Economic Growth

Economic growth is the No. 1 priority for this Government. The UK was the fastest growing economy in the G7 in the first half of this year. Wages are up, inward investment is up, inactivity is down on the year and interest rates are down. This Labour Government are delivering for working people all across Wales and the United Kingdom.

It is brilliant that last month a total of £214 million was invested in communities across Wales as part of the Government’s pride in place scheme. In my patch, I was delighted that earlier this year Scarborough was awarded £20 million through the plan for neighbourhoods. These initiatives will give local people the power to decide how funding will transform our towns. Will the Secretary of State update the House on how funds such as these will boost local economic growth and restore pride in our communities?

Through the pride in place initiative, we are putting power and resources directly into the hands of local communities, from Conwy to Carmarthenshire, giving them the ability to decide the priorities that matter most and the funding to pay for visible and lasting change. In Wales, 14 communities will benefit from £20 million of investment, alongside a further £34.5 million benefiting every single local authority across Wales. Together, the investments will help revitalise high streets and improve public spaces and community facilities, which is a central part of our mission to boost the economy and break down barriers to opportunity.

As the MP for the centre of London, including Paddington station, I know how interconnected our countries and our economies are. In stark contrast to the nationalist parties of Reform and Plaid Cymru, the Labour Government are focused on job creation. Will the Secretary of State update us on the impact of Plaid Cymru’s damaging independence plans?

Plaid Cymru’s disastrous plans for independence will cost Wales £21.5 billion every year— over £11,000 for every working-age person in Wales or over £7,000 for every adult and child in Wales, every single year. The people of Wales deserve to know what public services Plaid Cymru will cut or what taxes it would raise to pay for its divisive, separatist plans?

It is not just farmers but lots of other family businesses who are terrified for their future. Under the business property relief, a company worth £20 million would have to pay £4 million in tax, yet that responsibility falls not on the business but the person who inherits it, so they will have to extract another £4 million to pay that tax, crippling family businesses, crippling investment and hurting growth in Wales. That is true, is it not?

It is certainly not. The right hon. Gentleman will have heard of tax planning, and so will the people he has been talking about. Investment is up in Wales and we have had record inward investment in Wales, with a 23% increase on the previous financial year and a 30% increase in jobs created. The UK was the fastest growing economy in the G7 in the first half of this year. Businesses are growing, developing and creating jobs under this Government.

I call the shadow Secretary of State.

Under the watch of the current Secretary of State, opportunities for young people are now unbelievably dire. Despite what she says, unemployment is rising and employment is falling, and that situation is not good enough for the next generation in Wales. Last week, my colleague, Darren Millar, who is the Conservative leader of the Senedd group, met the Welsh First Minister—does anyone know who that is?—offering to potentially support the Welsh Government’s budget, provided Labour Ministers agree to scrapping Welsh stamp duty. That would help young people on to the property ladder in Wales, where it is the hardest to achieve that, and boost the Welsh economy. Will the Secretary of State confirm that she agrees with scrapping Welsh stamp duty? If so, what measures is she taking to persuade Baroness Morgan of Ely to scrap the tax in Wales?

I am very glad that the hon. Lady knows the name of the Welsh Conservative leader in the Senedd, because clearly her colleague the shadow Home Secretary, the right hon. Member for Croydon South (Chris Philp), does not. They must have ended their fight about who is the actual leader.

We are delivering for the people of Wales. We have ended Tory austerity, and we have the largest budget settlement in the history of devolution, with nearly £5 billion extra to spend on public services over the next three years. We are creating jobs, and we have increased the minimum wage and the national living wage for 160,000 Welsh workers. We are fixing the foundations and the chaos that the hon. Lady’s party left behind.

Allow me first to congratulate Lindsay Whittle on his seismic victory in Caerphilly. In doing so, I pay tribute to the late Hefin David, whose service to his community was deeply respected. As Mr Whittle has said:

“He will be a hard act to follow. I will never fill his shoes but I promise you I will walk the same path that he did”.

The result shows that people in Wales seek real change. In her capacity as Secretary of State at the Wales Office, what is she doing to press the Labour Chancellor to include measures that benefit Wales in the autumn Budget?

I thank the right hon. Lady for her words about our late colleague Hefin David. I congratulate Lindsay Whittle on his victory and on becoming a Senedd Member; I am sure that he will work very hard for his Caerphilly constituency for the next six months. As she will know, I am not going to comment on discussions between myself and the Chancellor ahead of the Budget. She will have to wait and see what the Chancellor says on 26 November.

None the less, I think we all know that the autumn Budget risks falling short of tackling the deep poverty and lack of opportunities that still scar far too many Welsh communities. We need to tax income from wealth fairly, scrap the two-child limit and ensure that families have the support they need to cope with rising costs. The Secretary of State tells me to wait for the Budget. Perhaps she is therefore prepared, for once, to meet with me to discuss Plaid Cymru’s proposals for a fairer, more ambitious UK Budget that actually works for Wales. Will she meet with me?

I am very happy to meet with the right hon. Lady.

I thought so.