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Tag: Speeches

  • Graham Stuart – 2023 Statement on Electric Vehicle Battery Production

    Graham Stuart – 2023 Statement on Electric Vehicle Battery Production

    The statement made by Graham Stuart, the Minister for Energy and Climate, in the House of Commons on 18 January 2023.

    Britishvolt entering into administration is a regrettable situation, and our thoughts are with the company’s employees and their families at this time. The Government are entirely committed to the future of the automotive industry and promoting EV capability. As part of our efforts to see British companies succeed in the industry, we offered significant support to Britishvolt through the automotive transformation fund on the condition that key milestones, including private sector investment commitments, were met. Unfortunately, the company was unable to meet these conditions and as a result no ATF funds were paid out. Throughout the process, we have always remained hopeful that Britishvolt would find a suitable investor and we are disappointed that this has not been possible. We want to ensure the best outcome for the site, and we will work closely with the local authority and potential investors to achieve this.

    The automotive industry is a vital part of the UK economy, and it is integral to delivering on levelling up, net zero and advancing global Britain. We will continue to take steps to champion the UK as the best location in the world for automotive manufacturing as we transition to electric and zero-emission vehicles.

    Despite what the party opposite may claim, we are not giving up on the automotive industry: on the contrary, our ambition to scale up the electric vehicle industry on our shores is greater than ever. We are leveraging investment from industry by providing Government support for new plants and upgrades to ensure that the UK automotive industry thrives into the future. Companies continue to show confidence in the UK, announcing major investments across the country including: £1 billion from Nissan and Envision to create an EV manufacturing hub in Sunderland; £100 million from Stellantis for its site in Ellesmere Port; and £380 million from Ford to make Halewood its first EV components site in Europe. And we will continue to work through our automotive transformation fund to build a globally competitive electric vehicle supply chain in the UK, boosting home-grown EV battery production, levelling up and advancing towards a greener future.

  • Keir Starmer – 2023 Parliamentary Question on Ambulance Waiting Times

    Keir Starmer – 2023 Parliamentary Question on Ambulance Waiting Times

    The parliamentary question asked by Sir Keir Starmer, the Leader of the Opposition, in the House of Commons on 18 January 2023.

    Keir Starmer (Holborn and St Pancras) (Lab)

    I join the Prime Minister in his comments about the dreadful case of David Carrick.

    It is three minutes past 12. If somebody phones 999 now because they have chest pains and fear it might be a heart attack, when would the Prime Minister expect an ambulance to arrive?

    The Prime Minister

    It is absolutely right that people can rely on the emergency services when they need them, and that is why we are rapidly implementing measures to improve the delivery of ambulance times and, indeed, urgent and emergency care. If the right hon. and learned Gentleman cares about ensuring patients get access to life-saving emergency care when they need it, why will he not support our minimum safety legislation?

    Keir Starmer

    The Prime Minister can deflect all he likes but, for a person suffering chest pains, the clock starts ticking straightaway—every minute counts. That is why the Government say an ambulance should be there in 18 minutes. In this case, that would be about 20 minutes past 12. I know he does not want to answer the question I asked him, so I will ask him again. When will that ambulance arrive?

    The Prime Minister

    Because of the extra funding we are putting in to relieve pressure in urgent and emergency care departments, and the investment we are putting into ambulance call handling, we will improve ambulance times as we are recovering from the pandemic and indeed the pressures of this winter. But I say this to the right hon. and learned Gentleman again, because he makes my case for me: he describes the life-saving care that people desperately need, so why, when they have this in other countries—France, Spain, Italy and others—is he depriving people here of that care?

    Keir Starmer

    The Prime Minister obviously does not know or does not care. I will tell him: if our heart attack victim had called for an ambulance in Peterborough at 12.03 pm, it would not arrive until 2.10 pm. These are our constituents waiting for ambulances I am talking about. If this had happened in Northampton, the ambulance would not arrive until—[Interruption.]

    Mr Speaker

    Order. Mr Bristow, I hope you want to see the rest of the questions out. I want you to be here, but you are going to have to behave better.

