St David’s Day and Welsh Affairs

Catherine Fookes Excerpts

Thursday 26th February 2026 Commons Chamber

[Ben Lake (Ceredigion Preseli) (PC)]

Diolch, Madam Deputy Speaker. I begin by thanking the hon. Member for Newport West and Islwyn (Ruth Jones) for opening the debate, and indeed for her work as the chair of the Welsh Affairs Committee. As she mentioned in her speech, we work as a team for Wales on the Committee, and it is good that we have this opportunity today not only to speak about the work of the Committee, but to talk to the wider House about the wonders of Wales and how great St David’s day is.

St David is famous for having said that we should do the little things, and it is in that spirit that I will dedicate my speech to small businesses, which, as is the case across Wales, forms the backbone of our economy. In my constituency of Ceredigion Preseli, as much as 81% of businesses are classified as small, making it the small business capital of Wales—an accolade that we are very proud to hold. Thirty-five per cent of those businesses are in the agricultural, fisheries and forestry sectors, and some 15% are in hospitality and tourism.

Although the winter months are always quite difficult for those industries, in recent weeks I have had a chance to meet a number of small business groups from Aberystwyth in the north of my constituency to Fishguard and Goodwick in the south. Unfortunately, they have all told a tale of the difficulties and challenges they face as small employers. I want to draw the House’s attention to the cumulative pressures that are having a severe impact on their ability to trade and to continue in business.

Businesses cited the impact of rising energy costs, higher employment costs and the burden of increased business rates. That is not a problem that is unique to Ceredigion Preseli, with the Federation of Small Businesses having found that to be equally true across the whole UK. Indeed, according to recent FSB research, from April this year the typical high street business will face an estimated £25,000 in extra unemployment costs and £1,600 in higher energy standing charges. We all agree that that sort of incessant rise in costs for small businesses is simply unsustainable. Unfortunately, too many are now citing that the pressures have become so acute that 35% have said that they are planning to close or contract over the coming year. That would be devastating for economies across the United Kingdom, but specifically so in the small business capital of Wales that is Ceredigion Preseli.

In the spirit of doing the small things and in advance of the spring statement next week, I draw the attention of the House to some measures that those businesses have suggested the Government could take to help them build a firmer and more prosperous future. On energy costs, businesses with an annual electricity consumption of around 40,000 kWh, which is a typical small restaurant, gym or café, are currently looking at a potential rise in their standing charge of some 40%. One proposal that the Government could entertain is to mirror the support that they are offering on household bills—the 75% reduction in renewable obligation costs—to non-domestic bills. That would offer much-needed support to many of the businesses in Ceredigion Preseli.

Another point that they wanted me to raise was the rising pressure of employment costs. Between January of last year and April this year, an employer with nine people on the national living wage will see their annual employment costs increase by an equivalent of 12.9% and the employer national insurance bill over that two-year period would have increased by 46%. One proposal these businesses have suggested that the Government could entertain next week is to uprate the employment allowance, so that it continues to cover the employer national insurance contributions of four employees on the national living wage. That would offer great support to the businesses I have spoken to in Ceredigion Preseli.

The final thing is business rates, and colleagues from across the House will have had a lot of concerns on this appear in their postbags and inboxes in recent weeks. It is for the Welsh Senedd and Welsh Government to look at the reliefs and how they offer additional support to small businesses. The one thing it would be worth this House and Government considering is the way in which the valuation process operates. One common concern is that the process lacks transparency and clarity as to how valuations are calculated. Some businesses in hospitality and trade, for example, cite that their rates are primarily driven by turnover as opposed to profitability, whereas in retail it is primarily fixed on the square meterage of their shops. This inconsistency is troubling, and the lack of clarity of how the Valuation Office Agency, as it was, has come to make the calculation is causing a significant degree of concern.

I turn to the measures that could help businesses in the tourism and hospitality industries. The VAT rate, currently set at 20%, has long been a concern for these businesses. Again, they would be grateful if the Government could look again at the rate. Decreasing it to 15% would offer them much-needed breathing space to withstand some of these increased pressures and costs, but also the opportunity to invest in their businesses and their staff—something we all want to see if we are to bring about economic growth across the land. Indeed, other countries have shown that a reduction in the rate of VAT for tourism and hospitality can bring significant benefits.

