LABOUR’S AUSTERITY WILL INCREASE POVERTY

Ben Lake MP outlines alternative fiscal options instead of wide-ranging cuts

Plaid Cymru’s Treasury spokesperson, Ben Lake MP, has written to Chancellor of the Exchequer Rachel Reeves ahead of the 2025 Spring Statement, urging the UK Government to reconsider planned spending cuts and ensure Wales receives fair funding.

The Spring Statement, set to be delivered in the House of Commons on Wednesday, 26 March, will provide an update on the UK economy, public finances, and the Government’s economic objectives. The Office for Budget Responsibility (OBR) will publish its latest economic and fiscal forecast alongside the statement, with expectations that the UK’s economic outlook will be downgraded.

Ben Lake MP has raised concerns that the UK Government’s response to this downturn – cutting public spending – will disproportionately impact the most vulnerable communities in Wales, exacerbating poverty and inequality.

He has also highlighted the potential financial implications for Wales of England-only decisions, such as the abolition of NHS England, which could reduce the funds allocated to Wales through the Barnett Formula.

 

In his letter, Ben Lake MP proposes several alternatives to the Chancellor’s current fiscal approach. These include:

• Charging National Insurance on limited liability partnerships, such as large corporate law firms;
• Closing tax loopholes that allow overseas-based online vendors to avoid VAT;
• Ending subsidies for oil and gas companies.

 

The Plaid Cymru MP also calls on the Chancellor to address the longstanding funding disparities faced by Wales. He notes that Northern Ireland’s Barnett Formula allocation is 9% higher than that of Wales, leaving Welsh public services underfunded. 

In his letter, Ben Lake MP writes:

“The Office for Budget Responsibility is widely expected to downgrade the performance of the UK economy, and I am concerned that the Government’s response to cut public spending will harm the most vulnerable in Wales by increasing poverty and exacerbating inequality.

“Spending decisions which apply to England only, such as the decision to abolish NHS England, will nevertheless have implications for Wales by potentially reducing the amount received through the Barnett Formula.

“I note that several practical alternatives have been proposed to raise additional revenue for the UK Government, and I would be grateful to understand whether they have been considered in advance of the Spring Statement. It has been estimated that charging National Insurance on limited liability partnerships such as large corporate law firms, for example, or closing loopholes allowing overseas-based online vendors to avoid paying VAT, in addition to cutting the subsides for oil and gas companies could raise billions to help meet the Government’s current fiscal rules without the need for further austerity.

“The Spring Statement is also an opportunity to give Wales financial parity with the devolved nations so that the Welsh Government has the economic levers to grow the economy and improve livelihoods. For instance, Northern Ireland’s Barnett Formula needs-based funding is 9% higher than Wales’s which means Welsh public services such as health and housing are missing out on additional funding. Wales also lacks the ability to invest in infrastructure such as schools, hospitals and transport projects given that the Welsh Government has an annual capital borrowing limit of £150 million compared to the Scottish Government’s £450 million. I would be grateful to know whether the UK Government will look to address these inequalities as part of its ongoing negotiations with the Welsh Government on the Welsh Government Fiscal Framework.

“I urge you to use this Spring Statement to fulfil the UK Government’s promise of not returning to a policy of austerity, and to introduce fair funding and investment powers for Wales.”

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SUPPORTING OUR SMALL BUSINESSES

A Plaid Cymru government would cut taxes for small, independent Welsh businesses.

Plaid Cymru’s economy spokesperson Luke Fletcher is expected to outline his party’s plans during his Spring Conference speech.

In his speech, Mr Fletcher is expected to highlight the struggles that independent businesses face in Wales, saying that there are “countless examples the length and breadth of Wales where the full potential of our domestic businesses is going unfulfilled”, with “too many independent shops, pubs, cafés and restaurants having to close” which has led to the decline of town centres.

The Plaid Cymru Economy spokesperson will say that Wales needs to change how it taxes our town centre businesses to realise the potential of town centres and independent businesses.

He will outline Plaid Cymru’s plans to use the business rate multiplier to “reduce rates for independent businesses in retail or hospitality”.

According to Mr Fletcher, the policy would be cost-neutral, as a Plaid Cymru-led Government in 2026 would “look at how we charge rates so that those who can afford to pay more, contribute more”.

In his speech to the Plaid Cymru Spring Conference, Plaid Cymru Economy Spokesperson, Luke Fletcher MS will say,

“Our high streets provide a lens on the challenges facing Welsh businesses – challenges that Labour in Wales has failed to address or made actively worse over a quarter of a century in power.

“It’s a story we’re all too familiar with, isn’t it? On high streets across Wales there are empty buildings and shuttered shop fronts where thriving local businesses should be. Pubs, cafés and restaurants, all struggling with a cost-of-doing business crisis – a crisis made worse by sky-high taxes on businesses and Labour’s scrapping of business rates relief.

