Oral Answers to Questions
Ben Lake Excerpts(1 month, 2 weeks ago)
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Mr Tanmanjeet Singh Dhesi (Slough) (Lab)
Ben Lake (Ceredigion) (PC)
Richard Thomson (Gordon) (SNP)
Ben Lake
A number of my constituents have been adversely affected by their transfer from working tax credit to universal credit, because they work in sectors such as agriculture and tourism and their incomes are therefore seasonal. The switch from an annual to a monthly assessment of their entitlement means that many are losing out, but the Government have said that there will be no impact assessment to determine the financial effect of the move. Will the Secretary of State intervene in support of such an assessment, so that workers with seasonal incomes can be treated fairly?
David T. C. Davies
The hon. Gentleman is a champion of constituents in rural areas such as his, and I am happy to look at any information that he wants to give, but I hope that he will recognise that the increase in the living wage will have helped his constituents, even those who work seasonally. That is alongside the extra payments that the Government have made to households in which people are living on benefits or have disabilities.
Farming
Ben Lake Excerpts(1 month, 3 weeks ago)
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Ben Lake (Ceredigion) (PC)
It is a pleasure to participate in this important and timely debate, and a particular pleasure to follow the right hon. Member for Camborne and Redruth (George Eustice), who made a very considered speech, as ever. He is very learned in this policy field, and I would like to elaborate on his point about food security, and especially the emphasis on horticulture and re-shoring some production in the UK. Food security does not always get the attention it demands in this place—or, indeed, in wider political debate. It is a matter of life and death, and it warrants more parliamentary scrutiny and debate in future.
I begin by considering the current state of affairs. In that regard, the UK Government’s food security report is incredibly useful. It sets out the situation regarding food production and consumption, as well as exports and imports, and I was taken aback by some of its findings. For example, the UK’s production-to-supply ratio in 2020 was 60% for all food, and 76% for indigenous-type food. Perhaps more relevant and more widely understood is the figure for consumption of UK-produced food, which stands closer to 54%, as some food products are exported.
The point is that statistics are hard to interpret and can sometimes tell a whole array of different stories. One thing I would say about the 54% of UK-produced food being consumed here is that that compares with a 1984 figure of 78%. Changing dietary preferences, a changing climate and different consumer habits have a heavy bearing on this story, but the trend is quite important. From a peak in the mid-1980s, the production to supply ratio declined into the early 2000s and has remained quite stable ever since.
Food security is not a simple matter; it is multifaceted and has various contingent factors. The Government’s “United Kingdom Food Security Report 2021” includes a useful definition, which I think conveys the complexity. It notes that food security
“encompasses the state of global agriculture and markets on which the UK is reliant; the sources of raw materials and foodstuffs in the UK and abroad; the manufacturing, wholesale, and retail industries that ultimately bring food to shelves and plates, and their complex supply chains of inputs and logistics; and the systems of inspection that allow consumers to be confident their food is safe, authentic, and of a high standard.”
If we consider that definition for a moment, as detailed as it is, a few risks to food security immediately spring to mind. We have already heard some of them in this debate, including that the surge in input prices and the cost of commodities has had a big influence on the viability of farm businesses. We have also heard about the changing climate in the UK and the way in which flooding has had a significant impact on agricultural production here.
It is also important to bear in mind that a changing climate will also have an impact on those markets abroad from which the UK imports so much of its food. Especially relevant here is the fact that, as the right hon. Member for Camborne and Redruth outlined, different sectors will be more exposed to those foreign import markets than others. Let us take the fruit and vegetable sector as a case in point, as we depend quite a bit on foreign markets for our fruit and veg. The UK produces over 50% of the vegetables consumed domestically but only 16% of our fruit, and 93% of domestic consumption of fresh vegetables is fulfilled by domestic and European production, while fruit supply is more widely spread across the EU, Africa, the Americas and the UK. Some of those foreign markets are in areas of the world that we know will suffer from climate change, and their ability to produce much of the food that we import will be impacted by that.
We must also consider the unknown impacts that geopolitical instability will have on some supply chains. The war in Ukraine has already been mentioned, but we need also to remember that some of these shocks are unexpected and cannot be anticipated, such as the recent disruption of the Red sea trade routes. For that reason, I very much welcome the Government’s commitment to monitoring food security through the new statutory index. I believe that this would warrant an annual debate to coincide with updates of the index so that we could properly scrutinise this important matter. If we consider all these facts and potential threats and risks, it leads us to the conclusion that we need not only to maintain domestic food production but to increase it so that we can gain greater self-sufficiency in many of the food products that UK consumers eat.
Our focus so far has been on some of the external factors, but we need to bear in mind that many domestic factors have an impact on domestic food capacity. I am afraid to say that a combination of factors is conspiring to force many farmers in Wales out of the industry. Domestic agricultural support policy, for example, has a big part to play, in addition to the public procurement of food contracts, which has already been mentioned. The financial position of Welsh farms underlines the vulnerability of the sector in Wales and the importance of direct Government support payments.
The Institute of Biological, Environmental and Rural Sciences at Aberystwyth University in my constituency produces an annual farm business survey of farm incomes. The most recent survey, detailing the 2022-23 out-turns, paints a worrying picture of the state of many farms and farm models in Wales. It notes how hill cattle and sheep farms made a profit of some £24,000 after rent and finance, but excluding the cost of unpaid labour, in that financial year. That compares with the average basic payment scheme payment for those farms of £26,000. Hill sheep farms have a similar story. They made a profit after rent and finance of some £24,000, versus a direct support payment of £31,577. The point I am trying to make is that direct support from the Government—through the basic payment scheme in this instance—has served an incredibly important role in keeping many of those farms afloat. My concern is that if there is any reduction to that profit, many will find themselves unviable.
