Tag: David Jones

Below is the text of the speech made by David Jones, the Secretary of State for Wales, in Cardiff on 30th June 2014.

It is generally recognised that there nothing more important for our nation’s long-term economic prosperity than investment in infrastructure.

It is what gets people to work, facilitates communication and helps British businesses to compete in what is an increasingly globalised economy.

I am pleased, therefore, to be here today to speak to you about what we in government are doing to ensure that Britain gets the infrastructure it needs to compete effectively in the global race.

Our inheritance

It is now just over 4 years since the coalition government came to power.

Our inheritance here in Wales was an infrastructure that had been severely neglected, was in dire need of upgrade, and was inadequate to cope with modern demands.

There was little plan for investment, not even on the main road route into South Wales – the M4 – despite general recognition that its improvement was desperately needed.

Energy infrastructure was coming to the end of its operating life without any commitment on the investment required to replace it.

Indeed, it is fair to say that for almost a decade under the last administration, Britain was without any coherent energy policy.

Wales’s railway infrastructure was neglected, too.

At the end of 13 years of the last government, Wales remained the only part of Europe, other than Albania, without a single centimetre of electrified railway track.

And Wales also lagged well behind the rest of the UK in broadband provision. It was notorious for “not spots”.

Mobile telephone coverage in large parts of Wales was, frankly, appalling.

Not only did the last government fail to “fix the roof while the sun was shining”, it failed to fix the infrastructure, too.

Wales was being expected to compete in a 21st century global economy when it was struggling with an obsolete, 20th century infrastructure network – it was an impossible ask. Wales – and Welsh businesses – deserve better.

Long-term economic plan

We know that investment in infrastructure is one of the driving factors of economic growth.

And when we came to power we didn’t just inherit an infrastructure that was unfit for purpose; we inherited an economy that had suffered the worst economic downturn since the 1930s and a deficit that was the largest in peacetime history.

We had to get the deficit down and to do so required difficult, and sometimes unpopular, decisions.

But because of the difficult spending decisions we have taken, we have been able to prioritise public investment where it is needed most and to create the right conditions for private investment in infrastructure.

Ensuring the United Kingdom has first class infrastructure is a crucial part of our long-term economic plan: supporting businesses, helping them create jobs, and offering the prospect of a brighter future for the British people.

And – whisper it – our plan is working!

Britain is now the fastest growing major economy in the West. There are more people going out to work than ever before, and confidence is returning.

But, as any business man or woman here will recognise, getting banks to lend has sometimes proved problematic.

So we have also used the strength of the national balance sheet to provide £40 billion of UK Guarantees to get infrastructure projects going, which otherwise would have stalled because of financial difficulties.

So in this year alone, new projects worth an estimated £36 billion are due to start across the United Kingdom, helping creating thousands of jobs, securing future growth and delivering the world class infrastructure that the country – Wales included – deserves.

Private sector

Key to infrastructure investment is a confident private sector. And the private sector is indeed investing.

Some 200 projects across the UK are due to be completed this year – including the Gwynt y Môr offshore wind farm, which is currently the largest in construction anywhere in Europe.

But this has only been possible because we took the difficult decisions required.

We know that the old model of the public sector funding our entire infrastructure network is not sustainable, nor is it desirable.

We understand that unlocking and stimulating private sector investment is crucial.

Because it is the private sector that will provide the majority of UK infrastructure investment between now and the end of the decade.

Broadband

But the government does have a significant enabling role.

We have, for example, invested significantly in better broadband.

We know that this investment will pay dividends; it is estimated that every £1 government invests delivers benefits of around £20 to the economy.

In Wales, we have increased our support for broadband to almost £70 million to allow the Superfast Cymru programme to go even further.

This is direct United Kingdom government funding for a programme managed by the Welsh Government under the guidance of Broadband Delivery UK – an excellent example of Wales’s two governments working positively together.

But there is still more we need to do.

Even with significant investment in the pipeline, there will still be parts of Wales in 2016 that will not be benefiting from high speed broadband.

That is why earlier this year we announced that we are providing an additional £10 million for those areas which are the most “hard to reach.”

This funding will allow market testing of solutions proffered by suppliers for the areas not covered by the superfast broadband rollout.

Businesses in our super-connected cities of Cardiff and Newport can also now apply for vouchers to improve their broadband connectivity, which is vital for a modern business to compete and grow.

And it’s not just in fixed broadband connection that we have plans to improve Wales’s digital connectivity.

Our £150 million mobile infrastructure project will see masts going up across the country, significantly extending coverage across Wales.

Transport

And let us consider the issue of transport.

Just as Wales needs to be better connected through our digital infrastructure, we need a transport network fit for a modern economy to prosper.

As I mentioned earlier, the congestion along the M4 at Newport is one of the most pressing road transport issues for the whole of the UK, let alone Wales.