    Keir Starmer

    I am talking about our constituents. If they were in Northampton, the ambulance would not arrive until 2.20 pm. If they were in Plymouth, it would not arrive until 2.40 pm. That is why someone who fears a heart attack is waiting more than two and half hours for an ambulance. That is not the worst-case scenario; it is just the average wait. So for one week, will the Prime Minister stop blaming others, take some responsibility and just admit that under his watch the NHS is in crisis, isn’t it?

    The Prime Minister

    I notice that the one place the right hon. and learned Gentleman did not mention was Wales, where we know that ambulance times are even worse than they are in England. Let me set out the reason that is the case, because this is not about politics; this is about the fact that the NHS in Scotland, in Wales, in England is dealing with unprecedented challenges, recovering from covid and dealing with a very virulent and early flu season, and everyone is doing their best to bring those wait times down. But again, I ask him: if he believes so much in improving ambulance wait times, why will he not support our minimum safety legislation?

    Keir Starmer

    The Prime Minister will not answer any questions and he will not take any responsibility. By 1 pm, our heart attack victim is in a bad way, sweaty, dizzy and with their chest tightening. [Interruption.] I am talking about a heart attack and Conservative Members are shouting—this is your constituent. By that time, they should be getting treatment. But an hour after they have called 999 they are still lying there, waiting, listening to the clock tick. How does he think they feel, knowing that an ambulance could be still hours away?

    The Prime Minister

    The specific and practical things we are doing to improve ambulance times are clear: we are investing more in urgent and emergency care to create more bed capacity; we are ensuring that the flow of patients through emergency care is faster than it ever has been; we are discharging people at a record rate out of hospitals, to ease the constraints that they are facing; and we are reducing the call-out rates by moving people out of ambulance stacks, with them being dealt with in the community. Those are all very practical steps that will make a difference in the short term. But I ask the right hon. and learned Gentleman this again and again, although we know why; the reason he is not putting patients first when it comes to ambulance waiting times is because he is simply in the pockets of his union paymasters.

    Keir Starmer

    This is not hypothetical; this is real life. Stephanie from Plymouth was battling cancer when she collapsed at home. Her mum rang 999, desperate for help. Stephanie only lived a couple of miles from the hospital, but they could not prioritise her. She was 26 when she died, waiting for that ambulance—a young woman whose life was ended far too soon. As a dad, I cannot even fathom that pain. So on behalf of Stephanie and her family, will the Prime Minister stop the excuses, stop shifting the blame, stop the political games and simply tell us: when will he sort out these delays and get back to the 18-minute wait?

    The Prime Minister

    Of course Stephanie’s case is a tragedy. Of course, people are working as hard as they can to ensure that people get the care that they need. The right hon. and learned Gentleman talks about political games. He is a living example of someone playing political games when it comes to people’s healthcare. I have already mentioned what has been going on in Wales. Is he confident that, in the Labour-run Welsh NHS, nobody is suffering right now? Of course they are, because the NHS everywhere is under pressure. What we should be doing is supporting those doctors and nurses to make the changes that we are doing to bring care to those people. I will ask him this: if he is so concerned about making sure that the Stephanies of the future get the care that they need, why is he denying those families the guarantee of emergency life-saving care?

    Keir Starmer

    So, that is the Prime Minister’s answer to Stephanie’s family—deflect, blame others, never take responsibility. Just like last week, he will not say when he will deliver the basic minimum service levels that people need.

    Over the 40 minutes or so that these sessions tend to last, 700 people will call an ambulance; two will be reporting a heart attack, four a stroke. Instead of the rapid help they need, many will wait and wait and wait. If the Prime Minister will not answer any questions, will he at least apologise for the lethal chaos under his watch?

    The Prime Minister

    The right hon. and learned Gentleman asks about the minimum safety levels. We will deliver them as soon as we can pass them. Why will he not vote for them? We are delivering on the people’s priorities. As we have seen this week, the right hon. and learned Gentleman will just say anything if the politics suits him; it is as simple as that. He will break promises left, right and centre. He promised to nationalise public services. He promised to have a second referendum. He promised to defend the mass migration of the EU, and now we are apparently led to believe—[Interruption.]

    Mr Speaker

    Order. I expect those on the Front Bench to keep a little quiet. If they do not, there is somewhere else where they can shout and make their noise.

    The Prime Minister

    If we are to deliver for the British people, people need to have strong convictions. When it comes to the right hon. and learned Gentleman, he is not just for the free movement of people; he also has the free movement of principles.

