scotland are engines of job creation through the crucial role they play in fostering innovation. Will the Minister please update the House on what the UK Government are doing to fuel innovation in Welsh universities?
Universities are a core part of our industrial strategy, as countries that lead in research and innovation also lead in growth and investment. Welsh universities play a unique role right across Wales by building and investing in our industries and businesses of the future. As a Minister in the Wales Office, I am bringing all the Welsh universities together in collaboration to help maximise R&D funding, deliver stronger results, and ensure that the impact reaches the communities that need it most.
I have repeatedly asked the Government to publish their assessment of Scotland’s nuclear potential, without success. Perhaps the Minister can help me in the meantime. What does she regard as the greatest benefit of the Wylfa site in Wales: the long term, skilled jobs, the local investment that it draws in, or the contribution to our energy security? Does she believe that Scotland would be able to share in the same benefits?
There are absolutely huge benefits right across Wales. Wylfa is expected to support 3,000 jobs across north Wales. This is a generational commitment to the future of clean energy right across the country.
Does the Minister agree that a strong and effective UK internal market is critical to creating jobs in Wales, and will she work with Cabinet colleagues to secure frictionless east west trade so that businesses in Wales and Northern Ireland can more easily supply each other in key sectors, such as manufacturing, food and construction?
Absolutely. Through collaboration and working together, we are creating tens of thousands of jobs right across Wales. Our Welsh freeports and investment zones have the potential to deliver at least 25,000 new jobs in Wales. Our generational commitment to modernise Welsh rail will bring 12,000 jobs in Wales. This is about a collaborative effort right across the United Kingdom to help and support Welsh communities, but also communities right across the UK.
I call the shadow Secretary of State.
Boarded up windows, derelict buildings and deserted towns are increasingly common on high streets in Wales, as highlighted by North Wales Live and its readers. Our hospitality sector is being hollowed out thanks to Plaid Cymru and the last Welsh Labour Government’s disastrous tourism tax. The Conservative and Unionist party believes that this tax should be urgently scrapped to support the approximately 150,000 people in Wales who are employed in this crucial sector. Does the Minister now regret her party’s decision to impose the tax, and will she join me in calling on the new Welsh Government to scrap it?
I will take no lectures from the Conservatives and the hon. Member when her party presided over completely unprecedented wage stagnation and businesses took blow after blow, with—to be specific—the worst wage growth performance of any decade since Napoleonic times. On our side of the House, the Chancellor announced just last week the great summer savings scheme, with a reduction of VAT from 20% to 5% over the summer to help families enjoy the summer and use hospitality venues. This will boost local spend and boost the local economy.
I call the Plaid Cymru Westminster group leader.
The Secretary of State had some cheek earlier, but Wales had 27 years of Labour and has had less than six weeks of a Plaid Cymru Government, so we have work to do, and we are getting on with it.
The Port Talbot steelworks fire caused huge damage, but not a single penny of Labour’s £2.5 billion steel fund has been guaranteed for steel in Wales. Instead, millions are being spent from this fund to support steel at Scunthorpe, leaving Welsh workers fearing they have been pushed aside. Will the Government stand up for Welsh interests and guarantee a fair share of the steel fund to all steel sites in Wales?
Our steel strategy will revitalise the UK steel sector, restoring domestic production, 50% of which will come from Wales, and securing supply for key sectors and national infrastructure. I really hope that the minority Plaid Welsh Government will support this work to support our Welsh steelworkers.
I am interested to hear the Minister’s response, but she is muddying the waters, because what she said does not relate to the steel fund. I am specifically talking about the steel fund and the contribution it will make to Wales; we know that that money is going to Scunthorpe.
On another matter, next week it will be a decade since the EU referendum, and the promised Brexit dividend is still a fantasy unicorn. The Welsh economy is at least £4 billion smaller and exports are down £1.1 billion. Over the same period, Northern Ireland—still in the single market, remember—has seen gross value added per head grow 20% faster than in Wales. We see the damage, and we know the solution. Wales, of course, is very much an exporting economy. Surely the Minister knows that the right thing to do by Wales and the rest of the UK is to rejoin the single market and the customs union.
