Contribution
This is the right Budget at the right time. It delivers immediate relief, but also the long-term investment necessary to bring hope back to Britain. I welcome the further steps announced by the Chancellor to provide additional breathing room to households, which is essential. Energy bills will be cut, food tariffs will be slashed, the carer’s allowance cliff edge will be abolished, standing charges will be scrapped, parental pay will be expanded, and fuel duty will be frozen again, because Labour is on the side of working people. We recognise that times are tough, especially with the ongoing energy price spikes driven by Putin’s illegal invasion of Ukraine and, of course, the unnecessary US-Iran war.
This Government’s ability to support hard-working families while continuing to provide up-front investment in our public services is testament to our careful economic management. Our careful stewardship has been commended by the IMF and has allowed us to enjoy the joint highest growth in the G7 while keeping public debt under control. The cost of living relief announced today by the Chancellor only builds on that already announced by the Prime Minister in his first 100 days—taking VAT off energy bills, a £2 bus fare cap, business rates relief, and tackling rogue tradespeople and repeat subscription scams.
I am disappointed, though, that where this support relates only to England, the minority Plaid Cymru Welsh Government have not shown the same ambition or understanding of the everyday pressures facing households. We need to see that £2 cap on bus fares in Wales, as well as the extension of £1 fares for under-21s. I look forward to Plaid Ministers announcing how they will match the UK Labour Government’s reduction in bus fares—let us hope they do it quickly. Barnett consequentials on spending announcements are worth an additional £450 million to the Welsh Government, and I suggest that they spend it wisely, as people in Wales also want to benefit from this Budget for working people.
With my constituency being home to the Welsh semiconductor cluster, and as the chair of the APPG for semiconductors, I am extremely proud of this Government’s commitment to manufacturing. I recognise the role that reindustrialisation can play in bringing well-paid jobs to every postcode, including the £20 million to support UK reindustrialisation and high-value jobs. That builds on the existing strengths of the semiconductor cluster in Newport West and Islwyn.
Boosting manufacturing and the Prime Minister’s ambition to bring good growth to every postcode are particularly important in Wales, where we felt the impacts of 40 years of neo-liberalism at their hardest. Well-paid union jobs in our industrial heartland and coalfield communities disappeared and were never replaced. Despite the damage done by decades of Conservative Governments, Wales remains a proud manufacturing nation. The evidence is clear from my own constituency, with world-leading manufacturers choosing Wales for investment. Advanced manufacturing must be at the heart of a future Welsh economy. This Budget backs that ambition.
This Budget is another big win for reversing 14 years of Tory under-investment in Welsh railways. Last year, we saw £445 million of funding for new stations, and now we have an additional £30 million for the Cardiff Parkway station site. As my constituency neighbours that site, I particularly welcome that announcement. It will provide meaningful alternatives for commuters and shoppers wanting to travel between Newport and Cardiff. I look forward to further announcements at the spending review on the delivery of this Government’s £14 billion commitment to transform Welsh rail infrastructure, including the additional five stations across Newport.