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General Committees

Debated on Wednesday 7 February 2018

Delegated Legislation Committee

Draft Soft Drinks Industry Levy (Enforcement) regulations 2018

The Committee consisted of the following Members:

Chair: Sir Edward Leigh

† Crabb, Stephen (Preseli Pembrokeshire) (Con)

Efford, Clive (Eltham) (Lab)

† Graham, Richard (Gloucester) (Con)

† Harrison, Trudy (Copeland) (Con)

† Hayes, Helen (Dulwich and West Norwood) (Lab)

† Jenrick, Robert (Exchequer Secretary to the Treasury)

† Lewis, Clive (Norwich South) (Lab)

† McDonald, Stuart C. (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)

McGovern, Alison (Wirral South) (Lab)

† Mann, Scott (North Cornwall) (Con)

† Metcalfe, Stephen (South Basildon and East Thurrock) (Con)

† Rutley, David (Lord Commissioner of Her Majesty's Treasury)

† Smith, Henry (Crawley) (Con)

† Smith, Jeff (Manchester, Withington) (Lab)

† Sobel, Alex (Leeds North West) (Lab/Co-op)

† Twist, Liz (Blaydon) (Lab)

† Wragg, Mr William (Hazel Grove) (Con)

Jack Dent, Katya Kennedy, Committee Clerks

† attended the Committee

Sixth Delegated Legislation Committee

Wednesday 7 February 2018

[Sir Edward Leigh in the Chair]

Draft Soft Drinks Industry Levy (Enforcement) Regulations 2018

I beg to move,

That the Committee has considered the draft Soft Drinks Industry Levy (Enforcement) Regulations 2018.

It is a pleasure to serve under your chairmanship, Sir Edward. The draft regulations will help to complete the legislative framework for the soft drinks industry levy, which is well known to right hon. and hon. Members and will take effect from 6 April this year, as they may be aware. The levy is an important part of the Government’s childhood obesity plan, and the aim is for it to be a significant element in reducing the problem over the next 10 years. As well as encouraging children and families to make healthier dietary choices, the plan will help children to enjoy an extra hour of physical activity every day.

Children in the UK are consuming far too much sugar—three times the recommended level. The soft drinks industry produces our favourite soft drinks, which are a major source of sugar for children and teenagers, as well as adults. The levy, which has been introduced to encourage soft drinks manufacturers to reduce their sugar content, is already working, even before it comes into force in April: we estimate that approximately half the soft drinks that were above the sugar threshold when the levy was announced in 2016 have been reformulated to reduce their sugar content. We have seen the reformulation from major brands and household names that we are all aware of—Sprite, Fanta and Tango, to name just a few—and other producers have announced plans to reduce the size of larger packs.

All of this is good news for our nation’s children and adults, our health, our teeth, our waistlines and the cost to the national health service. The reformulations have meant that our original revenue forecasts have been lowered, but as we set out clearly when the policy was mooted, our objective was never to raise money from the taxpayers as an end in itself; it was always to improve public health. The revenue will be less than first suggested, but regardless of how much is raised, the Government remain committed to funding the Department for Education with the £1 billion that we originally expected, and providing the devolved Administrations with the full amount that we promised at the time.

Every penny of England’s share of the spending raised by the levy will go towards improving children’s health, including by doubling the primary sports premium to improve the quality of PE in schools. We will also provide extra funding for school breakfast clubs, which can help the most disadvantaged children in society to have a healthier start to the day. Finally, we will provide £100 million in 2018-19 for the healthy pupils capital fund, which helps schools to upgrade their sports grounds, playing fields and changing rooms.

To continue to deliver our objectives, it is vital that we have the enforcement measures we need to ensure that the levy works, and that Her Majesty’s Revenue and Customs has effective compliance powers to prevent evasion, if that proves necessary further down the line. The primary legislation behind the levy is the Finance Act 2017, section 54 of which enables the draft regulations to provide HMRC with the same powers that it uses to tackle every excise duty evasion, including alcohol duty. That makes sense because the supply chains for alcohol and soft drinks are comparable and often involve the same people and similar risks. Enforcement is expected to come under the control of the very experienced compliance teams at HMRC.

The draft regulations specify that, of the enforcement powers in the Customs and Excise Management Act 1979, only those powers that are really useful and relevant will be available for enforcing the levy. That includes powers of entry, search of premises and seizure of drinks, all of which are essential for tackling excise duty evasion and ensuring that legitimate suppliers are not adversely affected by those who engage in criminality. As with the enforcement of other excise duties, the powers will be used only where there are reasonable grounds to suspect non-compliance, and all use will be subject to strict governance procedures. Were HMRC not to have these powers, the risk of fraud would increase significantly and the legitimate businesses that manufacture soft drinks would not be able to compete on a level playing field.

In summary, the Government believe that the soft drinks industry levy is a vital part of our plan to tackle childhood obesity. It is only one of a number of measures being taken by the Government today, and we would like to take more in future. It has had a proven impact. We are seeing that impact in all household brands of soft drinks on the shelves; they will contain less sugar and provide a healthier drink for our children and adults. The regulations provide HMRC with enforcement powers that are proportionate and have been well scrutinised through extensive public consultation, so I hope colleagues will join me in supporting the regulations, which I commend to the Committee.

It is a pleasure, Sir Edward, to serve under your chairship. We can all agree that childhood obesity is a health time bomb. It poses serious health issues now, but it will also create health issues for decades to come. It will blight millions of lives with poor health and it will impose huge financial costs on the health service.

The NHS estimates that type 2 diabetes consumes over 8% of the NHS budget, and that is certain to rise in the coming years. It is clear that serious preventive action to protect children and young people from excessively sweet drinks and the industries that promote them aggressively is not only medically sensible but makes financial sense. That is why Public Health England, the British Dental Health Foundation and the Royal College of General Practitioners are all in favour of the levy, and it is why we support it too.

However, it must be clear that this measure on its own simply cannot do the job being asked of it. I have mentioned some headline figures, but they do not capture the scale of what is coming. Type 2 diabetes used to be a disease of middle age. Nowadays diagnosis of the disease in people in their early 30s is commonplace, with teenagers also being diagnosed. That means millions of extra cases, many of which will mean potentially decades more healthcare per person on top of what we would normally expect. That is just one disease. I have not mentioned the increase in strokes, heart disease and cancer: all diseases that will generate decades of extra healthcare spending per patient.

That brings me to the ideological crux of the tax. What is it for? Is it a scrambled attempt to raise money to plug gaps in the education budget, or is it meant to reduce childhood obesity? The Minister mentioned £1 billion guaranteed funding for the Department for Education, and I welcome that, but where is that money coming from? I know that sometimes a magic money tree can be found, but we would like to know for sure where that money is coming from and whether it is ring-fenced and protected.

Can the Minister tell us what assessment has been made of the HMRC’s capacity to enforce the levy, given that it has been widely documented that HMRC lacks the necessary resources and capacity to cope with its current workload, with even more cuts are on the horizon? Can he tell us how HMRC will monitor the effectiveness of its compliance strategy? Can the Minister tell us how the Treasury plans to plug the shortfall in the levy predicted by the Office for Budget Responsibility in relation to funding from the Department for Education for initiatives that he cited that support physical education, after-school activities and healthy eating?

Ultimately, this tax may make a dent or two in reducing childhood obesity, but we know that on its own it will fail in that role. The coming health consequences of obesity will be like a tsunami; this measure on its own is like putting a couple of extra life jackets on the Titanic. For it to have any meaning it must be part of a wider strategy. The Government are planning to cut real-terms spending on public health by 4% a year until 2020. The Royal College of Paediatrics and Child Health reported last week that most local authorities have cut spending dedicated to promoting physical activity in children. They also criticised the Government for their failure to establish an overarching child health strategy. I know that the Minister mentioned it, but the royal college criticised it with regard to the integrated, holistic approach that would make strategic sense of the levy. The Opposition cannot yet see that plan in place. Finally, will the Minister make an assessment of the impact of the levy on childhood obesity, because many people argue that on its own it will make little or no impact at all?

I am grateful to the hon. Gentleman for his support for the levy, which will play an important part in tackling childhood obesity. As I was at pains to stress in my opening speech, the levy is only one element of a much wider Government strategy. The Opposition and other right hon. and hon. Members will have seen the childhood obesity plan that was published. Nobody pretends that the soft drinks industry levy contains all the elements of that plan, but it is a significant element and, again, I am grateful to the hon. Gentleman for his support.

The levy is working, and we have seen that in the large number of suppliers of soft drinks that have already reformulated their products. As a result, the tax will raise less revenue than was previously expected. It was never designed as a tax-raiser; it was always designed to stimulate improvements in public health. In the autumn Budget of 2017, we laid out our expectation that the levy would raise around £275 million, yet the Treasury remains 100% committed to the original promise of over £1 billion of extra money for the Department for Education.

While we welcome the £1 billion—the extra funding—to plug those gaps, if the Government then cut 3.9% of spending on public health and, it is predicted, millions by 2020, does the Minister not concede that they are giving with one hand and taking with the other?

I dispute the hon. Gentleman’s analysis of our funding of the NHS, which has risen in every year of this Parliament. In the autumn Budget of 2017, the Chancellor committed to providing more money for both the NHS and adult social care.

The levy is an example of where the Government are taking action. We are using the tax code to change behaviours for the public benefit, and we are committed to significant increases in spending for school sports, breakfast clubs and all the other important things that will benefit from the funds coming from the levy. Every single penny raised by the levy will go to support school sports and the public health initiatives that I mentioned, plus the additional revenue that the Treasury committed to and is in no way backing down on, despite the success of the levy.

If the hon. Gentleman does not mind, I will press ahead on this occasion; I have given way to him in the past.

As for the capacity of HMRC, this is a task that HMRC is very used to and has expertise in. It uses that capacity for all forms of alcohol excise duties, such as those that apply to the spirits industry and so on. There is no reason to question whether HMRC can do this work. Indeed, the powers that we are considering today are those that HMRC has requested. The levy has been fully subject to a public consultation with the industry. HMRC’s voice has been heard in that consultation and we believe that HMRC will be effective in enforcing this levy and in ensuring that there is no criminality, or only minimal criminality, involved with it.

As for the question of whether or not we have reviewed, or will review, the impact of the levy, we have committed to such a review—in 2020, I think—so that will be the point at which we can clearly see the impact of the levy on both public health and the industry. With that, Sir Edward, I commend the regulations to the House.

I will just clarify matters on the issue of public health cuts and sum up very quickly. We support the levy, but there are caveats. One of the key things that I wanted to mention is public health cuts. The King’s Fund, the widely respected health think-tank, has said that

“too many local government services that affect the public’s health are facing death by a thousand cuts.”

The Local Government Association said in December:

“Cutting the public health budget is short sighted and will undermine the objectives we all share to improve the public's health and to keep the pressure off the NHS and adult social care. Further reductions to the public health budget reinforces the view that central government sees prevention services as nice-to-do but ultimately non-essential.”

How can the sugar levy make sense when many other measures that might help to reduce childhood obesity are being cut? That is something that we will continuously raise when it comes to this levy.

I will conclude by saying that my first priority today is the health and wellbeing of our children—I, too, am not here to defend the soft drinks industry—but in the absence of a thought-through strategy, it is hard to disagree with the British Soft Drinks Association in its response to the Budget in 2017 that

“it’s worth bearing in mind that there is no evidence taxing a single product or ingredient has reduced levels of obesity anywhere in the world.”

I will put the question. As a matter of coincidence, I was at my dentist’s this morning and he showed me a rather horrifying film about the danger of sugar, so he will be very interested in our proceedings.

Question put and agreed to.

Committee rose.

Draft Representation of the People (England and Wales) (Amendment) Regulations 2018

The Committee consisted of the following Members:

Chair: Ian Paisley

† Afolami, Bim (Hitchin and Harpenden) (Con)

† Churchill, Jo (Bury St Edmunds) (Con)

† Dent Coad, Emma (Kensington) (Lab)

† Docherty, Leo (Aldershot) (Con)

† Doughty, Stephen (Cardiff South and Penarth) (Lab/Co-op)

† Fletcher, Colleen (Coventry North East) (Lab)

† Foster, Kevin (Torbay) (Con)

† Huq, Dr Rupa (Ealing Central and Acton) (Lab)

† Lord, Mr Jonathan (Woking) (Con)

† Nandy, Lisa (Wigan) (Lab)

† O'Brien, Neil (Harborough) (Con)

† Skidmore, Chris (Kingswood) (Con)

† Smith, Cat (Lancaster and Fleetwood) (Lab)

† Smith, Chloe (Parliamentary Secretary, Cabinet Office)

† Thomson, Ross (Aberdeen South) (Con)

Turley, Anna (Redcar) (Lab/Co-op)

† Williamson, Chris (Derby North) (Lab)

Nehal Bradley-Depani, Committee Clerk

† attended the Committee

Tenth Delegated Legislation Committee

Wednesday 7 February 2018

[Ian Paisley in the Chair]

Draft Representation of the People (England and Wales) (Amendment) Regulations 2018

I beg to move,

That the Committee has considered the draft Representation of the People (England and Wales) (Amendment) Regulations 2018.

Some Members may know that we have introduced similar regulations today for Northern Ireland and for Scotland. The purpose of the draft regulations is to make registering to vote anonymously more accessible for those who need it most. They will also strengthen the integrity of the electoral register, and improve the registration system for electors.

Last year—this year; let me begin that sentence again. Yesterday marked 100 years since legislation was passed to give some women the right to vote in the UK. That was the first step to the equal franchise in the UK, but the journey to maximise electoral registration continues. For some, the fear of having one’s name and address appear on the electoral register is a barrier to registering to vote and therefore engaging in democracy. It is good that we are debating changes that make it easier for people to exercise their democratic rights. Anonymous registration was first introduced in Great Britain in the Electoral Administration Act 2006, which amended the Representation of the People Act 1983 and provided for the overall structure of the scheme, which protects those whose safety would be at risk if their name or address appeared on the electoral register—for example, victims of harassment or stalking, and some witnesses in criminal court cases. An applicant must provide their local electoral registration officer with evidence that demonstrates that their safety would be at risk. The evidence accepted is prescribed in legislation as either a live court order or an injunction from a set list of orders and injunctions, or what is known as an attestation. That is a signed statement certifying that the applicant’s safety would be at risk if the register contained their name or address. It can be made only by professions listed in legislation as qualifying officers.

About two years ago, Mehala Osborne of Bristol, with the support of Women’s Aid, started a petition to make anonymous registration more accessible for those who need it most. As a result, the Government announced in September 2016 that they would look closely at whether the current system of registering anonymously to vote could be improved to make it easier for survivors of abuse to do so. The Government consulted on changes and received broadly positive responses.

Turning to the detail of the proposed changes to anonymous registration, the draft regulations update the list of court orders and injunctions that can be provided to an electoral registration officer as evidence to demonstrate that someone’s safety would be at risk if their name or address appeared on the register. As evidence, applicants can use domestic violence protection orders made under the Crime and Security Act 2010 or the Justice Act (Northern Ireland) 2015, once that is in force. They will also be able to use female genital mutilation protection orders made under the Female Genital Mutilation Act 2003. Those are new and relevant orders that have been created since the anonymous registration scheme came into force.

The draft regulations will also broaden who can provide attestations. The required seniority for a police officer will be lowered from the rank of superintendent to the rank of inspector, which will make it easier for applicants to obtain an attestation. Police inspectors are frequently in contact with survivors and are well qualified to assess the level of risk to an individual’s safety. Medical practitioners registered with the General Medical Council and nurses and midwives registered with the Nursing and Midwifery Council will also be able to act as attesters. Those professionals are again frequently in contact with survivors and are qualified to assess the level of risk. Managers of refuges for those escaping domestic violence can also act as attesters. Anybody who has been supported by a refuge would then have easy access to somebody who can provide attestation. Refuge managers are specialists in their field and, again, we think they are well placed to assess whether an individual’s safety is at risk.

The changes make sure that the evidence required to apply for the scheme is more reflective of the experiences of survivors of domestic abuse, and we hope to make the scheme more approachable and accessible. Women’s Aid strongly welcomes the changes that the statutory instrument makes:

“The proposed new measures send out a clear message to all survivors of domestic abuse: that their voices matter, and their participation in politics matters.”

I turn now to the changes made to the wider registration system, which are included in the regulations. The purpose behind them is to improve the electoral registration process for the citizen and make it easier and more effective for EROs to administer.

They also seek to improve the integrity of the system and the accuracy of the electoral register. They address two recommendations in Sir Eric Pickles’s review of electoral fraud. They are incremental steps, and they seek to ensure that we can make improvements to the registration system before the 2018 annual canvass. Ongoing work will explore how we can reform other aspects of the voter registration system, especially in regard to the annual canvass, to make the service as accessible and secure as possible and to put the citizen first.

The first proposed change addresses recommendation 14 in Sir Eric Pickles’s review. It adds a statement to the paper application form that says that persons who are not eligible electors are ineligible to register to vote, that applicants may be required to provide additional information about their nationality, and that the ERO may carry out checks against Government records. The change seeks to enhance the deterrent against applicants providing false information in respect of their nationality. It reminds the applicants that, if an ERO has concerns, they can and will seek further information to corroborate the information that has been provided.

The second proposed change addresses recommendation 12 of the Pickles review. It adds a statement to the paper application form to inform applicants that their application may be delayed if they do not provide the addresses at which they have ceased to reside within 12 months of the date of their application. The statement aims to minimise the number of incomplete applications submitted on paper forms. The provision of the applicant’s previous addresses is one of two ways in which an out-of-date and redundant entry can be removed from the register through only one source of evidence. It thus serves as a key way to maintain the accuracy of the electoral register.

The third proposed change brings the requirements for who can attest to an applicant’s identity as part of the application process for England and Wales in line with that for Scotland. It ensures consistency across the registration system in Great Britain. It adds the date of additional notices, adding a person’s entry to a register to the provision setting out the timeframe during which a person may attest to the identity of up to two applicants.

The fourth proposed change expands the number of sources of information that EROs can use to remove deceased electors from the electoral register. Where they are not able to obtain a death certificate or registrar notice, they will be permitted to use one of four further sources of evidence to support their decision to remove a deceased elector. The information may come from a close relative, a canvass form, a care home manager or other local records. I am sure that the Committee will agree that using that information is an appropriate way of avoiding unnecessary distress for the relatives of deceased electors. It certainly helps EROs to maintain the accuracy of the register proportionately.

The final proposed change streamlines and simplifies the correspondence that EROs are required to send to electors. The changes are designed to reduce the cost of the registration system and give EROs greater discretion to tailor their approach to the needs of electors. This saving will be achieved by requiring additional information to be included in a first notification to an elector that their entry on the register is under review. That allows the sending of a second notification of the outcome of a review to become discretionary. The regulations also make discretionary the sending of a notification of changes to an elector’s open register preference. In summary, the draft regulations make sensible and proportionate changes to the wider registration system.