I also want to raise the removal of the automatic 10% “wear and tear” tax allowance for childminders, which will come into force from April. Childminders in my constituency have long used this provision to meet the costs of the inevitable damage, and maintenance costs, that arise from hosting their businesses in their homes. They have told me that the move to this new system is forcing them to reconsider their ability to continue in this critical sector. If the Government could look again at that, I know that a lot of childminders in my constituency would be grateful.

[Catherine Fookes (Monmouthshire) (Lab)]

Does the hon. Member not agree that we have the green shoots of recovery already in the economy? We have interest rates going down and retail sales up. The recent massive £14 billion investment in rail will help every single small business and every single person across Wales.

[Ben Lake]

I agree with the hon. Member that the investment in rail will do a great deal of good for businesses in her constituency. Of course, it is sadly not the same for mine due to historical structures of the railway network—the hon. Member nods. The fact of the matter is I only have three stations, and they are all terminals, so sadly the investment that has been announced will not quite reach us yet, but I hope that in due course we will receive further announcements of investment in the Cambrian and west Wales lines. I would very much welcome and applaud the Government if they were to do so.

For rural areas such as those of the hon. Member and mine, the outflow of young people is a big concern. In my part of the world, the 6% decline in the overall population from the last census is a real worry for us. That is why it is so important to ensure that we support these small businesses.

It would be remiss of me not to brandish my constituency’s links with St David. He was, of course, born just to the south of my constituency boundary in the area of St Davids, but he was—according to legend—raised along the Ceredigion coast. Of course, as the hon. Member for Newport West and Islwyn mentioned, he performed one of his most famous miracles in the village of Llanddewi-Brefi. If I needed to really underline his Ceredigion credentials, he was the grandson of a Ceredigion king. Perhaps it is because of that that we have so many St David’s day events across Ceredigion Preseli, from parades in Aberystwyth, Cardigan, Fishguard and Goodwick, as well as in the towns of Lampeter, Tregaron and Aberaeron. The ladies of the Celtic longboats at Aberporth did the voyage from Aberporth to Llanon, the village named after St David’s mother, Non. Of course, there are the cawl evenings held across my constituency and the eisteddfods—this weekend in Swyddffynnon and Crymych, but also in schools across the constituency.

I would like to place on the record my gratitude to all those community volunteers and champions who have put on these events and who ensure that St David’s day is a joyous occasion. I wish you, Madam Deputy Speaker, a dydd gŵyl Dewi hapus iawn.

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[Jessica Morden (Newport East) (Lab)]

I wish a happy early St David’s day to all. I congratulate my constituency neighbour, my hon. Friend the Member for Newport West and Islwyn (Ruth Jones), on an excellent opening contribution to the debate.

We will all say it:

“Be joyful, keep the faith and do the little things”.

Those were the final words of our patron saint. The Prime Minister repeated them in his remarks at the St David’s day reception at No. 10 on Monday, which was an excellent event. It afforded us the opportunity to invite people who do extraordinary things in our constituencies. I brought along Mark Seymour, who, alongside his team in Newport, runs the Sanctuary project, which works with refugees and asylum seekers.

In that vein, I want to begin by recognising some more extraordinary Newportonians who perform small, kind and positive acts that help make our community what it is. First, I pay tribute to my constituent Martyn Butler, who sadly passed away last weekend. Martyn was a co-founder of the Terrence Higgins trust, setting up one of the first AIDS helplines in 1983 using his home telephone. His tireless work, right up until his death, to raise awareness of HIV testing and pre-exposure prophylaxis helped to contribute to the 20% fall in new HIV cases in Wales in 2024. More people than ever before are being tested. That legacy will be felt for generations. We send our love to his family—he was a lovely, lovely man.

Emma Webb is a bereaved mother whose daughter took her own life in 2020 aged just 16. From the depths of her grief, Emma has spent every day since campaigning to raise awareness of suicide prevention. She has walked hundreds of miles with a life-size model pony, raised thousands of pounds and worked relentlessly to save lives. I thank her from the bottom of my heart.

I have also had the pleasure of welcoming 11-year-old Sophia from Newport East to Westminster this year. She lives with juvenile arthritis and uses her incredible energy and infectious positivity to raise awareness and improve support for children like her. She will clearly rule the world; she is a brilliant example to us all. The great privilege of this role is meeting and working with such remarkable people who show so much resilience.

It is that resilience that has carried out city through challenging times. After more than a decade of austerity, I am glad to see that the damage done by the Conservatives is beginning to be undone. The recent announcement that work will begin this year to build two new railway stations in Newport East has been warmly welcomed by businesses and residents alike.