Robin Millar (Aberconwy) (Con)
The hon. Gentleman will know well that the Labour Government in Wales are currently planning a subsidy scheme—a sustainable farming scheme—that by their own independently commissioned estimates will lead to roughly a 10% drop in livestock and a £122 million drop in revenue. Farmers in Aberconwy tell me that that income is simply the difference between them having a future and not, so what message does he have for his Plaid Cymru colleagues in the Senedd who are propping up the Welsh Labour Government through a co-operation agreement? Does he agree that tomorrow afternoon’s budget vote might be a good opportunity for them to reconsider that co-operation?
Ben Lake
The hon. Gentleman is right to state the fears of his farmers, which are very much aligned with those expressed to me by farmers in Ceredigion, that the potential change in this policy is, frankly, a matter of life and death for their businesses. He tempts me to comment on the plans of my colleagues in the Senedd. I will resist that temptation, but I will say that it is important, given the gravity of the situation facing the Welsh agricultural industry, that the sustainable farming scheme should be changed. I would suggest that it should be paused to begin with, so that we have time to devise a proper policy that is fit for the 21st century. If my colleagues decide that they need to use every possible lever, I will say all power to their elbow, and if that means the demise of the co-operation agreement, I will certainly not be mourning its passing.
The point is that direct support for many of our farm businesses is crucial. The hon. Member for North Herefordshire (Sir Bill Wiggin) said earlier that much of the reality of that support is to ensure that the price of food on our supermarket shelves is controlled in a manner.
Richard Foord (Tiverton and Honiton) (LD)
The hon. Gentleman is talking about direct support to farmers, and on that subject I want to ask him about direct support for local planning authorities, given how vital it is that farmers get quick answers from those authorities. My experience in Mid Devon and East Devon is that they are earnest in their desire to prevent agricultural pollution from affecting our streams and rivers, but I have one farmer who has waited 20 months for a decision on a planning application in relation to the construction of a slurry store. Does the hon. Gentleman agree that we need the Westminster Government also to help local planning authorities so that our farmers can get rapid answers?
Ben Lake
The hon. Gentleman is quite right. That is something we face in Wales as well, where some farm improvements and developments, sometimes involving changes to comply with regulations, find obstacles and delays in planning. It is only right that planning authorities should be sufficiently resourced to ensure that none of those obstacles is put in the way of progress.
I want briefly to turn to some of the wider issues that impact on domestic production, including the weaknesses of the current grocery supply code of practice and enforcement regime, and trade policy. I do not need to remind the House about this because I can see so many learned Members here this evening, but farming is a long-term industry, and these decisions have to be made on a very long-term basis. When it comes to the way in which the grocery supply chain operates, I am afraid that many retailers have found themselves in a position where they can exert undue influence and have an impact on farmers and growers to shift short-term risk on to their shoulders—much to the detriment of the wider industry.
It was stated in last month’s Westminster Hall debate that 95% of the food consumed in the UK is sold by just 12 retailers, which affords them a dominant position in the supply chain. This means that farmers and growers receive a paltry margin compared with the margins enjoyed by many retailers. Again, that point was made far more eloquently by the hon. Member for North Herefordshire. In addition to short-term inflation spikes and rising import costs, farmers are currently exposed to unfair trading practices arising from this imbalance.
Last month, many Members present debated a petition started by the Riverford farming campaign, calling on the Government: to strengthen the Groceries Code Adjudicator by empowering it to take effective and punitive action against those committing unfair trading practices; to lower the turnover threshold so that the code applies to a greater number of retailers; and to enshrine the simple principle that retailers should give suppliers certainty that they will buy what they have agreed to buy, that they will pay what they have agreed to pay and that they will pay on time. That basic fairness would more evenly spread out across the supply chain some of the risks and profits inherent in the food supply system.
The impact of trade policy has already been mentioned, so I will not go into detail. Concerns have been raised about the impact of the Australia free trade deal on the sector in Wales and the UK. All I will add is that, in their approach to future trade policy, the UK Government should urgently establish a set of core production standards for all food consumed in the UK to ensure that our farmers and growers are not disadvantaged by any future trade agreements. These standards could safeguard high-quality, climate-friendly markets that are open to imports from countries whose standards may differ from our own.
In addition to the food security index, the Government could look to establish an annual free trade agreement assessment to quantify the cumulative impact of free trade agreements on trade balance, sourcing, standards and domestic food production. The farming unions in Wales would very much support such a measure.
Food security is a challenge with which we will soon need to grapple. By not only maintaining but increasing domestic production, so that we gain greater self-sufficiency, we will in turn gain greater resilience to climate change and to shocks in a very uncertain world.
Welsh Affairs
Ben Lake Excerpts(2 months ago)
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Ben Lake (Ceredigion) (PC)
It is a pleasure to contribute to this St David’s Day debate, although I add my own concerns about the lack of time. I am grateful, Mr Deputy Speaker, to hear you say that in future we might have longer to discuss all the many important issues that face Wales.
I congratulate the Chair of the Welsh Affairs Committee, the right hon. Member for Preseli Pembrokeshire (Stephen Crabb), and thank him for securing the debate and for the way in which he has chaired the Select Committee. In his opening remarks, he mentioned that we have in recent years taken a broad view of the issues facing Wales and its communities, none more so perhaps than the changing population of Wales and the demographic trends that we have witnessed not just recently but over decades. The hon. Member for Aberconwy (Robin Millar) touched on that important point. The dynamic, I am afraid, affects Ceredigion just as it does his part of north Wales. It has long been the case that young people who grow up in Ceredigion leave for study or for work and seldom come back. The 2021 census reported that, sadly, Ceredigion’s overall population has declined by some 5.8%, which is a remarkable figure, the largest decrease anywhere in Wales.
