Welsh Affairs

I beg to move,

That this House has considered Welsh affairs.

A belated happy St David’s day, Madam Deputy Speaker. I am very pleased indeed that the Backbench Business Committee agreed to the collective request from Welsh Members for this St David’s day debate. It is an important historical event, and I feel that it is a particularly important debate this year, given what is happening. I am pleased that it is taking place and that Welsh Members have turned up in significant numbers despite, let it be said, some strongly competing demands. Good for them.

I will focus on two issues. The first is the shared prosperity fund and the fog around it, which I hope the Secretary of State will sweep to one side; the second is the very real cost of living crisis that people in Wales face today.

As we know, the shared prosperity fund is intended to replace European structural funds, from which Wales in particular derived a tremendous benefit over many years: west Wales and the valleys was designated an objective 1 area because of objective need, and significant resources were allocated from the EU to Wales. The Government said that they intended to replace that funding with a shared prosperity fund, and we have been waiting for the details with bated breath for some time.

We were initially promised the fund last year. We were then told, “Hang on a minute—the details will be in the White Paper on levelling up,” but the White Paper was published with only a passing reference to the shared prosperity fund. A guidance note was published, but that was all. We are now told that we must wait until next month for more details of the fund.

Does the hon. Gentleman agree that the lack of detail is extremely corrosive, particularly to small community organisations and small businesses? They are trying to plan ahead, but clearly they are being impeded by the Government’s delay—and probably, I am afraid, by their incompetence.

There is a great deal of concern about it, undoubtedly. Many of us were hoping that the Government would be true to their word and that a streamlined system would be introduced quickly and effectively. That clearly has not happened, so one of my questions to the Secretary of State is whether he will provide further clarification in this important debate, in some detail, about what will happen with the shared prosperity fund.

We have heard that the Government’s intention is to match European funding pound for pound. I welcome that statement, but I have to say that I am slightly concerned that that commitment may be more apparent than real. The European funding period was seven years, but we have yet to hear any commitment from the Government beyond the current short-term spending round. That could be as short as two years, so the big question is what happens after that.

Local authorities and other organisations have long-term projections for how their money will be spent. They have fed back to a number of hon. Members their very real concern that they can now commit only to projects that last two years, whereas reality and the needs of their communities dictate that they should have a longer-term perspective. If we are to make the promise of pound-for-pound support real, let us flesh it out. I will give the benefit of the doubt to the Government, but I have to say that there is nothing to substantiate the rhetorical claim that is being made.

I share the hon. Gentleman’s concerns about the shared prosperity fund, which was debated in Westminster Hall this week. There are other things that we agree on, too. Does he agree that the ties that bind us together as British and Celtic nations are worth celebrating, and that more should and must be done to make the most of our wonderful tourism opportunities through the shared prosperity fund? Between our two nations, I believe we have the United Kingdom’s most beautiful countryside and equally warm-hearted people—the Welsh and the Northern Irish people together.

Indeed. It is extremely important to celebrate the diversity of the United Kingdom and the mutual respect in our communities. That respect extends not only within the United Kingdom—long may it be united—but beyond our borders into other European countries and internationally. It is extremely important to remember that.

I thank my hon. Friend for securing the debate. May I pay tribute to him after his announcement that he will retire from this House at the next general election? He will recall that he was very kind to an 18-year-old student from his constituency —that was in the Pugin Room on my first visit here some time ago, on the day of the Conservative leadership challenge.

My hon. Friend will recall the community renewal fund. His county borough and mine were excluded from the planning process for that first fund. It is a systemic problem with the Government: they are not allowing local authorities to plan, they are not allowing them to have the funding, and they are not letting officials at local government level understand the process for applying for the shared prosperity fund. That is simply delaying any bids to the Department for Levelling Up, Housing and Communities.

I thank my hon. Friend for his kind words. On the community renewal fund, he is right that there was tremendous concern in the Caerphilly borough and in his constituency in the Bridgend area that those valley areas were, for some mystical reason, excluded from the Government’s list of 100 prioritised areas. Thankfully, as far as Wales was concerned, that prioritisation list was pushed to one side and all local authorities bar one received support from the community renewal fund.

