Wales
What recent discussions she has had with the Welsh Government on the potential merits of devolving the Crown Estate.
The Secretary of State was asked—
I wish to start by paying tribute to Sir Billy Boston, the trailblazing Welsh rugby league legend who received a knighthood this week. It is fitting that Sir Billy is first recipient of a knighthood for services to rugby league, and I commend those colleagues who have campaigned so hard for this well deserved award.
This Government are totally focused on taking maximum advantage of the opportunities that floating offshore wind in the Celtic sea presents for Wales. The industry has the potential to create more than 5,000 jobs and bring £1.4 billion of investment into the UK economy in coming years. We do not support devolution of the Crown Estate, as that would risk market fragmentation, jeopardising those jobs and the significant investment that Wales deserves.
In contrast to that, recent research by the Crown Estate Scotland has revealed that in one 12-month period, the Crown Estate helped its tenants to generate an economic impact of £2.1 billion, and supported almost 17,000 jobs. A decade on from the devolution of the Crown Estate’s assets and revenue, Scottish voters are enjoying the benefit. How can the Secretary of State continue to justify withholding the same profits from Wales, when in Scotland, those profits are being put back into the Scottish purse, where they belong?
I am afraid that I will not take any lectures on the Crown Estate from the SNP, whose mismanagement of the Scottish seabed has seen Scottish assets sold off on the cheap. We are focused on doing whatever it takes to secure the more than 5,000 jobs, and billions of pounds of investment, that the Crown Estate can help to unlock for Wales.
Devolving the Crown Estate sounds like such a wonderful idea, but the truth is that it really is not, and the continued lobbying and loud chat about devolving the Crown Estate is jeopardising future investment in Wales, and jobs. Does the Secretary of State agree?
My hon. Friend is absolutely right. If we were to devolve the Crown Estate and introduce a new entity, that would risk market fragmentation, complicate existing processes, and delay further development offshore, jeopardising those jobs and that investment. Even if it could be done without risking the revenues, that would not automatically lead to more money for the Welsh Government, because any revenues they retained would likely be offset through reductions to the block grant, as is the case in Scotland. Meanwhile, Wales would no longer benefit from Crown Estate assets and profits in England.
There is no long term vision. Torfaen council has voted unanimously to devolve the Crown Estate to Wales, which means that every local authority in Wales, including every Labour run council, supports the policy. Does the Secretary of State really believe that the UK Labour Government know better than the entirety of Welsh local government? When Wales speaks with one voice, isn’t it time that Wales’s voice in the Cabinet says the same thing?
I refer the right hon. Lady to my previous answer.
Was that the answer? It is hardly even looking at the question.
In opposition, the Secretary of State for Wales joined Plaid Cymru in condemning the Conservatives for denying Wales £4.6 billion in rail funding. Now in government, she is waxing lyrical about 10% of that, and she was recently content to move the goalposts and deny Wales a further £300 million by classifying the Oxford Cambridge line as benefiting Wales. I don’t know how they make this up. Does she oppose that new injustice, or was she ignored? Or is it her mission to see Wales short changed?
I listened carefully to the right hon. Lady’s question, and I am sure that she would not wish unintentionally to mislead the House. The situation regarding the Oxford Cambridge line was an error made by the Conservative Government in the 2021 spending review, and as she knows, heavy rail infrastructure is reserved, not devolved, so for every heavy rail project in England, Barnett consequentials do not apply. The UK Government fund that is funding East West Rail is also directing funding projects in Wales, such as the redevelopment of Wales’s busiest station, Cardiff Central; improvements to level crossings in north Wales; and upgrades to the south Wales relief lines. I know that all 27 Welsh Labour MPs are looking forward to hearing what the Chancellor has to say today about rail investment, after all their excellent advocacy on behalf of people across Wales.
In the spring statement, the Chancellor announced a £2.2 billion increase to the defence budget for 2025-26. That will help grow the Welsh economy and our thriving defence sector in Wales, which is home to more than 7,000 jobs, supported by the Ministry of Defence and major companies such as QinetiQ, BAE Systems, Airbus, General Dynamics and Thales. As part of the strategic defence review, a £100 million boost was announced for the repair and renewal of military homes in Wales, benefiting hundreds of service families.
I was glad that the Government’s strategic defence review was launched in Scotland last week, where increased defence spending will create new jobs and fuel economic growth, despite the SNP’s refusal to back it. I was similarly pleased that the SDR included hundreds of millions of pounds of investment in forces housing in both Wales and Scotland. Will the Minister update the House on the positive impact that the review will have in Wales, and across the Union?
