Oral Answers to Questions Debate

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Department: Cabinet Office

Oral Answers to Questions

Beth Winter Excerpts
Wednesday 6th December 2023

(4 months, 3 weeks ago)

Commons Chamber
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The Secretary of State was asked—
Beth Winter Portrait Beth Winter (Cynon Valley) (Lab)
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1. What assessment he has made of the impact of inflation on public spending in Wales.

Fay Jones Portrait The Parliamentary Under-Secretary of State for Wales (Fay Jones)
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May I say how sorry I was to learn of the death of Baroness Kinnock? I met her when I was an intern in the European Parliament many years ago, and I have never forgotten how fearless, remarkable and determined she was. I send my deepest condolences to the hon. Member for Aberavon (Stephen Kinnock) and the wider Welsh Labour family, who also mourn the death of Allan Rogers, who served in this House as the Member for Rhondda for 19 years.

The UK economy has outperformed expectations this year, and the Prime Minister has delivered on his pledge to halve inflation. Following the Chancellor’s announcement at the autumn statement, the Welsh Government will receive £305 million in additional funding, which can be used to support public services in Wales.

Beth Winter Portrait Beth Winter
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Tory inflation and austerity mean that the Welsh budget is worth £900 million less than it was when it was set, and the autumn statement consequentials do not make up for that. The Institute of Welsh Affairs has called the autumn statement “a return to austerity” with

“tax cuts at the cost of cuts to public service delivery.”

It is the people of Wales who are suffering poverty and cuts to public services, so I ask the Minister: instead of the autumn statement tax handouts to the wealthy in London and the south-east, will the Secretary of State not urge the Chancellor to tax the wealthy to better protect Welsh public services?

Fay Jones Portrait Fay Jones
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The House will not be surprised to learn that I completely disagree with the hon. Lady’s assessment. It is not the amount of money the Welsh Government are receiving but the way in which they are mismanaging public services that is the problem. The 2021 spending review delivered the Welsh Government a record settlement of £18 billion a year, so I think that she needs to recognise that the problem is on her own side in Wales.