  • Michael Fabricant – 2023 Parliamentary Question on Investment from England Into Wales

    Michael Fabricant – 2023 Parliamentary Question on Investment from England Into Wales

    The parliamentary question asked by Michael Fabricant, the Conservative MP for Lichfield, in the House of Commons on 18 January 2023.

    Michael Fabricant (Lichfield) (Con)

    What discussions he has had with the Welsh Government on investment from England into Wales; and if he will make a statement.

    The Secretary of State for Wales (David T. C. Davies)

    I have regular discussions with the Welsh Government on increasing investment in Wales and supporting the Welsh economy. Our plans for at least one Welsh freeport alongside our investment in infrastructure will act as a catalyst for further investment from the UK and beyond.

    Michael Fabricant

    A number of Welsh nationalists—not all but some—used the opportunity of covid and the closure of the Welsh border to incite anti-English feeling. Now we hear that Plaid Cymru, working with Labour, will introduce a hotel tax and other taxes. What does my right hon. Friend think that will do for English investment in Wales?

    David T. C. Davies

    I want to see people from England, and from all over the world, visiting Wales, and I am sure that all who do will appreciate the natural beauty and all that Wales has to offer to the tourism industry. I was disappointed that some people appeared to be indulging in anti-English rhetoric during the covid crisis. I hope all Members of this House would condemn such behaviour. I want to do more to encourage tourism, which is why I regret the fact that the Welsh Labour Government are bringing in a tourism tax. A tax on tourism is an attack on the tourist industry.

    Alison McGovern (Wirral South) (Lab)

    On the subject of investment between England and Wales, progress on speeding up the Wrexham to Bidston line is about as slow as the trains on the Wrexham to Bidston line. What has the Secretary of State personally done to improve rail connections between north Wales and Liverpool?

    David T. C. Davies

    I am sure I speak for the whole Government in saying that we are completely committed to better rail connections across the United Kingdom. I am well aware of the line between Wrexham and Bidston. I am also aware that it went through a business case procedure that was not completely positive. I can assure the hon. Lady that a number of projects in the rail network enhancements pipeline will be discussed shortly by the Department for Transport.

  • Jerome Mayhew – 2023 Parliamentary Question on the Menai Bridge Closure

    Jerome Mayhew – 2023 Parliamentary Question on the Menai Bridge Closure

    The parliamentary question asked by Jerome Mayhew, the Conservative MP for Broadland, in the House of Commons on 18 January 2023.

    Jerome Mayhew (Broadland) (Con)

    Whether he has had recent discussions with the Welsh Government on the closure of the Menai bridge.

    The Parliamentary Under-Secretary of State for Wales (Dr James Davies)

    Roads are a devolved matter and the decision to close the Menai suspension bridge was therefore made by the Welsh Government. Work has commenced on the emergency replacement of brittle hangers dating back to 1938, and this will be followed by additional maintenance works. Welsh Government Ministers assure me that, subject to safety assessments, the bridge is due to reopen at the end of this month.

    Jerome Mayhew

    The Menai bridge supplies the lifeline of tourism to Anglesey and the wider region. Given Welsh Labour’s negligent handling of the maintenance of the bridge, and now its closure for months, how does my hon. Friend think Welsh Labour is doing on its manifesto commitment to rebuild tourism in Wales?

    Dr Davies

    Quality road infrastructure is vital to unlocking the potential of the north Wales visitor economy. I believe that there are questions to be answered about the specification of the contracted private finance initiative maintenance schedule for the bridge, which was awarded by the last Labour UK Government in 1998, and about the stalled consideration of a third crossing on the Menai strait. I urge the Welsh Government to publish the findings of the roads review and resume the improvement of the north Wales road network.

  • Wendy Chamberlain – 2023 Parliamentary Question on Rail Infrastructure in Wales

    Wendy Chamberlain – 2023 Parliamentary Question on Rail Infrastructure in Wales

    The parliamentary question asked by Wendy Chamberlain, the Liberal Democrat MP for North East Fife, in the House of Commons on 18 January 2023.

    Wendy Chamberlain (North East Fife) (LD)

    What recent discussions he has had with Cabinet colleagues on support for rail infrastructure in Wales.