I warmly welcome the £100 million boost for military homes in Wales—part of the £7 billion spend to tackle the state of armed forces accommodation in this Parliament. That will support urgent repairs, such as fixing boilers and roofs and tackling damp and mould, and facilitate the long term renewal of military housing for hundreds of service families across Wales. That follows our action to bring 36,000 homes on the defence estate, including more than 700 in Wales, back into public ownership.
The strategic defence review will make Wales and the rest of the UK safer at home and stronger abroad, just as it will my constituency of Gillingham and Rainham. Does the Minister agree that the SDR is further proof that only Labour can be trusted to protect our Union, while Opposition Members wring their hands, wish they did more when they were in power, or look for ways to make apologies for foreign aggression?
I agree with my hon. Friend. The Conservatives failed to deliver a plan for our defence industry, and left our homes for heroes in poor condition; and while Plaid Cymru plots to leave NATO, and Reform cosies up to Putin, Labour invests in our military, our security and our veterans.
The Minister sounds unexpectedly optimistic, given that so many question marks remain over promises and aspirations for defence spending. Can she confirm the impact of handing over the Chagos islands and billions of pounds to Mauritius? [Interruption.] Can she confirm the impact of that decision on Wales?
I want to focus on the benefit for Wales from the defence budget; that is what these questions are about. This spending will bring the industry more jobs, and upgrade our military homes in Wales.
I call Jim Shannon on Wales.
I welcome the Government’s increased spending in Wales. First, it is good for jobs and opportunity, and secondly, those in uniform, whether in the Army, the Royal Air Force or the Royal Navy, come from all over the United Kingdom—from Wales, Scotland and Northern Ireland. Does the Minister acknowledge that the new spend on defence could be shared proportionately between those countries, be it on those who serve in uniform, or on companies that are involved in the defence sector?
As I am sure the hon. Gentleman knows, Northern Ireland benefits considerably from companies such as Thales bidding into that defence fund. For many years, there have been many excellent service personnel from Northern Ireland. I am sure that he will look after them when they become veterans.
I call the shadow Secretary of State.
Given how precarious global affairs are, Conservatives believe that defence, and defence jobs, should be a No. 1 priority for the Labour controlled Wales Office. Major defence companies, such as General Dynamics in Merthyr and Caerphilly, and Tekever in Ceredigion, among others, await answers. Plaid wants to break up the cherished Union, withdraw Wales’s full membership from NATO and surrender our nuclear defence system. Is the Minister seriously concerned about that, and if so, will she rule out her Labour Senedd colleagues ever forming a coalition with the nationalists in an expanded Cardiff Bay?
I am sure I do not need to remind the hon. Lady that defence is a reserved matter. Those decisions will be taken in this UK Parliament, and it is up to the Welsh Senedd how it forms a Government following the elections next year.
We have transformed the relationship with the Welsh Government, and our two Labour Governments are delivering on the priorities of the people of Wales. Together we have delivered a record breaking budget settlement for the Welsh Government; NHS waiting lists have fallen for four months in a row; tens of thousands of new jobs have been secured through inward investment; and pay rises are helping people across Wales, following the record increases to the national and living wage.
Diolch yn fawr. Welsh Labour has been in power in Cardiff Bay for 26 years. In that time, Wales has fallen further and further behind its nearest neighbour in the Union in almost every key devolved area. Welsh household incomes are lower than in England; Welsh employment rates are lower than in England; and Welsh life expectancy is lower than in England. Is the Secretary of State proud of her party’s record in Wales?
Actually, the positive impact that our UK and Welsh Labour Governments are having is clear in how the Welsh economy is changing. Employment has increased significantly in Wales, unemployment and economic inactivity have fallen, and real total wages have increased right across the UK.
The safety and maintenance of coal tips is a totemic issue in Wales, including in my constituency of Cardiff West. The relationship between the Welsh Government and this Labour Government, and the funding for coal tips in the last Budget, signify the importance of the union between our two Governments. Can the Secretary of State tell me why, when given the opportunity to vote on this issue in the Senedd in March, Plaid Cymru voted against coal tip funding?
My hon. Friend raises an important point. Ensuring that coal tips across Wales remain safe is of the utmost importance and, unlike the Conservative Government, we committed £25 million of funding this year for essential work to keep tips maintained and safe. Quite why Plaid Cymru and the Conservatives voted against that additional funding in the Senedd is beyond me. They need to explain that to our former coalmining communities.