My hon. Friend is being very generous in giving way. I echo the words of my hon. Friend the Member for Ogmore (Chris Elmore) on the huge contribution that he has made to this place and to Welsh politics more broadly.

The mess that my hon. Friend is talking about—the community renewal fund, the lack of information and the governance issues mentioned by my hon. Friend the Member for Ogmore—is symptomatic of a strategy to cut the Welsh Government out of the shared prosperity fund, and that is symptomatic of a broader strategy to completely dismantle devolution in our country. Does my hon. Friend the Member for Caerphilly (Wayne David) agree that it simply does not make sense to cut the Welsh Government out, because we need that strategic overview of what is happening with economic development in Wales? Unfortunately, this is due to a politically motivated aim to dismantle devolution, and the UK Government are using the shared prosperity fund as a vehicle for those purposes.

I absolutely agree. My hon. Friend has made, and is making, a huge contribution to this debate through his able chairpersonship of the all-party parliamentary group on the shared prosperity fund.

The hon. Gentleman is being very generous in giving way, and I will pay a broader tribute to him when I speak.

I do not recognise the hon. Gentleman’s description of issues such as the community renewal fund. We secured 23% of that fund for 165 projects in Wales, which is above and beyond the UK share that we would have got from any European project. Will he reflect on that sharing of the fund and hope that we secure more? When I talk to local authorities, they tell me that they are very welcoming of the schemes and the fact that they engage with them directly rather than through third parties.

It is a complicated situation. Initially, we were extremely concerned because, objectively speaking, areas of obvious need were being excluded for no good reason at all. That situation has changed, and I have to say that is because of our strong lobbying. It is very important to recognise that.

If we look across the border, we see that the situation in England is very worrying indeed, because in many cases resources were allocated not on the basis of need, but on the basis of a perverse formula that was concocted to help areas that most of us would agree do not need support. I am concerned about what has happened so far and the implications for the future.

The Government have apparently moved away from a competition mechanism whereby local authorities and others compete against each other. However, given the performance of the community renewal fund, I am worried that we will get another perverse formula that does not recognise what most of us would consider to be objective need. That is what happened with the European funding, but we are concerned that it may not happen with the shared prosperity fund.

My hon. Friend the Member for Aberavon (Stephen Kinnock) touched on my final point about the shared prosperity fund. He said that he was concerned about how it would relate to devolution. It is extremely important that we ensure that different tiers of government—central Government and the Welsh Government—work together. There must be, to repeat the phrase I used earlier, mutual respect between the two institutions. They need to pull together so that resources are used to maximum effect. It worries me greatly that there is, unfortunately, quite a lot of friction between the Welsh Government and central Government. I have to be honest: it seems to me that that is because central Government refuse to co-operate fully with the Welsh Government on economic development. I plead with the Wales Office and central Government to move away from that approach and to recognise that, at the end of the day, our interest is in the wellbeing of the people of Wales. We need to pull together in the interests of all our people, not indulge in petty squabbles and friction, and the onus is on central Government to do that.

My hon. Friend is making an incredibly important point. Is not that the reason why the Chancellor’s buy now, pay later scheme is so misguided? These constituents are already going to be potentially getting into debt as a result of those eye-watering rises; they do not need more misery piled on later.

My hon. Friend makes an extremely good point. Unfortunately, people still believe that they are being given money by the Government when in reality we all know that it is a loan that has to be paid back.

As we also realise, this is not a short-term crisis; it is going to continue for some time yet. There has been a slight delaying of the pain but no resolution of the difficulties that many people are facing. There is a need for a wholesale cut in VAT, but we also need to target those people who are in the greatest need again. Everybody is facing a crisis or a problem, but those who will bear the brunt of it are the poorest in our society. I urge the Government to rethink their whole support policy and to have not just a holistic policy, which is absent, but a policy that focuses particularly on those people and families who need support most of all.

