🤔 Oral Answers to Questions
Commons Chamber
In a heated parliamentary session, Welsh Secretary Jo Stevens faced intense questioning over the impact of rising national insurance contributions on employment in Wales, amidst concerns from businesses about job losses due to increased taxes and a higher minimum wage. The debate saw clashes between the Conservative and Labour parties, with accusations flying about voting against key budgets that support businesses, apprenticeships, and public services in Wales. Discussions also touched on devolution issues, including the Crown Estate and its potential to create jobs through offshore wind projects, and the Welsh tourism industry’s struggles with proposed tax increases. The session highlighted deep divisions and ongoing challenges in supporting economic growth and public welfare in Wales.
Summary
- Employment and National Insurance:
- Rebecca Smith raised concerns about the impact of rising employer national insurance contributions on Welsh employment, noting additional pressures from an increasing minimum wage and other business taxes.
- Secretary of State Jo Stevens highlighted efforts to protect small businesses, noting that the employment allowance has been increased, benefiting over half of small and micro businesses in Wales.
- Economic and Employment Policies:
- Opposition members critiqued the government’s economic policies, arguing they create uncertainty and might lead to job losses. They pointed to specific cases where businesses might reduce workforce due to new taxes.
- Jo Stevens defended the government’s stance, citing the Conservative’s opposition to apprenticeship and business support initiatives in the Welsh Parliament.
- Crown Estate and Renewable Energy:
- Discussions focused on the economic opportunities from the Crown Estate, particularly through floating offshore wind in the Celtic Sea, with potential for thousands of jobs and significant investment.
- The government emphasized maximizing the benefits of the Crown Estate for Wales rather than devolving it, to ensure large-scale job creation and investment.
- Agricultural Policies:
- Changes to agricultural and business property relief were debated, with concerns about their impact on Welsh farms. The government assured that the farming budget was protected and that impacts would be minimal.
- The Welsh Affairs Committee announced an inquiry into farming, reflecting its importance to the Welsh economy.
- Healthcare and Cancer Strategies:
- Regular discussions between the UK and Welsh governments are addressing cancer strategies and NHS waiting lists, with positive progress reported in reducing cancer waiting times.
- Additional investments in the Welsh NHS, including cancer care initiatives, were announced, but faced criticism from opposition parties for related budget decisions.
- Tourism and Economic Support:
- The Welsh tourism industry’s challenges and supports were discussed, with investments announced for key attractions like Venue Cymru and the Newport transporter bridge.
- A visitor levy was proposed to support the tourism sector, but concerns were raised about its impact on businesses already facing higher taxes.
- Education and School Standards:
- Discussions touched on the historic funding for the Welsh Government and its allocation to education, despite criticisms from opposition parties on recent budget votes.
- Despite increases in education funding, concerns were raised about Wales’s performance in international student assessments.
- Prime Minister’s Engagements:
- Prime Minister Keir Starmer highlighted ongoing international efforts towards peace in Ukraine and domestic policies aimed at increasing home ownership and workers’ rights.
- The Prime Minister addressed various domestic and international issues, including economic policies affecting businesses and individuals, and reaffirmed commitment to supporting veterans and improving healthcare services.
Divisiveness
The session displayed significant levels of disagreement, primarily focused on the impact of various government policies, especially the rise in national insurance contributions, the allocation of budgets, and the treatment of various sectors like farming, tourism, and education. The disagreements were evident across different political parties, with the Conservative party, Labour party, Liberal Democrats, SNP, and Plaid Cymru members engaging in pointed exchanges, often challenging the decisions made by the government.
Examples of disagreements include:
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National Insurance Contributions: Rebecca Smith (Con) criticized the rise in employer national insurance contributions, stating it would force businesses to reduce their workforce. Jo Stevens (Lab) countered by highlighting the protection of small businesses and accused the Conservatives of blocking apprenticeships and business support.
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Budget Allocation: There was significant contention around the Welsh budget, where the Conservatives and Plaid Cymru were accused of voting against crucial funding for sectors such as the NHS, farming, and education. Jo Stevens and other Labour members repeatedly brought up these voting decisions to challenge the opposition’s stance on supporting key public services.
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Farming Sector: John Cooper (Con) expressed concerns about changes to agricultural and business property reliefs, portraying them as a ‘war on farmers’. Dame Nia Griffith (Lab) defended the government’s position by emphasizing the protection of the farming budget and the Treasury’s confidence in their figures.
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Tourism Industry: Joe Robertson (Con) criticized the high tax burden on the tourism sector, calling for tax reductions. Jo Stevens responded by reminding him of the high tax burden left by previous Conservative governments and the recent Conservative voting against tourism support funding in the Senedd.
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Education Standards: Sir Ashley Fox (Con) raised issues with school standards and PISA scores in Wales, suggesting a correlation with long Labour governance. Dame Nia Griffith refuted this, pointing out the increased investment in education under the current government and the opposition’s attempt to block budget increases.
These specific examples illustrate a high level of contention and disagreement, justifying a rating of 4 out of 5 for the intensity and frequency of disagreements during the session.