“An independent store owner on the high street in Aberystwyth pays nearly ten times more than a major chain on the town’s outskirts, and significantly more than would an equivalent business in England. In Bridgend, a locally owned and managed coffee shop and bakery pays the same level of non-domestic rates as its multinational competitors. Instead of being able to grow and develop as a business, investing locally in the supply chain, training and jobs, it is a business simply looking to survive.

“There are countless examples the length and breadth of Wales of businesses’ full potential going unfulfilled – too many of what should be successful businesses going to the wall. And the result? Town centres in decline, instead of on the up.

“I am proud that more and more businesses are looking to Plaid Cymru for the solution. And I am even more proud that we are able to offer one.

“If we want our town centres to thrive, then we need to change how we tax the businesses on our high streets, to better support the kinds of successful Welsh-owned shops, cafés, bars and restaurants we all go to our town centres for.

“There’s a solution that is well within our grasp.

“Through varying the multiplier, we have the power to reduce rates for independent businesses in retail, leisure and hospitality. It really is that simple. And by looking at how we charge rates so that those who can afford to pay contribute more, it would also be cost-neutral.

Mr Fletcher will also say,

“In the coming weeks, I will formally be launching ‘Making Wales Work: Plaid Cymru’s new economic plan’. I am proud of the amount of hard work that has gone into this plan, and the new and ambitious vision for the Welsh economy that it represents.

“That vision and that ambition extends from our seabed to our high streets, and covers everywhere in between.

“Our plan will see capital built, retained and recycling in our communities, instead of it leaking – and in some cases flooding – out of Wales. It will grow and sustain Welsh-owned businesses, delivering good jobs, reviving our town centres, and boosting living standards.

“I am clearer now than ever that Wales needs a Government with real vision and with fire in its belly.

“Wales needs a Plaid Cymru Government – and next year we will have an historic opportunity to deliver one.“

- ENDS -

TACKLING CHILD POVERTY

A Plaid Cymru government would introduce a child payment to tackle increasing levels of child poverty in Wales, Plaid Cymru leader Rhun ap Iorwerth has announced.

During his leader’s speech, Mr ap Iorwerth said that a Plaid Cymru government would begin the process of implementing the payment to “sustain families and support communities”.

Addressing delegates at Plaid Cymru’s Spring conference in Llandudno, ap Iorwerth said “we cannot continue to fail the very people on whose futures we depend for a brighter tomorrow”, and criticised both Labour and the Conservatives for rising levels of poverty in Wales.

The announcement follows analysis by the Joseph Rowntree Foundation which revealed Scotland is the only part of the UK where child poverty rates are projected to fall by 2029 – a direct result of the Scottish Child Payment.

In Wales, child poverty is projected to increase from 32.3% as of January 2025 to 34.4% by January 2029.

Plaid Cymru’s ‘Cynnal’ payment would be a weekly direct benefit to support those who need it the most.

In announcing the payment to delegates, the Plaid Cymru leader asserted that “doing nothing is not an option.”

Plaid Cymru leader, Rhun ap Iorwerth said:

“Friends, there’s a lot that Wales can be proud of - but there remains a national stain, an indelible mark on communities the length and breadth of our country. And that’s poverty, and child poverty in particular.

“It’s unforgivable that so many of our children go without the basics – not even afforded the decency of good health and the bare essentials, let alone an equal chance to succeed.

“We cannot continue to fail the very people on whose futures we depend for a brighter tomorrow, and on this issue, the record of successive Labour Welsh Governments, coupled with the deep austerity of Conservative UK Governments is nothing short of shameful.”

Mr ap Iorwerth continued,

“Drawing on the experience in Scotland and learning from its transformational benefits, I can announce today that a Plaid Cymru Government will begin the process of implementing a child payment in Wales – a weekly direct benefit to support those who need it the most.

“After 14 years of austerity under the Tories and 26 years of ambivalence under Labour – this would be a new government rooted in the values of fairness and social justice.

“The ‘Cynnal’ payment as it’ll be known will do exactly that - it will sustain families and support communities.

“Those in receipt will feel less anxious about making ends meet – becoming more productive in the long run.

“Children go on to be healthier and more economically active, and the money will be re-invested in local economies, where people buy the bulk of their essential goods and services.

“Conference, doing nothing is not an option.”

- ENDS -

A WIN-WIN FOR WALES

Rhun ap Iorwerth MS will today use his keynote address to his party conference in Llandudno to set out how a Plaid Cymru Government would offer a “win-win for Wales”, both rebuilding public services and the economy in Wales, and standing up to Keir Starmer and UK Labour.

 

Addressing Conference delegates, Rhun ap Iorwerth MS is expected to say that if elected First Minister after the Senedd Elections next May he would put the Prime Minister “on notice that the relationship will change because our destination demands it.” 

 

The Plaid Cymru Leader will say that the current relationship between the Labour Welsh and UK Governments represents “a lose-lose for Wales” and that a government under his leadership would be “A government which understands our communities, which cares for our nation’s future, which will never let private profiteering infect our NHS, and which will take responsibility for its own actions rather than deflect to Westminster.”