    The Secretary of State for Wales (David T. C. Davies)

    I have regular discussions with Cabinet members on a range of transport measures. More than £340 million has been provided for rail enhancements in Wales, including at Cardiff Central station and for the electrification of the Severn tunnel.

    Wendy Chamberlain

    The Government’s failure to end rail strikes impacts all of us across the UK. Like in Scotland, transport is devolved in Wales, but we need people coming from England into our countries to get much-needed revenue for tourism and hospitality. In Wales, a pay agreement has been reached but its own railways cannot function on strike days because of UK- managed maintenance responsibilities. Can the Secretary of State outline what he is doing to resolve these damaging strikes and get railways up and running again?

    David T. C. Davies

    I must confess that I failed to hear much of that question, and I apologise for that. I heard the hon. Lady ask what I was going to do to get railways up and running again, but I am not certain which ones she was referring to. This puts me in a slightly difficult position as far as answering is concerned, but I can honestly say to her that we have spent £340 million on railways over this control the period, including £125 million on the core valley lines, £4.7 million on St Clears station, £4 million on the Bow Street station and £2.7 million on the Cambrian line. In addition to that, we have spent money on projects such as the electrification of the south Wales line. The Cardiff capital region South Wales Metro is funded partly by the UK Government through a growth deal, and our commitment to the railways is—

    Mr Speaker

    Order. I call Kevin Foster.

    Kevin Foster (Torbay) (Con)

    Direct train services between south Wales and Devon are a key part of our rail infrastructure, yet most are operated using older, less reliable rolling stock. What prospect does the Secretary of State see for getting new, more modern trains operating on these routes?

    David T. C. Davies

    I am pleased to be able to tell my hon. Friend that more modern stock is being rolled out on those particular routes, so he will be able to benefit from more comfortable carriages that will also emit less carbon and be better for the environment.

  • Nia Griffith – 2023 Parliamentary Question on UK Government Funding for Wales

    Nia Griffith – 2023 Parliamentary Question on UK Government Funding for Wales

    The parliamentary question asked by Dame Nia Griffith, the Labour MP for Llanelli, in the House of Commons on 18 January 2023.

    Dame Nia Griffith (Llanelli) (Lab)

    What assessment he has made of the adequacy of UK Government funding for Wales.

    The Parliamentary Under-Secretary of State for Wales (Dr James Davies)

    Over the spending review period the UK Government are providing the Welsh Government with 20% more funding per person than equivalent UK Government spending in other parts of the UK. As a result of the autumn statement, Welsh Government funding is increasing by around £1.2 billion over the next two years, on top of the additional £2.5 billion-a-year average over the three-year spending review.

    Dame Nia Griffith

    The UK Government shared prosperity fund short-changes Wales by £1 billion over three years, even though the Secretary of State and his predecessors repeatedly promised that Wales would receive not a penny less when replacing EU funds. Those funds were used by the Welsh Government to deliver 5,000 apprenticeship year. Why is the Minister letting down young people in Wales in this way?

    Dr Davies

    The hon. Lady will know that the shared prosperity fund is extremely generous to Wales and replaces all the money that came from the European Union. There have been fantastic announcements in recent weeks about how the fund will progress. She will also know about an array of other funding schemes through UK Government, including the growth deal. I hope to be in her constituency in early February for the groundbreaking, milestone event for Pentre Awel, I hope she will join me at that.

    Sarah Atherton (Wrexham) (Con)

    Despite the Welsh Government receiving the largest devolution funding settlement, it has the worst performing Labour-run NHS. Instead of spending on what matters, they plan to spend £32 million on a 20 mile-an-hour blanket speed policy. Such a policy will cost the economy £4.5 billion. Does my hon. Friend agree with me and 94% of my surveyed constituents that that is another example of a Labour waste of money?

    Dr Davies

    My hon. Friend is quite right that the policy is not a good way to spend money, and is not deliverable either. As an NHS GP working in north-east Wales, I can tell her that the delivery of NHS services is shocking in many senses. We need the Welsh Government to improve their performance.

    Mr Speaker

    I call the shadow Minister.

    Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)

    As my hon. Friend the Member for Llanelli (Dame Nia Griffith) has just reminded the House, the Secretary of State, the Minister and their predecessors repeatedly promised that Wales would receive “not a penny less” to replace EU structural funds to Wales. Not only have they failed to deliver on that promise, but the record inflation that their Government have presided over has resulted in a double whammy to the Welsh Government’s budget. Is the Minister aware that higher education has been shut out of his Government’s flagship levelling-up process and that hundreds of jobs are now at risk, possibly as many as 600? Why are his Government continually letting down people, including young people, across Wales?

    Dr Davies

    I joined the Secretary of State on a visit to Bangor University last week and it is important that we ensure there are funding mechanisms for higher education. There is an array of schemes through the Department for Business, Energy and Industrial Strategy, and it is important that the hon. Gentleman and the Government work on ensuring that the university sector is supported in Wales.

  • Chris Bryant – 2023 Parliamentary Question on Investment Zones in Wales

    Chris Bryant – 2023 Parliamentary Question on Investment Zones in Wales

    The parliamentary question asked by Sir Chris Bryant, the Labour MP for Rhondda, in the House of Commons on 18 January 2023.

    Sir Chris Bryant (Rhondda) (Lab)

    What recent discussions he has had with the Welsh Government on the proposed refocusing of investment zone policy.

    The Parliamentary Under-Secretary of State for Wales (Dr James Davies)

    Let me first congratulate the hon. Gentleman on his knighthood in the new year’s honours list.

    We remain committed to working with the Welsh Government on the delivery of investment zones for Wales. That is alongside the freeports programme, which will facilitate growth and innovation through benefits such as tax relief for businesses.

    Sir Chris Bryant

    That is all very well, but the Government have basically completely binned their investment zone policy. I have had a letter from a Government Minister saying that it is all being refocused and is not about housing and planning any more but about productivity, improving growth and job creation. But no details are available, and all the bids have been binned. Is that not further evidence that we do not have a Government in this country anymore, just a bunch of rapscallions squatting in ministerial offices?

    Dr Davies

    I cannot agree with the hon. Gentleman. As he will know, many elements of the policy are devolved in Wales. Therefore, discussions continue with the Welsh Government on those aspects. I would highlight that there are 5,400 similar zones in other parts of the world. We must deliver growth for Britain in a similar fashion.

    Mr Speaker

    I call the Chair of the Welsh Affairs Committee.

    Stephen Crabb (Preseli Pembrokeshire) (Con)

    I echo the congratulations to the hon. Member for Rhondda (Sir Chris Bryant) on his knighthood. One of the lessons of industrial policy over the last 30 years in Wales, certainly given the number of failed food parks, science parks and technology parks, is that taxpayers’ money alone does not create economic activity out of thin air. Does the Minister agree that whatever interventions we or the Welsh Government make must work with the grain of the private sector? To that end, does he recognise that the overriding strength of the Celtic freeport bid is that it works with real projects and real industry to deliver floating offshore wind in the Celtic sea?

    Dr Davies

    My right hon. Friend is a strong campaigner for the offshore wind possibilities in south-west Wales. He will know that decisions on awarding freeports are ongoing, with at least one due in Wales and an announcement to be made shortly.

  • Hywel Williams – 2023 Parliamentary Question on Research Funding for Welsh Universities

    Hywel Williams – 2023 Parliamentary Question on Research Funding for Welsh Universities

    The parliamentary question asked by Hywel Williams, the Plaid Cymru MP for Arfon, in the House of Commons on 18 January 2023.

    Hywel Williams (Arfon) (PC)

    What discussions he has had with Cabinet colleagues on research funding for Welsh universities.

    The Secretary of State for Wales (David T. C. Davies)

    I have regular discussions with Cabinet colleagues on research funding for universities in Wales. We are committed to making the UK a science superpower, backed by nearly £39.8 billion, the largest ever research and development budget. Last week I was pleased to visit Bangor University—at the suggestion of the hon. Member—and to observe the cutting-edge research being done there. I remain committed to Welsh universities capitalising on the funding opportunities that are available.

    Hywel Williams

    The Secretary of State has seen for himself that Welsh universities can and do deliver world-class research, but I think he will accept that their research funding is perhaps less than would be expected. I accept that this is not a simple matter—it is not a matter of counting heads—but what practical help can the Secretary of State give to increase research support in Wales, particularly for new and innovative projects such as those he saw in Bangor?

