The UK Chancellor's Summer Economic Update

Part of 3. Questions to the Minister for Economy, Transport and North Wales – in the Senedd at 12:13 pm on 15 July 2020.

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Photo of Ken Skates Ken Skates Labour 12:13, 15 July 2020

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.