I am proud that this Government are resetting our relations with European partners to improve our economic and security co operation following Brexit. The historic first UK EU summit last year marked that turning point, and striking a deal is good for bills, good for borders and good for jobs. Our focus is on driving that forward and delivering a very strong EU UK relationship.
I call the Chair of the Welsh Affairs Committee.
I thank the Minister for her responses. I want to raise the issue of young people not in education, employment or training. We know that the Conservatives failed our Welsh young people for 14 years, so I am really pleased that this Labour Government are investing £2.5 billion in the youth guarantee. How many Welsh young people will benefit from this scheme?
Far too many young people are not in education, employment or training, which is why we have committed to a youth guarantee to grant young people right across the UK, including Wales, the choice to learn or to earn, backed by £820 million of funding. This week, we announced seven more youth hubs for Wales, helping young people build critical skills and find jobs. Those measures will be life changing opportunities for young people, significantly reversing the increase we inherited from the Conservative party in the number of those not in education, employment or training.
Wales has a crucial role to play in our national security. Wales is home to a dynamic defence SME base, as well as major companies such as QinetiQ, BAE Systems, Airbus, General Dynamics and Thales. The increased defence budget will support thousands of jobs in communities across Wales, help to grow our economy and keep the UK safe.
In the King’s Speech, the Labour Government made it clear that our key priorities are national security, economic security and energy security. Those three priorities have one thing in common: the promise of jobs for communities across the whole UK. The defence growth deal stands to unlock some 50,000 new jobs across the UK, including 500 well paid skilled jobs in Wales. Will the Secretary of State tell the House how defence spending is having a positive impact in Wales?
The Welsh defence sector is central to the security of the United Kingdom. I am proud that our defence growth deal, backed by £50 million of UK Government investment, will transform our nation into a centre for defence innovation, creating highly skilled jobs and driving economic growth across the country. It has been a real pleasure to see at first hand the opportunities the defence sector is bringing to people and communities in Wales, such as the talented young local apprentices I met recently who are starting out on their careers at General Dynamics in Oakdale.
National security is the No. 1 priority of this UK Government, and businesses in Redditch are proud to support our armed forces. Does the Secretary of State agree with my assessment that, at this time of global uncertainty, it is more important than ever that parties across the House champion the value of our Union and our nations standing together against global threats?
My hon. Friend is absolutely right. The Government are undertaking the biggest sustained increase in defence spending since the cold war. We know that the increase creates not only a defence dividend but a Union dividend, too. It will boost prosperity, create high skilled jobs and strengthen security for working people in every corner of the UK, while at the same time bolstering the resilience of our defence industrial base. My hon. Friend is right to say that every nation and Government of the United Kingdom should stand together and play their part in our national security.
This Government have a NATO first approach, meaning that our strength is reinforced by global allies, so that, in an increasingly dangerous world, the UK will not stand alone. It is vital that colleagues from across the House and Governments across the UK remain united in that approach. Will the Secretary of State provide an update on any discussions she has had with the new Welsh Government regarding their contribution to the UK’s national security?
The strategic defence review reinforces the importance of close collaboration between all Governments on defence, particularly where key levers such as skills and planning are devolved. I can confirm to my hon. Friend that I have written to the Cabinet Minister for Finance in the new minority Plaid Welsh Government on Wales’s role in the defence of the UK. I regret to inform the House that the Minister did not respond to my request for confirmation that the Welsh Government will support the UK’s full membership of NATO, but I can assure the House that the UK Labour Government are wholeheartedly committed to our defence and security.
The increase in spending for Wales should encourage us all, as it does across this great United Kingdom of Great Britain and Northern Ireland. Does the right hon. Lady agree that the extra money for defence spending underlines the importance of being a member of the United Kingdom of Great Britain and Northern Ireland? Wales, Scotland and Northern Ireland all have the advantages of the Union. Does she also agree that our friends, the Plaid Cymru MPs in front of me—and they are my friends—should recognise that being part of the United Kingdom brings benefits?