Returning to the first item, which the Committee views as important, making it easier to register to vote without your name and address appearing on the electoral register may be a small thing, but it makes a big difference. It means the freedom to live your life, cast your vote and make your choice. As campaigner Mehala Osborne said:

“Survivors in the future will not be denied their voice and democratic right to vote.”

I commend the regulations to the Committee.

As we all know, the Representation of the People Act 1918 was a crucial step forward in the empowerment of women. Yesterday, as we marked the centenary of property-owning women over the age of 30 winning the right to vote, we were reminded that the fight for equality is a journey. This is just one of the first steps for women—sorry, I am delivering this speech again. The struggle for equality continues. There are still far too few women in Parliament and women still face discrimination in the workplace and in everyday life. As the Minister has outlined, the purpose of this legislation is to give survivors of domestic abuse in England and Wales a voice in our democracy. The issue of domestic abuse is one that concerns all of us, and many of us will know somebody who has experienced some form of domestic abuse. National figures show that one in four women experience domestic violence at some point in their lifetime, and two women are killed by a current or former partner every week.

Sadly, although we are here to discuss changes to the system of anonymous voter registration among other things, we cannot ignore the wider context of Government cuts. As someone who has been a trustee of a women’s aid organisation, I have seen at first hand the amazing work done by women’s refuges in turn round the lives of women and their children. However, women’s refuges have had their budgets slashed by nearly a quarter over the past seven years, despite the Prime Minister’s pledge to boost funding for women escaping violent partners.

Turning specifically to anonymous voter registration, it is not right that survivors who have faced the physical, emotional and psychological impact of abuse are then silenced in our democratic process. Why? Because it is too dangerous for their name and address to be listed on the electoral roll, and too difficult for them to register anonymously. As the Minister has explained, under existing legislation, domestic abuse survivors must provide a court order or have their application supported by a senior independent witness, such as a high-ranking police officer, in order to appear anonymously on the electoral roll. The proposals outlined today will add doctors, nurses and refuge managers to the list of people who can act as an attester, and will lower the rank of police officer—from superintendent to inspector—authorised to perform this function. It is vital that every eligible elector is able to participate in our democracy, which is why the Opposition very much welcome the proposals announced today. We would like to note our thanks to Women’s Aid, which has been at the forefront of shaping and co-ordinating responses to domestic abuse for over 40 years, including this legislation.

However, it is clear that these measures do not go far enough. Survivors still have to re-register to vote anonymously year on year, and those in new homes will have to repeat their application. I hope that in future there will be time to correct that in primary legislation, as the Minister outlined in our first Committee meeting this morning.

The Minister has outlined proposals to expand data sources available to registration officers to enable them to remove entries from the register as a result of death. I recall many campaigning experiences—I am sure that Members on both sides of the Committee can do so—in which it was clear that the person I was seeking to speak to had passed away. It is distressing for the families involved. We welcome the measure, but it is disappointing that the Government seem to be focusing their energy on removing people from the electoral roll, but refuse to use the same data-sharing techniques to address the millions of voters missing from the electoral roll. The Opposition are committed to taking radical steps to increase voter registration and turnout among eligible electors, which is why we have called on the Government multiple times to examine the use of Government data to automatically place eligible electors on the electoral roll. As the Minister is new to her role, can she outline her views on this? The year 2018 cannot be a year for complacency. As we celebrate 100 years of democratic change, we should be looking for a progressive and radical solution to address this country’s democratic deficit.

I am grateful to whoever decided to include me in the Committee membership today. As the previous Minister for the constitution, I would like to pay tribute to my successor. She was also my predecessor. All Members will welcome her expertise in this particular area, and I know that she shares my passion and commitment to ensuring that looking at electoral registration and democratic participation should be a matter of social justice. It concerns all Members of the House.

Yesterday was the 100th anniversary of some women—those over the age of 30—winning the right to vote. It was not until 2 July 1928 that we achieved an equal franchise under Stanley Baldwin’s Government. I hope that we will also celebrate the passing of the Equal Franchise Act in which men and women were treated equally and with equal vigour. I wanted to give somebody a voice who is not able to speak in this Committee: Mehala Osborne herself. When I became a Minister in July 2016, I was advised to choose three things to focus on in terms of policy. One is never quite sure how long one is going to be a junior Minister. I focussed on looking at identity, at polling stations on the back of the Eric Pickles review, and at the access to elections review. I am particularly committed to ensuring that people with disabilities and sight impairment have an equal chance to vote.

I believe that 100 years on from the enactment of women’s suffrage, there are still people who, through no fault of their own, face barriers to voting, which means that we do not have 100% participation in our democracy. When Mehala Osborne wrote to me in July 2016, what leapt immediately and clearly off the page was that there was still a group of women who were unable to vote—again, through no fault of their own. If women in domestic violence refuges were on the electoral register, they would risk their security by making themselves known to their violent partners.

A system of anonymous registration had been set up by the previous Labour Government. Originally that was set up to protect the court orders themselves, but it is clear that times have moved on and we need to look at how to improve registration to make a difference for those women. There are 12,000 women in refuges, of whom only about 2,300 in England and Wales have registered anonymously. I know another Committee debated anonymous registration in Scotland, but even fewer women—only 43, I think—use the anonymous registration process there. That is simply because the barriers in the existing system are too great.

What incentive do people in a refuge have to travel across a local authority area to sign up to meet the director of social services so that she can countersign anonymous registration form needed to get a vote? In my area of Avon and Somerset, why would someone want to travel to Portishead to be able to meet with an inspector or chief inspector of constabulary to get him to countersign the form?

When looking at how to renew the legislation, it made sense to trust the refuge manager to sign the form. Why not trust a health professional? I am delighted that the Minister has been able to continue work on the legislation, because I made a commitment to Mehala Osborne that we would seek to introduce such a measure during the centenary year of women getting the right to vote. As a result of passing the draft regulations, all members of the Committee should be celebrating locally the fact that they as Members of Parliament have legislated to ensure that 10,000 women who want to vote, but have not been able to vote so far, will be able to do so.

I am sure we will still be able to make corrections to the process in future. For example, the hon. Member for Lancaster and Fleetwood talked about the issue of registration every 12 months versus every five years. We have registration every five years for armed forces personnel at the moment, and that is something that can only be changed in primary legislation. I hope the Minister will consider that in future.

Mehala Osborne set up the campaign because she had wanted to vote in the Bristol mayoral elections but found she was unable to do so. It is right that women who have had their voice taken away from them by a violent partner should be given that opportunity to have their voice heard in our democratic process.

There is much more for the Government to do. Our democratic processes are often about inputs, outputs and the processes of registration itself—it is highly technical, as we can see from the rest of the SI. However, we need to focus on the outcomes and on what we want to achieve from electoral registration. When we look at local authorities registering those individuals, how can we ensure that performance targets are set for the local authorities, so that we double down and focus on those people whom we know are from certain demographics or in vulnerable situations to encourage participation?

I set up National Democracy Week for the week of 2 July this year to ensure that as a nation we can focus on the values of our democracy and registration. I hope that the Minister will participate in and take forward National Democracy Week. What we as legislators have done today in Committee is a great thing—we should all be proud of what has happened, but there is more to do. I am grateful for the opportunity to speak.

I will be brief, because we are approaching a vote, but I want to raise one specific issue with the Minister. I absolutely support the efforts being made today, and it is appropriate that they are happening in such an historic week when we celebrate women—or some women—gaining the vote back in 1918.

The issue is the interactions of individuals, once they have registered anonymously, with credit reference agencies. From examples from my own constituency, I know that individuals who have registered anonymously have had significant difficulty in getting agencies such as Experian, Callcredit and others to acknowledge their anonymous registration without cumbersome processes. Given that many of the women whom we are talking about today are in a vulnerable situation, they need to be able to access credit and so on without being disadvantaged. Will the Minister say a little about what the Government are doing to work with the agencies to ensure that that process is as transparent and easy as possible? In some cases, agencies have refused to accept anonymous registration certificates in the past, which is obviously a huge problem.

It is clearly excellent that we can support such women who want to vote to be able to do so safely and securely, but we must also ensure that we put the effort into the other under-represented groups. I am thinking in particular of young people and the black and minority ethnic community—in my constituency in Cardiff, we have significant under-representation in those groups.

The armed forces have been mentioned, and many members of the armed forces whom I know do not take up the right to vote or are unable to vote, particularly given the nature of their service. I hope that the Government will take forward all such issues, because everyone has a right to take part in the democratic processes of this country. We need to ensure that they are able to do so as much as possible.

I am conscious that I may have as little as two minutes before we have to vote in the Chamber. I shall do my very best to get through the issues.

The hon. Member for Lancaster and Fleetwood made a number of points that were made earlier in the Committee debating the Scotland version of the SI. I refer this Committee to my comments in that Committee about what the Government are doing to support refuges and their funding. I also reiterate that, although it is excellent that we are discussing something that will help women, women are not the only victims of domestic abuse; it is possible for men to be victims as well, and the changes in the draft regulations will apply to everyone.

On the points about indefinite anonymous registration, I have responded to those in the two earlier Committees. My comments are on the record. In the Committee debating the Scotland draft regulations, I responded to the hon. Member for Crewe and Nantwich (Laura Smith) that it was the right thing to do to remove dead electors from the register. That is a case of maintaining the accuracy of the register, but the hon. Member for Lancaster and Fleetwood and other Members are right to raise the need for completeness. That is why the Government have introduced a full democratic engagement plan, to ensure that we assist in registering everyone who is eligible to register.

I thank my hon. Friend the Member for Kingswood not only for his moving comments today, but for his excellent work—[Interruption.]

Order. We were willing the Minister on, but we will have to suspend the sitting.

Sitting suspended for a Division in the House.

On resuming

It only remains for me to complete my warm words for my predecessor, my hon. Friend the Member for Kingswood, who did excellent work in bringing to readiness the measures before us. I would like to put on record my thanks to him and my officials for that work. I also thank him for his moving speech today. He reminded us of those we do this for, which is extremely important when we discuss legislation.

I will quickly answer the question on credit reference agencies asked by the hon. Member for Cardiff South and Penarth. I confirm that anonymously registered electors are provided with a certificate of anonymous registration, which they can use as evidence to overcome barriers they might encounter, such as with credit reference agencies and other areas where the electoral register comes into play.

I am committed to ensuring that these measures are implemented well. Should I encounter further problems of that kind, I will be sure to ask officials and EROs to look at what can be done. I hope I have answered all the Committee’s questions. I thank the Committee for supporting these important measures in this suffrage year. This is a powerful move and the right thing to do to make matters easier for those who have suffered abuse.

Question put and agreed to.

Committee rose.

Draft Social Security (Contributions) (Rates, Limits and Thresholds Amendments and National Insurance Funds Payments) Regulations 2018 Draft Tax Credits and Guardian’s Allowance Up-rating etc. Regulations 2018

The Committee consisted of the following Members:

Chair: Sir David Crausby

Ali, Rushanara (Bethnal Green and Bow) (Lab)

† Baron, Mr John (Basildon and Billericay) (Con)

† Brereton, Jack (Stoke-on-Trent South) (Con)

† Cadbury, Ruth (Brentford and Isleworth) (Lab)

† Caulfield, Maria (Lewes) (Con)

† Dodds, Anneliese (Oxford East) (Lab/Co-op)

† Grant, Bill (Ayr, Carrick and Cumnock) (Con)

† Gray, Neil (Airdrie and Shotts) (SNP)

Grogan, John (Keighley) (Lab)

† Hoare, Simon (North Dorset) (Con)

† Mann, Scott (North Cornwall) (Con)

† Rutley, David (Lord Commissioner of Her Majesty's Treasury)

† Siddiq, Tulip (Hampstead and Kilburn) (Lab)

† Smith, Jeff (Manchester, Withington) (Lab)

† Stride, Mel (Financial Secretary to the Treasury)

† Swayne, Sir Desmond (New Forest West) (Con)

† Zeichner, Daniel (Cambridge) (Lab)

Yohanna Sallberg, Laura-Jane Tiley, Committee Clerks

† attended the Committee

Fifth Delegated Legislation Committee

Wednesday 7 February 2018

[Sir David Crausby in the Chair]

Draft Social Security (Contributions) (Rates, Limits and Thresholds Amendments and National Insurance Funds Payments) Regulations 2018

I beg to move,

That the Committee has considered the draft Social Security (Contributions) (Rates, Limits and Thresholds Amendments and National Insurance Funds Payments) Regulations 2018.

With this it will be convenient to consider the draft Tax Credits and Guardian’s Allowance Up-rating etc. Regulations 2018.

It is a pleasure to serve under your chairmanship, Sir David.

Let me begin by addressing the draft Tax Credits and Guardian’s Allowance Up-rating etc. Regulations. The Government are committed to a welfare system that is fair to the taxpayer while maintaining our protection for the most vulnerable in society. As in previous years, we are legislating to ensure that the guardian’s allowance and the disability elements of child tax credit and working tax credit increase in line with the consumer prices index, which stood at 3% in the year to September 2017. The draft regulations will maintain the level of support for disabled children in receipt of child tax credit, disabled workers in receipt of working tax credit and children whose parents are absent or deceased. Increases to these rates are part of the Government’s wider commitment to supporting the most vulnerable in our society.

The draft Social Security (Contributions) (Rates, Limits and Thresholds Amendments and National Insurance Funds Payments) Regulations will make changes to the rates, limits and thresholds for national insurance contributions and make provision for a Treasury grant to be paid into the national insurance fund if required. These changes will take effect on 6 April 2018. Re-rating will increase the national insurance contribution rates, limits and thresholds in line with inflation to protect taxpayers from rising prices. Before I deal with the substance of the draft regulations, I draw the Committee’s attention to their fiscal significance: they will enable the collection of £130 billion in national insurance contributions, which will work directly to support our national health service, pensioners and people who have been bereaved.

Let me outline the changes to employee and employer NICs, commonly referred to as class 1 NICs. The lower earnings limit of £6,000 for class 1 NICs—the level of earnings at which employees start to gain access to contributory benefits, including the state pension, employment and support allowance and jobseeker’s allowance—will rise in line with inflation to £116 a week. Employees will have to pay class 1 NICs at 12%. The primary threshold of £8,424—the level of earnings at which class 1 NICs have to be paid—will rise with inflation to £162 a week. The upper earnings limit is the level at which employees start to pay class 1 NICs at 2% on all earnings above a certain income tax threshold; the Government have committed to aligning this threshold with the UK’s higher income tax rate of £46,350. Employers have to pay national insurance at a rate of 13.8% above an earnings level called a secondary threshold. This threshold will rise with inflation to £162 a week, as it has been aligned with the primary threshold for employees since April 2017.

The Government are committed to reducing the cost to businesses of employing young apprentices and young people. The level at which employers of people under 21 and of apprentices under 25 start to pay employers’ contributions will rise from £866 to £892 a week.

The self-employed pay class 2, 3 and 4 NICs. Class 2 NICs provide access to contributory benefits for the self-employed, such as the state pension. The weekly rate of class 2 NICs to be paid will rise in line with inflation to £2.95, a flat rate for all the self-employed. The small profits threshold—the level of profits at which the self-employed have to pay class 2 NICs—will rise with inflation to £6,205 a year. The self-employed currently pay class 4 NICs at a rate of 9% on profits above £8,044 a year; that limit will now rise with inflation to £8,424. They also pay 2% above what is known as an upper profits limit; that limit will rise from £45,000 to £46,350 a year. The rate for class 3 contributions, which allow people to voluntarily top up their national insurance record, allowing access to contributory benefits, will increase in line with inflation from £14.25 to £14.65 a week.

The regulations also make provision for a Treasury grant of up to 5% of forecast annual benefit expenditure to be paid into the national insurance fund, if needed, during 2018-19. A similar provision will be made in respect of the Northern Ireland national insurance fund.

I trust that that is a useful overview of the changes that we are making to bring rates of support and contributions to the Exchequer into line with inflation.

It is a pleasure to serve on the Committee with you in the Chair today, Sir David.

I am grateful to the Minister for what was indeed a useful overview of the changes. As he explained, the first set makes it possible to increase certain tax credit and child benefit rates as well as the guardian’s allowance rate. Those changes were prefigured in the Budget, as were the changes to national insurance contributions that we have been talking about—the annual re-rating of NIC rates, limits and thresholds—and provision for a Treasury grant to be paid into the national insurance fund.

I want to speak briefly about both sets of regulations. As to NICs, given the impact of inflation on incomes, which has been compounded by an exceptionally long period of sluggish wage growth, we support moves to ensure that NIC thresholds are increased in line with changes in the consumer prices index. Of course thresholds for the best-off people will be increasing by much more than inflation, with the Government’s commitment to increase the top band threshold eventually to £50,000. We feel that that is a move—along with many other Government changes to the tax system, and particularly to income tax—that should not be prioritised now. However, on their own terms the threshold increases in the regulations, at least for NICs, appear sensible.

The same applies to the increases by CPI in the Tax Credits and Guardian’s Allowance Up-rating etc. Regulations 2018. As the Minister explained, those cover the disabled worker and severe disability elements of working tax credit, the disabled and severely disabled child elements of child tax credit, and the guardian’s allowance. Of course, something of great concern is what the Minister did not talk about: the elements that are not being uprated, which is the majority of them.

The regulations fail to cover any other elements of working-age social security support that come under the aegis of the Treasury and HMRC. Given that those elements have been frozen at their 2015-16 rates until 2020, the practical impact of the freeze is predicted to be a 5% fall in the value of social security support for some of the poorest families in Britain by 2020. Coupled with additional cuts to tax credits and the lower levels of support available through universal credit, that is pushing large numbers of people in Britain into poverty—especially children.

The Joseph Rowntree Foundation has noted that the social security freeze is the

“single biggest policy driver behind rising poverty, hitting families in and out of work”.

The freeze has also been criticised by the End Child Poverty coalition. I was disturbed to hear from the coalition that now almost a third of children in my constituency are growing up in poverty. The Institute for Fiscal Studies also recently noted that the Government’s changes to social security, including the freeze, have left many families ill-prepared for another economic slowdown, should there be one.

The Minister suggested that those changes somehow, overall, protect the most vulnerable in society, and I find that difficult to understand. I normally find him persuasive on many issues, but on that matter I am afraid we cannot concur, because the most vulnerable in society are unfortunately being badly let down. In the circumstances, the regulations should be condemned for what they leave out—adequate support for struggling families to make ends meet. Often the people concerned are not those seeking work; they are among the growing number who are in work but living in poverty.

I thank the hon. Lady for her observations, and especially for her broad support for the measures that we are bringing forward today.

On the issue of the thresholds and the potential benefit to higher earners as a consequence of upratings in the future, of course at this stage we are not at the £50,000 limit, so that is not a debate for today. A second point I want to make, on the issue of looking after the most vulnerable, is that we are doing a number of things from a Treasury perspective outside the benefits system, which were announced at the Budget, including a national living wage increase of 4.4%. That is well above inflation, something that the hon. Lady understandably referred to. That will begin in April. Of course, the increase in the personal allowance will take even more people out of tax, as well as providing a tax break for more than 30 million people.

