Support for the Welsh Economy and Funding for the Devolved Institutions — House of Commons, 2022-07-05
Topic: Macroeconomics
Simon Robert Maurice Baynes (Conservative, Centre-right): I thank the right hon. Lady for her intervention, and I have a degree of sympathy in that I believe we should support areas outside London, but the fact of the matter is that London generates the income that it spends. London, regardless of whether she or I like it, is the economic powerhouse. We represent adjoining constituencies in a very beautiful part of Wales, but the truth remains that a large proportion of Treasury finance is generated by London. Overall, the point I wish to make is that public spending in Wales is 20% more per person than it is in England, which shows, to my mind, that the UK Government are providing very strong support for Wales I have huge respect for the hon. Member for Cynon Valley and have seen how seriously she takes the cost of living issue, and learned a lot from listening to her in the Welsh Affairs Committee. I suggest that two things may be worth thinking about from the Labour party’s point of view. First, under Labour council tax bills in Wales have soared, while the UK Government have ensured that council tax has fallen in England in real terms by 1.1% since 2010. Over the same period, bills in Wales under Labour soared by 54%, or 17% in real terms. That really hits people in Wales in their pocket. Secondly—my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb) made this point—the Welsh Government now have the capability to use income tax to raise more money, or indeed to reduce income tax, yet we never hear any word of that. I often wonder whether the Welsh Government are scared of using those powers. We see all the time that an easier way to handle things is to complain about the UK Government but take the money, rather than actually thinking about ways to ameliorate the situation through levers that have been put in the hands of the Welsh Government. I also wish to comment on infrastructure, because it seems crazy to me that the Labour-Plaid coalition has suspended all new road building projects, holding back vital infrastructure improvements. If we want to improve the economic performance of Wales, we must improve the infrastructure—everybody knows that—and I hope that the Labour Welsh Government will reconsider that position Finally—you will be relieved to hear that, Madam Deputy Speaker—the Labour-Plaid coalition must also think hard about adding 36 more politicians to the Senedd at a cost of over £100 million per Parliament. That is enough money to pay for 780 doctors, 800 nurses, or 740 teachers. Let us consider the Welsh health service performance—I think Opposition Members have also commented on this. For example, the number of people waiting more than two years in Wales is now 68,032—an increase of 887% in a year—and that is more than five times the English figure of 12,735, which is shrinking fast. All I would say is that the Labour-Plaid coalition should think about spending the money that they are going to spend on extra members of the Senedd on improving the health service, which would be to the benefit of everybody in Wales.