[Catherine Fookes]

Will my hon. Friend give way?

[Jessica Morden]

I will, and I know what my hon. Friend is going to say.

[Catherine Fookes]

My hon. Friend mentioned her new railway stations. She used to be the MP for part of my constituency, and I want to pay tribute to her. Will she join me in welcoming the new Magor and Undy railway station? I want to say a big thank you to her for all the work she has done with the Magor Action Group on Rail to make that station a reality.

[Jessica Morden]

I thank my hon. Friend for being so generous, and indeed for the work she has done to carry that on—she has been relentless in this Chamber, at every single opportunity—and the fantastic Magor Action Group on Rail, which it is a privilege to work with. Well done to them.

I was also pleased to see the proposed Caerleon station included in the rail vision for Wales. My hon. Friend the Member for Newport West and Islwyn has been very supportive of that, as has our MS, Jayne Bryant. I commend the TRACS—Towards Restoring a Caerleon Station—group for its commitment to securing a station for the town, and I support it all the way.

This investment of many millions of pounds—part of a £14 billion commitment to rail in Wales—is just one example of how the people in Newport East are feeling the benefit of two Governments working together. That is really important. Another example of that, due to a good settlement, is the fact that the Labour-run council in Newport, under the energetic and resourceful leadership of Dimitri Batrouni, has this week announced the biggest investment in roads, infrastructure and schools in living memory, with a £40 million commitment. That includes £15 million to repair and resurface our roads and pavements, all of which are showing the impact of 14 years of Tory austerity. There is also half a million pounds for our city centre’s invaluable grassroots sports clubs, match funding for teams like Newport County and the Dragons, more funding to tackle fly-tipping and much more. Those are the kinds of priorities that residents tell us matter to them, and this action is due to the massive 6.1% funding increase from the Welsh Government, thanks to the Chancellor’s decisions flowing down to them. That partnership working is really important.

Crime and antisocial behaviour in our city centre remains one of our top concerns, so I was really pleased to hear from Gwent police that reported crime has fallen over the past year, with shoplifting down 20% across our city and antisocial behaviour seeing a steep decline during November. That is due to increased investment from the UK Labour Government, the hard work of Gwent police and the extra measures it is deploying, including the new Project Vigilant scheme, which will help to protect women and girls who are out and about in the night-time economy in our city centre. I commend that really good initiative. Gwent police has also confirmed that, by the end of March, every single neighbourhood policing team in Newport will be up to full establishment, delivering on a key and very important manifesto pledge, so I commend that.

The news of £20 million of Pride in Place money for Newport has been warmly welcomed, allowing us to invest in regeneration of the city centre and surrounding areas. That complements the work already going on in the city centre around the leisure centre, which I think my hon. Friend the Member for Newport West and Islwyn would agree is going up at an alarming rate, and the ongoing restoration of our Newport transporter bridge, which benefited from a further £5 million of UK Government funding. It is the Friends of Newport Transporter Bridge annual general meeting tonight, and my hon. Friend and I hope to get there in time.

I support Newport city council’s expression of interest for the town of culture competition, and particularly Caerleon’s bid. As one of the most significant and best understood Roman legionary sites in the former empire, with a strong community, it would be a really worthy winner, so let us hope that happens. [Interruption.] I hear a bit of competition there.

Turning from Newport’s significant history to its really promising future, the UK Government’s announcement of the AI growth zone represents a really exciting prospect for our city that we want to grasp. As my hon. Friend the Member for Newport West and Islwyn said, we have globally significant tech companies already based in Newport, including KLA and Vishay, which were here yesterday for an event. Further investment in sites and jobs is really welcome, particularly given that we are the fastest growing and the youngest city in Wales, with the fastest growing population of under-16s.

Sitting at the heart of cwm silicon, Newport is not just part of the new industrial revolution; it is driving it. With a strategic location, vital grid connections and a talented workforce, we have all the assets that modern industry is competing to secure. Of course, all this development and new infrastructure needs steel—I always have to mention steel—so I look forward to seeing the Government’s steel plan when it is published in the next few weeks. As always, I pay tribute to those who work in the steel industry in Newport East.

Its people, its geography, its grit and its determination set Newport apart from anywhere else, but it has something else: momentum. Under the inspired leadership of our council, and with support from the UK Government and the Welsh Government, we are seizing the opportunity of the moment. Newport is ready for this moment. Huge investments are coming, innovation is accelerating and the city’s strong communities are leading the way. We are not looking back. We are not about the politics of grievance and division; we are positive and ambitious for the future of Newport, and we will take every opportunity to build it.