The saving from the social security benefits freeze was estimated to be £3.5 billion, but because of increased inflation it is now estimated, according to the Library figures that we have obtained, to be £5.2 billion. Does the Minister think that the Government need to continue the benefit freeze under those terms?

When looking at the impact of inflation on potential savings such as the hon. Gentleman describes, we have to bear in mind that many costs are going up for the Government as a consequence of increased levels of inflation. It is not simply something that can be looked at in isolation.

I am grateful to the Minister for giving way; he is being very generous. Is he aware that analysis by groups such as the Women’s Budget Group has shown that any benefits, particularly for the worst-off families, that might have come through the increase in the personal allowance and the national living wage are cancelled out by the social security changes? When those changes are taken into account, people’s incomes have been falling. Furthermore, the very worst-off families often do not benefit from the changes, because they are simply unable to accrue enough hours to reach the threshold in the first place.

As I have been explaining, the national living wage increases and the rise in the personal allowance are clearly elements of this. We are also now rolling out universal credit, which will increasingly make sure that work pays. We believe that that is the best way out of poverty and the best way to improve living standards. To make some broader points, as a responsible Government we need to balance the costs of benefits with the compelling need to look after and support the most vulnerable in our society. I argue that that is why today’s measures effectively exempt from the freeze the categories of individuals whom we are discussing today, who are indeed among the most vulnerable in our society.

Between 2008 and 2015, jobseeker’s allowance rose by about 21%, child tax credits by about 33%, but earnings by only about 12%. The total spend on benefits in 1980-81 was £30 billion in real terms. By 2014-15, that had risen to £96 billion. We have to place this debate within the context of that overall fiscal framework.

I am very happy to talk about how the overall balance of benefits has changed over time. The most significant difference between the 1980s and now, when we look at the overall balance of social security, is the gigantic increase in housing benefit that has occurred over the period, particularly over the last seven years. We have seen a radical increase in the cost of housing, which has left many families struggling when their wages have not been increasing. That is the major difference.

If we were to look at a pie chart of social security in those two periods, housing benefit has driven most of the change—certainly not increases in support for unemployed people, where the amount of support that people get in relation to wages has fallen precipitously. It has fallen more in the UK than in most comparable countries. I am very pleased to put the debate in that context; it is important that we do so, and remind ourselves that changes in the overall burden of social security payments have often been the result of a failure to deal with structural problems, such as the arguably overheated housing market that we have at the moment.

The Minister mentioned increases in different tax credits and JSA. I do not believe that they have been above inflation. Certainly, unemployment support has gone down substantially. The element of JSA that is linked to contribution-based national insurance has substantially decreased over time. It is simply not the case that we are moving towards a more contributory system. Most analysts would suggest that we have actually had a residualisation over recent years.

Order. Interventions should be short. I think that was about three interventions.

Thank you, Sir David. We might be in danger of discussing matters that diverge quite far from the instruments themselves. To deal with the point raised by the hon. Lady, one of the most telling statistics in all of this is that in 2013—the latest year for which these figures were available—this country had the largest percentage of GDP spend on family benefits, including child benefits, of any country in the OECD. In the context of the economic challenges that we face, we need to be fiscally prudent at the same time as growing our economy, as we are. As the hon. Lady will know, we are near record levels of employment. We have the lowest level of unemployment for over 40 years, we have reduced the deficit now by three-quarters, and we go into the coming period after the Budget on the back of 19 consecutive months of growth. So there are many things that are driving up in the direction of improving living standards.

The Minister will also be aware that our record on helping the vulnerable is something to be proud of. The Minister has talked about reducing income inequality but we must also remember that many foundations—including the Joseph Rowntree Foundation—suggest that we have reduced relative poverty as well. There is always more to be done, but together with very low unemployment we can be proud of the fact that we have helped the vulnerable in society, whilst accepting that there is still more to be done.

My hon. Friend is entirely right, and he will know that prior to the very recent figures, which still show that the level of income inequality is the lowest since 2010, it was the lowest in 30 years.

I know that the hon. Lady is itching to tell me about it excluding housing and raise various points, but it is a recognised measure within the Gini coefficient. I do believe that this Government have a record of which they can be truly proud. There is more to be done, but I think we can all agree on these measures, to the extent that they are relieving measures for particular categories of individuals whom we all, on both sides of the Committee, seek to support. I hope that on that basis we can approve these measures.

Question put and agreed to.

DRAFT TAX CREDITS AND GUARDIAN’S ALLOWANCE UP-RATING ETC. REGULATIONS 2018

Resolved,

That the Committee has considered the draft Tax Credits and Guardian’s Allowance Up-rating etc. Regulations 2018.—(Mel Stride.)

Committee rose.

Draft Representation of the People (Northern Ireland) (Amendment) Regulations 2018

The Committee consisted of the following Members:

Chair: David Hanson

† Blunt, Crispin (Reigate) (Con)

† Bradley, Ben (Mansfield) (Con)

† Bruce, Fiona (Congleton) (Con)

† Churchill, Jo (Bury St Edmunds) (Con)

† Cunningham, Alex (Stockton North) (Lab)

† Dent Coad, Emma (Kensington) (Lab)

† Double, Steve (St Austell and Newquay) (Con)

† Fletcher, Colleen (Coventry North East) (Lab)

† Foster, Kevin (Torbay) (Con)

Frith, James (Bury North) (Lab)

† Killen, Ged (Rutherglen and Hamilton West) (Lab/Co-op)

Leslie, Mr Chris (Nottingham East) (Lab/Co-op)

† Menzies, Mark (Fylde) (Con)

† Penrose, John (Weston-super-Mare) (Con)

† Smith, Cat (Lancaster and Fleetwood) (Lab)

† Smith, Chloe (Parliamentary Secretary, Cabinet Office)

West, Catherine (Hornsey and Wood Green) (Lab)

Gail Bartlett, Committee Clerk

† attended the Committee

Eighth Delegated Legislation Committee

Wednesday 7 February 2018

[David Hanson in the Chair]

Draft Representation of the People (Northern Ireland) (Amendment) Regulations 2018

I beg to move,

That the Committee has considered the draft Representation of the People (Northern Ireland) (Amendment) Regulations 2018.

It is a pleasure to serve under your chairmanship, Mr Hanson. The purpose of the draft regulations is to make registering to vote anonymously more accessible for those who need it most. The regulations provide for changes to the parliamentary and local electoral registers in Northern Ireland, and those changes would apply to electors at parliamentary, Assembly and local government elections. It is important that the changes are applied UK-wide, and similar legislation for England and Wales and for Scotland is being debated and considered in Committee today.

As the local government electoral registers are a devolved matter in Scotland, the Scottish Government are proposing similar changes in the Scottish Parliament. Yesterday marked 100 years since legislation was introduced to give some women the right to vote in the UK. That was the first step to equal franchise in the UK, but the journey to maximise electoral registration continues. For some people, the fear of having their name and address on the electoral register is a barrier to registering to vote and engaging in democracy. It seems fitting today to debate changes that make it easier for vulnerable individuals to exercise their democratic rights, which were passionately fought for 100 years ago.

Anonymous registration was first introduced in Great Britain by the Electoral Administration Act 2006, but it was not extended at that time to Northern Ireland. Instead, section 1 of the Northern Ireland (Miscellaneous Provisions) Act 2006 gave the Secretary of State for Northern Ireland the power to make equivalent provision for Northern Ireland by Order in Council under section 84 of the Northern Ireland Act 1998—something with which you are deeply familiar, Mr Hanson.

Very good—we are in good hands today, Mr Hanson, with your expertise in the Chair.

The Secretary of State’s power to make provision for anonymous registration in Northern Ireland was used for the first time to make the Anonymous Registration (Northern Ireland) Order 2014. That extended many of the anonymous registration provisions in place for England, Wales and Scotland, and it is linked to a series of statutory instruments which amend the Representation of the People (Northern Ireland) Regulations 2008 and which, taken together, implement the system of anonymous registration in Northern Ireland that applies to parliamentary, Assembly and local elections.

The scheme protects those whose safety would be at risk if their name or address appeared on the electoral register—for example, victims of harassment or stalking, as well as some witnesses in criminal court cases. It is not available to those who simply want to keep their name and address private. Someone can register to vote anonymously if they can show that their safety, or the safety of someone else in their household, would be at risk if the electoral register contained their name and address. This is known as the safety test. An applicant must provide evidence that demonstrates that they meet the safety test to the Electoral Office for Northern Ireland. The evidence accepted is prescribed in legislation as either a live court order, or an injunction from a set list of orders and injunctions, or an attestation, which is a signed statement certifying that the applicant’s safety would be at risk if the register contained their name or address. It can be made only by professions listed in the legislation as qualifying officers, such as a superintendent of police or a director of social services.

About two years ago, Mehala Osborne, with the support of Women’s Aid, started a petition to make anonymous registration more accessible for those who need it most. As a result, the Government announced in September 2016 that they would look closely at whether the current system of registering anonymously to vote could be improved, to make it easier for survivors of domestic abuse to register safely to vote. The Government consulted on potential changes to improve the accessibility of the anonymous registration scheme with domestic abuse charities, the electoral community, including the chief electoral officer for Northern Ireland, bodies representing potential attesters and others. The responses that the Government received were broadly positive, and the Women’s Aid Federation Northern Ireland has been particularly keen to see the provisions implemented. I pay tribute to my predecessor, my hon. Friend the Member for Kingswood (Chris Skidmore), for all his hard work and passion to help make the changes a reality. The regulations make sensible changes that make the scheme more accessible for those who need it most.

Turning to the detail of the changes, the draft regulations update the list of court orders and injunctions that can be provided to the chief electoral officer as evidence, to demonstrate that an individual’s safety would be at risk. As evidence, applicants would be able to use female genital mutilation protection orders, made under the Female Genital Mutilation Act 2003. They would also be able to use domestic violence protection orders, made under the Crime and Security Act 2010 or when they are brought into force in Northern Ireland, the Justice Act (Northern Ireland) 2015. Those are new and relevant orders that were not in place when the anonymous registration scheme came into force.

The draft regulations will broaden who can provide attestations that an individual’s safety would be at risk. The seniority required for an attestation from a police officer would be lowered from the rank of superintendent to the rank of inspector. That will make it easier for applicants to obtain an attestation. Inspectors are, of course, frequently in contact with survivors and well qualified to assess the level of risk to an individual’s safety. Medical practitioners registered with the General Medical Council, and nurses and midwives registered with the Nursing and Midwifery Council, would also be able to act as attesters. Again, those professionals are frequently in contact with survivors of domestic abuse and qualified to assess the level of risk to an individual’s safety.

Managers of refuges for those escaping domestic violence will now be able to act as attesters. That is important. All individuals who are resident in a refuge would then have easy access to an individual who can attest to the fact that their safety is at risk. Refuge managers are specialists in their field and well placed to attest whether an individual’s safety is at risk. They are in direct and sustained contact with domestic abuse survivors and are approachable, which helps to increase accessibility for those seeking to use the scheme.

The changes do not place a statutory duty on anybody to provide an attestation. However, the regulations widen the group of individuals qualified to attest, should they choose to do so. Overall, the changes ensure that the evidence required to register to vote anonymously reflects the experiences of survivors of domestic abuse. As I mentioned, the Government have consulted on the draft regulations with the Electoral Commission, the chief electoral officer for Northern Ireland, representative bodies of newly qualified attesters and Women’s Aid. There is general agreement that the changes being brought forward are desirable to ensure that those whose safety would be at risk, if their names and addresses appeared on the register, are able to engage in our democratic system.

I would like to dwell on a few comments made within that consultation. We heard from Women’s Aid that they strongly welcomed the changes made by the statutory instrument, saying that,

“the proposed new measures send out a clear message to all survivors of domestic abuse: that their voices matter, and their participation in politics matters”.

I think we should all agree with that. The draft regulations make sensible and proportionate changes to the wider registration system, making it easier to register to vote without a name and address appearing on the register. That may be a small thing, but it makes a big difference. It means the freedom to live ones life and cast one’s vote to make a choice.

As Mehala Osborne said:

“Survivors in the future will not be denied their voice and democratic right to vote.”

It is 100 years since the Representation of the People Act 1918. As we all know, that was a crucial step forward in the emancipation and empowerment of women. Yesterday we marked the centenary of property-owning women over the age of 30 and some university graduates winning the right to vote. We are reminded that the fight for equality is always a journey and this is part of the next step forward in that equality for women.

That was just one of many steps for women and, 100 years later, the struggle for equality continues. There are still far too few women in Parliament and women still face discrimination in the workplace and in everyday life. As the Minister outlined, the purpose of this legislation is to give survivors of domestic abuse in Northern Ireland a voice in our democracy. The issue of domestic abuse concerns us all. Many of us will know somebody who has experienced some form of domestic violence. National figures show that one in four women experience domestic violence at some point in their life, and every week two women are killed by a current or former partner. The draft regulations are desperately needed.

Sadly, although we are here today to discuss changes to the system of anonymous voter registration, I cannot ignore the wider context of the Government’s cuts agenda and its impact on women. As someone who was for many years a trustee of a Women’s Aid organisation, I have seen at first hand the amazing work that women’s refuges do to turn around women’s lives, and often the lives of their children too. However, women’s refuges have seen their budgets slashed by nearly a quarter over the past seven years and, despite the Prime Minister’s pledge to boost funding for women escaping violent partners, that is a continued blight up and down the country.

Turning specifically to anonymous voter registration, it cannot be right that survivors who have faced the physical, emotional and psychological impacts from abuse are then silenced in our democratic process. Why? Because it is too dangerous for their names and addresses to be listed on the electoral register and too difficult, at the moment, for them to register anonymously.

As the Minister explained, under existing legislation, domestic abuse survivors must provide a court order or have their application supported by a senior independent witness, such as a high-ranking police officer, in order to appear anonymously on the electoral roll. These proposals will add doctors, nurses and refuge managers to the list of people who can be an attester and will lower the rank of police officers, from superintendent to inspector, authorised to perform that function.

It is vital that every eligible voter is able to participate in our democracy, which is why the Opposition very much welcome the proposals. I put on the record my thanks to Women’s Aid, which has been at the forefront of shaping and co-ordinating responses to domestic violence and abuse for more than 40 years, including this legislation. However, it is clear that the measures do not go far enough. Survivors still have to re-register to vote anonymously year on year, and those who move home often have to repeat their applications. For many survivors, anonymity is a matter of life or death, and women are often on the run from domestic abuse for the rest of their life.

We support Women’s Aid, which has called on the Government to use the Domestic Violence and Abuse Bill to pass legislative changes to make survivors’ anonymous voter registration valid indefinitely, so that they can vote in safety for life. Will the Minister outline the Government’s position on that proposal? What conversations has the Minister had with her colleagues in the Home Office about it? I recognise that she is new to her post, so that might take some time.

I welcome the opportunity to put on record the technical reason why the draft regulations go as far as they do and not as far as some have publicly argued for. There are a number of reasons why the draft regulations do what they do, which is to extend the evidence basis, but not the amount of time for which a person can be on the register.

First—I suspect, technically, most importantly, although rather boringly—the provisions on yearly renewal are in primary legislation and cannot be addressed through secondary legislation. That is the straightforward reason why the draft regulations do what they do. I think the Committee will be aware that primary legislation space is somewhat limited in Parliament at present, and while I hope I have given the Committee a firm understanding of how important these matters are, we thought it better to do what we can in secondary legislation, rather than pinning everything on a piece of primary legislation.

I want to push my hon. Friend a little bit more, if I may. Is she saying that, in principle, if the Government were able to find the time—I appreciate that time is scarce at the moment—they would be interested in pursuing changes to primary legislation in order to make renewals a simpler, more up to date and altogether more streamlined process?

My hon. Friend kindly leads me on to the other two reasons I wanted to offer, which are matters of principle. First, when this scheme was originally introduced, Parliament’s intention was to support individuals with a current risk, rather than necessarily an historical risk. That is the difference between a one-year registration, which ought to be renewable, versus an indefinite registration. That is the question of principle that we are dealing with: should this be about those who face a current risk, as opposed to some form of historical risk?

I note that there is difference between the three statutory instruments we are debating today—I do not know whether other hon. Members beyond the hon. Member for Lancaster and Fleetwood and me will be reconvening to debate the draft regulations for Scotland, and for England and Wales, on top of these for Northern Ireland—but it is the case that attestation in Northern Ireland lasts for five years, so our discussion is coming on to matters related to England, Wales and Scotland, which we will debate later in the day.

To complete the set with a third reason why we think that yearly renewal is appropriate in those other parts of the United Kingdom, electoral registration officers have a very important duty to maintain the accuracy of their registers, so there is an argument that if and when electors change their address the register needs to be updated. That is another argument for the concept of yearly renewal—or, renewal at all and, for the other parts of the UK, yearly-in this policy area. I have no doubt that we will return to the issue in the Committees on the other related draft regulations, because it is more appropriate to the other parts of the United Kingdom.

Let me say a word about refuges more broadly, because the hon. Member for Lancaster and Fleetwood raised the issue. In Committee, we all share the desire to see refuges working well to support victims. My colleagues in the Home Office are looking very closely at the matter. In Northern Ireland, refuges are funded by the Northern Ireland Department for Communities, through the Supporting People programme, administered by the Northern Ireland Housing Executive. I will therefore go into no further detail now, because it is a devolved matter. Suffice it to say that my colleagues, including the Home Secretary—who addressed the House yesterday on a range of issues to do with this year’s celebration, which we ought to be having, of women and their right to vote—are well aware of the need to support refuges well.

In closing off—I hope—the Committee’s questions, I note that the draft regulations apply to men as well. We talk principally perhaps about women when we think about refuges, but let us not forget that men too can be victims of domestic abuse. It is important to put on the record the fact that the regulations will be in place for all survivors of domestic abuse. With that, I hope that I have answered the questions that have been asked, and I commend the draft regulations to the Committee.

Question put and agreed to.

Committee rose.

Draft Representation of the People (Scotland) (Amendment) regulations 2018

The Committee consisted of the following Members:

Chair: Siobhain McDonagh

† Benyon, Richard (Newbury) (Con)

† Boles, Nick (Grantham and Stamford) (Con)

† Bowie, Andrew (West Aberdeenshire and Kincardine) (Con)

† Campbell, Mr Ronnie (Blyth Valley) (Lab)

† Churchill, Jo (Bury St Edmunds) (Con)

† Dent Coad, Emma (Kensington) (Lab)

† Fabricant, Michael (Lichfield) (Con)

† Fletcher, Colleen (Coventry North East) (Lab)

† Foster, Kevin (Torbay) (Con)

† Hill, Mike (Hartlepool) (Lab)

† Jack, Mr Alister (Dumfries and Galloway) (Con)

† Kerr, Stephen (Stirling) (Con)

† Morris, Grahame (Easington) (Lab)

† Sheppard, Tommy (Edinburgh East) (SNP)

† Shuker, Mr Gavin (Luton South) (Lab/Co-op)

† Smith, Chloe (Parliamentary Secretary, Cabinet Office)

† Smith, Laura (Crewe and Nantwich) (Lab)

Claire Cozens, Nehal Bradley-Depani, Committee Clerks

† attended the Committee

Ninth Delegated Legislation Committee

Wednesday 7 February 2018

[Siobhain McDonagh in the Chair]

Draft Representation of the People (Scotland) (Amendment) Regulations 2018

I beg to move,

That the Committee has considered the draft Representation of the People (Scotland) (Amendment) Regulations 2018.

