The UK Government's Budget

1. Questions to the Minister for Economy – in the Senedd on 3 November 2021.

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Photo of Alun Davies Alun Davies Labour

(Translated)

7. What assessment has the Welsh Government made of the impact the UK Government’s budget will have on its economic programme in Blaenau Gwent? OQ57118

Photo of Vaughan Gething Vaughan Gething Labour 2:11, 3 November 2021

Thank you for the question. We'll continue to analyse the recent announcement made and discuss what the Chancellor's pronouncements mean in more detail. However, it cannot be ignored that the budget fails to meet the enormous challenges we face as we continue our economic recovery from the pandemic.

Photo of Alun Davies Alun Davies Labour 2:12, 3 November 2021

I'm grateful to you for that, Minister. I'd be grateful if the Welsh Government could publish a quarterly analysis of UK spending in Wales on some of these matters, because it's clear to me that the greatest investment being made in this country by the United Kingdom Government is that in press releases, various forms of PR and marketing, and not in the substance of supporting people in need. What we saw last week was an exercise in the most corrupt pork-barrel politics that this country has seen in decades. What we saw was money being taken away from the poorest parts of this country and poured into Tory constituencies in order to buy votes. It is not how we have done things in this place—and you'll learn that. It's not how we've done things in this place. What we've always done is ensure that we meet need on the basis of need, and what we don't meet is greed on the basis of votes.

Photo of Vaughan Gething Vaughan Gething Labour 2:13, 3 November 2021

Well, the reason why there is so much chuntering from the Conservative seats in this place is because the Member correctly identifies the pork-barrel politics that went through announcements in the Chancellor's statement. And you only need to look at the facts. It is a fact that the £375 million Wales would otherwise have got has not been delivered, despite repeated promises it would be. Conservative Members here want to stand up for the UK Government and not stand up for Wales. There are huge sums of money that have been denied to Wales. And actually, when you look at the forecast for the shared prosperity funds that have been given, it says, next year, there'll be £400 million across the UK. If Wales was in the European Union and still had access to those funds, it would be £375 million just for Wales alone. We have been misled, we have been short changed, and the Tories need to decide will you stand up for Wales or are you simply here to try and defend the indefensible from the UK Government.

Photo of Laura Anne Jones Laura Anne Jones Conservative 2:14, 3 November 2021

I for one welcome the UK Government budget, which has provided Wales with the biggest ever increase in funding since the start of devolution. It shows that the UK Government is committed to the people of Wales, and it shows that it's committed to the development of our nation. From the levelling-up fund through to the community ownership fund, where the Queen's Ballroom in Tredegar, Blaenau Gwent, has received £90,000. So, I hope the Member for Blaenau Gwent and the Minister will join me in recognising the good work of the UK Government in its extremely generous budget and investing in Wales once again.

Minister, could you please outline what plans you have to complement the levelling-up funding across Wales to make the best success of the UK Government's investment in the big financial package that it's given to Wales? Thank you.

Photo of Vaughan Gething Vaughan Gething Labour 2:15, 3 November 2021

That is extraordinary, absolutely extraordinary, and it was factually simply wrong to say this is a generous settlement. What we have seen are cuts to Wales from the levelling-up funding. It's undeniably the case. The money is being cut, but the Conservatives here want to celebrate that. That is just extraordinary, and more than that, the reality is that the recent budget does not replace the money taken away during austerity. In real terms, we will do not much more than flatline on revenue, but in capital terms, we've seen a real-terms cut over the last period in the spending review. That is what Laura Jones and the Conservatives want to celebrate. It is appalling, and I really do say to Conservatives in this place: whose side are you on? Are you on the side of the people of Wales who are having money cut from them, from the businesses that won't have the support they would otherwise have? Are you on the side of those people who need training, the skills, the apprenticeships, the money that previously supported them? Are you on the side of innovation and research, which have been cut because of the way that the UK Government have refused to engage with us and the cuts to the funding that would be otherwise available? At this point in time, you're on entirely the wrong side. Do your job and stand up for Wales.

Photo of Elin Jones Elin Jones Plaid Cymru 2:16, 3 November 2021

(Translated)

Finally, question 8. Jenny Rathbone.