Part of the debate – in the Senedd at 4:05 pm on 28 September 2021.
Diolch, Dirprwy Lywydd. As Plaid Cymru made clear in the debate on this topic before recess, Westminster’s levelling-up agenda has so far meant more powers for Westminster, more money for Tory seats, and less democracy, funding and representation for Wales. We deserve better than this, and our amendments, of course, reflected that. During that debate we sought to make explicit points regarding the process behind the selection criteria for these funds, and called for detailed assessments as to the impact these funds will have on Wales. We were, of course, glad that the Government supported those amendments at the time.
If these funds are not replaced in full and implemented by devolved decision makers, then Wales will be left short changed and worse off. Far from proving the strength of the union, the UK’s pandemic response was in fact one huge subsidy to the south of England. The Centre for Progressive Policy has calculated that the UK Government spent £1,000 more per London resident than in Wales, and £6.9 billion more on London than if each nation and region had been allocated emergency spending equally. The Welsh Government can’t let the same thing happen with these funds. Wales must get its fair share from Westminster.
Turning to your statement, Minister, FSB Cymru have noted that there remains uncertainty around what budgets will look like in 2022-23, meaning that the ability to plan for the long term is hindered. Does the Minister agree that, as a matter of urgency, the UK Government should set out its detailed plan for funding and the design of these funds so that there is clarity and certainly for all stakeholders to plan for the years ahead?
In terms of a timetable for the publication of an impact assessment, in response to a written question submitted over the summer asking when will the Government lay before the Senedd an impact assessment showing the effect of these funding arrangements on the distribution of funding across Wales, you answered saying that
'given the ongoing delays and uncertainties regarding this funding, it is currently not feasible to set a firm timetable on when an effective assessment of the impact of these funding arrangements can be carried out.'
Of course, this position has been reiterated in the statement today. But does the Minister agree that further delays on the Westminster side of things represents yet another affront to our Welsh Parliament’s ability to implement policy and funding solutions that work for Wales?
My colleague Rhys ab Owen also raised with the Minister for the constitution last week the new levelling-up department in Whitehall. As he noted, the UK Government has previously said that when they consider it appropriate, they will seek advice from the Welsh Government on projects in Wales. Has the Minister had any early talks with the Secretary of State for levelling up regarding how both their departments will be working together? How confident is the Minister that this new Whitehall department will genuinely engage with Welsh Ministers?
And finally, over the recess, Cardiff University raised concerns that broken promises from the UK Government on future funding could heavily impact Wales’s research and innovation base. Wales’s research base was critical in supporting the nation’s initial response to COVID-19 and would be vital in preparations for future pandemics, a point recognised, of course, by Wales’s chief medical officer. Whilst Westminster has a clear role to play, it is also imperative that Wales makes better use of its research base to tackle the damage brought by COVID-19, with help from the Welsh Government, to make best use of our expertise and infrastructure. Welsh universities, of course, are vital to the economy, generating over £5 billion and almost 50,000 jobs. The economic effects of the COVID-19 pandemic and post-EU agenda mean that we now need to move on the recommendations in both the Diamond and Reid reviews, sooner rather than later, in particular: to maintain quality-related research funding; to preserve academic autonomy; to increase the Higher Education Funding Council for Wales’s innovation and engagement to £25 million—as it currently stands, it’s at £15 million; to create a £30 million future of Wales fund, rewarding institutions that attract investment into Wales; and to establish a £35 million St David’s investment fund, including innovation, competitions and hubs.
The last Senedd’s Economy, Infrastructure and Skills Committee supported the implementation of these recommendations as a matter of urgency in its legacy report. Does the Minister accept that the Welsh Government have outstanding commitments in this matter that they can resolve without the need for support from Westminster, and what actions are the Welsh Government taking to ensure that the already accepted recommendations are implemented as soon as possible?