It is a pleasure to serve under your chairmanship, Ms McDonagh, and to continue to serve alongside any hon. Members who are joining me for this marathon consideration of three statutory instruments in one day.

The purpose of the regulations is to make registering to vote anonymously for UK parliamentary elections in Scotland more accessible for those who need it most. They will also strengthen the integrity of the electoral register, and improve the registration system for electors. To give a little context, the draft regulations amend the Representation of the People (Scotland) Regulations 2001. The changes will cover the parliamentary electoral registers. As local government electoral registers are a devolved matter in Scotland, the Scottish Government are proposing similar changes in the Scottish Parliament. It is important that the changes are applied UK-wide, and similar legislation for England and Wales and Northern Ireland has been, and will be, debated and considered in Committee today.

Yesterday marked 100 years since legislation was passed to give some women the right to vote in the UK. That was the first step to the equal franchise in the UK, but the journey to maximise electoral registration continues.

This may be completely irrelevant, but you will be the judge of that, Ms McDonagh. Does the Minister know that the Americans gave such emancipation some two and half years after Britain? I thought that the Committee should note that.

As Chair, I will be generous and broad in my interpretation of what is in the scope of the legislation.

Thank you, Ms McDonagh, and I thank my hon. Friend for reminding us that we may be seen as a pioneer. Let us hope that today we can all come together regarding this piece of the electoral system, and agree that we should press on further, which is what we are doing today.

Today’s legislation is about the fear of having one’s name and address appear on the electoral register, and how that can be a barrier to registering to vote, and therefore engaging in democracy. It seems fitting this week to debate changes that make it easier for vulnerable individuals to exercise their democratic rights. Anonymous registration was first introduced in Great Britain by the Electoral Administration Act 2006, which amended the Representation of the People Act 1983 and provided for the overall structure of the scheme. The scheme protects those whose safety would be at risk if their name or address appeared on the electoral register—for example, victims of harassment or stalking, and some witnesses in criminal court cases. An applicant must provide their local electoral registration officer with evidence that demonstrates that their safety would be at risk. The evidence accepted is prescribed in legislation as either a live court order or injunction from a set list of orders and injunctions, or what is known as an attestation. That is a signed statement certifying that the applicant’s safety would be at risk if the register contained their name or address. It can be made only by professionals listed as qualifying officers, such as a police superintendent or a director of social services.

About two years ago, Mehala Osborne, with the support of Women’s Aid, started a petition to make anonymous registration more accessible for those who need it most. As a result, the Government announced in September 2016 that they would look closely at whether the current system of anonymously registering could be improved to make it easier. The Government consulted on potential changes to improve the accessibility of the scheme with domestic abuse charities, the electoral community, bodies representing potential attesters and others. The responses that the Government received were broadly positive. I pay tribute to my predecessor as Minister for the Constitution, my hon. Friend the Member for Kingswood (Chris Skidmore), for his hard work and passion in making the changes a reality. The instruments make sensible changes, which make the anonymous registration scheme more accessible for those who need it most.

Turning to the detail, the draft regulations update the list of court orders and injunctions that can be provided to an ERO—an electoral registration officer—as evidence to demonstrate that an individual’s safety would be at risk if their name or address appeared on the register. As evidence, applicants will be able to use domestic violence protection orders made under the Crime and Security Act 2010 or the Justice Act (Northern Ireland) 2015, once that is in force. They will also be able to use female genital mutilation protection orders made under the Female Genital Mutilation Act 2003. Those are new and relevant orders that have been created since the anonymous registration scheme came into force.

The draft regulations will also broaden who can provide attestations that the individual’s safety would be at risk. The required seniority for a police officer will be lowered from the rank of superintendent to the rank of inspector, which will make it easier for applicants to obtain an attestation. Police inspectors are frequently in contact with survivors and will be well qualified to assess the level of risk to an individual’s safety. Medical practitioners registered with the General Medical Council and nurses and midwives registered with the Nursing and Midwifery Council will also be able to act as attesters. Those professionals are again frequently in contact with survivors and are qualified to assess the level of risk.

Managers of refuges for those escaping domestic violence will also be able to act as attesters. Anybody who has been supported by a refuge would then have easy access to somebody who can provide the attestation. Refuge managers are specialists in their field and we think they are well placed to make the attestation. They are also in direct and sustained contact with domestic abuse survivors, making them approachable for those looking to use the scheme.

The changes make sure that the evidence required to register to vote anonymously is more reflective of the experiences of survivors of abuse. The Government have consulted on the draft regulations with the Electoral Commission, the Scottish associations of administrators, representative bodies of the newly qualified attesters and Women’s Aid. There is general agreement that the changes being brought forward are desirable to ensure the safety of those who would be most at risk, and to help them engage in our democratic system. Women’s Aid strongly welcomes the changes that the statutory instrument makes, saying that the proposed new measures send out a clear message to all survivors of domestic abuse that their voice and their participation in politics matter.

The statutory instrument also makes further changes to the wider registration system, with the aim of improving electoral registration processes for the citizen and making it easier and more effective for EROs to administer. They also seek to improve the integrity of the system and the accuracy of the electoral register, by addressing two recommendations made in Sir Eric Pickles’s review on electoral fraud. In addition to Sir Eric’s recommendations, the incremental changes have been identified through extensive consultation with the electoral community—those on the coalface running elections and services. They put the citizen first and will help EROs to provide modern and efficient registration services.

The first proposed change addresses recommendation 14 in the Pickles review. It adds a statement to the paper application form that states that persons who are not eligible electors are ineligible to register to vote and that, in relation to nationality, applicants may be required to provide additional information, or otherwise checks may be carried out by the ERO against Government records. The change seeks to enhance the deterrent against applicants providing false information in respect of their nationality. It reminds the applicant that an ERO can and will seek further information to corroborate the information provided, where they may have concerns.

The second proposed change addresses recommendation 12 of the Pickles review. It adds a statement to the paper application form that informs applicants that their application may be delayed if they do not provide previous addresses at which they have ceased to reside within 12 months of the date of their application. That change aims to minimise the number of incomplete applications being submitted on paper forms. The provision of an applicant’s previous address is one of only two ways that an out-of-date and redundant entry can be removed from the register with only one source of evidence, and thus it serves as an important way to maintain the accuracy of the electoral register.

The third proposed change expands the number of sources of information that can be used by EROs to remove deceased electors from the electoral register. Where they have not been able to obtain a death certificate or a registrar notice, they will be permitted to use one of four further sources of evidence to support the decision to remove a deceased elector: information from a close relative, a canvass form, a care home manager or other local records. I hope the Committee agrees that using such information is an appropriate response to avoid unnecessary distress for the relatives of any deceased elector. It balances the need for evidence with the sensitivity of providing a service to the citizen that they would expect at such a difficult time, and it again helps EROs maintain the accuracy of the register.

Detailed consideration has been given as to whether that could increase the risk of fraud as part of the registration system, but we think that will be minimal. EROs are already required to use current sources of information before using the information sources permitted under the regulations. Also, EROs must be satisfied that the information they have received is accurate, and where they have any concerns at all they remain able to seek additional sources of information to support their decision.

The final proposed change to the registration system streamlines and simplifies correspondence that EROs are required to send to electors. These changes are designed to reduce the cost of the registration system and provide greater discretion to EROs to tailor their approach based on the needs of electors. This saving will be achieved by requiring additional information to be included in a first notification to an elector that their entry on the register is under review. That then allows the sending of a second notification, of the outcome of the review, to become discretionary. The regulations also make sending a notification of changes to an elector’s open register preference discretionary. That streamlines the process and brings it in line with other public and private services.

In summary, the draft regulations make sensible and proportionate changes to the wider registration system, in addition to this important change, in this centenary year, of being able to support survivors of domestic abuse. Making it easier for someone to register without their name and address appearing on the electoral register may appear a small thing, but it makes a big difference. It means the freedom to live their life, to cast their vote and to make their choice. As Mehala Osborne said:

“Survivors in the future will not be denied their voice and democratic right to vote.”

I commend the regulations to the Committee.

It is a pleasure to be here to serve under your chairwomanship, Ms McDonagh. This is my first time doing anything like this on the shadow Front Bench, so please bear with me.

The Representation of the People Act 1918, as we all know, was a crucial step forward for the empowerment of women. Yesterday, as we marked the centenary of property-owning women over 30 winning the right to vote, we were reminded that the fight for equality is indeed a journey. That was just one of many steps for women, and 100 years later the struggle for equality continues. There are still too few women in Parliament, and women still face discrimination in the workplace and in everyday life. It has been a slight shock for me, coming into this kind of working environment after working, as a primary school teacher, with wonderful women for a long time, to see the discrimination that still exists in some workplaces.

As the Minister outlined, the purpose of this legislation is to give survivors of domestic abuse in Scotland a voice in our democracy. Domestic abuse is an issue that concerns all of us. I am sure that many of us here today will know somebody who has experienced some form of domestic violence. National figures show that one in four women will experience domestic violence at some point in her life, and two women every week are killed by a current or former partner. Sadly, although we are here to discuss changes to the system of anonymous voter registration, we cannot ignore the wider context of this Government’s austerity agenda. Women’s refuges have seen their budgets slashed by nearly a quarter over the past seven years, despite the Prime Minister’s pledge to boost funding for women escaping violent partners.

Turning to anonymous voter registration, it cannot be right that survivors who have faced the physical, emotional and psychological impacts of abuse are then also silenced as participants in our democratic process. Why does that happen? Because it is too dangerous for their name and address to be listed on the electoral register, and it is too difficult for them to register anonymously.

As the Minister explained, under existing legislation domestic abuse survivors must provide a court order or have their application supported by a senior independent witness, such as a high-ranking police officer, to appear anonymously on the electoral register. The proposals outlined today will add doctors, nurses and refuge managers to the list of people who can act as an attester and will lower the rank of police officer authorised to perform the function from superintendent to inspector.

It is vital that every eligible voter is able to participate in our democracy, and that is why the Opposition very much welcome the proposals. I thank Women’s Aid, which has been at the forefront of shaping and co-ordinating responses to domestic violence and abuse for more than 40 years, including this very legislation. However, it is clear that the measures do not go far enough. Survivors will still have to re-register to vote anonymously year on year, and those who move home will have to repeat their application. For many survivors, anonymity is a matter of life and death, and often women are on the run from domestic abuse for the rest of their lives. We support Women’s Aid, which has been calling on the Government to use the Domestic Violence and Abuse Bill to pass legislative changes to make survivors’ anonymous voter registration valid and indefinite, so that they can vote in safety for life. Will the Minister outline the Government’s position on that proposal? What discussions has she had with her colleagues in the Home Office?

The Minister has also outlined proposals to expand the data sources available to registration officers to enable them to remove entries from the register as a result of death. That is a sensible measure, but it is disappointing that the Government are focusing their energy on removing people from the electoral roll while refusing to use the same data-sharing techniques to address the millions of voters who are missing from the electoral register. The Opposition are committed to taking radical steps to increase voter registration and turnout. That is why we have called on the Government multiple times to examine the use of Government data to automatically place eligible electors on the electoral roll.

In conclusion, 2018 cannot be a year for complacency. As we celebrate the last 100 years of democratic change, we should be looking for progressive and radical solutions to address this country’s democratic deficit.

Am I missing anyone else who wants to make a contribution? I call Mr Sheppard.

I rise briefly to associate the third party with the contextual remarks of the Minister and the shadow Minister that recognised not only the advances we have made to our democracy in the past century, but that there is always more to do. For our part, we welcome the proposals and wish to offer no opposition to them. They are a valuable step in the right direction, and I know that the Scottish Government agree with them and will be making regulations of their own to be effective on the same day, so that the totality of the electorate and elections are included in the advance.

Thank you, Ms McDonagh. First, I thank both the hon. Members who have spoken for their support and that of their parties for the measures. I am delighted that we all agree on the importance of doing this and are united in getting it done. I will answer a few of the points raised by the hon. Member for Crewe and Nantwich. I welcome her to her place, and I look forward to working with her and the hon. Member for Edinburgh East on many issues as time goes on.

I want to make a general point on refuge funding, which is where the hon. Lady began her remarks. It is important to note that responsibility for refuges is devolved for Scotland. For England and Wales, I can confirm that the Government have put aside a £20 million fund to support refuges. That will create more than 2,200 bed spaces and support more than 19,000 victims. That is important and valuable in the context of the concerns that she expressed. She will know that the most recent consultation on how refuges can be supported through the housing system has only recently closed and the Government will be looking at all the evidence submitted.

The hon. Lady asked whether the regulations could go further, in allowing for indefinite registration instead of the need to renew annually. I want to put on record the Government’s view, because that fair question has been asked outside as well as inside this place. The Government are, of course, mindful of the long-term risks that can be faced by domestic abuse survivors and I understand that in certain cases it might be difficult to return to completing paperwork every year.

I will offer three thoughts on the reasons behind our approach. The first is technical and most applicable. Provisions on yearly renewal are in primary legislation and could not be tackled by the regulations before us. The Committee will recognise that work on primary legislation is at a premium in this Parliament so, regrettably, we have had to focus on what can be achieved through secondary legislation.

Secondly, I think the intention of Parliament at the time of the scheme’s introduction was to support individuals with a current risk, as opposed to an historical one. That is a point of principle rather than practicality. To be able to attest or provide evidence more regularly, or at all, as opposed to indefinitely, is important because it points to the existence of a current risk to an individual, rather than one in the past that might no longer be current.

The third reason is that EROs have a duty to maintain the accuracy of their registers. That is an underpinning duty within the democratic system. To lack an opportunity to check people with anonymous registration could make that duty more difficult. Yearly renewal supports EROs’ ability to keep accurate records of who resides where, even if that information is anonymous when the public part is issued.

The final point raised by the hon. Lady concerned deceased electors. She thought it disappointing that we were focusing on removing rather than adding electors. I will say to her gently that we are talking about dead electors. It is important for the accuracy of the register to remove deceased electors; I hope the Committee agrees. The Government want to see accurate and complete registers.

I just want to say that in my speech and notes it definitely states that I agree with removing deceased people. My point was about putting more people on the register. I would like to put that on the record.

I was confident that was the case. I am confident that the Committee is in full agreement that we want EROs to maintain an accurate and complete register. To explain those terms, the second, completeness, is what the hon. Lady is talking about. All those who are eligible to register are registered. That is the other of the twin aims of electoral registration.

I am delighted to report that accuracy and completeness are both at high levels—higher than when I previously held this role. We have seen those go up since introducing individual registration. I also point the hon. Lady to a document published just before Christmas by my predecessor about further democratic engagement and the ways in which we can ensure that those who belong to groups that might traditionally have been under-registered, such as some disabled people who, for various reasons, might have found it difficult to tackle the registration system, are able to take part.

We are setting out ways to welcome everybody who is eligible to register on to the registration system, which is very important. In that spirit, I return to the measures before us, which are about accuracy and completeness. Overall, it is about a sense of justice that those who have faced abuse should not lose their right to vote and we are making it easier for them to register.

Question put and agreed to.

Committee rose.

Welsh Grand Committee

Autumn Budget as it Relates to Wales

The Committee consisted of the following Members:

Chair: David Hanson, Albert Owen

† Andrew, Stuart (Parliamentary Under-Secretary of State for Wales)

† Antoniazzi, Tonia (Gower) (Lab)

Bebb, Guto (Parliamentary Under-Secretary of State for Defence)

† Brennan, Kevin (Cardiff West) (Lab)

Bryant, Chris (Rhondda) (Lab)

† Cairns, Alun (Secretary of State for Wales)

† Clwyd, Ann (Cynon Valley) (Lab)

† Crabb, Stephen (Preseli Pembrokeshire) (Con)

† David, Wayne (Caerphilly) (Lab)

† Davies, Chris (Brecon and Radnorshire) (Con)

† Davies, David T. C. (Monmouth) (Con)

† Davies, Geraint (Swansea West) (Lab/Co-op)

† Davies, Glyn (Montgomeryshire) (Con)

Doughty, Stephen (Cardiff South and Penarth) (Lab/Co-op)

Edwards, Jonathan (Carmarthen East and Dinefwr) (PC)

† Elmore, Chris (Ogmore) (Lab)

Evans, Chris (Islwyn) (Lab/Co-op)

† Flynn, Paul (Newport West) (Lab)

Griffith, Nia (Llanelli) (Lab)

† Harris, Carolyn (Swansea East) (Lab)

Hart, Simon (Carmarthen West and South Pembrokeshire) (Con)

Hoare, Simon (North Dorset) (Con)

Jones, Mr David (Clwyd West) (Con)

† Jones, Gerald (Merthyr Tydfil and Rhymney) (Lab)

† Jones, Susan Elan (Clwyd South) (Lab)

Kinnock, Stephen (Aberavon) (Lab)

Lake, Ben (Ceredigion) (PC)

Lucas, Ian C. (Wrexham) (Lab)

† McMorrin, Anna (Cardiff North) (Lab)

Moon, Mrs Madeleine (Bridgend) (Lab)

† Morden, Jessica (Newport East) (Lab)

† Rees, Christina (Neath) (Lab/Co-op)

† Ruane, Chris (Vale of Clwyd) (Lab)

† Saville Roberts, Liz (Dwyfor Meirionnydd) (PC)

Smith, Nick (Blaenau Gwent) (Lab)

Smith, Owen (Pontypridd) (Lab)

Stevens, Jo (Cardiff Central) (Lab)

Tami, Mark (Alyn and Deeside) (Lab)

† Thomas-Symonds, Nick (Torfaen) (Lab)

† Williams, Hywel (Arfon) (PC)

Kenneth Fox, Rebecca Davies Committee Clerks

† attended the Committee

Welsh Grand Committee

Wednesday 7 February 2018

(Afternoon)

[David Hanson in the Chair]

Autumn Budget as it Relates to Wales

Question again proposed,

That the Committee has considered the matter of the autumn Budget as it Relates to Wales.

Before I call Susan Elan Jones, who was speaking before the break, I remind hon. Members who use the headphones that, when they take them off their heads, they should turn the volume down to avoid feedback on the sound system.

It is a great pleasure to speak when you are in the Chair, Mr Hanson.

Mae’n bleser mawr cael siarad gyda chi yn y Gadair, Mr Hanson.

Dros Gymru a Phrydain gyfan, mae gennym rai o’r gweision cyhoeddus gorau yn y byd, gan gynnwys y bobl sy’n dysgu yn ein hysgolion; y bobl sy’n gweithio yn ein hysbytai; ein diffoddwyr tân a’n heddlu; a’n lluoedd arfog. Mae ein gweision cyhoeddus yn gweithio tu hwnt i’r disgwyl i’n gwasanaethu ni bob dydd a nos. Yr ydym yn aml yn trafod ystadegau yn y lle hwn—mae hynny’n ddigon teg ac yn hanfodol—ond rwyf o’r farn hefyd bod angen inni gyflwyno prawf moesegol i’r gap cyflog ar gyfer gweithwyr sector cyhoeddus.

