Wales

The Secretary of State was asked—

1. What recent discussions she has had with Cabinet colleagues on increasing economic growth in Wales.

2. What recent discussions she has had with Cabinet colleagues on increasing economic growth in Wales.

8. What recent discussions she has had with Cabinet colleagues on increasing economic growth in Wales.

11. What recent discussions she has had with Cabinet colleagues on increasing economic growth in Wales.

12. What recent discussions she has had with Cabinet colleagues on increasing economic growth in Wales.

I have regular discussions with Cabinet colleagues on a wide range of issues, including economic growth and increasing economic growth in Wales. We are creating thousands of jobs across Wales, supported by our investment in nuclear power in Wylfa, two artificial intelligence growth zones, two freeports, two investment zones, rail enhancements across the country and a defence growth deal, to name a few.

At the announcement of the £50 million Wales defence growth deal that the Secretary of State and the Defence Secretary made a few weeks ago, they visited Space Forge, which, at the request of my air cadets from 12F Walthamstow and Leighton Squadron, I am meeting at the Space Expo in east London tomorrow. Space Force is one of the small and medium sized enterprises at the forefront of semiconductor and spacecraft technology development in a sector that is supporting economic growth and creating high quality jobs here in the UK and in Wales. What steps are the Government taking to support space SMEs in accessing finance, and in continuing to grow here, where they can create jobs for my air cadets, rather than relocating to the United States, where space regulations can be more flexible?

Our £50 million defence growth deal will harness Wales’s unique strengths in autonomy. It is focused on supporting the growth of dual use industry right across Wales, so that the benefits will be felt beyond the defence sector. This deal is another example of the choice facing Wales at the Senedd election in May. We have Plaid Cymru, who would rather reject defence investment and pull us out of NATO at this critical moment of global instability, and we have Reform, whose foreign policy will probably be determined by its friend, President Putin. Only Labour can be trusted to invest in our national security and our economy.

One challenge faced by young people from Bracknell to Bangor is a lack of affordable housing, and not building enough homes affects our economy, too. I was pleased that the Secretary of State recently announced that our UK Government would be devolving powers to create a vacant land tax to the Welsh Government. Does she agree that this move will prevent land banking, and will lead to more houses being built in Wales, which would be good for the economy and good for our young people?

I was pleased to announce last month that this Government plan to devolve powers to the Welsh Government to introduce a vacant land tax, subject to consultation. This will help the Welsh Government to encourage even more house building, fuelling construction jobs and economic growth, and it is a perfect example of how this Labour Government approach enhancing devolution. We will never miss an opportunity to enhance devolution in ways that make a practical and positive difference to the people and economy of Wales.

It is welcome that the Secretary of State opened the London stock exchange this morning, just after St David’s day and at the opening of Wales Week. Is this not a vindication of the two Labour Governments in Wales and Westminster working in partnership? In my constituency of Chatham and Aylesford, and across the country, economic growth is absolutely critical. What steps is the Secretary of State taking to ensure that economic growth is spread across the country, for my constituents and for Wales?

I did indeed have the privilege of opening the London stock exchange this morning to mark St David’s day and Wales Week. It gave me the opportunity to recognise Wales’s thriving financial services and fintech sectors, which are benefiting from this Government’s modern industrial strategy. We are also building small modular reactors in Wylfa, wind farms in the Celtic sea, new train stations in north and south Wales, and a stronger Welsh economy through our AI growth zones, investment zones and freeports—but most of all, we are building Wales’s future by investing in our economy, creating jobs and tackling the cost of living.

This Government’s decision to invest over £2 billion in creating Britain’s first fleet of small modular reactors in Anglesey will create thousands of jobs, and bring significant economic benefits to the whole region. Does the Secretary of State agree that the Scottish Government should join the Welsh Government in welcoming the thousands of jobs and significant economic growth that nuclear developments can bring?

My hon. Friend makes an important point. When we made the £2.5 billion nuclear investment announcement at Coleg Menai, I saw the difference it will make to people in the area. I met students who will be able to learn and earn, and will not have to leave their family and community to get on in life, because, with one of the biggest public investments in Welsh history, we are creating 3,000 good, direct jobs, and many thousands more in the supply chain. It is for SNP Members to explain to their constituents exactly why the SNP stands in the way of game changing investments like that for Scotland.

The best place in our kingdom, Newcastle under Lyme, is 30 miles or so from the Welsh border, so the recent rail announcement from this Labour Government will benefit my people, too, as the upgrade to the Marches line will deliver quicker services to south Wales. Can the Secretary of State reassure me that this investment will deliver real economic benefits for Staffordshire, England and Wales?

