LABOUR’S LACK OF AMBITION

The Autumn Budget is the ‘last opportunity’ for Labour to prove ‘once and for all’ that it is serious about fair funding for Wales says Plaid leader.

At the start of a new Senedd term, Plaid Cymru Leader Rhun ap Iorwerth has hit out at Prime Minister Keir Starmer and First Minister Eluned Morgan on their ‘refusal to act’ on securing fair funding for Wales, showing a lack of ambition for Wales’ future.

Last year, Eluned Morgan boasted Keir Starmer was “in listening mode” on the need to increase Welsh government funding and review how Wales is resourced and said she had discussed reforming the Barnett formula with the Chancellor.

Twelve months on and Wales is not a single step closer to being in receipt of fair funding – something which the Plaid Cymru Leader branded as “damning indictment of its lack of ambition”.

Accusing Labour of “taking Welsh voters for granted for too long”, Rhun ap Iorwerth said that a Plaid Cymru government “would not rest” until Westminster agreed to right the historic wrong of unfair funding.

Mr ap Iorwerth went on to say that the upcoming Autumn Budget was Labour’s opportunity to prove ‘once and for all’ that they are serious about fair funding for Wales.

In June 2025, Senedd Members unanimously supported a Plaid Cymru motion to scrap the Barnett Formula, but ‘Wales’s voice means nothing to Labour in London’ said Mr ap Iorwerth.

Plaid Cymru Leader Rhun ap Iorwerth MS said:

“It’s been a year since the First Minister proudly announced that Prime Minister Keir Starmer was “in listening mode” when it comes to fair funding for Wales – yet a year on, we’re still no better off, and it’s our already stretched public services that are paying the price.

“Under the current system, Wales is footing the multi-billion pound bill for HS2 and missing out on £72m as a result of Labour’s national insurance hike, both examples just to name a few.

“It’s clear that Wales’s voice means nothing to Labour in London, and that the First Minister isn’t up to demanding what we’re owed from her London bosses.

“Only a Plaid Cymru government will take seriously the need to keep making this case with Westminster, and as First Minister I would not rest until they agree to right these historic wrongs.

“With an upcoming UK Budget in November, this is Labour’s opportunity to prove once and for all that it is serious about addressing the way in which the Welsh Government is resourced.”

- ENDS - 

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.”

- END -

A PATRONISING AND CONTEMPTUOUS ATTITUDE TO WALES

Labour’s Jo Stevens has been accused of demonstrating a “patronising and contemptuous attitude” towards Wales by Plaid Cymru.

 

In an interview with S4C program Byd yn ei Le the Shadow of Secretary of State for Wales says she has “full confidence” in the troubled Wales First Minister Vaughan Gething, says Wales would not get consequential funding from HS2 because the project is “not being built”, and ridicules the devolution of justice and policing to Wales as “fiddling around with structures and systems”.

 

HS2 is currently being built – with the project itself saying it is at “peak construction”.

 

The devolution of justice and policing to Wales is supported by Plaid Cymru and Labour in Wales. It has been supported by several independent or cross-party commissions including the Thomas Commission (2019), the Silk Commission (2014) and most recently the Commission for the Constitutional Future of Wales (2024).

 

Plaid Cymru member of the Senedd Heledd Fychan said,

 

“Not a day goes by without it becoming clear that ‘Welsh’ Labour’s HQ is firmly based in London.

 

“On both fact and principle, Shadow Secretary of State for Wales, Jo Stevens is wrong.

 

“Wrong to say that high speed rail in England isn’t being built, and wrong not to support the principle that Wales should get its share of spending on transport projects in England.

 

“In referring to devolution as an agreement not a demand, the would-be Welsh Secretary gave us a preview of how Wales would be treated by a Labour UK government.

 

“Her insistence that devolving justice amounts only to fiddling around with structures and systems laughs in the face of Labour commissioned reports which make the positive case for devolving policing and justice.

 

“The interview displayed nothing short of a patronising and contemptuous attitude towards Wales by Keir Starmer’s top team.

 

“It’s becoming clearer by the day that the only vote for Wales’s voice to be heard and respected on July 4th is a vote for Plaid Cymru.”

 

ENDS

EDITOR’S NOTES

The full interview from Byd yn ei Le by Catrin Jones is available here: https://newyddion.s4c.cymru/article/21955

HS2 is currently being built: https://www.hs2.org.uk/what-is-hs2/hs2-project-update/

Plaid Cymru argue Wales is owed almost £4bn in consequential funding from the project. It is a view shared by all major political parties in Wales. 