I could not agree more. As I said earlier, the increase in defence spending creates not only a defence dividend but a Union dividend, too. That is why every nation and every Government in the United Kingdom should stand together and play their part in our national security.
I call the shadow Secretary of State.
“Inadequate…failing…unable”. Those were the damning words used to describe this Labour Government’s approach to defence by the former Defence Secretary, the right hon. Member for Rawmarsh and Conisbrough (John Healey), after his dramatic resignation. The defence industry in Wales is vital for the defence of us all, as well as for local jobs. Will the Secretary of State acknowledge why, after a recent defence visit, the Wales Office used the incorrect figure on X of a £270 billion increase in defence spending in this Parliament? Was that post deleted because it was disinformation and factually inaccurate?
I am reassured to hear the Conservative party finally acknowledging the importance of defence spending. This Government are undertaking the biggest sustained increase in defence spending since the cold war. We are doing that to keep Wales and UK safe, and to create thousands of new, well paid jobs. The hon. Member’s party left office having hollowed out our armed forces, leaving military homes in a disgusting state, so I am glad that she has finally learned the lessons of previous Tory failures.
The UK Government are strengthening the Welsh economy, helping businesses grow, and supporting thousands of good, well paid jobs. Whether it is nuclear energy in Wylfa, offshore wind in Port Talbot, or connecting our communities with a £14 billion pipeline of rail projects, this Government are building a stronger Welsh economy for generations to come.
Monmouthshire’s high streets welcome the £1.5 million Pride in Place funding, especially Monmouth, after November’s devastating floods. I recently wrote to the landlord of 20 Monnow Street—more commonly known as the “pigeon poop building”—as part of my campaign to fill empty shops. But we need deeds, not words. The commissions and the taskforce that Plaid says it is planning will not cut it, so will the Secretary of State make representations to the Welsh Government? They need to act on our high streets as soon as possible, not just establish quangos.
My hon. Friend is absolutely right that regenerating our high streets and town centres is vital to creating jobs and supporting local businesses, restoring pride in our communities. That is why we are investing over £300 million in Pride in Place funding for Wales, alongside over £500 million through the new local growth fund. It is vital that this funding, which will be delivered by the Plaid minority Welsh Government, is operational as quickly as possible. I have written twice to the Welsh Government Minister responsible about how we can get that funding out to communities, and I look forward to his eventual response.
I call the shadow Secretary of State.
The previous Welsh Labour Government spent more than £100 million developing plans for the M4 relief road, only to scrap the project before construction began. Congestion at the Brynglas tunnels continues to cause significant delays, hampering economic growth. The previous Conservative UK Government offered funding to back that crucial scheme. Will the Secretary of State urge her colleagues to make a similar offer to the new Welsh Government, and does she regret her party’s decision to cancel this vital project in the first place?
This Government have delivered the biggest financial settlement for the Welsh Government in devolution history, with nearly £6.5 billion more spending power for public services in Wales, and that includes funding for transport. That contrasts with the activities of the hon. Member’s Conservative Government, who, through austerity, starved public services in Wales of funding.
The Prime Ministe has announced a generational funding commitment to Welsh rail and a pipeline of projects worth up to £14 billion. That long term plan will transform connectivity across Wales. We will deliver that at pace, building on the strong start of the £445 million of investment already secured at the spending review.
It is brilliant to see you wearing your Yorkshire rose, Mr Speaker.
The UK Labour Government are investing in our railways to boost economic growth right across the country. In my constituency, we are seeing continued investment through the trans Pennine route upgrades in Huddersfield. Will the Minister set out what rail upgrades are coming to Wales, and how they will deliver economic growth and boost employment across the nation?
I thank my hon. Friend for her excellent question. We have agreed a £14 billion long term plan for Welsh rail, with work starting immediately, spanning 43 projects in every corner of Wales and unlocking around 12,000 jobs. New stations and faster and more reliable trains will connect people with communities and jobs right across Wales, benefiting the whole UK.