I call the shadow Secretary of State, Mims Davies.
Does the Minister prefer peanuts, cashew nuts or simply scraps for Wales? The fabled “two Labour Governments in lockstep” is simply a myth for voters. Changing rail classifications and short changing Welsh communities is a true reality. Is the Minister concerned about today’s reported peanuts? When did she become aware of the paltry settlement of just over £400 million that is to come to Wales? How will that be split for the Welsh Government? How does it compare with our Government’s £740 million for rail alone? What specific action did she take to argue for a fair share for Wales, and for its place in the Union?
The hon. Lady’s party, which was in government for 14 years, was in power when Wales got 1% of the rail enhancement budget, although it has 11% of the whole UK network. Her party is responsible for the historical underfunding of Welsh rail, and we will hear from the Chancellor this afternoon about what this Government are going to do about it.
I call the Liberal Democrat spokesperson.
The border we share with England is porous, and that is of critical importance to our agricultural community in mid Wales, and particularly to livestock farmers, whose supply chain reaches from one side of the border to the other. The Secretary of State will be aware that the farming community is concerned about the outbreak of bluetongue. The Royal Welsh Show has already had to say no to entrants from England. Will she meet me and the livestock markets affected in my constituency to help find a solution for them?
Obviously, the Royal Welsh Show is a landmark event in the calendar in Wales every year. I would be happy to offer the hon. Member a meeting with the Minister responsible for farming at the Wales Office.
The UK Labour Government are putting Wales at the forefront of their mission to make the UK a clean energy superpower, creating jobs, lowering energy bills and raising living standards for families across Wales. Only last month, my right hon. Friend the Secretary of State announced £12.5 million of funding to support green advanced manufacturing and the National Net Zero Centre of Excellence for Skills in Port Talbot.
I call the Chair of the Select Committee.
Wales has a phenomenal tidal range, which promises green growth and industrial employment to Wales and beyond. The Severn estuary commission has completed its recommendations, and tidal lagoons are ready to go. What steps is the Secretary of State taking with other Cabinet colleagues to ensure that tidal plays a prominent role in the transition to clean energy?
The Government remain open to well developed proposals for harnessing tidal range energy. The National Energy System Operator has launched a research innovation project to model the impacts and value of tidal range. I am pleased to tell my hon. Friend that we expect the report from that work tomorrow, and will consider its findings. More broadly, Wales has huge potential for green jobs. In April, the Prime Minister announced a £300 million boost for Great British Energy to invest in offshore wind supply, and Wales is well placed to benefit from that.
Wales has an enormous role to play in the roll out of green and clean energy, which will benefit all the residents of Wales and the UK. What steps is the Minister taking to roll out this important work in Wales?
Wales has a huge role to play in our clean energy mission and has excellent resources and a skilled workforce. We are supporting innovative renewable technologies, such as the tidal stream on Anglesey and floating offshore wind in the Celtic sea, which has the potential to deliver up to 5,000 new jobs.
Diolch yn fawr, Mr Llefarydd. Green energy deserves green transmission, so will the Minister commit to undergrounding any new electric transmission in Wales?
I commend the hon. Member for her campaigning on this issue, but as I am sure she understands, the cost of undergrounding is significant. We have said clearly that our position is that overhead lines should generally be the starting presumption, except for in nationally designated landscapes.
People of all ages welcome Wales’s role in making this country a clean energy superpower, but pensioners in particular had to go through last winter freezing cold, and tens of thousands went to A&E. Will the Minister, who we all know is a decent Labour Front Bencher, do what the Chancellor refused to do, and apologise to those pensioners who lost the winter fuel allowance when they needed it most?
I should just remind the House that we did maintain the triple lock, which gave pensioners a boost of over £400 this spring. As the right hon. Gentleman well knows, pensioners will again benefit from the winter fuel allowance.
Since July, we have driven over £1.5 billion of private investment into Wales, delivering hundreds of jobs. Last month, I was delighted to welcome Knauf Insulation’s new £170 million investment in Shotton. Our Welsh freeports and investment zones will unlock further private investment and deliver tens of thousands of jobs across all four corners of Wales. Last month, Lloyds Bank reported a significant increase in Welsh business confidence, and our industrial strategy will provide further confidence to invest in Wales.
This Labour Government are creating good, well paid jobs across the whole of the UK, including in my Paisley and Renfrewshire South constituency. Will the Secretary of State explain what she is doing, in collaboration with Cabinet colleagues, to ensure that those new jobs are well paid and have good terms and conditions?
