13. Short Debate: Fate of the coalfields: the impact of devolution on coalfield communities; the current challenges they face and some questions regarding their future prosperity

Part of the debate – in the Senedd at 6:20 pm on 11 March 2020.

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Photo of Vikki Howells Vikki Howells Labour 6:20, 11 March 2020

A further interesting angle is the nature of employment. Former coalfield areas have higher percentages of their workforce engaged in manufacturing. The figures are 13 per cent as opposed to a British average of 8 per cent, or 5 per cent for a city like Cardiff. The importance of the foundational economy to coalfield communities is clear. In other coalfield communities, warehousing and call centres are employers that have seen major growth, but that's not the case for south Wales, where such ventures are often the jobs to which coalfield residents commute elsewhere. So, jobs growth is a challenge in the coalfield areas, manufacturing plays a more important role, people are less likely to be self-employed, and residents are more likely to commute for work.

Fourthly, unemployment rates in coalfield areas compare well with averages. Indeed, unemployment has fallen faster in these communities than overall. However, this is masked by the increase in people receiving incapacity benefit. Beatty et al note that this is a common trend in older industrial areas, but coalfield communities are prime examples. The British average in November 2018 was 5.7 per cent, 2 per cent less than the figures for coalfields. Whereas the north Wales coalfield is in line with other coalfield areas, in south Wales, the figure is a shocking 10.4 per cent. More families are also in receipt of in-work benefits as average earnings are lower.

This is rendered all the more important when we factor in the impact of welfare reform. Coalfield areas are expected to lose out with an estimated loss in the south Wales coalfield of £770 per working age adult per year. It's a loss, moreover, that falls disproportionately on the poorest households, and renders a lie of 'all being in it together'. This has terrible consequences for family budgets. It also signifies an extraction of resources that would otherwise be spent within the local economy.

Perhaps the net impact of all this taken together is that 42 per cent of all coalfield neighbourhoods are within the 30 per cent most deprived in Britain. In reality, this figure is lower than that for main regional centres, excluding London. This suggests coalfield areas aren't actually doing that badly. This is an important point as it emphasises that the fate of the coalfields isn't necessarily so bleak. Whereas 52 per cent—greater than one in two—of south Wales coalfield's lower super-output areas are among the 30 per cent most deprived, some of the coalfields are doing quite well. Why is that the case?

Well, Professor Fothergill has posed one interesting explanation in his presentation. Some coalfields like south Staffordshire, Kent or Lothian have done well, but they are much smaller than the coalfield in south Wales. An interesting comparison is provided by the only coalfield that's larger, which is Yorkshire. Many similarities exist between the two, but Professor Fothergill noted one important difference: this is that the south Wales coalfield is in many ways peripheral to Britain with less developed transport infrastructure. The coalfield is split into narrow valleys rather than being a single labour market. Cities like Leeds and Sheffield are integrated into Yorkshire, but Cardiff, from the Valleys, can seem a long way off. Perhaps the city region will have a critical role to play here.

Professor Fothergill also explored a clear set of objectives that could be used to tackle the challenges facing the south Wales coalfield. These included: a replacement for the EU funding that communities in south Wales receives; better support for industry; better quality jobs; investment in education, skills and health; growth rooted in coalfield areas; investment in local connectivity; better support for local authorities; support for community infrastructure; more spending in coalfield communities on arts and sports so that funding inequalities are rebalanced; and a better deal on miners' pension surpluses. I know many of these are already key goals for the Welsh Government and that policies have been developed and put in place to ensure their delivery. Indeed, many of these interventions have been reinforced through this Assembly term and through last week's budget here.

We rightly have a Cabinet Minister specifically holding a portfolio for north Wales. This is to ensure the needs of that region are at the top of the Welsh Government's agenda. I sincerely believe we also now need a Cabinet-level Minister for the Valleys. Their purpose would be to lead on fulfilling these objectives and ensuring a bright future for these areas and their communities, placing coalfield communities at the heart of our policy making and at the heart of our country's future prosperity.