And in the 15 years that have passed since devolution, nothing has been done to ease that congestion.

But upgrading that important stretch of highway is crucially important.

Indeed, the director of CBI Wales said recently that if the Welsh Government does not build a Newport relief road Wales could “miss out on millions of future investments and hundreds of new jobs.”

The Prime Minister put it even more starkly: he called the M4 at Newport “a foot on the windpipe” of the South Wales economy.

So in November of last year, we gave the Welsh Government the borrowing powers it needs to raise the necessary finance for this project.

We now expect to see firm progress.

And through the Wales Bill – currently passing through Parliament – we are providing the Welsh Government with the opportunity to acquire extended borrowing powers to enable it to upgrade Wales’s road infrastructure yet further.

We want them to take those powers, and trigger the referendum need to do so as quickly as possible.

And let us consider Wales’s railways. As a government, we are serious about giving Wales a railway that is fit for the 21st century.

Our plans for rail are the most ambitious since Brunel was transforming Victorian Britain.

We are investing £9 billion over the next five years to upgrade railway networks across England and Wales.

As part of our investment, we are committed to electrifying key rail routes including the Great Western main line.

But let me say this quite clearly.

It is a matter of great concern to me that, while we remain absolutely committed to perform our part of the bargain we struck with the Welsh Government in 2012 to electrify the main line through to Swansea, the Welsh Government remain reluctant to fulfil their side of the deal, and fund the electrification of the Valley lines.

I am seriously concerned that their stance is putting this transformational project at risk.

We stand ready to discharge our part of the bargain.

We want to help them to get this scheme underway and will continue to work with them to try to make this happen.

HS2

And let us consider HS2.

As we improve our rail services within Wales, we must not close our eyes to projects across the border in England – indeed, we must seek and exploit every opportunity to connect Wales better.

The economy of Wales is inextricably linked to that of England and our transport systems need to reflect this.

Sir David Higgins highlighted in his report the need to be alert to opportunities to connect services into HS2.

With the planned HS2 hub station at Crewe only 20 miles from Wales, we must be looking at how investment in Wales can link into the new network.

The development of HS2 is a huge opportunity for Wales and I believe that we must welcome it enthusiastically.

Energy

Nowhere is the close integration of networks more evident than in the case of energy infrastructure.

Wales has always been central to the UK’s energy security, and Wales’s potential in the sector is enormous.

We have the natural resources, the skills, the expertise and the enthusiasm to generate a significant proportion of the electricity Britain needs.

The UK National Infrastructure Plan lists more than 15 Welsh energy projects already in the pipeline, from large scale offshore wind farms to micro generation; and there is the potential for more.

We need to show Wales is open to diversity and innovation when it comes to growing the energy supply. Hitachi’s decision to build a new nuclear power station at Wylfa Newydd highlights the attractiveness of Wales as a place in which to invest.

Their investment will create thousands of jobs and provide massive supply chain opportunities for British companies.

And last autumn, we announced that we are working with Hitachi to support this development with a sovereign backed guarantee through the UK Guarantees Scheme.

Holistic approach

While broadband, transport and energy are, in their own right, key areas of infrastructure, we need to be holistic in our approach to infrastructure planning.

Let me illustrate this by a real life example.

Following the announcement that Hitachi would be investing £20 billion into nuclear energy projects in the UK, I met members of their executive team on Anglesey to discuss their proposals for Wylfa.

Bear in mind that this is the largest investment in Wales for generations.

This project will rightly showcase Wales as a leading place for investment.

During the meeting one of the executives, needed to make an urgent call but was unable to do so because there wasn’t a mobile signal!

Remember that we were discussing £20 billion of investment – it was embarrassing, to put it at its mildest, that he was unable to complete such a basic function.

So the moral is that infrastructure improvements don’t happen in silos.

Providers and investors need to work closely together to deliver infrastructure collaboratively.

We cannot have one sector investing in world leading technology if the supporting infrastructure is not up to scratch.

Planning

As we call on investors to be more collaborative in providing the infrastructure Wales needs, it is also essential that they should be able to invest quickly and with confidence.

There is absolutely nothing more crucial to efficient infrastructure development – or, for that matter, to economic growth – than a benign, flexible and practically-focused planning regime.

Because developers need be assured that Wales is a welcoming place in which they can invest with confidence.

In England, planning reforms are underpinning our long-term economic plan by unblocking the system; and we are determined to do all we can to make sure that it improves continuously.

We have, for example, radically simplified planning guidance.

What used to consist of thousands of pages of often impenetrable jargon and otiose waffle has now been cut to around 50 pages of clearly written, plain English.

Guidance that, remarkably, actually guides, rather than impedes.

Our reformed system means we can deliver the infrastructure that people want and need, by working with, not against, investors.