In addition to Plaid Cymru, the devolution of justice and policing to Wales is supported by Labour in Wales including senior Welsh Government figures (Jeremy Miles, Jane Hutt, Mick Antoniw), the Justice Commission led by Baron Thomas of Cwmgiedd, the Silk Commission (2014) and the Commission on the Constitutional Future of Wales (2024) chaired by Laura McAllister Dr Rowan Williams.

https://en.wikipedia.org/wiki/Proposed_Welsh_justice_system

SHORTCHANGED AGAIN

Westminster is shortchanging Wales by £4bn from the HS2 project Plaid Cymru have said. The party pledged to fight for the funding Wales is owed.

High speed rail project HS2 has been designated an ‘England and Wales project’ despite not an inch of track being in Wales.

Plaid Cymru’s candidate for Ynys Mon in the general election Llinos Medi argued that Wales should receive its fair share of Barnett consequentials – estimated at around £4bn – if the project were designated as ‘England only’.

Plaid Cymru candidate for Ynys Môn, Llinos Medi, said:

“For Wales, HS2 is a scandal. A scandal that shows just how much Westminster disregards the needs and voice of Wales.

“Not an inch of HS2 track will be in Wales and yet Welsh taxpayers are having to pay for it. This is unjust and unfair.

“If the project were to be reclassified as an England-only project, as Plaid Cymru has been campaigning for, Wales would get £4bn in consequential funding. But neither Labour nor the Tories have pledged to put this right.

“These are billions of pounds that could be used to connect our communities, north to south, and restore Labour imposed cuts to bus services.

“Only Plaid Cymru has the ambition to deliver a Welsh transport system that our communities deserve. We are the only party that is demanding the billions we deserve in rail funds and the full transfer of power over our railways to put this right once and for all.

“And only by voting for Plaid Cymru on 4 July will Wales get a strong group of MPs who will shout for Wales in Westminster and demand the fairness our communities deserve. 

ENDS 

 

EDITOR’S NOTES / NODIADAU I’R GOLYGYDD

On Wednesday 4 June, the Senedd led a debate calling simply for the fair share of funding to Wales from HS2 funding. The motion passed unopposed, but Plaid Cymru has called out the hypocrisy of Labour and the Conservatives, who despite supporting calls in the Senedd have failed to persuade the leaders of their parties in Westminster to treat Wales fairly.

If Wales were treated the same as Scotland and NI, we would be owed at least £3.9m from HS2 consequentials, even after the second phase being cancelled HS2 classed as an England and Wales project, and, while transport is devolved, rail infrastructure isn’t. If it was reclassified as England only, Wales would receive its fair share, as not a single metre of track laid in Wales.

·   Up to a quarter of Wales’s bus routes are at risk of being cut or facing significant amendments in the coming year

·  Cost of reopening Carmarthen-Aberystwyth line, and Afon Wen to Bangor would be £2bn, only half of the money we are owed from HS2

·   In October 2023, Sunak promised to electrify the North Wales mainline, at a cost of £1bn

·   WG has refused to pursue a legal challenge against the UK government to withhold the HS2 money - labelled “A worrying sign of things to come should Keir Starmer become the next PM” (Rhun 17 April)

TWO OUT OF THREE

The current (and also future) Welsh Government will receive less money to spend on transport for the foreseeable future, thanks to HS2 being designated as an England and Wales project - this is despite the fact that no part of the track is included in Wales. This decision has excluded Wales from receiving any of the  additional funding that will flow to Scotland and Northern Ireland over the lifespan of the HS2 project.

A report produced by Cardiff University’s Wales Governance Centre has noted that for life of the HSR Project, perhaps for several decades the Welsh Government will receive a much smaller share from any increase in the Department for Transport’s budget. This is part of what  has been described as a "historic under-funding" thats locked into the system for Wales. 

Wales suffers because there is no fully devolved control over transport, if this was the case then Wales would have been  £514 million better of in terms of investment in its rail infrastructure between 2011-12 and 2019-20. As well as perpetuating underinvestment in Wales’ rail infrastructure, the Cardiff researchers have also warned that the non-devolved system will also lead to a funding squeeze on the Welsh Government’s future budget.

Once you start to factor in the lost funding by way of comparison with the projected cost of several major Welsh rail infrastructure projects that have been estimated by external sources, including:

• The Carmarthen to Aberystwyth line (£620-775 million)
• Electrification of the North Wales Coast mainline (£764 million)
• Electrification of the South Wales mainline between Cardiff and Swansea (£433 million)

With the additional funding, the powers and the vision to use it for our priorities rather than Westminster priorities, people may well begin to wonder what might have been achieved over recent years. That extra £500 million (since 2011) could have enabled us to start and complete significant improvement projects. 

The half devolved cobbled set up in relation to powers over funding, transport, infrastructure and infrastructure planning is unsustainable, the ownership of this problem lies with the Labour Party in Westminster, as much as it does with the Labour Party in Wales as it does with the Conservatives. 

In relation to the lost opportunities it makes you think what might have been achieved… had we had fair funding, a government in Cardiff with the political will, and also the self belief... two out of three would have been nice.