Within those figures, there is a story of real change in the demographic make-up of Ceredigion: fewer young people—children and young adults—and therefore a higher proportion of the population over 65 years of age. Indeed, Ceredigion has a remarkable demographic make-up, in that 13% of its population are under the age of 15 and 25% are over the age of 65. That is a problem that we should be considering in both Westminster and Cardiff, because it has real consequences for the ability to deliver public services in an effective and appropriate manner.
That also has something to do with the ability to ensure that we have vibrant communities. I do not want—I think no one else in the Chamber would want—parts of Wales, be that in west Wales or elsewhere, just to become places that shut for half the year, only coming to life during the summer months. We want a vibrant economy through the year, where young people can expect to pursue exciting careers in the place in which they were born and raised.
Others have mentioned investment, and I want to touch on the importance of investing in digital connectivity as part of the solution to develop the economy of rural parts of Wales. That is something I have raised in this Chamber before. Sadly, Ceredigion does not have a very good record when it comes to digital connectivity. Access to the internet has long been an essential, not a luxury, for people in the modern age, but our access to full gigabit broadband is constrained to just 37% of households compared with 76% for the UK as a whole, and 10.7% of households in Ceredigion receive broadband speeds below 10 megabits per second—the equivalent UK figure is 3.6% of households.
Although progress has been made in recent years, much more needs to be done. Not only would that help to ensure that people can access essential services, which are increasingly going online, but it could prove a bit of a boost for the local economy. I am very pleased to say that some companies are looking to relocate their head offices to Ceredigion, in the few villages and towns where we do have full gigabit broadband, because, as long as they have access to the internet through a reliable full gigabit connection, they do not mind being in west Wales—in fact, it is an advantage, and that can be quite an advantage for us, too, if we are serious about developing the rural economy.
In the moments that I have left, I will make a plea to the Secretary of State, because I know that he is also keen on rural broadband. Project Gigabit—the UK Government scheme—has been in existence for a few years now, but progress in rural areas is still too slow. In Ceredigion, we are still waiting to understand which premises will be connected in the next iteration of the scheme, and those who will not be connected will need to find alternative solutions. The sooner we have clarity, the better, because the quality of the lives and the services that can be accessed by those without connectivity are much diminished. If we could have greater prominence and priority for the connection of rural areas, I would be very grateful. More specifically, perhaps the Secretary of State could suggest to his Cabinet colleagues that they work outside-in for the next round of Project Gigabit, so that rural communities are connected first.
Several hon. Members rose—
Spring Budget: Wales
Ben Lake Excerpts(1 year, 1 month ago)
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Ben Lake (Ceredigion) (PC)
Diolch, Mr Hollobone; it is an honour to serve under your chairmanship. I congratulate the hon. Member for Newport West (Ruth Jones) on securing this important debate. It is a pleasure to follow my hon. Friend the Member for Carmarthen East and Dinefwr (Jonathan Edwards). I fear that I need not reiterate many of his points in my own speech because he made them so eloquently and effectively.
Before I address the substance of the spring Budget, it would be remiss of me not to comment on the report published earlier this week by the Senedd’s Public Accounts and Public Administration Committee, which found that due to a budget underspend in 2021-22, the Welsh Government breached the limits of the Welsh reserve. Other Members have commented on that this afternoon. I would just add, echoing the point made by my right hon. Friend the Member for Dwyfor Meirionnydd (Liz Saville Roberts), that it cannot be right—it is certainly inconsistent and illogical—that any underspend in a UK Government Department returns to the UK Government, but the same does not apply to any underspend in Welsh Government Departments.
I turn to the issues facing the spring Budget. High on the agenda was the rising cost of living. Much has been made of the measures included in the Budget that aimed to support households and businesses with energy costs. We have heard comments to that effect this afternoon. The Chancellor was right to identify that as a key concern, but given that energy bills are still expected to increase by some 17% next year, the Budget did not go far enough. To help families see out the spring, the Government could and should have considered extending the energy bills support scheme.
I do not dismiss the extension of the energy price guarantee, which will be a great service to a lot of people across Wales, but the measure does not offer the 74% of my constituents living in off-grid homes support with their fuel costs. There should be further support for off-grid households; I would welcome a further round of the alternative fuel payment, for example. It is difficult to deny the inconsistency in the level of support offered to off-grid households compared with those connected to the mains gas grid, and I am sure the Government would want to address that.
Meanwhile, small businesses have been left without any additional support with energy costs. We know of the increased percentage of business insolvencies last year in England and Wales. I fear that we will see a further escalation in insolvencies this year, unless the UK Government expand the energy bills discount scheme or at least require energy companies to allow small businesses to renegotiate their contracts early in order to reflect falling prices.
I mentioned that 74% of properties in my constituency of Ceredigion are not connected to the mains gas grid. Much has been made of the plight of households and rightly so, but for off-grid businesses, the situation is quite acute. They have been offered only a one-off payment of £150. We do not need to be experts in business to know that that falls woefully short of reflecting the increase in energy prices that these off-grid businesses have experienced over the past 18 months to two years.
Let us remember that these off-grid businesses are local post offices, village shops, swimming pools, and rural factories in Ceredigion—key pillars of rural society and economy, and the lack of meaningful support has placed them at a competitive disadvantage to those companies connected to the mains gas grid. When we consider that most off-grid businesses are located in rural areas, that failure surely flies in the face of the UK Government’s professed levelling-up agenda.