The hard fact is that, as a consequence of Eric Pickles’s reforms, the planning system across the border in England is now substantially more streamlined and accessible than that in Wales.

That is not good for Wales, and will only work to its disadvantage.

So, I urge the Welsh Government to look at what is happening in England and take action in their forthcoming Planning Bill, to implement similar, effective reforms to the planning system to enable the infrastructure Wales needs, to get going.

Infrastructure report

A year ago at this very conference I told you about a new Infrastructure Working Group I had set up.

Its task was to identify Wales’s future infrastructure priorities and the challenges they face.

I am delighted that today we are publishing our report, which sets out the infrastructure we need for a modern economy to build a more prosperous Wales.

This report highlights the key themes I have outlined today.

We need to remove the barriers to infrastructure investment in Wales, especially around planning.

Investors need to unlock all existing sources of finance, including UK Guarantees.

Infrastructure providers need to be holistic in infrastructure.

Planning and Wales’s two governments need to work together in planning and delivering Wales’s infrastructure needs.

Concluding remarks

My message to you today is: after years of neglect and inaction by previous administrations on infrastructure – we have a plan.

Our long-term economic plan is bringing stability and competition back to our economy and ensuring a brighter future for our nation.

We are investing in infrastructure across the country, to create a more balanced, resilient economy.

If we are to be ambitious for the economy in Wales, it is essential we are bold and clear in our infrastructure plans.

I can not reiterate this strongly enough – infrastructure is an absolutely vital part of our long-term economic plan and will continue to play a central role in improving our long term economic security.

Building a more prosperous Wales, fit to compete in the global race, demands world class infrastructure.

We are determined to do all we can to deliver that for the people and businesses of Wales.

Below is the text of the speech made by David Jones, the Secretary of State for Wales, to the Welsh Local Government Association in Llandudno on 19th June 2014.

Introduction

Today, I want to talk to you about our changing local democracy.

About what I believe is the need radically to decentralise power: to move it away from Westminster and Cardiff and closer to the people and communities it serves.

And about advancing localism and embedding it in our political system.

As a government, we are strongly committed to localism, and we have achieved a great deal already.

But I have real concern that there is a growing divide between the devolutionary approach to power that we are adopting at United Kingdom level and the picture here in Wales.

I believe much more could and should be done in Wales to push power down to local authorities and local communities.

A matter, I’m sure, of particular interest to all of you here today.

We are living in an age of localism

As a government, we believe that it is right – no, essential – that those who represent local people and serve local communities should be given the right degree of power to make decisions about the issues that matter to those people and communities.

We are keen, enthusiastic proponents of devolution.

We believe in developing the devolution settlement in Wales, and that is why the Wales Bill, which is currently passing through Parliament, will give the Welsh Government and Assembly more powers to take decisions that affect the people of Wales.

But let me be clear: we don’t believe that the progress of those devolved powers should come to a stop in Cardiff Bay.

We believe in a dynamic form of devolution – with power cascading down to the right level at which it can best be exercised.

The problem is that, in Wales, this simply isn’t happening.

Power is devolved by us in Westminster to Cardiff, but, too often, that’s where it hits a barrier.

Instead of cascading down to local communities, it is restricted and confined, as if behind a dam, in Cardiff Bay.

For that reason, local councils in Wales increasingly enjoy less power than their counterparts in England.

Indeed, it is a sad paradox of devolution in Wales that the devolutionary process, far from pushing power away from the centre, has actually led to more centralisation of decision making – but in Cardiff, rather than Westminster.

And if you live in a community away from the capital, Cardiff can be as remote as London from your everyday life.

Indeed, given the train services, to us here in North Wales, Cardiff is, in journey times, actually further away!

Differences in Approach between England and Wales

We don’t think that is right.

As a government, we at Westminster are unashamed, enthusiastic localists.

And with localism you really have to mean it, want it, be committed to it…

…and deliver it.

It isn’t enough simply to pay lip service.

Williams Review

Now, I have no doubt that, as members of this Association, you are currently spending a lot of time considering the recommendations of the Williams commission.

The Welsh Government are, of course, also considering their response to those recommendations.

I believe that their response to Williams will be pivotal to the development – or lack of development – of localism in Wales.

This is an opportunity that should be seized by ministers in Cardiff Bay.

An opportunity for them enthusiastically to devolve more power to local authorities across Wales.

To show the same enthusiasm for localism that we have at Westminster.

To give you the power to make the right decisions…

…to take the right actions…

…to use your local knowledge to improve the lives of people in your parts of Wales.

Because reforming local government shouldn’t be about central government – whether in London or Cardiff – taking the opportunity to impose more micromanagement on local government.

It should be empowering local authorities, local councillors, and ultimately individuals, to develop their own responses to their own, unique challenges.

And that is what we, as a government, are doing in England.

Breaking down, for example, the barriers that have stopped councils, charities, social enterprises and voluntary groups working together, and sharing responsibilities and budgets for the benefit of those who need their help.