    David T. C. Davies

    In terms of practical support, I want to visit every single university in Wales over the next few months. I have already met representatives of UK Research and Innovation to make clear my concern about the relatively low percentage of grant funding that is going to Welsh universities for research projects. I want to bring UKRI and those Welsh universities together at an event at Tŷ Gwydr later in the year, and given the hon. Gentleman’s own commitment to this particular issue, I will try to ensure that he is invited and is able to attend.

    Sir Oliver Heald (North East Hertfordshire) (Con)

    Does my right hon. Friend agree that Britain, including Wales, has a proud history of international collaboration? Will he continue to keep up the pressure on the European Commission to allow us to associate ourselves with the Horizon programme, which would make such a difference to the future of British science?

    David T. C. Davies

    I absolutely agree with my right hon. and learned Friend. I would support the Horizon programme, but if that is not possible for any reason, such as intransigence in the European Union, I will be making the case to UKRI that Welsh universities can produce some of the best research in this country and should be receiving a higher percentage of the money that is currently available.

  • Chris Stephens – 2023 Parliamentary Question About the Cost of Living in Wales

    Chris Stephens – 2023 Parliamentary Question About the Cost of Living in Wales

    The parliamentary question asked by Chris Stephens, the SNP MP for Glasgow South West, in the House of Commons on 18 January 2023.

    Chris Stephens (Glasgow South West) (SNP)

    What recent assessment he has made of the potential impact of the cost of living crisis on (a) households and (b) businesses in Wales.

    Anna McMorrin (Cardiff North) (Lab)

    What recent discussions he has had with Cabinet colleagues on the impact of the cost of living crisis on households in Wales.

    Ben Lake (Ceredigion) (PC)

    What discussions he has had with Cabinet colleagues on the impact of rising costs on (a) businesses and (b) households in Wales.

    The Secretary of State for Wales (David T. C. Davies)

    I understand that people across the UK are worried about the cost of living, which is why we have taken decisive action to support households and businesses across the UK, while remaining fiscally responsible. That support includes a £26 billion package for the next financial year, which will be targeted at protecting the most vulnerable.

    Chris Stephens

    Almost half of adults UK-wide say the cost of living crisis is harming their mental health, and that rises to 61% of Welsh adults. Devolved initiatives such as the fuel support scheme in Wales help, but inflation and UK Government cuts put such schemes in jeopardy. How does the Secretary of State justify his Government’s repeated refusal to support devolved Governments in tackling the crisis his party has created?

    David T. C. Davies

    First, I fully acknowledge that there is a cost of living crisis at the moment. It has come about because the UK Government rightly had to spend hundreds of millions of pounds dealing with the covid pandemic. We then saw inflation increase through the roof as a result of a land war in Ukraine. I recognise that there is a cost of living crisis being faced by countries across the whole of the western world at the moment. The UK Government have certainly not cut funding. We have increased funding for the devolved Administrations. We have increased money for the national health service. It is a shame that in Wales that funding is not being fully passed on to the national health service. Frankly, on the NHS, the Welsh Labour Government are getting more money and delivering a lower service.

    Anna McMorrin

    My constituent Sarah and her children could not celebrate Christmas this year: they were crippled by the fear of bailiffs and of being made homeless in the minus 2° weather. The toll this has taken on her mental health is unimaginable. She said to me, “My children and I will just break.”

    A YouGov poll, out this week, shows that this Tory-made cost of living crisis has had a huge impact on people’s mental health in Wales—significantly more than elsewhere. Thirteen years of Tory Government have crippled this country. Cardiff Council is already £23 million worse off. Is the Welsh Secretary going to push my constituents to breaking point?

    David T. C. Davies

    There is a cost of living crisis going on all over the world at the moment. This Government have acknowledged that and faced up to it. That is why we have prioritised help for the least well-off. That is why this Government have made sure that the minimum wage has risen in line with inflation, that pensions have risen in line with inflation and that benefits have risen in line with inflation. People on benefits will receive a £900 payment, pensioners are getting a £300 payment and households with a disability are getting a £150 payment. At all times through these crises, which have not been caused by this UK Government, we have targeted our help at the most vulnerable in society.