Of course, part of the long-term solution to bringing down energy bills for both households and businesses is to improve the energy efficiency of our buildings. I have previously called for the £6 billion committed to energy efficiency in the autumn statement last year to be brought forward in the term of this Parliament, but it is critical that the current energy company obligation schemes—the ECO schemes—are delivered properly.
E.ON Energy estimates that as of December 2022, only 11% of the ECO4 scheme obligation had been delivered, compared with an expected delivery rate of some 19%. By comparison, at the same point during the ECO3 scheme, it estimated that 29% of the obligation had been delivered.
The company has suggested that inflation is partly to blame for this underperformance, having escalated costs beyond the funding assumptions originally set for the installations. But it is also important to note that the scoring limitations of the scheme have set the bar far too high for the minimum improvements required for a property to be eligible for support under the scheme. The result is that many eligible households fail to secure an installer willing to undertake work on their properties. This is something the Government need to review with some urgency.
I now want to take a step back from the immediate issues facing households and society more broadly, and look at the longer-term problems. I echo many of the points that the hon. Member for Carmarthen East and Dinefwr made in his very eloquent speech. I agree that this Budget wasted an opportunity to tackle some of these longer-term productivity issues that have hampered prosperity in Wales for decades. I am concerned that businesses in Wales, particularly in rural areas, risk being left behind due to poor digital connectivity. For example, gigabit connectivity in Wales stands at some 50% compared to the UK average of 68%, and—as always—the problem is far more acute in rural areas, with only 27% of Ceredigion connected to gigabit internet.
We cannot allow rural areas to miss out on productivity-boosting technologies, whether that means simple broadband connectivity or the integration of new AI technologies. I therefore urge the UK Government to release the funding allocated to Project Gigabit without delay and in accordance with recommendations set out in the report of the Select Committee on Digital, Culture, Media and Sport. In addition, the Government should consider accelerating the timescales for the roll-out of gigabit broadband in very hard-to-reach areas, which often lack both fast broadband and a 4G signal. Sadly, many are located in my constituency of Ceredigion, and I know that the Minister is deeply aware of the impact of such notspots on the people living there.
The National Infrastructure Commission for Wales estimated that it would cost about £1.3 billion to connect every property in Wales with fibre-to-the-home technology, yet the Government have only released £1.2 billion of Project Gigabit funding so far for the entire UK. There is a real opportunity to boost productivity in all parts of the United Kingdom, if only the Government were willing to bring forward some of the funding that they have already allocated for this purpose. If fibre-to-the-home technology is too challenging in the short term, let us instead see greater effort made to expand projects designed to target very hard-to-reach areas, such as the rural small cell projects or work on gigabit-capable, fixed wireless access technology.
There must also be a way to reform the self-defeating systems that currently see fibre taken to the curtilage of some rural properties only for residents to be forced to pay exorbitant excess construction charges if they want that connection extended to their actual home—in other words, if they actually want it to work. In rural areas, where the curtilage of a property may lie some distance from the house, this is proving a real barrier to improved connectivity.
Another key area that should be prioritised if we are to boost the Welsh economy is, of course, renewable energy. Others are far more informed than I am on this topic and could make contributions, so I will just say that we have considerable generation potential along the Welsh coastline in both marine renewables and offshore wind, and an opportunity to seize a first-mover advantage in technologies such as offshore floating wind and become a world leader in the manufacture of components, and in the export of skills and expertise into a growing global market.
Liz Saville Roberts
There is a risk that we keep repeating ourselves, but there is a reason for us to do so. In Scotland, the Crown Estate 12 miles out to sea is devolved to Scotland, so that policy can be made in relation to it and the profits that arise from the Crown Estate remain in Scotland. Why, if it is good enough for Scotland, is it not good enough for Wales?
Ben Lake
I am grateful to my right hon. Friend for posing that question. It is indeed a question that keeps me up at night. Why is it good enough for Scotland but not good enough for Wales? Perhaps the Minister will address that point when he winds up.
The Welsh Affairs Committee recently published a report setting out that offshore floating wind technology could represent the single biggest investment opportunity in Wales for decades, and recommended that the UK Government take the necessary steps to ensure that its potential is realised. I very much hope that they do.
Wales desperately needs an economic strategy capable of providing adequate funding for its public services, reducing poverty, improving incomes and ensuring that we realise our potential contribution to the global effort of tackling climate change—a strategy that, I am afraid to say, the spring Budget did not deliver.
Welsh Affairs
Ben Lake Excerpts(1 year, 1 month ago)
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Ben Lake (Ceredigion) (PC)
It is a pleasure to follow the hon. Member for Delyn (Rob Roberts), who made an interesting speech. He tempts me to agree with him, but I fear I will have to disappoint him on this occasion. I also congratulate the hon. Member for Swansea East (Carolyn Harris) on securing the debate and on introducing it in such a wonderful and inspiring way. It really is a pleasure to participate this afternoon after such a fantastic opening.
St David’s Day week is a wonderful opportunity. It appears as if St David’s Day has become even more of a fixture in everyone’s calendar, and it is wonderful to see so many events being organised to remember the patron saint. It is good that Members from Wales have this opportunity to discuss the issues facing Wales today and perhaps in the future.
I was particularly struck by the comments of the right hon. Member for Preseli Pembrokeshire (Stephen Crabb) and the hon. Member for Aberavon (Stephen Kinnock) on the exciting potential of floating offshore wind. We sometimes dwell on the negatives, especially given the state of the Six Nations performances this year, so let us dwell on some of the positives. The potential of floating offshore wind is exciting and, as the hon. Member for Aberavon said, it presents an opportunity for another green industrial revolution. The synergy between that source of energy and industry is unique and exciting, and I know it is something that other countries are looking at closely. I hope we can lead on that development.