Because we believe that people who share communities are very probably best placed to make the right decisions for those communities.

And we want to trust and enable them to do so.

Planning and housing industry red tape

Sadly though, in Wales, decisions are increasingly being centralised by the Welsh Government; and those decisions are only serving to impede locally-driven development.

I believe that decisions about housing stock, for example, are best made at the local level, not by officials hundreds of miles away whose knowledge of local needs and priorities will inevitably be less than that of local elected representatives.

A flexible, practical planning regime is all-important.

It is key to economic growth.

And stimulating and supporting the housing and construction industries is critical to our economic recovery.

In England, our radical planning reforms are underpinning our long-term economic plan by unblocking the system.

And in this way, boosting house building and attracting new investment into the market.

And those reforms are working.

In 2013, new home registrations rose in England by 30%; the highest level since 2007.

Sadly, here in Wales, it is a different picture.

Last year, Wales was the only region in the United Kingdom that saw a fall in the number of new home registrations: a decline of 12 percent.

The latest construction figures also show that output in Wales is lagging well behind the rest of the country.

Over the last year, new house building in Wales declined by almost 7 per cent, as opposed to growth of almost 34 per cent recorded across Great Britain as a whole.

Let’s be frank.

These are shocking figures.

They indicate, as clearly as they could, that there is something seriously wrong in the planning and regulatory system in Wales.

The Welsh Government need to take urgent action to improve the planning process.

In England, we in the United Kingdom Government are determined to do all we can to make sure that it improves continuously.

We have, for example, radically simplified planning guidance.

What used to consist of thousands of pages of often impenetrable jargon and otiose waffle…

…has now been cut to around 50 pages of clearly written, plain English.

Guidance that, remarkably, actually guides, rather than impedes.

So the planning system across the border in England is now much more accessible – much more user-friendly – than here in Wales.

It will therefore come as no surprise that developers increasingly find England a more welcoming place to develop.

That should be a concern to everyone, at every level of government, in Wales.

And let’s consider the issue of regulation.

As a government, we don’t believe in regulation for the sake of it.

In fact, we believe that there should be much, much less of it; and where it is necessary, it should be sensible, better and smarter.

So we have conducted a “red tape challenge”, testing the need for thousands of regulations.

As a consequence of that exercise, almost half of the Housing and Construction regulations considered are going to be scrapped or improved.

Changes which we estimate will save businesses almost £90 million a year.

In the Queen’s Speech, we announced an Infrastructure Bill, designed to bolster investment in infrastructure and to reform planning law – creating jobs and improving economic competitiveness.

We are committed to implementing a zero carbon standard for new homes from 2016.

But we understand that it is not always feasible or cost-effective for house builders to mitigate all carbon emissions on-site.

So, rather than a rigid, top-down approach, we are introducing flexible means for house builders to meet the zero carbon standard.

‘Allowable solutions’, where minimum energy standards are set through the building regulations and the remainder of the zero carbon target is met through off-site abatement, will provide builders with just that flexibility.

That’s what we’re doing in England.

Regulating fairly, proportionately and sensibly.

However, in Wales, all too often the Welsh Government seems intent on maintaining, and even increasing, the burden of regulations on councils and businesses, rather than reducing them.

By imposing increasingly onerous building regulations in Wales, the Welsh Government is increasing the cost to house-builders of constructing the starter homes so many families desperately need.

And putting up the price of those homes, so that more people will struggle to get onto the property ladder.

There are examples of development costs increasing by 20 per cent as a result of the way BREEAM standards are imposed in Wales – seriously damaging the industry.

And the Welsh Government is pressing ahead with the so-called ‘Conservatory Tax’.

This will require Welsh homeowners to carry out extra work to the rest of their property when, for example, they add a conservatory, an extension or convert a loft into living space.

This is a measure that we considered, but rejected, in England.

Research showed it would harm the economy by discouraging nearly 40 per cent of households from undertaking home improvements in the first place.

The ‘Conservatory Tax’ is a straightforward tax on Welsh builders and homeowners.

It will deter people from improving their homes and damage the construction industry.

I urge the Welsh Government to abandon it.

Welsh builders are increasingly despairing, too, over the draconian way building regulations are imposed in Wales.

Redrow have estimated that, as a consequence of Welsh Government requirements for the sustainable building code, and for all new homes to be fitted with sprinklers, the cost of building a typical house in Wales will be £13,000 more than in England by 2016.

So it is no wonder that Persimmon have pulled out of investing in the south Wales Valleys, citing heavier regulation in Wales as a major factor in their decision.

Planning and localism

Yes, planning is key to economic growth.

Do it well and the economy is likely to prosper; do it badly and it will be damaged.

And planning decisions shape our localities and affect our communities profoundly.