Yn ddiweddar, roedd nifer fawr o Aelodau Seneddol yn cymryd rhan mewn dadl am dâl ein lluoedd arfog. Gwnaed y pwynt nad oedd cynnydd yn y cyflog yn cyfateb i gost gynyddol tai ar gyfer personél y gwasanaethau arfog. Mynegodd llawer ohonom—yn drawsbleidiol—ein pryder ynglŷn â hyn. Dyna un enghraifft sy’n dangos fy mhryderon am ganlyniad rhewi cyflogau yn y sector cyhoeddus.

Mae Cyngor Bwrdeistref Sirol Wrecsam—nid cyngor Llafur, ond un sy’n cael ei redeg gan glymblaid o gynghorwyr Ceidwadol ac Annibynnol—yn dweud ar ei wefan ei fod wedi arbed tua £18 miliwn dros y tair blynedd diwethaf, ac rwy’n credu bydd yn rhaid dod o hyd i £13 miliwn arall dros y ddwy flynedd nesaf. Mae’r cyngor yn nodi ar ei wefan:

“Mae gennym lai o arian i’w wario bob blwyddyn”.

Felly cytunaf ag Ysgrifennydd y Cabinet dros Gyllid, Mark Drakeford, a ddywedodd y bydd cyllideb lywodraethol Cymru yn parhau i fod 5% yn is mewn termau real yn 2019-20 nag yn 2010-11. Eto, wrth inni glywed am y pryderon mawr hyn, rydym yn rhoi £3 biliwn heibio i dalu am fethiant y Llywodraeth yn y trafodaethau Brexit. Wrth gwrs, ’dwi ddim yn sôn am y £39 miliwn am y “fargen”—mae’n ddrwg gen i ddefnyddio’r fath air yn y cyd-destun hwn. Doedd dim sôn am y fath beth ar fws enwog yr ymgyrch i adael yr Undeb Ewropeaidd.

Beth am ddyled y Deyrnas Unedig? Yn ôl ffigyrau o’r Swyddfa Ystadegau Gwladol, mae dyled a oedd yn £358.6 biliwn ym mis Mai 1998 erbyn hyn yn £1,726.9 biliwn —swm syfrdanol. Dywedodd Dirprwy Lywodraethwr Banc Lloegr, Ben Broadbent:

“Mae twf cynhyrchiant wedi arafu ym mhob economi uwch, ond mae wedi bod yn fwy difrifol yn y wlad hon nag mewn gwledydd eraill.”

Dywedodd The Daily Telegraph—soniais am y Guardian bore yma, felly rwyf yn cyfeirio at y Telegraph prynhawn yma—fod

“twf cynhyrchiant wedi cwympo”.

Soniodd y newyddiadurwr Tim Wallace yn y Telegraph am y 1860au, sef y degawd diwethaf cyn yr un yma i brofi twf incwm gwironeddol negyddol. Dylai’r sefyllfa bresennol fod o gonsyrn mawr i bob un ohonom.

Er hynny, yn y bôn rwy’n credu mai pobl optimistaidd ydym ni yng ngogeldd Cymru, ac rydw i am orffen ar nodyn optimistaidd. Rwy’n croesawu unrhyw gyhoeddiad am fargen twf gogledd Cymru. Fel dywedais i, byddaf yn ei groesawu’n fwy pan fydd o’n dŵad, ond rydw i yn croesawu’r cyhoeddiad. Mae angen i ni wella’r seilwaith a gweithio’n drawsffiniol i wneud yr A5 a’r A483 yn well ac yn fwy diogel, ac mae angen buddsoddiad i sicrhau mynediad gwell i’n gorsafoedd rheilffyrdd, yn enwedig gorsaf Rhiwabon, yr orsaf ar gyfer traphont ddŵr Pontcysyllte, sy’n gwasanaethu poblogaeth fawr iawn, yn fy etholaeth it.

Mae’n her i bob un ohonom wneud y cytundeb twf yn reality, ac mae’n hollbwysig i ogled Cymru, i bobl Cymru gyfan ac i’n cymdogion ar draws y ffin ein bod ni’n sicrhau bod y cytundeb twf yn gweithio ar gyfer ein cymunedau.

(Translation) We have some of the best public servants in the world, including the people teaching in our schools and working in our hospitals, our firefighters, police officers, armed forces and others. They go above and beyond to serve us, day and night.

We often use statistics while speaking in this place, and that is understandable and, indeed, essential, but we also need to apply an ethical test to a pay cap for public sector workers. Recently, many MPs took part in a debate on pay in the armed forces. The point was made that the wage increase did not correspond with the rising cost of housing for service personnel, and many of us, on a cross-party basis, expressed concerns about that. That is one example of my concerns about what the pay freeze in the public sector can mean.

Wrexham County Borough Council, which is run not by Labour but by a coalition of Conservative and Independent councillors, talks on its website about how it has saved about £18 million during the past three years. I believe that it will have to find another £13 million over the next two years. The council says on its website that it has less money to spend annually. I therefore agreed with Mark Drakeford, the Cabinet Secretary for Finance in Wales, who drew attention to the fact that the Welsh Government’s budget will still be 5% lower in real terms in 2019-20 than it was in 2010-11.

When we hear of these concerns, we acknowledge that we are now putting an additional £3 billion aside in case of failure in the Brexit discussions. Of course, I am not talking about the £39 billion that will be needed in the deal—I am not too happy to be using the word “deal” or “bargain” in this context. There was no warning of that on the leave campaign’s famous bus,

What about the United Kingdom’s debt? According to figures from the Office for National Statistics, the debt that was £358.6 billion in May 1998 is now £1,726.9 billiona shocking figure.

The Deputy Governor of the Bank of England, Ben Broadbent, said that productivity growth has slowed across all the wealthy nations of the world, but it has been more severe in this country than in others. I mentioned The Guardian this morning, so this afternoon I will mention The Daily Telegraph. It said that productivity growth had decreased.

Tim Wallace, the journalist, talked about the 1860s in The Daily Telegraph, and said that that was the last decade until now that experienced real negative growth. The current situation should be a cause of great concern to all of us.

Essentially, however, I think that we in north Wales are an optimistic people and I will close my speech on an optimistic note. I welcome any announcement on the north Wales growth deal. As I say, I will be more welcoming when it comes, but I welcome the announcements that have been made. We need to improve infrastructure and we need cross-border working to make the A5 and the A483 safer and better, and we need investment to ensure better access to our train stations—particularly Ruabon station, the station for the Pontcysyllte aqueduct, which is very important for my constituency.

The challenge for all of us is to make the promise of the growth deal a reality. It is essential for north Wales—in fact, for the people of all of Wales, and our neighbours on the other side of the border—that we ensure that the growth deal works for our communities.

Diolch, Mr Hanson, am roi’r cyfle i mi gyfrannu i’r ddadl hanesyddol hon drwy gyfrwng y Gymraeg. Dyma’r tro cyntaf i ni ddefnyddio’r Gymraeg yma yn San Steffan—nid yw hyn wedi digwydd o’r blaen—a dyna pam mae’n ddadl hanesyddol.

Yn siarad yn bersonnol, mae’n arwyddocaol fy mod i’n gallu cyfrannu yn Gymraeg. Pan ges i fy ethol i Gynulliad Cenedlaethol Cymru ym Mae Caerdydd yn 1999, doeddwn i ddim yn gallu siarad gair o Gymraeg. Ers hynny, rydw i wedi gwnuud fy ngorau i ddysgu’r iaith—iaith y nefoedd. Roedd bob un o’m hynafiaid yn siarad Cymraeg fel iaith gyntaf. Roedd fy rhieni yn siarad Cymraeg fel iaith gyntaf, ond wedi iddynt briodi symudasant i ran o Sir Drefaldwyn lle doedd neb yn siarad Cymraeg. Yn fwy arwyddocaol, roedd pobl yn gweld yr iaith fel iaith o fethiant—doedd neb ar y pryd eisiau siarad Cymraeg. Mae pethau wedi newid heddiw, ond mae lot o pobl wedi anghofio beth oedd y sefyllfa amser maith yn ôl.

Ni chlywais fy nhad na’m mam yn siarad Cymraeg o gwbl, felly ni allai fy mhump chwaer na fi siarad gair o Gymraeg. Nid oeddwn i’n medru gwneud tan i mi ddod yn Aelod o’r Cynulliad. Ar ôl cael fy ethol i’r Cynulliad, lle mae llawer o Gymraeg yn cael ei siarad, gan gynnwys yn y Siambr, penderfynais fy mod i am ddysgu’r iaith. Gallwch weld felly, Mr Hanson, pam mae’r ddadl hanesyddol hon mor bwysig i fi yn bersonnol, yn ogystal â bod yn hanesoddol o ran San Steffan.

Mae’r ddadl Uwch Bwyllgor Cymreig yma yn rhoi’r cyfle i ni ystyried y Gyllideb a beth mae’n olygu i Gymru. Yn fy mharn i—rwy’n gwybod na fydd pawb yn cytuno â hyn—mae wedi bod yn newyddion da iawn i Gymru. Cynuddodd y Gyllideb yr arian ar gael i Lywodraeth Cymru wario ar wasanaethau cyhoeddus yng Nghymru. Cynuddodd y grym gwario gan £1.2 biliwn bob blwyddyn, sy’n arwyddocaol iawn. Roedd grym gwario wedi codi £1.2 biliwn bob blwyddyn, ac mae hynny’n arwyddocaol. Pan oeddwn yn Aelod yn y Cynulliad, roedd llawer o drafod am y fformiwla Barnett a’r Barnett floor hefyd. Galw am fwy o arian i Gymru, mwy o rym gwario.

Ar y pryd, roedd pobl yn gweld yr Athro Gerry Holtham fel arbenigwr a bob tro roeddem yn siarad am y Gyllideb yn y Cynulliad, roedd people yn dyfynnu’r Athro Holtham. Nawr, ar ôl cytuno fframwaith cyllid gyda Llywodraeth Cymru, mae’r Athro Holtham wedi disgrifio’r sefyllfa fel a very fair settlement. Mae pethau wedi symud ymlaen lot. Mae Llywodraeth Cymru hefyd wedi croesawu’r fframwaith cyllid. Maen nhw’n dweud nawr am long-term fair funding i Gymru. Mae hwn wedi digwydd o dan y Llywodraeth Geidwadol. Rwyf yn falch iawn i glywed pethau fel hyn.

Pwynt arall sydd yn bwysig i mi: yn y Gyllideb roedd y Canghellor yn sôn am gryfhau’r economi ymhob rhan o Gymru. Siaradodd am y Cardiff city deal, y Swansea city deal, am y north Wales growth deal, ac hefyd, am y tro cyntaf, siaradodd am mid Wales growth deal. Mae hyn yn bwysig dros ben; yn hynod o bwysig i mi. Mae’n rhy gynnar i wybod yn union beth mae mid Wales growth deal yn golygu. Mae’n bwysig iawn bod pobl leol yn y canolbarth yn rhoi syniadau. Dyma pam rwyf yn siarad gyda phobl yn sir Faldwyn a thu allan i sir Faldwyn hefyd, yn y canolbarth, a phob corff yn y lle, i gynnig syniadau.

Rwyf wedi bod yn siarad gyda’r Aelod dros Geredigion. Gobeithio byddwn yn gallu cymryd mantais o ymchwil amaethyddol ac amgylcheddol ym Mhrifysgol Aberystwyth a hefyd, gweithio gyda smallholdings ym Mhowys.

(Translation). Thank you, Mr Hanson, for giving me the opportunity to contribute to this historic debate through the medium of Welsh. It is the first time we have been able to use the Welsh language in Westminster. It has not happened before, which is why the debate is historic.

Personally speaking, it is significant for me, too, to be able to make my contribution in Welsh. When I was elected to the National Assembly for Wales in Cardiff bay in 1999, I could not speak a word of Welsh. However, since then, I have done my very best to learn the language—the language of heaven. All of my ancestors were first-language Welsh speakers. My parents also spoke Welsh as a first language, but after getting married they moved to a part of Montgomeryshire where nobody spoke Welsh. More significantly, the Welsh language was seen as a failed language; nobody wanted to speak the Welsh language. Things have changed now, but many people have forgotten the situation of many years ago.

I did not hear my father or mother speak Welsh at all, so my five sisters and I could not speak a word of Welsh. I could not do so until I became an Assembly Member. Having been elected to the Assembly, where a great deal of Welsh is spoken, including in the Chamber, I decided that I needed to learn the Welsh language. So, as you can see, Mr Hanson, this historic debate is particularly important to me on a personal level, as well as being historic in terms of events in Westminster.

This Welsh Grand Committee debate gives us an opportunity to consider the Budget and its implications for Wales. In my view—I know that not everyone will agree—it has been very good news for Wales. The Budget increased the funding available to the Welsh Government to spend on public services in Wales. The spending power increased by £12 billion, which is significant. When I was an Assembly Member there was a great deal of debate about the Barnett formula and the Barnett floor, too. There were demands for more funding and more spending powers for Wales.

At the time, Professor Gerry Holtham was seen as an expert on all of these issues, and every time we discussed the Budget in the National Assembly people would quote Professor Holtham. Now, having agreed a financial framework with the Welsh Government, Professor Holtham has described the situation as a very fair settlement, so things have moved on a great deal, and the Welsh Government have also welcomed the financial framework. They see it as long-term fair funding for Wales, and that has happened under a Conservative Government. I am particularly pleased to hear such comments.

The other point that is important to me is that in the Budget the Chancellor spoke about strengthening the economy in all parts of Wales. He spoke about the Cardiff city deal and the city deal in Swansea. He also talked about the north Wales growth deal and, for the first time, he mentioned a mid-Wales growth deal, which is hugely important for me. It is too early to know exactly what a mid-Wales growth deal will mean, but it is important that local people in mid-Wales bring their ideas forward. When I speak to people in my constituency and outside my constituency in mid-Wales, I will encourage everyone and all the organisations involved to bring forward their ideas, and hopefully we will be able to take advantage.

I have spoken to the hon. Member for Ceredigion. I hope we will be able to take full advantage of the environmental and agricultural research undertaken at Aberystwyth University and also work with the smallholdings in Powys.

Mae yna lawer iawn o bobl yn y gogledd eisiau cymryd rhan yn y ddêl ar gyfer twf. Roeddwn mewn cyfarfod diweddar gyda’r brifysgol ym Mangor. Mae ganddynt syniadau da iawn ond fawr o syniad sut i ymgeisio. Mae’r manylion ar sut ddylai’r cynllun yma weithio yn brin iawn. Onid yw hynny’n neges i’r Llywodraeth y dylsant ddarparu’r wybodaeth yma rwan am fod syniadau da allan yno yn barod i fynd?

(Translation) A great many people in north Wales also want to take part in the growth deal. However, having had a recent meeting with Bangor University, where there are very good ideas, I know that it does not really know how to apply the details, which are scarce, of how the deal will work. That is a message for the Government that they should provide that information now, because there are good ideas out there ready to go.

Fel ddywedais i, yn y canolbarth, mae’n amser cynnar iawn. Mae cyfrifoldeb arnom ni i gynnig syniadau. Rwyf yn credu bydd Ysgrifennydd Cymru yn barod i dderbyn syniadau. Mae’n gyfle i gryfhau’r economi yng ngogledd Cymru ac yn y canolbarth. Mae’n bwysig hefyd i gryfhau’r cysylltiadau trafnidiaeth rhwng y canolbarth a chanolbarth Lloegr. Mae’n bwysig cysylltu gyda’r farchnad yng nghanolbarth Lloegr. Mae’r Newtown bypass yn agor eleni; mae hyn yn bwysig. Mae pont newydd yn symud ymlaen ym Machynlleth, dros y Dyfi.

Y cam nesaf yw cael ffordd newydd rhwng Trallwng a ffin Lloegr yn sir Amwythig. Mae’n bwysig cael cysylltiad rhwng y canolbarth a Lloegr. Mae’r farchnad yn bwysig i ni ac rwyf eisiau gweld y growth deal yn y canolbarth yn canolbwyntio ar hynny. Hefyd, wythnos nesaf, mae £7 miliwn yn mynd i fewn i’r rheilffordd rhwng y Drenewydd ac Aberystwyth. Mae lot yn digwydd. Mae cysylltiadau trafnidiaeth yn bwysig iawn os ydym am weld y canolbarth yn symud ymlaen.

Mae prosiect Pumlumon yn bwysig hefyd. Dydy pobl ddim yn gwybod lot am y prosiect, ond y cynllun yw i dalu ffermwyr â dros 100,000 erw—rhaid i mi edrych i weld os ydw i’n dweud yr un peth yn Gymraeg—i stopio llifogydd yn Lloegr. Mae hyn yn bwysig iawn a bydd yn dda i ffermwyr yn y canolbarth. Bydd yn help mawr i arbed gwario miliynau i stopio llifogydd yn Lloegr. Mae growth deal yn y canolbarth yn beth da ar gyfer hyn. Mae camlas Mynwy yn bwysig, yn mynd dros y ffin, a gobeithio gall y buddsoddiad ynddo fod yn rhan o’r mid-Wales growth deal hefyd.

Rwyf wedi bod yn Aelod yn y Cynulliad ac yn Aelod yma yn San Steffan, ac rwy’n deall bod angen i’r ddwy Lywodraeth weithio gyda’i gilydd i gael yr elw mwyaf. Mae hyn yn digwydd a dyma pam rwy’n optimistig ac yn credu bydd hyn yn parhau trwy berthynas bositif. Dwi ddim yn darllen beth sydd yn y cyfryngau. Mae’r ddwy Lywodraeth yn gweithio gyda’i gilydd ac mae hyn yn bwysig.

I orffen, rwyf eisiau mynd yn ôl at yr iaith Gymraeg a sut mae gwleidyddiaeth a materion cyhoeddus yn cael eu darlledu yng Nghymru. Dylai beth sy’n digwydd yng Nghymru—yn y Cynulliad Cenedlaethol—gael mwy o sylw yn y cyfryngau yng Nghymru. Rydym ni i gyd yma yn dibynnu ar ddarlledu yng Nghymru i gysylltu â phobl Cymru i ddweud wrthyn nhw beth rydym ni’n gwneud yma. Rwy’n dibynnu ar y BBC, S4C a ITV i wneud hyn.

