Budget Resolutions and Economic Situation

Simon Baynes Excerpts

Tuesday 9th March 2021 Commons Chamber

[Simon Baynes (Clwyd South) (Con) [V]]

This is a very strong Budget for the Union. We are stronger as one United Kingdom. As a Welsh MP, I am particularly pleased to see the extra £740 million for Wales in the Budget, and I only hope that the Welsh Government will spend that money in a timely fashion, rather than continuing their habit over the last year of holding back hundreds of millions of pounds of the UK Government’s support from those who need it most in Wales. This means that overall, the Welsh Government are receiving an additional £2.1 billion in the next financial year through the Barnett formula, on top of the baseline of £15 billion. There is also £300 million of funding outside the Barnett formula, in particular for farm support and fisheries.

Businesses in Clwyd South are very appreciative of the continued financial support outlined in the Budget, such as the extension of furlough and support for the self-employed, the recovery loan scheme and the extension of the reduced VAT rate of 5%. I am delighted that the Government are accelerating the three city and growth deals in Wales—in Swansea bay, mid-Wales and north Wales—by bringing £58.7 million forward in the investment programme. This means that the north Wales growth deal will get an extra £4.4 million per year from April for the remaining nine years of the deal, which will create up to 3,800 new jobs and support an uplift of £2.2 billion for the economy, as well as local regeneration projects—in the Wrexham area, for instance—amounting to £9.1 million.

That boost to the economy will be further strengthened by the newly announced levelling-up fund, which will be UK-wide and will bring at least £800 million for infrastructure projects in Wales, Scotland and Northern Ireland, and by the newly announced community renewal fund, which will provide £220 million of extra funding over and above the old EU structural funds to pilot programmes and new approaches in Wales and across the rest of the UK.

This Budget helps to cement the UK as a world leader in offshore wind, which is of great importance to north Wales. Following the measures included in the 10-point plan and the energy White Paper, the Government have shown that they are determined to deliver a green and cleaner economy. Many constituents in Clwyd South contacted me before the Budget about universal credit, so I was particularly pleased by the extension of the £20 per week uplift for a further six months. In conclusion, I strongly support this Budget, which shows that the UK Government have north Wales at the heart of their agenda and are leading the way in Wales on delivering for local communities.