My hon. Friend is right to highlight the Labour Government’s record of creating hundreds of thousands of new jobs across the UK. In Wales, we have two Labour Governments working together to create new jobs in our green industries, advanced manufacturing and more. I hope that Scotland also gets to experience the benefit of two Labour Governments working in partnership when the Scottish National party is resigned to the wilderness at next year’s election.
The multibillion pound deal to secure a new Universal theme park in Bedfordshire is a major example of the Government backing our crucial culture sector, creating new jobs and boosting living standards for my constituents and the wider region. What are the UK and Welsh Labour Governments doing to support the culture sector and create new jobs in Wales?
I absolutely agree with my hon. Friend. Many people in Wales will be looking forward to visiting the new Universal Studios theme park in her constituency. In Wales, we are supporting a thriving creative industries sector, which our industrial strategy has rightly identified as providing more potential for huge economic growth in the years ahead. We have confirmed £10 million to upgrade Venue Cymru in Conwy—the largest arts centre in Wales outside Cardiff—and £5 million to fund repair works to the Newport transporter bridge, both of which play a crucial role in the tourism economy. The Welsh Government are also investing £12 million in the Elan valley lakes Project through the mid Wales growth deal.
Job creation in Wales is vital, so what representations has the Secretary of State made on behalf of businesses in Wales and the rest of Great Britain, which are being forced not to supply businesses in Northern Ireland any more because of the outrageous and unnecessary parcel border in the Irish sea? What is she doing to right the wrongs of the ongoing damage of the protocol and the Windsor framework to our Union and our economy?
The hon. Lady will know that the Government’s No. 1 mission is economic growth. We are creating jobs all across the country, we are building the economy and we have fixed the foundations. We will hear more from the Chancellor this afternoon on what will happen in the years ahead.
I call the shadow Secretary of State.
Turbocharging the Welsh economy—and the economy at large, frankly—is vital for social mobility and prosperity. We Conservatives delivered two Welsh investment zones, two freeports, more than £1 billion in extra funding, and we helped more than 2 million women into the jobs market across the UK. Yet the UK and Welsh Labour Governments are undoing that work. Their jobs tax, their tourism tax and the 20 mph default speed limit are a hammer blow to business confidence, particularly in the hospitality sector. Disgracefully, the unemployment rate for young women in Wales is up by 4.6%. Will the Secretary of State join me in calling for those damaging policies to be dropped so that our young women can get into the workforce and progress?
I say again that the positive impact of the UK and Welsh Labour Governments is clear in how the Welsh economy is changing. Employment has increased significantly in Wales, unemployment and economic activity have fallen, and real total wages have increased across the UK.
Yesterday we announced the biggest nuclear building programme in a generation. We are investing £14.2 billion to build Sizewell C, and we confirmed Rolls Royce SMR as the preferred bidder to build the country’s small modular reactors. I met the chair of Great British Energy Nuclear last week to discuss how to maximise the opportunities for Wales of new nuclear projects, and I will continue to work with the Energy Secretary and the Welsh Government to ensure that Wales’s supply chain and workforce benefit from that investment.
Wales has incredible potential for the next generation of nuclear, but Labour’s announcement yesterday is a fraction of what is needed. Green baseload power that stabilises our grid enhances power generation, as it has done before in Anglesey. Will the Minister give a clearer answer today to confirm that Wales will be a key part of new nuclear, building on Conservative work supporting Welsh nuclear, or will this be another failure to deliver for these communities under Labour?
Almost all the UK’s nuclear power stations are currently due to come offline in the 2030s. It is this Government who are changing that, setting out our plan to end the years of Tory failure to invest or deliver on nuclear. We will deliver the biggest nuclear building programme in a generation.
In 14 years, the Conservatives delivered no new nuclear anywhere in the country, including in Wales. Does the Secretary of State agree that this Labour Government are committed to delivering energy security, good jobs and lower bills for families across Wales?
My hon. Friend will know that the Sizewell C consortium, for example—a group of more than 200 nuclear supply chain companies—has a memorandum of understanding with the Welsh Government that will result in an investment of up to £900 million in the Welsh nuclear supply chain. Great British Energy Nuclear acquired the Wylfa site last year, which previously hosted a nuclear power plant and is the best potential site in the UK for new nuclear deployment.
Before we come to Prime Minister’s questions, I welcome in the Gallery the President and the delegation of the French National Assembly. I also welcome the knighthood given to Sir Billy Boston.