    Ben Lake

    The Government have announced that support for homes and businesses connected to the mains gas grid will be extended for another year, but it seems that the single round of alternative funding announced for off-grid homes will be expected to last for the full 18 months. Notwithstanding the fact that the first payment to off-grid homes is still to be made, will the Secretary of State push colleagues in the Department for Business, Energy and Industrial Strategy and the Treasury for a second round of alternative funding to provide support for off-grid premises ahead of next winter?

    David T. C. Davies

    The hon. Gentleman is correct to say that the UK Government have recognised that those who are off grid are facing an increase in costs. It has not been as sharp as the increase for those who are on grid, and I think that the figures reflect that, but I note the hon. Gentleman’s comments about the fact that full details of the payment have not yet been made fully clear. I am sure that my colleagues in BEIS will have noted his question and will be coming forward shortly with more information about the payment.

    Mr Speaker

    I call the shadow Secretary of State.

    Jo Stevens (Cardiff Central) (Lab)

    This month has seen dreadful news for steel businesses and steelworkers in Wales. Steel is an energy-intensive industry, and its operating costs during the cost of living crisis have rocketed. Thirteen years of Conservative Governments have seen decline, offshored jobs and damaged communities.

    Steel is integral to a modern economy. Labour will put Welsh and UK steel at the heart of our wider industrial policy, building wind turbines, railways and investing in carbon capture and storage and in hydrogen infrastructure. Other than creating a cost of living crisis, what is the Government’s plan for our steel industry and for steelworkers’ jobs?

    David T. C. Davies

    First of all, the news from Liberty in Newport was very disappointing and is very concerning for many people. That has not come about as a result of actions by the UK Government, as I think the hon. Lady will recognise; there are other issues pertaining there.

    The UK Government are completely committed to the steel industry. We demonstrated that with a £30 million loan to Celsa during the covid crisis, and we have demonstrated it with the various schemes that have been brought forward to support industries with high energy use. We are developing a scheme that will enable those in the industry, such as Tata, to decarbonise. We are also in discussions with Tata about how we can support it further over the coming years.

    Jo Stevens

    Steelworkers need a Government on their side. The industry needs a partner that can provide stability, not sticking plasters. Floating offshore wind in the Celtic sea is a real opportunity for our steel industry and the wider supply chain in Wales. It would also help to mitigate the impact of the cost of living crisis for many Welsh businesses in the supply chain. If the Government do not provide the necessary stability, we will see platforms being built in France and Spain and floated over to the Welsh coast, which would be absolutely unconscionable. What is the Secretary of State doing to ensure that the Crown Estate leases will use local supply chains in Wales?

    David T. C. Davies

    I have met the Crown Estate on a number of occasions to discuss the next bidding round for the sites out in the Celtic sea. Obviously we hope to develop the industry. I agree with the brunt of the hon. Lady’s question, which is about the importance of developing a floating offshore wind industry off the coast of Wales. I have been trying to ensure that the supply chain is as local as possible. That is why we have supported the conversations between developers and the Crown Estate; it is also why I have personally visited Pembrokeshire to ensure that the growth deal there supports the new infrastructure at the dock that can allow those projects to be floated out to sea. We are actually doing a great deal to support the floating offshore wind industry in Wales.

    Liz Saville Roberts (Dwyfor Meirionnydd) (PC)

    For Harlech Foodservice, a key business in my constituency, last week’s news that the UK Government were slashing their energy support for businesses was devastating. The company is already struggling under soaring energy bills and interest rate hikes in coronavirus business interruption loan scheme repayments. Can the Secretary of State clarify the position? Will any support be forthcoming on CBILS repayments, and will any savings made by the Treasury as a result of falling wholesale gas prices be ringfenced for targeted support for small and medium-sized enterprises and vulnerable households?

    David T. C. Davies

    I hope the right hon. Lady will recognise that over the last year the Government have done an enormous amount to support businesses through the energy price guarantee. They have made it clear that that support package cannot continue at the current level after April, when the next financial year begins, but they have said that they will also make clear, fairly shortly, what the new package will look like. Unfortunately, no Government anywhere in the western world will be in a position to completely underwrite and subsidise energy costs for all businesses for an indefinite period, so we have to confront some realities, but I hope the right hon. Lady will be supportive of the efforts that the Government have made to do more to develop energy security in the United Kingdom. Perhaps she should talk to some of her colleagues in the Scottish National party about their opposition to opening up further oil and gas projects in the North sea.