It is therefore surely right that local communities should be given as much power as possible to make those decisions.

We at Westminster have reformed planning, so that it can help deliver the homes and infrastructure that people want and need; by working with, not against, local communities.

Our reforms and the locally-led planning process are delivering real results and speeding up the system.

We believe that Local Planning Authorities are best placed to make decisions that affect their areas – drawing up clear local plans that meet local development needs and reflect local people’s views.

And the National Planning Policy Framework in England is just that – a framework – within which local authorities are empowered to make the best decisions for their local needs.

We made a commitment to give people more power over development in their areas.

And the Localism Act has done just that.

It has introduced new powers for people to make neighbourhood plans; giving communities the power to set the priorities for local development and reducing interference from central government.

But the Localism Act largely doesn’t apply in Wales.

The reforms to the planning system and the building regulations that we have carried out in England haven’t been adopted in Wales.

And this has contributed to the decline in house building and the reduced availability of homes of which I have spoken.

Wales is now at a tipping point.

So the Welsh Government have to make a decision.

Do they want a Wales that is over-regulated, centrally driven, increasingly uncompetitive and economically sclerotic?

Or do they want a Wales in which lower, smarter regulation frees up businesses and communities, and creates more prosperity?

Conclusion

As a Government, we are strong supporters of devolution and the opportunities it provides to advance the cause of localism.

But devolution should not be an end in itself.

It should not be a case of accruing increasing powers to a few individuals in Cardiff Bay.

It should, rather, be a stream of power that becomes a mighty river, flowing down to every community, large and small, the length and breadth of Wales.

And ultimately, it should flow to every household, every individual in Wales, making them more in control of their own surroundings and lives.

Real devolution is about decisions being made at the right level, by people who understand local issues, for the benefit of local communities.

I, and my colleagues at Westminster, are committed to that kind of devolution.

I want to see that same commitment from the Welsh Government.

More powers being decentralised from Cardiff Bay to decision-makers in local authorities across our country.

That is what we are doing in England.

And that is what should be happening in Wales.

In short, we believe in strong, empowered, local government.

We believe in you.

Because you are the ones best placed to make decisions for your communities, your towns and villages, the people you represent.

Because you understand, better than anyone, their needs, their concerns, their priorities

You do fantastic, valuable work.

And we want to do all we can to enable and empower you to do it better.

Thank you.

Below is the text of the speech made by David Jones, the Secretary of State for Wales, at the CBI Wales event on 7th March 2014.

I am delighted to be here in north Wales.

Only last week I was hosting a delegation from the Indonesian Embassy to showcase what the region has to offer to inward investors.

One of the visits we undertook was to Airbus where the delegation was greatly impressed by their fantastic operations at Broughton.

What impresses me about Airbus is their commitment to developing their workforce – including almost 400 apprentices – which is the largest engineering apprenticeships scheme in Wales.

I encourage you all to look at their model for apprenticeships and the opportunities that you can provide to young people in Wales to create a skilled workforce for the future.

As we look to help businesses to develop apprenticeship programmes we are also investing in our infrastructure to build a stronger economy.

Last year we introduced a National Infrastructure Plan.

The National Infrastructure Plan brings together the Government’s infrastructure priorities across different sectors and identifies the top 40 projects considered crucial for economic growth.

It includes a forward-looking pipeline of investment worth over £375billion, ensuring that we are investing a greater share of our nation’s wealth in infrastructure than the whole period of the last Government.

This forward plan includes key projects in Wales.

We are investing in rolling out superfast broadband to homes and businesses across Wales.

The UK Government has announced further funds to Wales to build on this scheme, taking the total investment in Wales to £69million;

We are also investing in improving mobile broadband and telephony services across Wales.

Recognising the importance of a modern transport network, we are making the most significant investment in Wales’ rail infrastructure for decades with the electrification of the rail network in south Wales.

As the first north Wales Secretary of State for Wales for 40 years I have been clear that this is just the start of large scale rail investment in Wales.

The planned high speed network coming down the tracks to Crewe provides an exciting opportunity for the region.

I have been supporting the case for electrification of the north Wales main line, which would allow;

More efficient connections with the high speed network and shorter journey times into Wales vital for attracting inward investment; even closer integration across north Wales and into major cities in England.

We must strengthen the existing economic success of north Wales to ensure it continues to expand and attract new business ventures.

Financing key infrastructure projects is of course a prominent issue.

I am pleased to welcome Louise Minford from Infrastructure UK to talk about the UK Guarantees scheme.

This is a Government initiative aimed at boosting infrastructure investment.

You may be aware that the Government has committed to working up a guarantee for Hitachi’s investment in the Wylfa Newydd power station by the end of 2016.

I believe this investment is vital for the region and presents great opportunities for local business.

The UK Guarantees Scheme aims to kick start critical infrastructure projects that may have stalled because of adverse credit conditions.