For example, I welcome the fact that the Welsh Government’s winter fuel support scheme is making funds available only to those claiming universal benefit. That is a recognition that that is where the need is greatest, and I hope that this Government will learn from their good example. Clearly this is an ongoing situation, and I really hope that the Government will not just acknowledge the situation but revisit what they are doing to alleviate real fuel poverty and poverty generally for many people in Wales.

Finally, I would like to comment on the situation in Ukraine and the support that many people in Wales are giving to the Ukrainian people in their hour of need. I am sure that every single Member has been close to tears when they watch the television, particularly this morning when we saw families and small children crying and leaving their homes to find refuge and sanctuary elsewhere. I think that all of us, irrespective of our political affiliations, would want to do everything we possibly can to help those people in their terrible need. I pay credit to the fact that the Welsh Government, even though they have limited resources, have made some £4 million available in humanitarian aid and declared Wales to be a nation of sanctuary. Good; so it should be. That is something we can all be proud of.

I am sure that we would not want to forget the brave people in Russia and the Russian people living in this country who are protesting against the war. I organised a large rally in Caernarfon last Saturday, where I spoke to a Russian lady who lives locally. She told me through her tears that this was the first time she had ever felt ashamed of being Russian. She was there with a Ukrainian friend. There are also people in Russia who are standing up and protesting against the war, and we should support them as fully as we can.

The hon. Gentleman makes a good point. One thing that is very clear is that the Ukrainian people’s struggle is not with the Russian people; it is with Vladimir Putin, whose actions can only be described as barbaric. It is important that we have that solidarity in place to give our maximum support to the people facing such horrific circumstances.

I will conclude by saying that it is appropriate, on this day and in this debate, to remember something that St David repeated time and again, which is that is important always to be generous to those people in need. That is absolutely right.

May I belatedly wish you a very happy St David’s day, Madam Deputy Speaker? May I also say what a great pleasure it is to follow the hon. Member for Caerphilly (Wayne David)? This is not the first time I have followed him. I also followed him as Parliamentary Under-Secretary of State at the Wales Office, and I would like to pay tribute to him for all the hard work he has done over the years for Wales.

We speak today on the important issue of Welsh affairs, and I am delighted that the Backbench Business Committee has facilitated this debate. We speak also against the sombre backdrop of the events in Ukraine. We are living through difficult times—arguably the most difficult times since the end of the cold war. Russia’s unjustifiable aggression against Ukraine has made us all realise the truth of the old adage that the price of liberty is eternal vigilance. Making a strong contribution to the United Kingdom’s vigilance against the threats posed by an aggressive Russia are the 850 soldiers of the Royal Welsh Regiment who were recently deployed to Estonia as part of the defence of NATO’s eastern flank. The 1st Battalion the Royal Welsh is the successor to the historic regiment, the Royal Welch Fusiliers, one of the most ancient regiments of the British Army, which historically recruited in north Wales. I am sure that we all wish the soldiers of the Royal Welsh and their families well at this difficult time.

As the hon. Member for Caerphilly mentioned, sad events such as this tend to bring out the best in the Welsh people. I have no doubt that the tragedy of Ukraine is touching the hearts of the people of all our constituencies. In fact only today, while I have been waiting to speak in this debate, I have received two emails from constituents. One was from Mrs Parry in Llanfair Talhaiarn, who wanted me to advise on how she and her neighbours could get a supply of nappies to the refugees in Ukraine. The other was from Mr Bolton of Abergele, who drew my attention to the activities of Abergele Viewpoint, which is supporting the Disasters Emergency Committee. Like the hon. Member for Caerphilly, I commend the Government for already committing £20 million to that fund and committing to match-fund anything that the public raise.

The right hon. Gentleman rightly mentions the UK Government’s assistance in relation to the Ukraine crisis. During this St David’s day debate, will he acknowledge and praise the Welsh Government for setting aside £4 million of their budget for financial and humanitarian aid to Ukraine?