I thank my hon. Friend for recognising the scale of our Welsh rail announcement, and its benefits for cross border travel. Our two Labour Governments have agreed a long term plan for Welsh rail that we are committed to delivering as quickly as possible. It will unlock 12,000 jobs and connect people to the tens of thousands of jobs that we are creating across Wales. The pipeline of 43 projects, worth up to £14 billion, in north, south, mid and west Wales will deliver the rail network that Wales deserves, and right years of underfunding at the hands of the Conservatives. That shows the impact of two Labour Governments working together, and our sheer determination to deliver for the people of Wales.

Drinks producers warn that, because of the UK Government’s decision to allow Wales to include glass in a deposit return scheme, there is the threat of up to 90% of products being removed from shelves. Why have the Government taken the decision to allow a United Kingdom Internal Market Act 2020 exclusion that threatens jobs and consumer choice, and that will require unique Welsh labelling—all at a time when Wales already recycles 92% of glass at the kerbside?

We have worked closely with the devolved Governments on a UK wide DRS, and now have alignment across the UK on including polyethylene terephthalate plastics and metals in a DRS with the launch date of October 2027, which is good news for business. We considered the Welsh Government’s exclusion proposal, in line with our commitments under the 2025 review of the UK Internal Market Act, and in doing so engaged with businesses and environmental stakeholders across the UK. We believe that the Act exclusion that we have agreed, in response to the Welsh Government, is the most pragmatic way that we can protect trade and support growth in the UK.

I thank the Minister for her answer. She and I know that when it comes to economic growth in Wales, or indeed in Northern Ireland, Scotland or England, we are better together. We are also better together historically and culturally. My Gaelic cousins on the Benches in front of me are my friends—I want them to stay in the United Kingdom. What can the Minister do to persuade people who are as yet undecided about what to do that it is better to be within the United Kingdom of Great Britain and Northern Ireland? We are always better together. [Hon. Members: “More!”]

The hon. Member has united a lot of us across the House. His Plaid friends sitting in front of him want separatism. They want to inflict an independence that will cost every single person in Wales—adults and children—£7,000 every single year. They want to build walls between us at a time when we should be standing together.

I call the shadow Secretary of State.

Let us try this again: one of the UK’s greatest strengths is the ability of all four nations to trade freely in a strong internal market. This Labour Government’s choice to permit their colleagues in Cardiff Bay to include glass in their deposit return scheme risks sectors, livelihoods and market withdrawal. The UK Spirits Alliance and the wider food and drink sector warn that this will disrupt supply chains, deter future investment and hamper growth. Will the Secretary of State accept that the scheme is unworkable and unenforceable, and will she act to protect the United Kingdom from this separatism?

I do not recognise what the hon. Lady sets out, and refer her to my previous answer. We believe that the UKIM Act exclusion, which we have agreed in response to the Welsh Government, is the most pragmatic way for us to protect trade and support growth in the UK.

Or the Government could just not do it, as we Conservatives say. Wales has the highest unemployment and economic inactivity rates in the UK. Following the spring forecast, the Office for Budget Responsibility confirmed that the Chancellor’s welfare spending will increase by a staggering £18 billion to £333 billion this year alone, up 5.8%. In the light of those figures, what measure is the Secretary of State taking to jump start confidence and boost economic growth in Wales, so that work pays, and people see that the Government are not just about welfare dependence and bankrupting the country?

The Conservatives strangled the Welsh economy with over a decade of austerity and neglect. Labour’s economic plan is working: wages are rising, inflation is falling and the economy is growing. The Conservatives presided over stagnant wages, insecure employment and a broken welfare system. We are investing in our infrastructure, creating jobs, growing wages and building an economy that works for the people of Wales.

I call the Liberal Democrat spokesperson.

Tourism is one of our key economic sectors in mid Wales. Last year, I visited Fforest Fields in Radnorshire, a beautiful campsite and family business that has been built up over generations. However, Bute Energy plans on building a wind farm on the other side of the hill from the site, with turbines that will be nearly as big as the Shard. Have the Government, or their colleagues in Cardiff, conducted any economic impact assessment on the damage that that will do to the economy in Powys?

I think we have this discussion at every single Wales oral questions. We need to bring energy bills down, and we do that by investing in renewable infrastructure. In the process, we create jobs and secure Wales and the UK’s energy independence. Bearing in mind the situation across the world at the moment, that is absolutely the right plan.

The spring forecast, which revised economic growth downwards, was produced before the outbreak of war in Iran. Now, the price of energy has spiked, with gas up almost 100%. If the war continues for even a few weeks, those costs will directly hit the pockets of people and businesses in Wales. Is the Secretary of State not astounded that Reform Members are cheerleaders for prolonging Trump’s aggression in the Gulf, and does she agree that Wales cannot afford the cost of Reform?