Roedd yn grêt gweld Radio Cymru 2 yn dechrau mis diwethaf. Mae’n bwysig iawn i Gymru a dwi’n llongyfarch Betsan Powys ar ei gwaith. Heddiw, rwyf eisiau dweud fy mod yn siomedig ar ôl clywed bod “O’r Senedd” yn gorffen—mae pawb yn adnabod y rhaglen—a dydw i ddim yn gwybod beth sydd yn dod yn ei lle. Dydw i ddim yn meddwl mai rhaglen sy’n delio â gwleidyddiaeth sy’n dod yn ei lle. Rwyf hefyd yn cofio “CF99”. Os rydym am gysylltu â phobl Cymru, mae rhaglenni fel “O’r Senedd” yn bwysig iawn i ni. Dydw i ddim eisiau gweld yn lle “O’r Senedd” rhyw fath o adloniant; rwyf eisiau gweld y cyfryngau yng Nghymru yn delio â gwleidyddiaeth yma yn San Steffan mewn ffordd ddifrifol. Yr unig ffordd rydym ni yn gallu cysylltu gyda’r bobl yng Nghymru yw trwy’r cyfryngau. Gobeithio, yn lle “O’r Senedd”, bydd rhyw fath o raglen sy’n delio â’r pynciau pwysig i Gymru mewn ffordd ddifrifol.

(Translation) As I said, in mid-Wales it is at a very early stage. There is a responsibility on all of us to bring forward ideas. I think the Secretary of State for Wales is willing to take on board these ideas, and that is where we are at the moment. I see an opportunity to strengthen the economy of north and mid-Wales. I also believe it is important to strengthen the transport links between mid-Wales and the midlands. It is hugely important that we can link up with the markets in the midlands. The Newtown bypass will open this year. That is important, and the new bridge over the Dyfi in Machynlleth is making progress.

The next step is to have a new road between Welshpool and the border with England in Shrewsbury. It is important to have those connections with England. The market is hugely important to us, and I want to see the growth deal in mid Wales focusing on that issue. Also, next week, £7 million will be invested in the railway between Newtown and Aberystwyth.

Also, next week, £7 million will be invested in the railway between Newtown and Aberystwyth. There is a great deal happening. Transport links are hugely important if mid-Wales is to make progress.

The Pumlumon project is also important. I do not know too much about it yet, but as I understand it the plan is to pay farmers—those with 100,000 acres, I think, but I will have to check that figure—to stop run-off from their land. That is hugely important. It will be positive for farmers in mid-Wales, and it will be of huge assistance in saving millions of pounds on flood prevention work in England. The mid-Wales growth deal is very positive. The Montgomery canal is also important, and I hope that investment in that is part of the mid-Wales growth deal, too.

Having been a Member of the Assembly and a Member here in Westminster, I have come to understand that the two Governments must work together if we are to achieve maximum benefit. I think that is happening, so I am optimistic. I think a positive relationship can develop between the Governments. I do not read about what is happening in the media. The Governments are working together, and that is hugely important.

To conclude, I want to move back to the issue of the Welsh language and how politics and public affairs are covered in Wales. What happens in Wales—and in the National Assembly—should get more coverage in the media in Wales. We are all reliant on broadcasters in Wales to connect with the people of Wales and inform them about what is happening here. That is hugely important. I think of the role of the BBC, S4C and ITV in delivering those messages.

It was wonderful to see Radio Cymru 2, a second Welsh-language radio channel, established last month. That is hugely important for Wales, and I congratulate Betsan Powys for the work that she has done. However, I was a little disappointed to hear that the S4C programme “O’r Senedd” is to cease broadcasting. I am not sure what is going to replace it, but I do not think that it will be a programme dealing with politics. I remember when “CF99” was on S4C. If we are to connect with the people of Wales, programmes such as “O’r Senedd” are hugely important. I raise that point because I do not want to see some sort of entertainment provided in place of “O’r Senedd”. I want to see the media in Wales cover politics here in Westminster and at the Assembly seriously. The only way that we can connect to the people of Wales is through the media. I hope that “O’r Senedd” will be replaced by some sort of programme that covers the important issues of the day for Wales.

Rwy’n falch eithriadol o’r cyfle yma i siarad yn y ddadl hanesyddol hon. Fel pawb arall, rwy’n falch iawn o’r diwedd i gael siarad Cymraeg yn y Tŷ hwn yn Llundain. Cefais y cyfle i siarad Cymraeg o’r blaen, pan aeth yr Uwch Bwyllgor i Wrecsam dro yn ôl, ond mae siarad yr iaith yn San Steffan yn gam arwyddocaol pellach, wrth i’r awdurdodau yma yn Llundain ddygymod o’r diwedd â’r ffaith mai nid gwladwriaeth uniaith ydy’r Deyrnas Gyfunol.

Yn wir, yn gynyddol daw unieithrwydd cyhoeddus yn eithriad yng Nghymru, dwi’n credu. Heblaw am y dadleuon amlwg i mi fel unigolyn fod medru siarad Cymraeg, a hawl fy etholwyr i gael eu cynrychioli drwy gyfrwng y Gymraeg, mae elfen gref iawn o synnwyr cyffredin o blaid symud at sefyllfa lle mae cyfrwng ein trafodaethau ni yma yn adlewyrchu’r ffaith bod natur ieithyddol ein gwlad ni yn wahanol. Dylem adlewyrchu sut mae pethau yng Nghymru, ac mae medru siarad Cymraeg yn rhan o hynny.

Fy mwriad prynhawn yma ydy siarad yn fyr am gynigion y Canghellor ynghylch credyd cynhwyshol, ac yn wir—bydd Aelodau Llywodraeth yn falch iawn i glywed hyn—i groesawu’r newidadau hynny, cyn belled ag y maent yn mynd. Tydi nhw ddim yn mynd hanner digon pell i mi a, fel llawer o bobl sy’n cymryd diddordeb yn y maes yma, buaswn yn licio gweld y newidiadau yn mynd yn bellach. Tydi’r newidiadau ddim yn mynd hanner digon pell i bobl a fydd yn hawlio’r fudd-dal yn y dyfodol, wrth i gredyd cynhwysol ddod i fewn. A tydi nhw ddim yn mynd hanner pell i mi fel rhywun sydd yn cynrychioli pobl ac yn pwyso ar yr Adran Gwaith a Phensiynau am welliannau a newidiau.

Mae’r pryderon am y drefn newydd eisioes yn ddigon clir. Ar 9 Hydref y llynedd, yn nghwestiynnau’r Adran Gwaith a Phensiynau, gofynnais i’r Ysgrifennydd Gwladol, a oedd newydd gael ei benodi ar y pryd, pa gynnydd a wnaed wrth ddod â chredyd cynhwysol i fewn a lle oeddem ni arni hi. Bydd rhai Aelodau yn gwybod, wrth gwrs, bod peilot wedi cael ei redeg ers tro yn ardal Shotton a bod hynny’n cynrychioli tua 5% o’r boblogaeth sydd ar hyn o bryd yn medru hawlio credyd cynhwysol. Ateb yr Ysgrifennydd Gwladol oedd bod y fudd-dal newydd yn dod i fwcwl yn unol â’r cynllun, ac rŷm ni’n gweld y cynllun hwnnw yn dod i fewn rwan.

Dywedais wedyn fod cryn gefnogaeth i egwyddorion credyd cynhwysol. Rwy’n credu bod yna gytundeb ar draws y Tŷ bod yr egwyddorion—sicrhau incwm a sicrhau bod pobl yn medru mynd i’r gwaith yn haws o lawer—yn dda iawn, ond yn ôl neb llai na Syr John Major, nodweddion dwyn credyd cynhwysol i fewn hyd yn hyn yw

“gweithredu bler, anhegwch cymdeithasol a diffug trugaredd”.

Efallai bod ei eiriau gwreiddiol yn y Saesneg yn taro’n galetach:

“operationally messy, socially unfair and unforgiving”.

Gofynnais i’r Ysgrifennydd Gwladol felly, fel cwestiwn atodol, i ohurio dwyn y cynllyn i fewn yn ei grynswth. Os na fedrai wneud hynny, roedd yna gwpwl o bethau roeddwn i eisiau iddo eu gwneud, sef dileu’r cyfnod aros gan wythnos a thalu’r budd-dal pob pythefnos yn hytrach na phob mis. Bydd Aelodau yn gyfarwydd â’r problemau a all godi hefo trio cyllido am fis ar swm gymharol fach. Wrth gwrs, mi oedd yna gyfnod aros lle roedd pobl yn disgwyl am wythnos heb gael budd-dal.

Bydd Aelodau yn gyfarwydd â dadl y Bonheddwr gwir anrhydeddus dros Chingford a Woodford Green (Mr Duncan Smith), sef awdur y drefn yma. Dywedodd y dylai credyd cynhwysol adlewyrchu’r byd gwaith: mae rhan fwyaf o bobl yn cael eu talu’n fisol, felly dylai’r fudd-dal fod yn fisol hefyd er mwyn eu paratoi i fynd i swydd. Wrth gwrs, mae hyn yn anwybyddu’r ffaith fod llawer yn debygol o fod ar gredyd cynhwysol am gyfnodau amhenodol—cyfnodau hir iawn—heb obaith am waith. Yn fwyaf sylfaenol, mae hyn yn anwybyddu anawsterau garw didoli symiau bach o incwm dros fis cyfan yn hytrach na dros wythnos neu pythefnos.

Dro yn ôl, rhedais surgery i gynghori pobl oedd yn gorfod ymdopi efo’r treth llofftydd—y taliad am lofft ychwanegol. Rhoddodd un ddynes restr o’i gwariant i mi. Roedd £1 ar waelod y rhestr. Gofynnais, “Be’ ’di’r bunt yna?” Atebodd, “Wel, ’dwi’n gorfod cerdded lawr i’r dre i siopa, ac unwaith pob pythefnos, ’dwi ddim yn cerdded yn ôl, ’dwi’n mynd ar y bys.” Dyna beth oedd y bunt. Mae pobl ar arian wythnosnol yn medru ymdopi yn rhyfeddol o fanwl hefo’r hyn o arian sydd ganddynt, yn bennaf wrth gwrs am nad oes gennyn nhw ddewis.

Ni chytunodd yr Ysgrifennydd Gwladol i’m cais i ohirio cyflwyno’r budd-dal, ond dywedodd rhywbeth arwyddocaol: y byddid yn gwneud newidiadau pan ac os fydd angen, fesul tipyn. Roedd hynny’n rhywbeth reit bositif iddo ddweud: nad oedd popeth yn gwbl sefydlog, ac y gellir gweud newidiadau. A dyma ni—mae rhai newidiadau yn y Gyllideb, er rhai bychain ac annigonol ydyn nhw. Er hynny, mae nhw i’w croesawu.

Felly beth yw’r newidiadau? Daw y cyfnod disgwyl am fudd-dal i lawr o chwech wythnos i bump—o 42 diwrnod i 35. Fel bydd rhai Aelodau yn gwybod, telir y budd-dal yn fisol, ond rhaid disgwyl pythefnos ychwanegol ar y dechrau. Mae hyn wedi achosi problemau sylweddol yn barod. Natur y chwech wythnos oedd: pedair wythnos i wirio’r incwm—gan fod pobl am gael eu talu yn fisol, rhaid cael manylion incwm am fis—wedyn wythnos i brosesu ac wythnos i ddisgwyl. Mae’r wythnos i ddisgwyl wedi mynd. Roedd y rhan fwyaf ohonom sydd yn cymryd diddordeb yn y maes yma yn gwybod nad oedd yr wythnos ddisgwyl yn golygu fawr o ddim byd yn ymarferol.

(Translation) I am very pleased to have the opportunity to speak in this historic debate. Like everyone else, I am also very pleased finally to be able to speak Welsh here in Westminster. I have had the opportunity to speak Welsh before, when the Grand Committee went to Wrexham a while ago, but being able to speak Welsh in Westminster is a further significant step forward, as the authorities here in London finally come to terms with the fact that the United Kingdom is not a monolingual state.

In fact, monolingualism in Wales will become the exception. Apart from the obvious arguments that stop me as a Welsh speaker being able to speak Welsh, it also restricts the ability of my constituents to be represented through the medium of Welsh. There is a strong common sense element in favour of moving to a position where the medium of our discussions here reflects the fact that the linguistic nature of our country is diverse. We should be reflecting the situation in Wales, and speaking Welsh should be a part of that.

My intention this afternoon is to speak briefly about the Chancellor’s proposals on universal credit and—Government Members will be pleased to hear this—to welcome the proposed changes in so far as they go, although I would say that they do not go far enough. I think the same would be true of many people who take an interest in this area, who would like to see the changes go further. It is certainly not far enough for the people who will be claiming the benefit in the future, as universal credit comes in. It does not go far enough for me, as someone who represents people and presses on the Department for Work and Pensions for improvements in this regard.

The concerns about the new system are clear enough. On 9 October last year, in DWP questions, I asked the then Secretary of State, who was new at the time, having just been appointed, what progress he had made in bringing in universal credit and where we had reached. As some hon. Members will know, a pilot had been run in the area of Shotton. That represented about 5% of the population who can now claim universal credit. The response of the Secretary of State was that the new benefit was about to come in as expected, and we see the scheme coming into force now.

I then said that there was quite a bit of support for the principle behind universal credit. I think that there is agreement across the House that the principle of universal credit is a very good one, ensuring that people have an income and can go into work much more easily. The agreement on universal credit is in place, but none other than Sir John Major said, with regard to this matter, that the way that universal credit had been brought in up until now was chaotic and showed a lack of mercy. It perhaps comes across better in his own words:

“operationally messy, socially unfair and unforgiving”.

I therefore asked, as my supplementary question, for the scheme to be postponed as a whole. If that were not possible there were a couple of things that I wished the Department to do: to bring the waiting period down a week and to pay the benefit every fortnight instead of every month. Hon. Members will be aware of the problems that may arise from trying to budget for a month on a comparatively small sum. Of course, there was a waiting period where people could wait for a week without receiving any benefits.

Members will be familiar, of course, with the argument of the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith), who was the author of the system. He said that universal credit should reflect the working world: the majority of people are paid monthly, so the benefit should also be paid on a monthly basis, and that would prepare people for the world of work and getting a job. That ignores the fact that many people are likely to be on universal credit for periods that may not be defined, without any hope of getting work. More fundamentally, I believe that it ignores the difficulties of dealing with small sums over a month, rather than a week or a fortnight.

Some time ago, I ran a surgery to advise people who were dealing with the bedroom tax. A woman who came in with a list of expenditure that had £1 at the bottom. I asked, “What’s that £1 for?”, and she said, “Well, I have to walk down to town to shop. Once a fortnight, I don’t walk back. I take the bus.” That is what it was for. People on a weekly budget cope remarkably well, mainly because they have no other choice.

The Secretary of State did not agree with my proposal to delay or postpone bringing the benefit in, but he said something significant: changes will be made when necessary, as necessary and step by step. It was positive of him to say that the benefit is not entirely set in stone and that changes can be made. Now there are welcome changes in the Budget, although they are quite small and insufficient.

Those changes reduce the waiting period from six weeks to five weeks—that is, from 42 days to 35. Some hon. Members will know that the benefit is paid monthly, but that people have to wait an additional fortnight at the beginning, which has already caused significant problems. Those six weeks include four weeks to check income, because people are paid monthly so the details of their monthly income are needed, then a week for processing time and a week of waiting. That week of waiting has gone.

Most of us who take an interest in this subject know that that week of waiting meant very little and had no practical purpose.

Mae’r Bonheddwr anrhydeddus yn gwneud pwynt pwysig, ond ’dwi’n siŵr ei fod yn gwybod bod unrhyw un gyda anawsterau ariannol yn gallu benthyg arian o’r Adran i sicrhau nad ydynt yn cael problemau. [Ymyrraeth.]

(Translation) The hon. Gentleman makes an important point, but I am sure he is aware that anyone with financial problems can borrow money from the Department to ensure that those problems are overcome. [Interruption.]

Mae’r Bonheddwr anrhydeddus yn gwneud pwynt da iawn, a byddaf yn sôn am hynny gyda hyn. Mae’n bosib cael taliad, ond fel dywedodd fy Nghyfaill anrhydeddus dros Dwyfor Meirionnydd o’i chadair, benthyciad yw hwnnw, nid taliad.

(Translation) The hon. Gentleman makes a good point. I will come to that in a moment, but I might as well say now that it is possible to have a payment beforehand, but that is a loan rather than a payment, as my hon. Friend the Member for Dwyfor Meirionnydd said from a sedentary position.

That change puts people into debt straightaway. The Government have not addressed the flaws in the system. The Trussell Trust says that in areas where universal credit has been rolled out for six months or more, there has been a 30% increase in people taking up food parcels. Does the hon. Gentleman agree that those statistics lay bare the link between welfare reform and emergency help?

Mae’r Foneddiges anrhydeddus yn gwneud pwynt arbennig o dda. Mae’r Trussell Trust, a mudiadau eraill wrth gwrs, yn rhedeg banciau bwyd trwy Gymru gyfan, ac maen nhw wedi cynyddu’n sylweddol. Mae gennym ni rhai da iawn yng Nghaernarfon ac ym Mangor, a ’dwi wedi bod yna yn eu gweld nifer o weithiau. Gyda llaw, fy marn i am fanciau bwyd yw bod o’n dda i’w cael nhw, ond yn gywilydd bod gennym eu hangen. Fel dywedodd y Foneddiges anrhydeddus, mae cael benthyciad ar y dechrau yn golygu bod yna ddyled yn syth bin. Tydi hynny ddim yn safbwynt da i gychwyn gyrfa fel hawliwr credyd cynhwysol. Nes ymlaen, wna’i sôn am ymchwil sydd wedi cael ei wneud yn Sir Fflint ynglŷn â lle mae’r problemau efo credyd cynhwysol. Bydd hyn yn ddadlennol.

O’r hyn roeddwn i’n deall, prif bwrpas yr wythnos o ddisgwyl oedd arbed arian. Doedd dim pwrpas arall iddi. ’Dwi’n eithriadol o falch o weld y cyfnod yna yn mynd, ond gallasai’r Canghellor fod wedi gwneud llawer mwy, er enghraifft, torri’r cyfnod prosesu hefyd, fel bod rhywun yn cael yr arian mwy neu lai’n syth bin ar ddiwedd y pedair wythnos pan mae’r incwm wedi’i wirio.

Newid arall ydy, fel y sioniodd yr Aelod anrhydeddus dros Fynwy, y bydd taliad ymlaen llaw ar gael o dan rhai amgylchiadau o fewn pump diwrnod o wneud y cais. Yn fuan iawn, bydd rhywun yn dod i sylweddoli efallai nad yw’r credyd cynhwysol ddim yn ddigon a bydd rhywun yn medru gwneud cais am bres ychwanegol. Gobeithio bydd pobl ddim yn mynd heb ddim. Ond er hynny, fel ddywedodd yr Aelod anrhydeddus dros Ddwyrain Casnewydd, mae hyn yn rhoi rhywun i fewn i ddyled. Y newid arall positif a gyhoeddodd y Canghellor oedd bod y cyfnod talu’n ôl yn 12 mis yn hytrach na chwech. Ond benthyciad ydy hwn. Newid bychan ond un i’w groesawu. A dyna ni yn y bôn, hyd y gwela i, o’r Gyllideb. Nid y cyfnod disgwyl ydy’r brif broblem efo credyd cynhwysol, na chwaith y taliadau ymlaen llaw.