Up to £40 billion in guarantees is available to do this.

In light of the Scheme’s extension to December 2016, Infrastructure UK is eager to encourage a wide range of projects to apply.

I hope to see the UK Guarantees Scheme utilised in many more defining projects in Wales and I encourage you all to speak to Louise about ideas that you may have.

Below is the text of the speech made by David Jones on 28th November 2013.

Introduction

Thank you for my introduction.

And my thanks also to all of you here at the Durham Union Society for inviting me to talk about Devolution in the Continuing Union.

This is my second visit to Durham University in just a few months, and it is always a huge pleasure to visit this world-renowned academic institution in one of the loveliest cities of Britain.

I am pleased, too, to learn that Wales is well represented here by the Durham Welsh Society, Cymdeithas Gymraeg Dyrym (Cym Gym Dyrym) which provides those with ties to Wales or those simply interested in Wales with opportunities to learn the language, to network or to socialise through more traditional student activities.

I want to reflect this evening on the United Kingdom and the benefits it delivers for us all; to explain why I, as a proud Welshman and equally proud Briton, believe in the Union; why I would not want to see that Union wrenched apart by Scotland’s separation; and why I believe that devolution works – and works well – for the United Kingdom and for all parts of the United Kingdom.

Why, in short, I believe we are truly Better Together.

I am happy to take questions at the end.

Future of the Union

As I speak to you this evening, 2014 is just over a month away. Constitutionally, it will be the most important year for the United Kingdom in over 300 years.

There are, I suspect, few of us who, until recently, would ever have thought that the day would arrive when we would be contemplating the end of the United Kingdom in its current form. But that is precisely what is at stake in the referendum on Scottish independence next September.

In just ten months time, the people of Scotland will be asked to make an historic choice between a continuing Union – staying part of the UK – or taking the huge gamble of walking away; a choice that would truly be a leap into the unknown.

There is a vigorous and vibrant debate going on right now north of the border – and indeed across the UK – about the best future direction for Scotland. And as decisions go, they don’t come much bigger; make no mistake, it is a decision which has important and far reaching implications for all parts of our United Kingdom and for all its citizens, not only Scots.

It is a decision on whether Scotland should end over three centuries of history, shared endeavour and success. Whether Scotland should turn its most important trading partner into a foreign country, and put up barriers against it. And whether Scotland should turn its back on the shared values and mutual dependence of the UK’s family of nations.

Benefits of Devolution within the Union

The UK Government is making a strong, positive and, I believe, convincing case to the Scottish people for Scotland to remain part of the United Kingdom. Devolution has enabled Scots to take important decisions locally in relation to schools, hospitals, transport and many other issues which affect daily life. In many respects the decisions taken north of the border have differed from those taken in relation to England, and in relation to Wales.

That is, of course, a legitimate consequence of devolution. But devolution has also enabled Scotland, like Wales, to benefit from two legislatures and two governments working in its interests. It has provided the flexibility to evolve and adapt to changing circumstances in both nations: a flexibility that Scotland would lose with independence.

The Benefits of a United Kingdom

Our Union is of course about much more than devolved decision-making. It is about the interrelations and interdependences that make us more prosperous, more secure and more innovative together, rather than apart.

Together, we enjoy the benefits of a strong economy in an increasingly competitive global marketplace.

The UK is the world’s seventh largest economy and is ranked in the top ten most competitive economies in the world. The Government is committed to an internationally competitive tax system and, when Corporation Tax falls to 20 per cent in 2015, it will be the lowest in the G20.

The UK is the number one destination in Europe for foreign direct investment. London remains the world’s leading financial centre according to the Global Financial Centres Index, but Edinburgh, too, is home to many important financial institutions.

All parts of the UK benefit from being part of an internal market of over 60 million people, rather than a market of only 5 million which a separate Scotland would provide.

Over 4.5 million British companies benefit from the trade and investment opportunities delivered through the strong UK brand.

And these companies carry out their business within the UK unimpeded by borders and customs, with a strong common currency and single financial system.

How exactly would Scottish businesses, and the Scottish jobs which depend on those businesses continuing to thrive, benefit from separation?

The UK is a key player on the international stage.

We are a permanent member of the UN Security Council, a key member of NATO and have a huge degree of influence in many other international institutions and alliances – from the EU and the G8, to the Commonwealth.

We have recently seen several examples of the UK’s important world role – from the Geneva talks earlier in this week which resulted in a deal to curb Iran’s nuclear programme, to the British people’s magnificent support for those affected by the Philippines typhoon.

This global role is not just of passing benefit to the people of Scotland. It benefits them directly, as it does people across the entire UK directly, by making our country safer and more secure. Together, the UK has a strong and influential place in the world; a position from which we are able to promote the British values of democracy and fair play.