Although I outline a point of consensus with the right hon. Member for Preseli Pembrokeshire, I have to disagree with him on one important point, which is our patron saint’s origin and place of birth. He is correct to say that there is a legend suggesting that St David was born in Pembrokeshire, but I have it on good authority that there is another account suggesting that St David was actually born in Henfynyw, which is near Aberaeron in my constituency, and that he was a grandson of a king of Ceredigion, no less. Combined with his miraculous exploits at Llanddewi Brefi in the year 550, this surely marks him as potentially the most famous Cardi in history.
I am privileged to represent Ceredigion, and it would be remiss of me not to extol the wonderful attributes of the county’s communities and people. Members will of course be familiar with Ceredigion’s natural beauty—our coast and countryside are rightly the envy of the people of these islands—but it is the resilience of her people that casts Ceredigion as a truly remarkable place.
Other Members will agree that Friday is one of the highlights of our week, when we are able to go out and meet different organisations and people in our constituency who do remarkable things. It is a chance to meet the everyday heroes, such as those volunteering in local initiatives such as Home-Start and food banks. It gives us a sense of perspective, which is important in politics. I place on record my thanks to all the people in Ceredigion who give so generously of their time to support others in the community.
Like so many other areas, the cost of living crisis has hit Ceredigion hard. I worry that such is its severity that it risks exacerbating longer-term demographic trends, endangering the county’s future vibrancy and prosperity. The wealth of any county, or country for that matter, is its people. As such, it is impossible to consider the results of the 2021 census without a degree of trepidation. Ceredigion recorded a 5.8% reduction in its total population, exceeding the decline of other areas, such as the 3.7% decrease in Gwynedd and the 1.2% drop in Ynys Môn. It is a demographic trend that is decades old, and Ceredigion’s experience is influenced by an even older tendency for populations to aggregate in more urban centres.
We need to consider how Government action can address some of the underlying drivers of rural depopulation and, at the very least, try to mitigate its consequences. A declining or reducing population impacts on the funding and provision of key public services. The hon. Member for Delyn mentioned the difficulties of funding local services, and a declining population does not help in that regard. It also makes it harder to recruit doctors for our surgeries, teachers for our schools and nurses for our hospitals. It saps the energy from civic initiatives, hinders economic growth and, at the worst, weathers the social fabric of local communities. We need only pass a closed school or a shuttered pub to understand the consequences of rural depopulation.
Yet, in the age of digital working and levelling up, we need not despair. The covid pandemic demonstrated that it is possible to live in areas such as Ceredigion and pursue careers that, in the past, might have required people to relocate to Cardiff, Bristol, London or elsewhere. Digital connectively offers possibilities of which previous generations of Cardis could only dream. Ceredigion’s economy would benefit significantly if its digital infra- structure could be brought into the 21st century.
Sadly, we still trail the UK averages for both superfast and gigabit broadband, so it is vital that the next iteration of the Government’s Project Gigabit programme brings forward much-needed investment in Ceredigion’s digital infrastructure without delay. I was grateful for the Minister’s response yesterday that he is willing to meet me to discuss this, because we still have areas of the county that have not only no access to broadband but no mobile coverage. Those areas should be prioritised in any new programme. In pursuing a levelling-up agenda, the Government could do much worse than to prioritise improvements to the digital infrastructure of rural areas.
If we are to counter such tectonic demographic trends, we also need to see structural funding from the shared prosperity fund and some creative thinking. I was interested to attend the recent session organised by the Welsh Affairs Committee with representatives of the Scottish Government, with whom I discussed some of their proposals for a rural visa pilot scheme. Although the levers to deliver the project are held by the UK Government, it is something we should consider. The Scottish Government have proposed a community-driven approach to migration that would respond to the distinct needs of rural communities to act as a counterbalance to an ageing demographic and rural depopulation. Such a policy should be explored further, as it could help to boost economic prosperity be ensuring that industries secure the skills and labour they require to grow, and that public services can ensure they have the people needed to maintain key services.
We need a long-term strategy to address the consequences and drivers of rural depopulation. I am not proposing for a moment that I have the answers today, but individual policies such as a rural visa pilot or enhanced investment in broadband can nevertheless make an important contribution to mitigating some of the worst consequences of these demographic trends that Ceredigion and other rural areas are facing.
Before concluding, let me take the opportunity to raise an issue in the hope that the Secretary of State can use his good offices to look into it. We speak a lot in this place about energy efficiency and the need to decarbonise housing. In this cost of living crisis, with the current price of energy, there is a great deal of interest among the public in improving the energy efficiency of their homes. We should all be pursuing and supporting that. I am conscious that at present the flagship energy efficiency policy is ECO4—the fourth phase of the energy company obligation. Although I agree that retrofitting projects will have to play an important role in the broader energy efficiency mission, I am concerned about the implementation of ECO4 locally in my constituency.
I have been contacted by too many constituents with complaints and concerns about the way in which this scheme is being administered and run locally. Some have told me that they were supposed to receive support under the ECO4 scheme but it has ended up making things worse for them. We know that in rural areas the housing stock tends to be more inefficient and that fuel poverty in rural areas is a very pressing issue. So the fact that a policy designed to help ends up making things worse is a problem that demands urgent Government attention.
Let me give one example, that of an elderly household who undertook a project under ECO4. It was supposed to take three weeks for them to be connected and for their home to be fully insulated, with a new system, but they ended up being without any heat during the worst of the winter cold weather for several months. That is just one of many other instances that have been brought to my attention. We need to look again at how ECO4 is monitored and we need clearer lines of accountability. There is no doubt that a lot of good can be done if we can ensure that the energy-efficiency of our housing is much improved, but at the moment the policies that aim to realise that simply are not working.