 

Due to speak on Friday afternoon, Rhun ap Iorwerth MS is expected to say:

 

“The truth is that the establishment wants to stifle, even obstruct, our ambition. On one hand, Keir Starmer makes life more difficult for the most vulnerable – his and Rachel Reeves’ Tory-inspired benefits cuts will hit some of the most vulnerable people in coming weeks, and on the other, Eluned Morgan doesn’t want the powers that could make a difference to people’s lives.  

 

It’s a lose-lose for Wales.  

 

The SNP has secured more powers and a better deal for Scotland because of their determination to stand up to Westminster. 

 

Meanwhile in Wales, we have a Labour First Minister blinded by party loyalty, too afraid to rock the boat, pandering to Starmer, stuck in the middle of the road and failing to move our nation forward.”  

 

The Plaid Cymru Leader will add how the relationship between Wales and Westminster would be radically different should he be elected First Minister:

 

“So, whilst Labour’s failures feed Reform’s fear-mongering, we are here to offer hope.   

 

An end to Labour-led rule in Wales after twenty-six years.  

 

A government which understands our communities, which cares for our nation’s future, which will never let private profiteering infect our NHS, and which will take responsibility for its own actions rather than deflect to Westminster.  

 

And my first meeting with Keir Starmer as Plaid Cymru’s First Minister of Wales? Well, it’ll mark a new beginning – the start of discussions on building a new Welsh nation. 

I’ll do all I can to make it a constructive relationship, certainly, but for one thing, the future of Wales will clearly be the only focus for me – no party loyalties to balance, or blind loyalty to a broken Union. And there’ll be a plea to see Wales differently in so many ways.  

 

Not just as fertile ground for electoral fodder, or for fleeting campaign pit stops and photo-ops. 

 

Not just an afterthought – fourth in line behind England, Scotland and Northern Ireland because their First Ministers and Mayors refuse to settle for less.  Not just a dead cat or a nodding dog to change the subject or cheer him on when times are tough.  

 

But a nation whose people deserve the respect of being heard, of being listened to.  And there can be no ducking the HS2 issue, no dodging when the Crown Estate should be on the agenda or turning away when fair funding HAS to be on the table. The UK Government will HAVE to respond.  

 

Our vision of Wales – open, inclusive and internationalist – is of nation where decisions affecting its people are made in Wales for the benefit of its people. 

 

Our ultimate-aim is to future-proof Wales by not allowing ourselves to depend on the whims of Westminster. We want to be good neighbours but equal neighbours.  

But so long as we are tied to the unequal union, we must leverage the prospect of Wales standing on its own two feet. And becoming a genuine partner in a redesigned Britain. 

 

As Mark Drakeford said, when Scotland speaks, Westminster listens. 

And when Wales speaks with a Plaid Cymru First Minister at the helm, they’ll need more than platitudes to silence us. Be in no doubt – it’s a win-win when we negotiate with the mindset of an ambitious nation, focused on rebuilding public services and the economy in Wales whilst also standing up to Keir Starmer and UK Labour.”

 

- ENDS -

A SHOCKING FAILURE TO COMMEMORATE COVID

The failure of the Welsh Labour Government to make Sunday 9^th of March the fifth anniversary of the start of the Covid-19 Pandemic was shocking. 

The day offered individuals, families, and communities an opportunity to reflect on the five years that have passed since the Covid Pandemic, and the impact it has had on their lives and their loved ones.

 

Plaid Cymru Health spokesperson, Mabon ap Gwynfor attended an event at Hafod y Bwch Commemorative Woodland in Wrexham.

 

To mark Covid-19 Day of Reflection, Mabon ap Gwynfor, said:

 

“The Covid response in Wales was a distinctly Welsh response, distinctly affecting the Welsh people, and therefore it deserves a distinctly Welsh commemoration to remember and honour those lost to the devastating virus.

 

“Today, 5 years on, we remember those who lost their lives during the pandemic, the families affected, and the continual impact it has on our lives today.

 

“I pay tribute to the Covid-19 Bereaved Families for Justice Cymru in their fight for a Wales-specific Covid enquiry and in organising the commemoration services, one of which I am honoured to be attending today.”

 

- ENDS - 

URGE YOUR MP TO SUPPORT WALES

On Monday 24th February 2025, the Crown Estate Bill will be debated in the House of Commons at its Report Stage.

Llinos Medi MP’s amendment is the last chance to demand fairness for Wales in this Bill.

Urge your MP to support Plaid Cymru’s amendment.

You can Find your MP here

Draft letter:

Dear MP,

I am writing to urge you to support the amendment to the Crown Estate Bill, tabled by Llinos Medi MP, which will be debated on 24th February.

This amendment calls for the transfer of Crown Estate management in Wales to the Welsh Government within two years, allowing Wales to control the profits from its own natural resources. Currently, millions of pounds generated in Wales go directly to the UK Treasury, leaving our communities with no benefit. In contrast, Scotland has seen significant benefits since the devolution of its Crown Estate.

The devolution of the Crown Estate has widespread support in Wales, and MPs should represent the interests of their constituents. I urge you to sign the amendment and support Wales' right to control its own resources.

 

Kind regards,

[Your name]