Support for the Welsh Economy and Funding for the Devolved Institutions

Debate between Robin Millar and Stephen Crabb

Tuesday 5th July 2022 Commons Chamber

[Robin Millar]

The right hon. Lady’s intervention gives me an opportunity to make a really important point. I think that we have a fundamentally different view of the world. Effectively, she is referring to a deficit model, in which the deficit from poverty and need is something that must be filled. I come from a different perspective. I hold to what I would call an asset-based model. Yes, there are problems, gaps and shortages, but the way to deal with them is not simply to try to fill the deficit; it is to engage with and use the assets that are there.

I have spoken against the tourism tax. I feel very strongly that a tax placed on visitors who stay in hotels does nothing to address problems, or the behaviours of those who come to the area and wild camp, or do not even stay overnight, and who do not spend money in the local economy. I understand the sentiment behind the tax, but its motive is to make the money to fill or fix the deficit. We should instead ask: how do we work with communities and businesses to change the behaviour of visitors, address their experience, and address inappropriate behaviours in our area?

Our frustration comes from seeing that we have talent, but limited opportunities. That is compounded by our having one of the lowest income outputs of anywhere in the UK. On top of that comes frustration with some of the responses of the Welsh Labour Government. I say that in all sincerity. In a recent letter to leaders of local authorities in Wales, the Welsh Government Minister for the Economy wrote that

“the Welsh Government is unable to endorse the approach that the UK Government is taking on the Shared Prosperity Fund. This means, as we have consistently stated to the UK Government, that the Welsh Government will not deploy our own resources to implement UK Government programmes in Wales which we consider to be flawed.”

I, like many others, am frustrated by this approach. Surely it is counterproductive to second-guess how a UK Government funding stream for parts of the UK will be handled.

[Stephen Crabb]

My intervention is in response to the right hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts), who argued that Wales needs more tools. The tools that we have already given to the devolved Welsh Government have not been fully used. I give the example of income tax. Does my hon. Friend the Member for Aberconwy (Robin Millar) agree that one thing we could do in Wales is cut the top rate of income tax—that is something for which the Welsh Government have responsibility—and attract high-value tech entrepreneurs and their families to Wales, which would create more jobs and businesses?

[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.