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[Catherine Fookes (Monmouthshire) (Lab)]

“Gwnewch y pethau bychain,” were the famous words of St David, meaning, “Do the little things.” I do hope I have not mangled the pronunciation too much; dw i’n dysgu Cymraeg—I am learning Welsh—so I am getting there. That is the message that many of my colleagues have talked about today: take those compassionate daily actions, even if they do not feel like much in the moment. Our community in Monmouthshire put this into action hugely in our response to the dreadful flooding that affected us as a result of Storm Claudia in November last year; everyone did their bit, big or little. I thought I could not be any prouder to represent my constituency, but I have been proven wrong. Seeing our community pull together was yet another brilliant reminder of the privilege it is to represent them; they are resilient, generous and determined.

The flooding in Monmouthshire was devastating. Hundreds of homes and businesses were flooded, and they are still dealing with the after-effects, including anxiety every time it rains—which as we know, sadly, has been pretty much all day, every day recently. Particularly among our older community, there is anxiety about when, if ever, they will get back into their homes or residential spaces. People who have replaced every single thing in the ground floor of their flat or house are anxious about maybe losing it once again in a future flood.

Let me take the House back to the early hours of the morning on that November day. What was described by constituents as a tidal wave came down Drybridge Street and Monmouth’s high street, leaving shops and houses badly damaged, a stinking mess, and a fine brown silt everywhere. Osbaston, Overmonnow, Little Mill and Rockfield Road were affected, as were parts of Abergavenny. For some, this was not novel; sadly, the communities in Skenfrith and on Forge Road in Monmouth flooded yet again, as they have every single year for the past few years. It was awful, but from that awfulness rose an astonishing response. It was not only the council, charities and emergency services that intervened immediately and did those little things; it was volunteers, ordinary members of the local community who heard the calls for assistance and answered them. Pets were rescued by Sara from Paws pet shop, and an elderly resident was also rescued by boat from Chippenham Court by Sara. I want to say a massive diolch yn fawr iawn to our emergency services, and to everybody who helped and continues to help.

However, recovery is incredibly long and arduous. The media have most definitely moved on, but the people who live and work in Monmouthshire—especially in Monmouth—are still struggling, particularly with their mental health. Businesses have seen insurance costs jump, in one case from around £1,000 a year to £20,000 a year. As such, I am exceptionally relieved that additional funding was made available for the first stages of recovery, in part through the mayor’s fundraiser, which she set up and which people donated to, not just from the local area but from all around the world. Of course, I am also grateful for the emergency funding from Monmouthshire county council and the Welsh Government, and thank goodness for the £1.5 million Pride in Place funding from this UK Government. Alongside the Welsh Government’s town transformation grant, it will help to regenerate some of those areas affected by the floods. I was also delighted and very thankful that our Secretary of State came to visit and see for herself the community support in action, and the high street and what was going on there.

In yet another show of resilience, businesses have been fighting to reopen as quickly as possible, and I am proud to say that Monmouth is very much open for business. Salt and Pepper, one of our lovely coffee shops, was quick to get back on its feet, thanks to the owner Catherine and her fantastic team, as was Bar 125. These became a visible sign of resilience in the town centre. Bee Beautiful nail bar is back—I had my lovely nails done there—and Harts of Monmouth, which was established over 50 years ago, showed real determination by continuing to trade from the first floor of its premises the weekend after the floods while flood repairs were still under way downstairs. Alex Gooch’s artisan bakery is now selling from a converted horsebox outside on the pavement while the damage in the shop is assessed.

However, many places are still on the journey to reopening. The Robin Hood Inn, Monmouth’s oldest pub, remains closed; despite the challenges of repairing that listed building, it is working hard to reopen. Handyman House and the Bridges community centre are also working on their recovery after their premises were badly damaged, so now we need to apply that lesson—“Gwnewch y pethau bychain”—once again. I invite any of my constituents who can, as well as those living just outside Monmouthshire’s bounds, those from further afield and all fellow Members of this House, to please come and visit Monmouth. Come to our high street; come and have a coffee, have some lunch, and buy some gifts in our wonderful independent shops that need our support. I know you will be given a brilliant welcome.

Finally, I wish a happy St David’s day to all in the House.