And we, the British, are an inventive and enterprising people. We have a proud and long history of invention and innovation, from the world-wide web to the jet engine and carbon fibre.

Our universities co-operate on research in a way that is possible only as part of a common UK framework. If we are to continue to innovate to deliver the next revolutionary technologies, we need to ensure that our research institutions, like here in Durham University, can continue to use the UK-wide networks and infrastructure that have proved so successful in the past.

Continuing the Union

So I believe that the United Kingdom is a great country, with an important global role and a strong voice in the councils of the world.

But a vote for independence would place all that in jeopardy. Let us be clear: it would be a vote for the permanent separation of the nations of these islands. It would be irrevocable. There would be no going back.

So I want to see Scotland remain in the Union.

I certainly believe that we are better together as one economy with one shared currency. But it’s about more than mere economics. All the nations of the United Kingdom benefit from being part of a larger Union, with strong, shared bonds of culture, values and heritage.

There is nothing contradictory about Scots considering themselves both Scottish and British. Or, for that matter, Welsh people feeling comfortable with the notion that they are Welsh and British, too. I certainly do.

Indeed, I would hope all Britons feel – and most do – that they can unselfconsciously assert two nationalities with equal pride.

I am a proud Welshman, but I am also a Unionist, heart, mind, body and soul. I am campaigning vigorously in favour of Scotland remaining part of the Union, and I hope that as many others as possible from all parts of the UK’s political and civic life will do the same.

From Carwyn Jones, the First Minister of Wales, who made an important speech in Scotland last week in support of the Union, to all of those who are working for, or publicising, the Better Together campaign on social media – we are all committed to the same goal: a continued Union of the peoples of these islands for the good of all those who live in the United Kingdom.

A Positive Case for the Union

Just a few days ago, the Scottish Government published its White Paper on independence. Alex Salmond called it a “mission statement” for Scotland’s future. But it reads to me like a “mission impossible”, already showing signs of self-destruction.

Because the White Paper fails to give credible answers to fundamentally important questions. It is founded on a fantasy of a Scotland that could leave the United Kingdom whilst keeping all the benefits that it currently enjoys by being part of the UK. And it sets out a wish-list of promises without any credible plan for how an independent Scotland would pay for them.

Let’s start with the crucially important question of currency. Alex Salmond believes an independent Scotland could retain the pound in a currency union with the continuing UK. But could it?

If Scotland decided to leave the UK it would also be leaving the UK’s currency. The pound would of course continue to be the currency of the UK, and the laws and institutions that currently oversee our stable, resilient and successful currency – like the Bank of England – would continue in place.

But a separate Scotland would sit outside those arrangements, and would need to put in place new currency arrangements of its own.

But could there not be a currency union, which is what the Scottish nationalists seem to assert? Well, the challenges and difficulties of currency unions are many and varied. Just look at what has happened in the Eurozone in recent years. Who would want that repeated in these islands? And the currency union between the Czechs and the Slovaks following the break up of Czechoslovakia famously lasted all of 33 days!

There’s simply no guarantee that a currency union would be agreed. And even less likelihood that one would work. So I would say to the Scottish people, don’t vote for an independent Scotland on the basis that you will be able to keep the pound in your pocket. I think that is simply wishful thinking on the part of Alex Salmond.

Secondly, the White Paper makes a raft of eye-catching commitments, from pensions to tax, from childcare to the minimum wage. But how exactly would these promises be paid for?

The impartial Institute of Fiscal Studies has said that an independent Scotland would face big tax rises or big cuts in public services because of an ageing population and falling oil revenues.

Even under the most optimistic scenario, the IFS says there would need to be an 8 percentage point rise in the basic rate of income tax – meaning an average increase in the tax bill of basic rate taxpayers in Scotland of around £1,000 a year – or a 6% cut in public spending, by 2021-22, in order to balance the books and put Scotland’s long term finances on a sustainable footing.

Hiking the basic rate of income tax from 20% to 28%.

That’d be a hefty price tag for discarding the 300 year old United Kingdom, and a heavy burden for the people of Scotland to bear long into the distant future.

The simple fact is that an independent Scotland would not come cheap. It would mean either higher taxes or much poorer public services than the people of Scotland currently enjoy. Little wonder then that the Scottish Government chooses to be evasive on the true cost of independence.

But, as I’ve already said, it’s not just about economics. It’s about culture, too; about enjoying the things that make us British.

Take the BBC.

The White Paper says that in an independent Scotland, BBC Scotland would be replaced with a new Scottish Broadcasting Service, continuing a formal relationship with the rest of the BBC. The result of that, says the Scottish First Minister, is that people in Scotland would still be able to watch Strictly Come Dancing in an independent Scotland.

That continues a familiar theme of the SNP; that independence would not mean changing anything about being British that Scottish people might enjoy. That Scotland could leave the United Kingdom but still enjoy all the benefits that being part of the Union brings. And what could be more British than Bruce Forsyth?