Wales certainly cannot afford the cost of Reform; nor can it afford the cost of Plaid Cymru.

I expected something a little more thoughtful from the Secretary of State, especially when we consider the Welsh economy. The Industrial Communities Alliance warns that the Government’s 70:30 capital to revenue split for the local growth fund will have dire consequences. It will pull the rug out from under business support, training and employability services, and it will cost hundreds, if not thousands, of jobs across Wales, including at the fantastic Porthi Dre in Caernarfon, which tackles hunger, food waste and loneliness, but faces the loss of key staff members because of the Labour Government. Will the Secretary of State therefore commit to allowing greater spending flexibility, to safeguard the very jobs that we need to boost employment?

The UK Government are investing more than half a billion pounds in Wales, through the new local growth fund, to help create jobs, growth and opportunity in communities right across Wales. That targeted long term investment will drive economic growth, create jobs and put more money in people’s pockets. I am proud that we have delivered our manifesto commitment to restore the Welsh Government’s decision making role over those funds.

4. What discussions she has had with Cabinet colleagues on supporting family farms in Wales.

Family farms play a crucial role in our economy, our landscape, and our language of Wales, and I have regular discussions with Ministers in Westminster and in the Welsh Government about how we can ensure ongoing support. I also regularly speak to farmers and farming unions, continuing to build a true partnership, and listen and respond to their needs.

International conflict and instability risk putting up food and fuel prices, and threaten our domestic food resilience. Instead of reviews and platitudes, we need action to protect our farmers and our UK food resilience. Will the Minister take action and scrap the damaging family farm tax?

This Labour Government are committed to supporting farms right across the country. I was with the new president of NFU Cymru, Abi Reader, just a few weeks ago in Wenvoe, hearing how family farms, including hers, will be protected. We will not apologise for being a listening Government, or for striking a fair balance between supporting farms and businesses, and fixing the public finances, which the Conservative party wrecked when it was in government.

I call the Chair of the Welsh Affairs Committee.

As you will be aware, Mr Speaker, the Welsh Affairs Committee recently published its report on farming in Wales. We welcome the Government’s reforms to inheritance tax, but call for further work on the impacts of the change on Welsh family farms to protect our culture, language and amazing farm produce. Does the Minister agree that the Chancellor’s changes to the threshold for agricultural property relief and business property relief show that this Labour Government are listening to Welsh farmers and our rural communities?

My hon. Friend is absolutely right: we are a listening Government, and we have listened to farmers right across the country and made the necessary changes to protect them and fix our public finances, which were completely damaged and wrecked by the Conservative party. I commend her for her dedication and commitment to Wales as Chair of the Welsh Affairs Committee, and I look forward to continuing our work together.

Will the Minister, in listening mode, listen to Welsh sheep farmers who are desperately concerned about being able to access Australian and New Zealand sheep shearers this year, as this is now an animal welfare issue? What conversations has she had with her right hon. Friend the Home Secretary to ensure that those Commonwealth citizens can come in—they never overstay, and are here only for the shearing season—and ensure that sheep farming in Wales, and across the United Kingdom, can be supported and continue to flourish?

The hon. Gentleman is making an important point. I am regularly out listening to farmers and speaking to farming unions, and I am proud that this Government are making the important trade deals that will make a big difference to farmers and businesses across our rural communities. That is possible only because this Labour Government have achieved economic stability, and have repaired our reputation on the world stage after, I am afraid, the Conservative party made a mess of it. I will continue to take his points back to colleagues across Government, and to have those negotiations and discussions with them.

How is the Minister working with the Welsh Labour Government in Cardiff on the upcoming sanitary and phytosanitary negotiations, to ensure that Pembrokeshire farmers in my constituency gain maximum benefit from our realignment with the European Union?

My hon. Friend is a great advocate for farms in his constituency, and growing up in Pembrokeshire, I know that family farms are the backbone of our local community, as they are across Wales. That is why we are negotiating an agreement with the EU, our closest partner and biggest market. Working with the Welsh Government, we are ensuring that we are slashing red tape and cutting costs for businesses, and that remains a priority and central to this agreement.

I call the shadow Minister.

More than 38,000 people are employed on Welsh farms, the food and farming sector is worth £9 billion to the Welsh economy, and 90% of land is given over to farming, yet in 2025 alone, more than 400 farming businesses closed in Wales. Given the importance of farming to Wales, when did the Wales Office last make representations to the Cabinet about Welsh farmers, and what actions, not meetings, has the Minister personally taken to support farming in Wales?

This Labour Government have presided over the largest devolution settlement since records began—a settlement that has been used to provide £337 million of support to farmers right across Wales. I wonder whether the hon. Lady remembers that not only did the Welsh Conservatives votes against that support, but they introduced a motion to scrap the Welsh Government’s sustainable farming scheme. I thought that the Welsh Conservative slogan was “farming needs a friend”, but that does not sound very friendly to me.

