7. Plaid Cymru Debate: Post-Brexit funding

Part of the debate – in the Senedd at 5:06 pm on 25 May 2022.

Alert me about debates like this

Photo of Mabon ap Gwynfor Mabon ap Gwynfor Plaid Cymru 5:06, 25 May 2022

Now, if we look at another aspect, looking at funding for COVID-19 and dealing with the pandemic, 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.

Wales's current strategic planning regions are a response to Westminster priorities, including the UK Government's city and growth deals and shared prosperity funds. They write off three quarters of Wales in terms of economic and cultural viability, and continue to make our future dependent on the crumbs of somebody else's table, rather than serving as a vehicle to connect our communities north and south, east and west, and realise the potential of our own country.

To turn to a sector highly affected by post-Brexit funding streams, the Conservatives have, once again, broken their promises made in their 2019 manifesto to rural and agricultural communities. We must hold the UK Government to account to commitments made on future funding for Welsh farming. The autumn budget and spending review announced that an average of £300 million a year would be allocated to Wales for agriculture and rural development, which is a full £37 million less than the budget allocated in 2019. This was when the Tory manifesto pledged to guarantee the current common agricultural policy budget to farmers in every year of the next Parliament. This will make Welsh agriculture around £248 million, nearly £0.25 billion, worse off by 2025. The current context has only resulted in further uncertainty for Welsh farmers, making it only harder for stakeholders and policy makers within the Welsh Government to provide the detail and clarity that our Welsh farmers need. Whilst the long-standing CAP system was often viewed by some farmers as a bureaucratic inhibitor to farm activity, its strengths in providing a level playing field across many countries could not be questioned. For years, CAP provided baseline support to farmers across Wales and Europe and protected them from market disruptions. As stated already, Brexit has taken this away. We're now rushing to fill the legislative void left by the UK's departure from the EU and, with it, CAP.

And with respect to EU structural funds, as they were allocated on an objective assessment of need, historically that needs-based approach resulted in Wales receiving 24 per cent of UK structural funding, more per person than any of the devolved nations and English regions, reflecting the gap that exists between the poorest parts of Wales and the UK average. In its response to the Finance Committee's consultation on post-EU funding, the NFU has suggested that the Levelling Up Advisory Council, set up by the UK Government, should include specific Welsh and rural representation to give confidence that the EU funds will be replaced in full. They also go on to state that they believe that

'there should be formal consultation on future funding streams in order to ensure funds have effective strategic oversight so they can work for Wales, farming and our rural communities' as well.