I was about to start speaking to you in Welsh there, Mr Deputy Speaker. I want to conclude by again thanking the hon. Member for Swansea East for securing this debate and wishing everyone a happy, belated, St David’s Day.
Oral Answers to Questions
Ben Lake Excerpts(1 year, 2 months ago)
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Ben Lake (Ceredigion) (PC)
The Parliamentary Under-Secretary of State for Wales (Dr James Davies)
Diolch yn fawr, Mr Llefarydd, and a happy St David’s Day—dydd gŵyl Dewi hapus.
The Government are committed to improving digital connectivity as demonstrated by our commitment to Project Gigabit, the shared rural network and, most recently, the new very hard-to-reach pilots, two of which are located in Wales.
Ben Lake
Ofcom reports that some 30,000 premises across the UK have no access to decent broadband or to a decent 4G signal, including rural areas of Ceredigion, such as Lledrod, Pennant, Talgarreg, Cribyn, Sarnau, Abermeurig and Coed-y-bryn to name but a few. Will the Minister make representations to colleagues in the Department for Digital, Culture, Media and Sport to ensure that those areas are prioritised in the next iteration of Project Gigabit?
Dr Davies
The hon. Member is right to raise that issue. Let me reiterate that we have Project Gigabit, which is an ambitious £5 billion project to reach the hardest-to-reach areas outside of the commercial scope, and also the Alpha trials using satellites, two of which are in Snowdonia National Park. There are, as he will be aware, also opportunities through the Mid Wales growth deal. I would be happy to meet him to discuss what more we can do. With regard to mobile networks, there is the shared rural network, alongside the use of the Home Office’s extended area service infrastructure.
Oral Answers to Questions
Ben Lake Excerpts(1 year, 5 months ago)
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Ben Lake (Ceredigion) (PC)
The Secretary of State for Wales (David T. C. Davies)
We are delivering unprecedented support to protect households across Wales from the cost of living. We understand that people across the UK are worried about the cost of living, and this winter we will stick with the plan to spend £55 billion to help households and businesses with their energy bills—one of the largest support plans in the whole of Europe.
Ben Lake
I welcome the right hon. Member to his role as Secretary of State for Wales. As he will be aware, off-grid households and businesses have experienced quite rapid increases in the price of their heating. That is a big concern in areas such as Ceredigion, where 74% of properties are not connected to the mains gas grid. Quite simply, when does he expect those households and businesses to receive support for their off-grid heating costs?
David T. C. Davies
The hon. Gentleman is quite right to raise the issue of off-grid domestic premises. The Government have heard the issue being raised by Members, including him, and we have increased the support available from £100 to £200. I would be happy to come back to him with details of exactly when that payment will be made. It was because of calls from people such as him that that increase was made.
Support for the Welsh Economy and Funding for the Devolved Institutions
Ben Lake Excerpts(1 year, 9 months ago)
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Robin Millar
I thank my right hon. Friend for making that point. I could not agree more. Contrast that deficit view, which seeks to fill, with an asset-based view, which seeks to grow, encourage and stimulate that kind of economic activity.
Robin Millar
I would settle for not adding a tourism tax on top of VAT.
Contrast the Welsh Labour Government’s view that we should not implement UK Government programmes in Wales with the more enlightened view of the Welsh Local Government Association, which, in its manifesto for localism, said that
“greater fiscal autonomy and flexibility”
should be at the centre of its plan for recovery from the pandemic. That is what the levelling-up fund and the shared prosperity fund seek to do.
I said that I had three points. My third is to do with misunderstanding business. As my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb) mentioned, we in the Welsh Affairs Committee are very grateful to have Welsh Government Ministers in attendance at our Committee. Without a doubt, it enriches the evidence presented to us and our discussions. When the former Minister of the Economy, Mr Skates, attended, he was asked a question about the Welsh economic plan. This flagship project of the Welsh Government sought to sign up Welsh businesses to it. After some discussion, we established that the aim was for 3% of Welsh businesses—some 6,000—to sign up. I put it to him in our meeting that the reason for the low take-up was the unrealistic expectations placed on businesses in Wales. The time and financial commitment that it takes to sign up to making quite honourable and desirable—idealistic, I suppose, is too strong a word—steps towards decarbonising business and making it more sustainable are simply crushing for small businesses. After all, 95% of businesses in Wales have fewer than 10 employees.
In that context, I will make a comment on the question asked earlier about the amount of funding coming into Wales. Despite concerns about performance, and despite the frustration, and confusion or misunderstanding, about what businesses need, the reality is simple and irrefutable: there has never been more funding coming into Wales, if we perhaps except the blip that came through the consequentials around the covid pandemic.
Let us start—and start we must, because this is a long list—with the spending review. In 2021, we set the largest annual block grants for the Welsh Government: £18.4 billion per year. That will increase to £20 billion between 2022 and 2023. If comparison is helpful, over the spending review period the UK Government are providing the Welsh Government with roughly £1,000 more per person than is spent in England. That block grant increase is in addition to £900 million for farmers and land managers over the next three years, and the £6 million for Welsh fisheries.
That is not all: there is also the first round of the levelling up fund—yes, there are more rounds to come—which is £121 million, and there is £46 million through the community renewal fund. Perhaps hon. Members can see a pattern here. That is in addition to the £460,000 in just the first round of the community ownership fund and, lest it feel left out, the £130 million of investment by the British Business Bank.