Hoffwn siarad ychydig bach am y pethau y byddwn i a Phlaid Cymru yn hoffi gweld yn cael eu newid ynglŷn â’r budd-dal, fel rhyw rhestr siopa i’r Ysgrifennydd Gwladol a’r Canghellor at y dyfodol. Mae credyd cynwhysol yn arbennig o bwysig i Gymru, gyda chynifer o bobl yn medru ei hawlio. Ac i fod yn blaen—waeth i ni fod yn blaen ddim—mae hynny am fod gennym ni gymaint o bobl sy’n dlawd ac ar gyflogau isel. Dyna pam rydym yn medru hawlio gymaint o’r arian yma ar gyfradd uwch na’r Alban a Lloegr.

Bydd y cyfanswm o bobl sy’n medru hawlio credyd cynhwysol yng Nghymru yn cynrychioli tua 400,000 o aelwydydd. Mae hyn yn gyfran enfawr o’r bobl sydd yn byw yn ein gwlad, yn arbennig o gofio mai cartrefi ac aelwydydd yw’r 400,000, ac mae’r teuluoedd sy’n byw yno—y plant a’r gŵr neu’r wraig—yn ychwanegol i hynny. Felly, bydd y nifer absoliwt o bobl fydd yn dibynnu i ryw raddau ar gredyd cynhwysol yn sylweddol eto. Oherwydd hynny, byddai diwygio pellach o fudd eithriadol i ni yng Nghymru, yn arbennig o gofio fod pobl ar incymau is yn tueddi i wario’n lleol ac mae’r bunt sy’n cael ei gwario’n lleol yn mynd ymhellach o lawer yn yr economi lleol hefyd. Felly, nid mater absoliwt o gael incwm ychwanegol yw hyn, ond hefyd rhoi hwb i’r economi lleol.

(Translation) The hon. Lady makes an exceptionally good point. The Trussell Trust and other organisations run food banks throughout Wales. The number of food banks has increased substantially—we have two very good ones in Caernarfon and Bangor, which I have visited many times. It is good to have them, but it is shameful that we need them. I will try to assist them. As the hon. Lady said, receiving a loan at the beginning means that debt is immediately accrued, which is not a great position for someone receiving benefits to start from.

The problems in Flintshire are illustrative of the problems with universal credit. From my understanding, the main purpose of the additional week of waiting was to save money, so I am glad that it has been removed. The Chancellor could have done much more, however, such as trying to cut down on the processing time so that people get the money almost immediately after the four weeks in which income has been checked.

The other proposed change is that the payment beforehand, which the hon. Member for Monmouth mentioned, will be available five days before. Very soon, people will come to see that universal credit may not be sufficient, and it will be possible to apply for further funding. I hope people will not lose out or go without anything as a result because, as the hon. Member for Newport East said, that can lead to debt. The other positive change that the Chancellor introduced was to make the repayment period 12 months, rather than six. I welcome that change, although it is very small. I do not think the waiting time or the advance payments are the biggest problem with universal credit.

I would like to talk about some of the things that I and Plaid Cymru would like to see in relation to the benefita sort of shopping list for the Secretary of State and the Chancellor to look at in the future. Universal credit is extremely important for Wales, because we have so many people who can claim it. To be plain—we might as well speak plainly—that is because we have so many people who are poor and on low incomes, which is why we claim the benefit at a higher rate than England and Scotland.

About 400,000 households can claim universal credit in Wales, which is a huge number, particularly when we bear in mind that there are other members of those families, including children, so a huge number of people are to some extent dependent on universal credit. Further reform would be extremely beneficial for us in Wales, particularly bearing in mind that people on lower incomes tend to spend their money locally. A pound that is spent locally goes much further in the local economy. This is about not simply getting additional income, but boosting the local economy.

I am following what the hon. Gentleman is saying very closely. Is he aware of a study commissioned by the University of Cambridge and University College London, which found that austerity killed 45,000 people between 2010 and 2014, and that a further 152,000 people will die because of austerity between 2018 and 2020? It describes austerity as economic murder. Does he agree that Wales is particularly vulnerable to the impact of that inhumane policy?

Order. Before I call the hon. Member for Arfon, may I remind Members that, when they stand to speak or intervene, they must turn down the volume of their headsets? Otherwise, we all hear the noise that we are currently experiencing in our headsets.

Diolch i’r Aelod anrhydeddus dros Orllewin Abertawe am y pwynt hwnnw. Doeddwn i ddim yn ymwybodol o’r ymchwil arbennig yna. Rydym yn sôn fan hyn am bobl sydd reit ar ymyl y dibyn yn aml: pobl cyn agosed â phosib i fod mewn tlodi absoliwt, ynghyd â phobl sydd ar incymau isel sydd mewn gwaith ac yn ceisio mynd i fewn i’r gwaith. Mae’r ffigyrau hynny’n frawychus.

Mae dipyn mwy o ymchwil yn dod i’r fei ynglŷn â hyn. Dwi wedi bod â diddordeb ynddo ers blynyddoedd lawer, yn bennaf oherwydd fy mod yn ymwybodol bod llawer o bobl yn fy etholaeth eisiau hawlio trwy gyfrwng y Gymraeg, ond bod y ddarpariaeth ddim yna. Wnai sôn am hynny mewn munud. Mae fwy o ymchwil yn dod i’r fei rwan, gan gynnwys, Mr Hanson, o’ch ardal chi, gan Gyngor ar Bopeth Flintshire Citizens’ Advice. Buaswn yn cymeradwyo’r adroddiad “Our local experience of Universal Credit Full Service” i’r Aelodau anrhydeddus yn yr ystafell ac i unrhyw un sydd yn gwrando. Mae yna adroddiad misol—mae hwn o fis Hydref, mae un arall gen i fan hyn o fis Tachwedd y llynedd. Maen nhw’n cyhoeddi ffigyrau a ffeithiau digon diddorol. Bydd yr Aelodau anrhydeddus yn cofio, wrth gwrs, fod credyd cynhwysol wedi cael ei redeg fel peilot yn Shotton, felly mae ganddynt ddeunydd crai ar gyfer eu hymchwil sydd ddim ar gael mewn llefydd eraill. Mae ffeithiau dadlennol yno; roeddwn yn sbio arnynt rwan, tra’r oedd yr Aelod anrhydeddus dros Drefaldwyn yn siarad. Mae tri-chwarter y bobl a ddaeth atynt am gyngor yn ferched. Mae yna rhaniad gender eithaf sylweddol yn y fan yna.

Fel gwybodaeth i’r Ysgrifennydd Gwladol a’i Gyfaill gwir anrhydeddus, y Canghellor, mae’r problemau oedd yn codi yn sir y Fflint yn codi allan o bethau fel camgymeriadau gan yr adran ei hun—roedd rheina’n frith; hawlio ar-lein yn broblemus yn arbennig i bobl heb sgiliau llythrennedd; gorfod disgwyl ar y ffôn yn ddiddiwedd; budd-dal tai ddim ar gael ar amser neu ddim yn cael ei dalu o gwbl; a’r cyfnod aros yn wrthgymhelliad â phobl yn dweud na allent ddisgwyl am chwech wythnos i gael yr arian. Yn fwyaf arwyddocaol, i ddweud y gwir, mae rhan fwyaf y problemau’n codi o gwmpas y cais cyntaf, gyda phobl yn ceisio gwneud cais ac yn methu neu yn cael camgymeriadau wrth wneud.

Does dim gwybodaeth fan hyn, gyda llaw, ynglŷn â hawlio trwy gyfrwng y Gymraeg. Roedd y peilot oedd yn cael ei rhedeg yn Shotton, lle nad oes cymaint o bobl yn siarad Cymraeg, ond dwi’n siwr y daw hyn i’r amlwg wrth i’r system gael ei weithredu trwy Gymru gyfan. Pan es i Shotton i weld y system gyfrifiadurol sydd ganddynt—mae hyn eto yn bwynt i’r Ysgrifennydd Gwladol a’i gyfeillion yn y Cabinet—doedd y system ddim wedi ei chynllunio efo dwyieithrwydd yn y golwg. Hynny yw, system trwy gyfrwng y Saesneg a chais i foltio’r Gymraeg arni oedd bryd hynny o leiaf. Oherwydd hynny, roedd yna broblemau garw efo’r feddalwedd—does dim amheuaeth am hynny. Dwi yn ofni y gwelwn ni ragor o broblemau efo hynny. Buasai’n dda gweld y Llywodraeth yn gweithredu ymhellach na’r Canghellor y tro hwn.

Hoffwn orffen trwy nodi ychydig o newidiadau buddiol, fel rhyw rhestr siopa at y dyfodol, i’r Ysgrifennydd Gwladol a’i Gyfaill gwir anrhydeddus, y Canghellor. Mae yna fân-doriadau wedi bod i gredyd cynhwysol yn barod ers iddo ddod i fewn. Mae yna rywfaint o dorri fan hyn a fan draw, rhyw dameidiau bach sydd yn mynd yn fwy ac, erbyn hyn, mae e’n £3 biliwn yn is o ran gwariant. Mae’n swm sylweddol iawn o ystyried bod y £3 biliwn yna, yn y bôn, yn dod o bocedi hawlwyr sydd ar incwm digon isel i hawlio, digon isel fel mae. Fel canran o’r boblogaeth, maen nhw’n colli £3 biliwn. Hefyd, ar hyn o bryd, mae hawliwr yn colli 63c o bob punt ychwanegol o incwm. Felly, os ydy rhywun yn gweithio fymryn yn galetach a chael punt ychwanegol o incwm, maen nhw’n colli 63c o fudd-dal. Dyma’r tapr.

Pan nes i ddechrau cymryd diddordeb yn y maes hwn bron i 30 mlynedd yn ôl erbyn hyn, pan oedd y Social Security Act 1986 yn dod i fewn, bryd hynny roedd y tapr yn fwy na phunt am bunt. Bydd rhai Aelodau yn cofio hynny: rhywun yn ennill £1 ac yn colli £1.20 oherwydd daeth budd-dal tai i fewn. Diolch byth, mae e lawr i 63c yn y bunt rwan, yn hytrach na 65c yn lled-ddiweddar. Mae’n parhau i fod yn llawer rhy uchel yn fy marn i ac mae’n wrthgymhelliad sylweddol i weithio mwy ac ennill mwy. Rydym yn sôn o hyd yn y lle yma am waith fel ffordd allan o dlodi. Wel, dyma ni: gwrthgymhelliad pendant. Dwn i’m beth tasai’r Ysgrifennydd Gwladol yn dweud pe tasen i’n cynnig trethi incwm uwch ar 63% yn hytrach na 40%. Mae’n wrthgymhelliad. Mae fel bod y ddadl gwrthgymhelliad yn gweithio pan yn sôn am bobl sy’n ennill llawer iawn o bres—peidio a threthi. Ond dydy o ddim yn gweithio efo pobl sydd ar ryw ychydig; mae eisiau gwneud yn siwr eu bod yn gweithio’n galetach felly peidiwch a rhoi gormod yn eu pocedi. Dylid cymryd camau buan a sylweddol i leihau y tapr a medrwn ni edrych—gobeithio—ar y Canghellor i ystyried hynny.

O ran y rhestr yma, bydd rhai o’r Aelodau anrhydeddus yn gwybod bod gofal plant yn faich enfawr ar rieni pan maen nhw’n mynd yn ôl i waith. Mae gen i a fy ngwraig brofiad uniongyrchol diweddar o hyn. Diolch byth nad ydym ni’n hawlio credyd cynhwysol, oherwydd o dan y system yna mae’n rhaid talu am ofal plant ac yna hawlio yn ôl. Hynny yw, mae’n rhaid i rywun ffeindio’r pres i dalu efallai cannoedd—dros £1,000 efallai—am ofal plant llawn am ddau o blant, ac yna hawlio’r arian yn ôl. Mae hynna yn sicr yn rhoi pobl mewn dyled unwaith eto. Felly, byddai talu costau gofal plant ymlaen yn hytrach nag yn ôl yn newid bach na fyddai’n costio llawer i’r Llywodraeth. Mater o dalu’n gynt ydy o, nid mater o dalu’n ychwanegol. Cymeradwyaf hynny fel newid buddiol.

Yn olaf ar y rhestr mae’r lwfans gwaith, sy’n caniatau i rhai pobl ennill rhywfaint—gallant ennill hyn a hyn—heb effeithio ar eu budd-dâl. Ers talwm, pan ddechreuais gymryd diddordeb yn y mater, roedd yn cael ei alw’n “therapeutic earnings”. Dyna ydy’r pwynt: caniatáu i rywun fentro i’r gwaith ac ennill rhywfaint heb effeithio ar y fudd-dâl. Ar hyn o bryd, mae’r lwfans werth £397 y mis—bron £400—cyn i neb weld lleihau yn eu budd-dâl nhw. Ond cyn i’r newidadau ddod i fewn yn Ebrill 2016, roedd y ddarpariaeth yma ar gael nid yn unig i bobl anabl a rhieni, fel sy’n wir ar hyn o bryd, ond i bawb—roedd gan unrhywun y cymhelliant bach yna i fentro. Roedd rhai pobl yn medru ennill cymaint â £734 y mis, sydd bron dwyaith cymaint, ond nid yw hynny ar gael bellach. Byddai codi uchafswm y lwfans gwaith a’i estyn yn ôl i bob unigolyn, gan roi iddynt y cymhelliad i fynd at waith, yn gam positif iawn, yn arbenning pan fod un aelod o gwpwl yn gweithio. Efallai byddai hynny yn rhoi cymhelliad i’r ail aelod o’r cwpwl fynd i’r gwaith hefyd.

Cyfeiriais ar y cychwyn at synnwyr cyffredin o ran yr iaith Gymraeg. Ers hynny, rwyf wedi cyfeirio at dim ond cyfran fach o’r hyn fyddai Plaid Cymru am newid o ran y drefn budd-daliadau. Mae yna lawer iawn mwy hoffem wneud, ond mae hynny tu hwnt i sgôp y ddadl yma. Nid yn lleiaf, hoffem ddatganoli rhedeg y gyfundrefn a symud y cyfrifoldeb am nawdd cymdeithasol o ddydd i ddydd o’r lle yma i Gaerydd. Y rheswm dros hynny, wrth gwrs, yw ei fod yn ymarferol ac yn synnwyr cyffredin i roi datblygu’r economi, darparu addysg a hyfforddiant, gwasanaethu i bobl anabl, a phob math o bethau eraill, o dan yr un to â darparu incwm. Maent yn ffitio hefo’i gilydd yn dda iawn, ac mae hynny’n digwydd mewn rhannau eraill o’r Deyrnas Gyfunol. Cam cymharol syml—ac un gweinyddol yn y bôn—byddai symud y cyfrifoldeb am redeg y system o ddydd i ddydd o fan hyn i Gaerdydd. Ond, hyd at rŵan o leia, mae’n ymddangos bod yr enghraifft bach yma o synnwyr cyffredin y tu hwnt i ddirnadaeth y Llywodraeth yma ar hyn o bryd.

(Translation) I thank the hon. Member for Swansea West for that point. I was not aware of that research. We are talking about people who are right at the edge and are close to absolute poverty, and about those who are working on low incomes or are seeking to enter the field of employment. Those figures are frankly terrifying.

Further research is emerging on this issue. I have had an interest in it for many years, mainly because many people in my constituency try to claim through the medium of Welsh, and the provision is not available. I will talk about that issue later. More research is emerging, including from Citizens Advice Flintshire in your constituency, Mr Hanson. I commend its report entitled “Our local experience of Universal Credit Full Service” to hon. Members in the room and anyone who is listening. It is a monthly report. This is from October, and I have one available from last November. It publishes interesting figures and information. Hon. Members will remember that universal credit was run as a pilot in Shotton, so Citizens Advice Flintshire has material for its reports that is not available elsewhere. Some of the figures and information are very illuminating; Some of the figures and information are very illuminating; I was looking at them as the hon. Member for Montgomeryshire was speaking. Three quarters of those who came for advice were women, which suggests quite a substantial gender gap.

For the information of the Secretary of State and his right hon. Friend the Chancellor, let me briefly run through the problems in Flintshire, some of which arose because of mistakes by the Department. Claiming was problematic, particularly for people with literacy problems, who had to wait on the phone endlessly; housing benefit was not paid on time or not paid at all; and the waiting period was too long—many people could not wait six weeks for the money. Most significantly, most people’s problems arose in their first application, when they tried to make a claim but failed or found difficulties.

No information is given about the right to claim through the medium of Welsh. The pilot scheme was in Shotton, where not so very many people speak Welsh, but I am sure that that problem will become more evident as the system is rolled out throughout Wales. When I went to Shotton to see the scheme in operation—this is a point for the Secretary of State and his Cabinet colleagues—I could see that the computer system had not been designed with bilingualism in mind. It seemed that it worked through the medium of English and that Welsh was bolted on, so there were severe problems with the software—there is no doubt about that. I fear that we will see further problems. It would be good to see the Government taking action and going further than the Chancellor did.

May I conclude by noting some changes that would be beneficial? I have a shopping list for the Secretary of State and the Chancellor. Since the introduction of universal credit, there have been a few small cuts to it here and there, but they are becoming larger. Some £3 billion less is being spent—a significant sum, when we consider that essentially it comes out of the pockets of those who are on low enough incomes to be claimants. That segment of the population is losing £3 billion. Additionally, a claimant who works hard to receive a further £1 of income will lose 63p of benefit as a result of the taper.

I first took an interest in the subject more than 30 years ago when the Social Security Act 1986 was passed. The taper was more than 100% at the time: as hon. Members will remember, people would lose £1.20 in benefit for every extra £1 they earned, because of the introduction of housing benefit. That taper has recently gone down from 65p to 63p in the £1, but in my view it is still much too high, because it is a significant disincentive to earn more. We often talk about work as a way out of poverty, but the taper is a definite disincentive. I do not know what the Secretary of State would say if I suggested taxing income at 63p rather than 40p in the £1; it seems that talking about disincentives works as an argument against taxing people who earn a great deal of money, but not as an argument against stopping people on lower incomes trying to earn more. I hope the Chancellor will reconsider the taper.

This is not the final point on my shopping list, but as some hon. Members will know, childcare is a large burden on parents when they return to work. My wife and I have direct recent experience of this. I am so very grateful that we do not claim universal credit, because under that system people have to pay for the childcare and then claim it back. People have to find perhaps over £1,000 for full-time childcare and then they can claim that money back. That will certainly put people into debt. Paying childcare costs forward, rather than claiming them back, would be a step forward. It would not cost much more to the Government; it is just a matter of paying more quickly rather than paying any additional sums. I would commend that as a beneficial change.

Finally on this shopping list is the work allowance, which allows some people to gain some money without having it affect their benefit. Some hon. Members will have interest in this, in terms of therapeutic earnings allowing someone to enter the workforce and then to earn a certain amount of money without it having an impact on the benefit. The allowance is £397—nearly £400before anyone sees a reduction in their benefit, but before the changes in April 2016, this provision was available not only for disabled people and parents, as is the case currently, but everyone. Anyone could gain that incentive to step forward. Some people could earn as much as £734 a month, which is almost twice as much as now, but that is no longer available. Increasing the allowance would affect all individuals. It would incentivise them to get into work. It would be a very positive step, particularly when one half of a couple is working. It would give the second member of that couple an incentive to work as well.