In truth, there are many consequences of independence that would become apparent only in the event of a “yes” vote, and after negotiations had ended. Alex Salmond might claim he is presenting certainties in the White Paper. But they are only certainties as he sees them. The simple truth is that a vote for independence would truly be a leap into the unknown, as his own White Paper makes only too apparent.

Scotland is part of one of the world’s most successful unions. Scots hold great influence in government, finance and industry. The test for the White Paper is whether it really convinces people why they should give that up and leave the United Kingdom.

Independence doesn’t bring about a new union – it means Scotland leaves the United Kingdom, a fundamental and irreversible change whose implications cannot be determined in advance of a referendum. We are continuing to study the detail of the White Paper, but initial impressions are that it appears to be nothing more than a wish-list designed to hide what independence means.

This cannot be a manifesto for independence. If Scots vote to separate, then their future will need to be negotiated with dozens of countries who will be acting in the interests of their own citizens, not Scotland’s, on issues like currency, defence and borders.

It would, at the very best, be a very uncertain future.

An Evolving Union

There are those in Scotland who accuse campaigners for the preservation of the Union of negativity, of seeking to stand in the way of Scottish nationhood. I simply do not agree.

The campaign for continuation of our Union is called “Better Together” because that is its key message and that is what I, personally, strongly believe.

We are indeed better together as a strong Union that does what is right for each part of the UK and for the UK as a whole.

And sometimes the right thing to do includes further devolution.

I have on occasions been accused from certain nationalist quarters in Wales of being lukewarm about devolution – a “devo-sceptic” as it is termed in the lexicon of post-devolution political journalism.

That is an accusation I flatly reject. On the contrary, I am a strong believer in the devolution of decision-making to the most appropriate level; and I also believe in government at all levels that is accountable to the people who elect it.

Devolution is here to stay. For the people of Scotland, Wales and Northern Ireland it delivers the best of both worlds; important decisions made in Edinburgh, Cardiff and Belfast and the benefits that come with being part of a greater United Kingdom.

And devolution is not static. It must evolve as we constantly seek to do what is best for each constituent part of the UK.

In Wales, for example, it was this Government that delivered a referendum on further law-making powers for the Assembly in 2011 and it was we who set up a Commission under the chairmanship of Paul Silk (“the Silk Commission”) to look at the Assembly’s powers.

And devolution in Wales continues to evolve. Earlier this month, we announced that we will implement almost all recommendations made in the Silk Commission’s first report. We are devolving a package of tax and borrowing powers to the Assembly and the Welsh Government – powers which are already being devolved to Scotland – which will give the Welsh Government the tools to invest in Wales and make the Assembly and the Welsh Government more accountable to the people in Wales who elect them.

It is only right that our elected representatives think carefully about how they spend taxpayers’ money, and are held accountable for the money they spend.

Since devolution the Assembly and the Welsh Government have been accountable for how they spend taxpayers’ money. Now they will also be more accountable for how they spend it.

It is, after all, the easiest thing in the world to spend other people’s money; it’s an altogether different thing to explain why they should hand it over.

The Silk Commission will publish its second and final report in the spring, looking at where the Welsh devolution settlement needs to be modified to make it work better. We will of course be looking carefully at the recommendations the Commission makes, and how devolution in Wales can be made to work even better.

Localism

As a Government, we are strong believers in the importance of localism.

Devolution is part of the way we are delivering localism in Northern Ireland, Scotland and Wales.

And we are delivering localism in England, too, by empowering councils to deliver for the people they serve; and by agreeing new city deals with our urban centres, including here in the North East, so that they can focus on delivering prosperity and economic growth.

These changes are about decision making at the right level and they are happening across the UK. Councils in the North East – including here in Durham – have been working together on proposals to create a Combined Authority from April next year, to work more closely to support economic growth in areas such as skills, transport and investment.

This all demonstrates that our Union is flexible and adaptable to meet the evolving needs of different parts of the United Kingdom.

They show the benefits of the United Kingdom working together.

As we have demonstrated, by staying together we can achieve so much more.

Conclusion

In summary, our United Kingdom is a family of nations with shared values and culture and a strong sense of mutual dependence.

I believe that our current approach to devolution – evolving settlements, avoiding one size fits all – is right, and should continue. It provides flexibility, and can constantly adapt to changing circumstances. I believe that is what people in Scotland, and in Wales, really want, and what this Government has been delivering.

Our four nations have different histories, different institutions and different relationships with each other and it is right that they have different frameworks of Government which best meet their needs, whilst benefiting from being part of a strong, successful and continuing United Kingdom.

The biggest advantage by far that the four nations of our Union have on the world stage is that they are constituent parts of our shared United Kingdom.

And I believe that for each and every one of those nations – including Scotland – we are “better together”.