All that funding speaks to the points so helpfully made by the right hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts), and highlights the difference between a deficit-based and an asset-based approach, because all that is also in addition to Wales’s 22% share per annum of the UK-wide £2.6 billion UK shared prosperity fund—a fund that ensures that EU funding is matched. Those are not my words; on 11 June, during an evidence session of the Senedd’s Finance Committee, Guto Ifan, a research associate at the Wales Governance Centre—an organisation that has never been slow to criticise this Government—stated:
“by 2024-25, the annual funding from the shared prosperity fund will match the average annual funding that Wales would have received”
from the European regional development fund and European structural fund, after inflation readjustments. All that long list comes on top of substantial legacy EU funding, which Wales will continue to receive as it tapers off.
I could speak at length—[Interruption.] I assure you that I will not, Madam Deputy Speaker; I would not deprive hon. Members of their time—but the money coming into Wales offers a huge opportunity to my Aberconwy constituency and north Wales. It is incredibly positive and forward-looking of the UK Government to act in this way. Local businesses are excited by it, and I see tremendous potential in the projects and bids we will submit to the levelling up fund bidding process.
In conclusion, we must ask what has happened in Wales in economic terms. It is not in a good place; it has not been in a good place, and there is no suggestion that that will improve as long as the Welsh Labour Government continue with their economic plans, which have, after all, been under their devolved capacity for the entirety of the Welsh Government’s existence.
Ben Lake (Ceredigion) (PC)
It is a pleasure, as always, to follow the hon. Member for Clwyd South (Simon Baynes), and I join him and the hon. Member for Cynon Valley (Beth Winter) in thanking the staff of the Welsh Affairs Committee. A number of Committee members are present this afternoon, and we benefit from their hard work and diligence in preparing what I would argue is an impressive range of inquiries. We punch above our weight—very much like Wales, perhaps.
I congratulate and thank the right hon. Member for Preseli Pembrokeshire (Stephen Crabb) for securing this debate and for leading the Welsh Affairs Committee in the way that he does. His contribution, and those of my hon. Friend the Member for Carmarthen East and Dinefwr (Jonathan Edwards) and the hon. Member for Aberconwy (Robin Millar), have already caused us to discuss the structural long-term problems that Wales and its economy are facing, and the demographic consequences of those structural problems. Mention has already been made about recent census results in which Ceredigion reported a 5.8% fall in its population. I do not intend to pursue that line of inquiry in my remarks this afternoon, but it is an important area for us to consider and debate in future, because it is intertwined with the debate about levelling up and building a more prosperous economy, and indeed society. In many rural areas, and particularly areas such as Ceredigion, we are seeing a demographic trap in which some of our biggest and most valuable exports are our young people and skills. Yes, that has been happening for many years, but sadly the trend has been accelerating in recent decades. We need to get a handle on that.
I want to focus my remarks on the impact of the recent cost of living crisis on both households and businesses. Set against that backdrop, the debate is timely. As right hon. and hon. Members will be well aware, our constituents, whether households, businesses or community groups, are struggling under the weight of increased fuel and energy costs in particular. In anticipating some of the Secretary of State’s arguments and comments in summing up, I acknowledge that there has been a package of measures and support from the UK Government. As the Library’s briefing informs us, it amounts to some £37 billion and includes: £400 to help all households with energy bills; £650 for households receiving means-tested benefits, with an additional £300 for pensioners and £150 for people receiving disability payments; and a further £150 council tax rebate for households in council tax bands A to D.
Liz Saville Roberts
My hon. Friend is making an excellent speech. On that £400 household grant, does he share my concern that the residences of farmers count as businesses and therefore do not qualify? That is significant for us in Wales and would make a difference to an awful lot of people in rural areas.
Ben Lake
I am grateful to my right hon. Friend for raising that important point. Indeed, a number of hon. Members are concerned about that. There is still a lack of clarity arising from the technical consultation on the energy bills support scheme about whether farms—I am told that most of them will have a commercial electricity contract that also includes their household premises—will be able to receive that £400. It is important for the Government to look at that now before introducing the scheme in the coming months. She is right that it would not be appropriate or fair if farmers—many hon. Members in their places represent a great number of them—lost out due to a technicality. I am certain that the Government intend to support those individuals and households; it is just that the technical eligibility criteria need to be put right.
One thing that the useful House of Commons Library briefing tells us is that, despite that rather impressive package of measures, once we take into account changes to income tax and national insurance contributions, some of that support is offset, at least in net cost to the Treasury. If we were to take tax increases into account, net Government support stands at about £14 billion in the fiscal year 2022-23.
We need to consider whether the package of support is sufficient, given that we know that domestic gas prices increased by 95% between May 2021 and May 2022 and that domestic electricity prices rose by 54%. In nominal monetary terms, the April price cap saw an increase in the maximum for average bills from £1,277 a year to £1,971 and, in May, the chief executive of Ofgem mentioned that he expected the price cap to rise by potentially 40% in the autumn to a maximum of £2,800. That would be a doubling in less than 18 months, and that is why it is important that we consider the sufficiency of the measures already announced. Just after April’s price cap came in, the Welsh Government estimated that 45% of households in Wales could fall into real fuel poverty—and, of course, that does not take into account further increases that may come in the autumn.
As MPs representing rural areas know, the energy price cap offers solace only to households on the mains gas grid. Many off-grid properties have not been offered the same level of price protection and have been exposed to significant price increases in terms of heating oil and liquefied petroleum gas. It is particularly true in Ceredigion, I am sad to say. According to the Mid Wales Energy Strategy, as many as 72% of properties in Ceredigion are off the mains gas grid. I am sad to say that we have the accolade of being the constituency most dependent on heating oil of any in the UK Parliament. On average, the price of heating oil has risen by 150% in the last year. In some circumstances, the increases have been significantly higher.