    Liz Saville Roberts

    I would have appreciated an answer about the coronavirus business interruption loan scheme as well.

    We all know that extortionate energy costs are part of this Tory winter of discontent, which bookends 13 years of deliberate austerity. Key workers are striking and real incomes are in freefall. Following the last Budget, funding for Welsh public services will be worth £3 billion less over the next three years. Enough is enough, and cutting key workers’ salaries is not the right answer. Will the Secretary of State urge the Treasury to reverse this decline by establishing a truly fair funding system for Wales that recognises our nation’s needs, taking into account age, disability, and poverty levels?

    David T. C. Davies

    The right hon. Lady will surely be aware that the Welsh Government are receiving £1.20 per head for public services for every pound that is spent in England. That is why it is so difficult to understand why not only are the waiting lists longer in Wales but educational outcomes are lower, after more than 20 years of a Labour Government. Perhaps it is time that Plaid Cymru started to stand up for the people of Wales and hold the Welsh Labour Government to account, rather than propping them up in the Senedd.

  • Richard Thomson – 2023 Parliamentary Question on Inflation and the Devolved Welsh Budget

    Richard Thomson – 2023 Parliamentary Question on Inflation and the Devolved Welsh Budget

    The parliamentary question asked by Richard Thomson, the SNP MP for Gordon, in the House of Commons on 18 January 2023.

    Richard Thomson (Gordon) (SNP)

    What assessment he has made of the potential impact of inflation on the devolved budget for Wales.

    Owen Thompson (Midlothian) (SNP)

    What assessment he has made of the potential impact of inflation on the devolved budget for Wales.

    The Secretary of State for Wales (David T. C. Davies)

    The Welsh Government are well-funded to deliver public services in Wales. As a result of the autumn statement, Welsh Government funding is increasing by around £1.2 billion over the next two years. That is on top of the additional £2.5 billion a year on average announced at spending review. The Prime Minister has also been clear that we will halve inflation to ease the cost of living.

    Richard Thomson

    The Secretary of State says that the budget is increasing by £1.2 billion over the next two years, but inflation has already eroded the purchasing power of the Welsh Government in the current year by £1 billion. Since the UK Government are responsible for approximately 80% of the resource base of the Welsh Government, what further representations does he plan to make to the Chancellor of the Exchequer to ensure that that purchasing power for essential public services in Wales is made good?

    David T. C. Davies

    The overall funding amounts for the devolved Administrations, including the Welsh Government, have still increased in real terms over the period despite the impact of inflation. If the hon. Gentleman is serious about dealing with inflation, I hope he will support this Government as they propose to halve inflation over the coming year. In doing so, we will need to carefully control public spending in areas such as pay.

    Owen Thompson

    The Institute of Welsh Affairs says that budgetary pressures highlight the impotence of Welsh devolution and that tax scheme changes by the Scottish Government are a model that would help Wales’s financial situation. If the UK Government will not provide vital increases to devolved budgets, will the Secretary of State explore devolving similar tax-bearing powers to Wales, as in Scotland, to help the Welsh Government mitigate the Tory mismanagement from this place?

    David T. C. Davies

    I am not quite sure I follow what the hon. Gentleman is saying, because of course the Welsh Government do actually have tax-bearing powers. They have chosen not to use them, because the Welsh Government recognise that taxes have already increased as far as is sensible, and that means that all of us have to deal with the constraints that have come about as a result of the very difficult economic situation we face due to covid and the impact of a land war in Ukraine.

    Jonathan Gullis (Stoke-on-Trent North) (Con)

    Inflation, of course, causes pressure, but it is also true that Wales gets £1.20 per head for public services for every £1 in England. Yet the Welsh Labour-run Government spend less than that on their public services. Does my right hon. Friend agree with me that ruinous Welsh Labour Governments should stop wasting money on things like the Senedd expansion and instead spend money where it is needed: tackling backlogs in hospitals and stopping the decline of education in Wales?

    David T. C. Davies

    I agree absolutely with my hon. Friend; he is absolutely right. Money is being wasted in the Senedd, for example on spending up to £100 million on increasing the number of Senedd Members at a time of economic difficulty. [Interruption.] I hope Opposition Members who are chuntering are listening carefully to what my hon. Friend has to say.