9. What assessment has the Minister made of the implications for the economy in the south Wales valleys of the UK Chancellor's summer economic update? OQ55458

Whilst the Chancellor's statement included some welcome announcements, it simply does not go far enough to measure up to the scale of the challenges we face. More extensive and far-reaching action is needed to tackle this crisis head on and to build back better.

Thank you for that answer, Minister. I think, sadly, history will not look favourably upon the UK Chancellor's recent announcement. I think what our young people were looking for was much-needed investment in their future, and what they ended up with was a half-price pizza. So, would you therefore agree that in places like Merthyr Tydfil and Rhymney, it's our Welsh Government plans for investment in key infrastructure, like the Heads of the Valleys road and the metro, as well as investing in the skills of our young people and regenerating homes, businesses and town centres, that are the key levers in restoring hope and opportunities to our Valleys communities?

Can I thank Dawn Bowden for her supplementary question, and say that, first and foremost, regarding some of the statements, the consequentials that the Welsh Government will receive do not amount to £500 million, as announced by the Chancellor, but instead to £12.5 million in consequentials? Now, I do welcome the UK Government's decision to reduce value added tax on the hospitality sector. However, the UK Government still needs to put in place sectoral employment protection schemes for important sectors that will have to remain either closed for a longer period of time or that will suffer a significant loss of revenue because of social distancing. Hospitality and tourism clearly is one of those vital sectors that require support, and I'd have to say, in agreement with the Member, that the 'eat out to help out' scheme certainly falls short of the ambitious response that is needed for this particular sector.

In terms of help for young people and other vulnerable groups, we're developing a comprehensive package of support that will allow people to upskill and to find new employment. We're all ready to throw £40 million at that particular programme. And as the Member has highlighted, the Heads of the Valleys scheme is absolutely vital to the long-term prosperity of the region, and I'm pleased to say that I've recently announced a preferred bidder for section 5 and section 6 of the A465, and I expect the project to deliver around £400 million of direct spend in Wales, so a gross value added boost of around £675 million, and I expect to see £170 million of spending with the local supply chain.

In terms of the touted new deal for Britain, I'm afraid that it represents just 0.25 per cent of GDP. The real deal new deal amounted to 5 per cent of GDP—25 times greater. And whilst the new deal led to the creation of national parks, huge housing programmes, railroads, I'm afraid the new deal announced by the Prime Minister will only see a bridge improved in Sandwell. 

I thank the Minister.