There is a debate we need to have, perhaps not for today, on whether we need to change approach in how we tackle the price hikes. Are we certain that they are just one-off temporary increases? Some suggest that we have underestimated and under-costed the risks, and that some increases are here to stay. Indeed, we could see further price increases. I note just today turbulence in Norway that might cause a further increase in the price of wholesale gas. There are a lot of uncertainties at a time when wholesale prices are already at an elevated level.
Before drawing to a close, I should mention that we need to do more to support small businesses and community groups facing energy and fuel price increases. I have been speaking to many hospitality businesses in Ceredigion. One told me that its energy bills have increased by 450% and to such an extent that it had to really consider whether it could continue to operate. The situation is not unique to that business. I know a great number of many other businesses that are struggling in a similar manner. We cannot allow otherwise valuable and successful businesses to fall foul of the price hikes. I sincerely believe that the situation warrants further Government intervention.
To add to that, because I do not want to portray this as solely an economic problem, there is also a community or social impact of the current crisis. We will all have heard from community groups, halls and swimming pools—you name it—that are struggling at the moment with higher than average energy bills. We are currently in the summer months, so usage is a lot lower than it will be in the winter. If they are struggling now, I dread to think where they will be in autumn. For example, in my own constituency, Calon Tysul, a community-run swimming pool in Llandysul in the Teifi valley, is already spending about £1,500 a week just to heat the swimming pool. That does not include the dry side of its facilities. That is already forcing it to make very difficult decisions about the provision of swimming lessons for our young people.
Robin Millar
The hon. Gentleman is giving a typically thoughtful speech, as we have become accustomed to in the Welsh Affairs Committee, and I thank him for that. I am grateful, too, that he mentions the levels of grants that have been given on an individual basis. Does he agree that they cannot ever be enough to, for example, make up for inflation in house prices in our area, which drives some of the demographic change he referred to at the start of his speech, and that the only way to see that remedied is with higher wages and more skilled jobs in Wales? Does he share my frustration at the flatlining of the Welsh economy over the last two decades?
Ben Lake
I agree and I disagree. I agree in the sense that I would also very much like to see our economy develop to offer more high wage career opportunities. What I would say, however, is that we need to disconnect the short and medium term from the longer term. I agree with him that there are longer term measures that would entail greater investment. In the short term, perhaps some of the measures we need to look at, as well as direct support, are initiatives such as a social tariff for utility bills. As chair of the all-party parliamentary group on fuel poverty, I am very keen to see that.
To conclude, something plaguing a lot of families in rural areas is the cost of filling up the car. Sadly, Wales is a very car-dependent nation, with some 83% of commutes dependent on private car use. In the long term, we obviously want public transport infrastructure to allow us to wean ourselves from the car. At the moment, however, we are not in that situation. There is both a social and economic factor for rural areas like Ceredigion. The social factor is in terms of the provision of key essential services. District nurses and carers are telling me that they just cannot afford to travel the 400, 500 or 600 miles a week that they need to travel to care for our elderly and in-need residents.
There is a real case for us to re-evaluate the rural fuel relief scheme to encompass more rural areas. That would make sense in the immediate crisis, as there is a need for it, and in the longer term, we might be able to incorporate that into levelling-up objectives, whereby fuel duty could be linked in some way—I admit this would be complicated—to the levels of accessibility to public transport infrastructure. That would be a very good way of moving forward in order to help rural areas proceed and endure the storm.
Oral Answers to Questions
Ben Lake Excerpts(1 year, 11 months ago)
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The Prime Minister
Yes, of course. My hon. Friend is a fantastic advocate for Devon and rural communities, and I will ensure that both she and Helen Hurford get a meeting with the relevant Minister to discuss her ideas further.
Ben Lake (Ceredigion) (PC)
The Prime Minister
I thank the hon. Member for his excellent question. Rural fuel duty relief is there to compensate motorists by helping retailers in some more remote rural areas where pump prices can be significantly higher. It currently operates on a geographical basis, but I am happy to ensure that he gets a meeting with the relevant Minister as fast as possible.
Oral Answers to Questions
Ben Lake Excerpts(2 years, 2 months ago)
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Simon Hart
I certainly can. In answering that question, it is also worth reflecting on the fact that the Labour solution around VAT—an interesting recognition of a Brexit dividend—would not have that effect. The Treasury analysis is that Labour’s proposal would unduly hit the families our proposals are designed to help.
Ben Lake (Ceredigion) (PC)
The Parliamentary Under-Secretary of State for Wales (David T. C. Davies)
There will be a full evaluation of the fund’s impact on the provision of public service broadcasting for young people, including Welsh language content. The Government are committed to Welsh language broadcasting. S4C will receive £88.8 million a year for the first two years of the licence fee settlement, rising in line with inflation thereafter.
Ben Lake
Diolch, Mr Speaker. The fund’s 5% target for content in the indigenous languages has been invaluable to producers of Welsh language children’s programmes such as an upcoming drama series about children’s mental health and, of course, the production of new episodes of “Sali Mali”. Mike Young, the producer of “Sam Tan” and the creator of “SuperTed”, has previously stated that those much-loved favourites would not have been made without state support. Will the Minister agree to meet me to discuss the impact of the fund’s closure and ways we can secure the future of original children’s content in the Welsh language?
David T. C. Davies
I would be delighted to meet the hon. Gentleman to discuss that issue. I would approach it with an open mind. I will perhaps remind the hon. Gentleman that it was a Conservative Government who established S4C. It was also a Conservative Government who introduced the Welsh Language Act 1993. He may also know that it was a Conservative Chairman of the Welsh Affairs Committee who allowed Welsh to be spoken for the first time in Select Committee hearings. Modesty prevents me from saying any more on that, but I can assure him that we will always want to support the Welsh language.