5. What steps she is taking with Cabinet colleagues to help tackle child poverty in Wales.

Too many children are held back by the scourge of poverty, wilfully created by the Conservative party. Our new child poverty strategy will lift more than half a million children out of poverty by 2030 across the UK, delivering the largest expected reduction since records began. Removing the two child limit will benefit thousands of children in Wales.

Our UK Labour Government’s decision to scrap the wicked Conservative two child cap will benefit 1,700 children in my constituency, and 69,000 children in Wales. Does the Secretary of State agree with me that the Conservative and Reform desire to reintroduce the cap is unjustifiably cruel and will drag children back into poverty?

I completely agree with my hon. Friend. It has and always will be children who pay the price for cruel policies, like those introduced under the Tories. I am proud that, as a Labour Government rooted in the values of fairness, we have scrapped the two child limit, benefiting 69,000 children in Wales, and giving children their future back and hope for a better life. It is a surprise to no one that the Conservatives and Reform would reintroduce the cap and yet again plunge more children into poverty at a single stroke. Remember, their decision was never about work or saving money—

Order. I call Alex Easton.

Does the Minister accept that if the Government were serious about reducing child poverty in Wales, and across the United Kingdom, including Northern Ireland, they would prioritise public spending on measures that directly reduce child poverty, in particular investment in social housing and childcare?

This Government are completely serious about reducing child poverty. I am proud that we are a Government who are putting children first. Remember, the decision the Tories took was not about the policy; it was simply about politics. We are putting children first.

6. What steps she is taking with Cabinet colleagues to help reduce the cost of living in Wales.

We know that the cost of living is the No. 1 issue for people across the country and that is why we remain wholly committed to tackling it. As a result of our actions, interest rates have already been cut six times since the election, energy bills will be cheaper this spring and families getting a new mortgage are almost £1,400 a year better off than they were under the Tories.

Wages and inward investment are up, economic inactivity is down and interest rates have been cut six times. Labour’s plan to lower the cost of living is clearly working, but we know that more must be done to put more money in people’s pockets. Will the Secretary of State outline what steps she is taking to lower the cost of living?

My hon. Friend is absolutely right. One of the most important things to this Labour Government is putting more money in the pockets of people across Wales and England. So far, we have increased the national minimum and living wages, giving a pay rise to 160,000 Welsh workers; we have announced the first ever permanent real terms increase to universal credit, benefiting 320 households in Wales; and we have increased the state pension. A lot has been done and there is still a lot more to do—that is Labour delivering in government.

Families and businesses are feeling hard pressed more than ever, and events around the world are making food security more important than ever. Does the Minister recognise the seriousness of the Government’s anti farming agenda, particularly the family farm tax?

I listened to what the hon. Member said, but I do not recognise what she says. This Government are listening to farmers and acting to ensure that they feel better off, which includes streamlining and reducing the burden on businesses and cutting costs.

7. What discussions she has had with Cabinet colleagues on the potential impact of a UK EU Sanitary and Phytosanitary agreement on Welsh farmers.

The Secretary of State and I are working closely with Cabinet Office colleagues to ensure that Welsh farmers benefit from reduced costs and bureaucracy when exporting their produce to the EU.

Dr Amanda Gibson and her team of scientists at Aberystwyth University are leading research into how the BCG vaccine might be used to help control tuberculosis in cattle. I know the Minister will agree that this is essential work, but can she help ensure that their research is also considered as part of the UK’s negotiations with the EU, so that we do not have to make a choice between animal health and exports?

I was at Aberystwyth University just a few weeks ago. Scientists there are doing some excellent work, and it is fantastic that they are leading the way on a vaccine for TB in cattle. I know how devastating the impact of TB can be on farms and cattle. We have begun negotiations with the EU on an SPS agreement. The hon. Gentleman would not expect me to comment on those negotiations, but I will raise his question and these issues with the relevant colleagues.

Our recent trade deals with the EU, UK, India and South Korea will reduce bureaucracy while giving significant benefits to our constituents in accessing these markets. Can the Minister outline what other agreements we will benefit from in the near future?

Our trade strategy is prioritising deals that deliver real impact for businesses right across Wales and the rest of the country. That is possible only because this Labour Government have achieved economic stability and repaired our reputation on the world stage after the Tories made a complete mockery of it.

Order. Before I come to Prime Minister’s questions, and in the light of recent exchanges in the Chamber, I remind Members of the need for good temper and moderation in the language they use. As the Speaker, I am not responsible for the specific questions asked by individual Members or the answers given by Ministers. I encourage all Members to engage in respectful debate, as our constituents would expect.