I referred to common sense at the beginning, in terms of the Welsh language. Since then I have referred to only a small percentage of what Plaid Cymru would want to change in the benefits system. I could have said much more, but it is beyond the scope of this debate. However, not least is the devolution of funding the system: moving the responsibility for the day-to-day benefits system from here to Cardiff. That makes practical common sense, so that the economy can be developed, skills and training provided and services provided for disabled people. All those and other things can be done under the same roof as providing an income. All these things fit together very well. They are done in other parts of the United Kingdom. A simple, and basically an administrative, step would be to move the responsibility for running the system on a day-to-day basis from here to Cardiff. It is a small step, but it seems to be beyond this Government at present.

Order. I have six hon. Members who wish to speak and I will be calling the Front- Bench spokes- people from 3.30 pm, so we have 45 minutes for six speakers, which is less than 10 minutes per person. I call Chris Davies.

Diolch, Mr Hanson. I will keep within those 10 minutes. Given that the majority, if not all, of Government Members present have either started off or fully delivered their speeches in Welsh, I shall try to put my Labour colleagues at ease by speaking through the medium of English.

I am delighted to praise the autumn Budget and I am delighted to see its effect on my constituency. Brecon and Radnorshire has one of the lowest unemployment rates not just in Wales, but in the whole of Great Britain. That is because of the way in which we are delivering and looking after the economy in this country. It is a great boost. Many Opposition Members decry the low unemployment figures, but it is a massive boost for this country. We are very lucky indeed that we have so many people in work. The boost it gives to people in work and to families is immeasurable.

Much has been said already, so I will try to pick up a few points before I sit down. The tidal lagoon has been mentioned. As someone who represents a mid-Wales seat—I will come on to that—why I am I mentioning it? In the southern end of Brecon and Radnorshire in particular, jobs would be created, tourism would be helped and the economy would be boosted.

Many Opposition Members will remember that I led the Westminster Hall debate on Swansea’s city of culture bid. I was asked to do it, and as a Swansea boy I was delighted to support Swansea in any which way I could. However, I am not prepared to see my constituents having to pay electricity bills that are twice or even three times the amount they pay at the moment. I want the tidal lagoon to go ahead, but we must ensure that the figures stack up. The Secretary of State made that clear earlier, as we have heard in all the debates. However political we want to be in this place, we owe a duty to our constituents to ensure that the figures add up.

The Government seem to lack commitment to invest in renewable energies and look after the air quality of Gower, Swansea and south Wales. As has been said, we still have no electrification to Swansea, and in my constituency there is a proposal to put in a gas power station, with potentially £100 million coming from central Government. That will not help provide clean air to my constituents, yet the Government are shirking on the tidal lagoon. Something must be wrong there.

“Shirking” is in interesting choice of word. It would have been easy to give in and say, “The figures cannot be met and the lagoon cannot go ahead.” That is what a weaker Government would have done, but this Conservative Government have tried every which way possible and are still doing so to ensure that it happens. They are trying hard, and if it is possible we will succeed.

Does my hon. Friend agree that if Carwyn Jones is serious about putting £200 million into the project, the Welsh Affairs Committee offers him an ideal platform to tell us all about it?

I concur. Is it £200 million, or is it £2 million—do we really know what Carwyn Jones is offering? Do not forget that that is taxpayers’ money, not Welsh Assembly or Westminster Government money. He could come clean and say that, because this is a bill to the taxpayer, not to the Welsh Assembly or the Westminster Government. We must get it right.

Has the hon. Gentleman managed to read the National Audit Office and Public Accounts Committee reports on his Government’s decision to build Hinkley Point? They say it will cost an extra £13 billion in public subsidy, which will be paid for by the poorest taxpayers. Is it not true that the cheapest electricity in Wales comes from the Dinorwig pumped-storage scheme in north Wales? There is huge potential for water power in Wales, which is being ignored by the Government in exchange for nuclear power stations, with one possibly in Wylfa to be built by a Japanese company because it cannot build them in Japan anymore.

We have to be cautious about any audit report and investigate further. The hon. Gentleman will remember when Conservative Members of Parliament visited Newport to look at the possibility of a Newport lagoon. The Conservative Government have not only committed to trying to make it happen in Swansea but to make the whole lagoon structure work. We are trying to put the figures together. I will move on, because the tidal lagoon is a small part of what I have to say.

I am delighted that defence investment continues at 2% of GDP, and in Brecon and Radnorshire there is strong commitment to the Infantry Battle School, the training ground in Sennybridge, and Dering Lines. The military play an important part in Wales, and I am delighted that the Government continue to support them in every which way.

Let us not forget a small item we have missed in the Budget: £4.7 million has gone to refurbishing and modernising poppy factories. They may not be in Wales, but they supply poppies to Wales. For most people in this room and outside in Wales, that is the closest they get to remembering those who have lost their lives in battle. That is very important and an item that, sadly, has been overlooked, but it is in there to support our traditional elements.

We have heard much talk about agriculture. Over the past 12 months many farmers in my constituency have seen an increase in the price of lamb and beef on the hoof in the markets, as a result of the lower value of the pound. Many who voted for Brexit—the vast majority of them did so—are looking towards the future and the great expectations it holds. They are not frightened, but they are concerned—they do not know what is going to happen, but they are looking forward to the opportunities. I wish more politicians did that, instead of constantly criticising the Brexit process.

I am delighted that the Budget did not contain a tourism tax. Brecon and Radnorshire relies exceptionally heavily on tourism, as do the constituencies of many Members present, but the Labour and Liberal-run Welsh Government already seem to be talking about a tourism tax, which would decimate the tourism industry in this country. I hope that Opposition Members will tell their Welsh Assembly colleagues how devastating it would be and what a disastrous idea it is for Wales.

I agree.

The mid-Wales growth deal has already been touched on by my hon. Friend the Member for Montgomeryshire. The one question that has never come out anyone’s mouth in the Houses of Parliament, or even I think in the Welsh Assembly, is that of mid-Wales. Where does it start and where does it end? Where does south Wales start and stop? Where does mid-Wales start and stop? Where does north Wales start and stop?

As many Members know, my constituency is considered to be a mid-Wales seat, but the southern tip of my boundary is only 15 miles from Swansea bay. We have to think long and hard about where the mid-Wales growth deal will come in and where it will stop. What about constituencies such as that of the hon. Member for Dwyfor Meirionnydd? The southern part of her constituency could be part of a mid-Wales growth deal and would benefit from it. It is not just about Brecon, Radnorshire, Montgomeryshire and Ceredigion. The mid-Wales growth deal could be of great benefit to the majority of Wales, because the majority of Wales now seems to be mid-Wales.

I am delighted that the Under-Secretary of State for Housing, Communities and Local Government, the hon. Member for Rossendale and Darwen (Jake Berry), who has responsibility for the northern powerhouse and local growth, has already visited Powys County Council to get the ball rolling. Before going on to do great things at the Ministry of Defence, the former Under-Secretary of State for Wales, my hon. Friend the Member for Aberconwy (Guto Bebb), also visited Powys County Council to ensure that it was starting to think about where to lead with the mid-Wales growth deal. The current Parliamentary Under-Secretary of State for Wales will visit shortly and lead the project forward, along with Lord Bourne from the House of Lords. The options are never-ending.

We have made it clear to local authorities that the mid-Wales growth deal will spread from east to west, across Offa’s Dyke, because a lot of people in my constituency and in Montgomeryshire naturally cross that invisible border every day, whether to work or shop. Clearly, we have to tie everything in. I am delighted that the Chancellor mentioned the mid-Wales growth deal in the Budget. This is the first time we are seeing some real joined-up thinking from a Government. I praise the Conservative Government for starting the deal. It is a start and not a finish, but I am sure hon. Members will be disappointed to hear that it is the finish of my speech. I look forward to the mid-Wales growth deal.

Gadewch i mi ddechrau trwy ddweud pa mor falch ydw i i gael y cyfle i siarad Cymraeg heddiw. Mae’n un o ieithoedd swyddogol y Deyrnas Unedig ac mae llawer o fy etholwyr yng Ngogledd Caerdydd yn ei siarad. Felly rwyf yn gobeithio y bydd fy nghyd-Aelodau a minnau yn cael siarad Cymraeg yn y brif Siambr hefyd cyn bo hir. Nawr byddaf yn troi at y Saesneg oherwydd dwi’n dal i ddysgu Cymraeg.

(Translation) Let me begin by saying how pleased I am to have the opportunity to speak Welsh here today. It is one of the official languages of the United Kingdom, and many of my constituents speak the language. I hope therefore that hon. Members and I will have an opportunity to speak Welsh in the main Chamber before too long. I will now turn to English, because I am still learning Welsh.

I am sure that my colleagues and the Secretary of State will join me in congratulating Jack Sargeant on an absolutely excellent win in the by-election in Alyn and Deeside yesterday, increasing Labour’s majority after a brilliant campaign. He now joins our Welsh Labour colleagues in Cardiff Bay, representing his constituents and helping to deliver record levels of investment in our NHS, an extra £100 million in funding for schools, 20,000 more affordable homes and the best childcare offer for working parents in the United Kingdom.

That is in stark contrast to the Tories’ shameful approach to our nation, with the Secretary of State for Wales constantly undermining the National Assembly for Wales and the Welsh Government, and complaining that too much power has been “centralised” in Cardiff. It is obvious that that is an attempt to create divisions within Wales, to distract people from the fact that the Tories do not care about investment in Wales, consistently ignore recommendations from the Welsh Government and exclude Wales from Brexit negotiations.

The Secretary of State is just Westminster’s representative in Wales, not Wales’s representative in Westminster, and as a mouthpiece for the Tories in Westminster he continues to block policies that would allow Wales to create more jobs and lower energy costs, as well as undermining devolution at every opportunity. It is embarrassing how obvious he and his Government make their lack of respect for Wales as a devolved nation.

The Budgets presented by this UK Government have consistently punished Wales. The UK Government give in to the likes of the Democratic Unionist party to save their own jobs. And where was the Secretary of State for Wales when the DUP was given a billion pounds for Northern Ireland? Why did he not stand up for Wales? Why did he not demand more money? In fact, where is he now?

The Welsh budget has experienced year-on-year cuts as a result of the UK Government’s ongoing policy of austerity. By 2022, when we will have had more than 10 years of Conservative rule—hopefully not—UK GDP is forecast to be £41 billion, or around 3%, lower than previously forecast. On this Westminster Government’s watch, libraries, leisure centres and youth clubs are closing, because they have starved the Welsh Government and Welsh councils of money. Mental health services are being cut back, too. Since 2010, 25,000 local authority jobs in Wales have gone and the services that make our communities healthier and more liveable in are disappearing, because of lack of funding from Westminster. The austerity politics of this UK Government is killing our communities in Wales.

The Secretary of State for Wales tells us that all that must be the fault of the Welsh Government. However, the seven-year public sector pay cap of this Tory Government has reduced the wages of carers, school support staff, cleaners, highway maintenance staff and many more public sector workers by more than 20%. Since 2010, nurses have suffered a 14% pay cut in real terms and current estimates are that 3,000 nursing jobs in Wales are unfilled.

In my constituency of Cardiff North, where we have the highest number of public sector workers in Wales, I have spoken to nurses who have to resort to foodbanks, and to other public sector workers who are barely making ends meet. That is unacceptable, and we should not use Welsh Government funding to resolve an issue that should be put right at UK level. If Welsh Government funding is used, we would see millions of pounds being taken from frontline services and from the budget of NHS Wales, risking thousands of public sector jobs. It is absolutely essential that this UK Government provide the funding that Wales needs, and that they treat our public sector workers with fairness and equality.

Moving on, the effects of climate change and resource depletion mean that the old, tired ways of doing business are an insufficient response to the challenges we face today. Governments and businesses must come together to create new models of sustainable growth. That is happening in Wales, and it comes at a time when Welsh industries and businesses face the danger of a hard Tory Brexit. The best way to protect our nation is to retain full access to the European single market and a customs union.

In the same way that the availability of natural resources put Wales at the forefront of the first industrial revolution, driving the growth in what was then iron, coal, steel and manufacturing, our abundant natural resources can now drive the growth of a new and different economy, which will be rooted in the sustainable and intelligent use of those resources. That is in stark contrast to the shambolic direction of the Tories in England, who seem unable to give a steer on climate targets or long-term sustainable growth. The tidal lagoon has been discussed. It is shameful that the UK Government cannot come to a decision—Tory Ministers consistently undermine it, despite, as we have heard, investment from the Welsh Government.

In a competitive global marketplace, companies will invest where there are the best conditions to make long-term sustainable growth possible. The Welsh Government have recognised that and introduced a strong legislative framework that gives certainty beyond electoral cycles. In the Well-being of Future Generations (Wales) Act 2015 and the Environment (Wales) Act 2016 the Welsh Labour Government have set out a far-reaching economic, environmental and social agenda. That strong ambition and drive can help Wales to become a world leader in green growth, providing a platform and location where companies that share those values can thrive. I am proud to have played a part in introducing the carrier bag charge seven years before it was introduced in England, as well as to have helped to develop a truly sustainable Wales.

It is clear that the next 20 years will see a period of massive technological change. Young peoples’ voices will be critical to that process as the generation who will be at the heart of driving change over the next 20 years. The challenge now is to drive green growth widely and quickly, as we face the risks and opportunities of the 21st century. Successful markets need a strong clear vision and an effective regulatory regime. The UK Tory Government have neither. If they have any real ambition to lead on green growth they must do likewise, and put in place long-term statutory goals to reflect what we want now and in the future. They need to improve the position of business and prioritise investing in high-quality sustainable infrastructure, such as the Swansea Bay tidal lagoon, which will make Wales a far more attractive place to do business.

At the moment the UK Government and the Secretary of State for Wales are an embarrassment. They cannot take a decision on the tidal lagoon; there are U-turns on rail electrification investment; and they have failed to invest in energy efficiency or renewable energy, which would provide the vital economic and environmental infrastructure needed to boost growth and support the environment. Diolch yn fawr.

Hoffwn ymddiheurio am fy absenoldeb y bore yma. Rwyf yn falch i fod yma. Roeddwn yn edrych ar hanes yr iaith Gymraeg yma a’r brwydrau dros y blynyddoedd. Rwy’n llongyfarch fy Nghyfaill anrhydeddus yr Aelod dros Dde Clwyd. Dim ond dwy flynedd yn ôl, pan oedd yr Ysgrifennydd Gwladol dros Drafnidiaeth yn Arweinydd y Tŷ, dywedodd na.

Roedd fy nghwestiwn cyntaf fel aelod o’r Mainc Flaen yn 1988 am siarad Cymraeg yma. Cyfrinach fy ngyrfa yn y Tŷ yw bod pawb yn cytuno gyda phob gair rwy’n dweud 30 mlynedd ar ôl i mi ddweud e. Dyna sut mae pethau’n gweithio yn y Tŷ Cyffredin—rhaid aros am byth i bobl cytuno â chi.

Rwyf yn cytuno â phopeth sydd wedi’i ddweud am forlyn llanw Abertawe. Mae’n nonsens i’r Llywodraeth wrthod gweld posibiliadau ffynhonell pŵer sydd yn rhydd inni ac sydd yn golchi arfordir Cymru ddwywaith y dydd; rydym yn gwybod pryd fydd hyn yn digwydd—yn wahanol i rai pwerau adnewyddadwy eraill. Mae’n lân, yn wyrdd a byddai’n rhoi ynni inni am genedlaethau.

I ddychwelyd at y Gymraeg, a’r peth pwysig sydd yn digwydd heddiw, rwy’n arbennig o falch ein bod ni heddiw yn rhoi urddas i’r Gymraeg ac yn dangos i’n plant fod gan yr iaith statws. Dylem fod yn falch o’r iaith. Roedd y Gymraeg yn iaith lenyddol, gyda rhyddiaith a barddoniaeth cyfoethog iawn, cyn genedigaeth yr iaith Saesneg. Dwy fil o flynyddoedd yn ôl, yng Nghaerleon yn fy etholaeth, roedd yn bosib gwrando ar blant yn siarad dwy iaith. Intra muros—oddi fewn i’r waliau—roedd y plant yn siarad Lladin, ond ultra muros—tu allan i’r waliau—roeddynt yn siarad Cymraeg. Pa iaith sydd wedi ffynnu? ’Dwi ddim yn clywed llawer o Ladin yn cael ei siarad gan bobl a phlant Casnewydd. Dylem ymfalchïo yn beth sy’n digwydd yma: tipyn bach o ateb i’r sarhad ar yr iaith Gymraeg dros y blynyddoedd.

Does dim llawer o amser gen i, felly gad inni dalu teyrnged i’r iaith drwy gofio geiriau’r bardd am ei pharhad:

“Aros mae’r mynyddau mawr,

Rhuo trostynt mae y gwynt;

Clywir eto gyda’r wawr

Gân bugeiliaid megis cynt.

Wedi oes dymhestlog hir

Alun Mabon mwy nid yw,

Ond mae’r heniaith yn y tir

A’r alawon hen yn fyw.”

(Translation) I apologise for being absent this morning, but I am pleased to be here. I was looking at the history of the Welsh language in this place and the battles that have taken place over the years. I congratulate my hon. Friend the Member for Clwyd South on this occasion; but just two years ago, when the Secretary of State for Transport was Leader of the House, he said no, we could not do it.

The first question I asked in 1988, when I was a Front-Bencher, was on using the Welsh language in this place. The secret of my career in the House is that everyone agrees with every word I say 30 years after I have said it. That is how things work in the Commons; you have to wait a very long time before people come round to agreeing with you.

I agree with everything that has been said on the Swansea bay tidal lagoon. It is a nonsense for the Government not to see the possibilities that exist there, with that renewable source of energy that is freely available to us. It washes over our shores in Wales twice a day, and we know with certainty when it will come, which is not the case with some other renewable sources. It is clean energy, green energy, and it will provide us with power for generations.

If I return to the Welsh language and the important events of today, I am particularly proud that this is giving dignity to the Welsh language, and showing our children that the language has status. We should be proud of the language. The Welsh language was a literary language with a rich history of poetry and prose before the English language was spoken. Some 2,000 years ago, in Caerleon in my constituency, it was possible to hear children speaking two languages. Intra muros, within the walls, they spoke Latin; extra muros, beyond the walls, they spoke Welsh. Which language has prospered since those days? I do not hear a huge amount of Latin spoken by the people of Newport at the moment.

We should take pride in the Welsh language and in what is happening here, because it goes some way to righting the injustices done to the Welsh language over many years. Although I do not have much time, I urge hon. Members to remember the words of the poet about the survival of the language:

“The great mountains remain

The wind roars across them

The song of shepherds is heard again with the dawn, as before.

After a tempestuous age

Alun Mabon is no more

But the old language is in the land

And the old tunes live.”

Diolch yn fawr, Mr Hanson. It is a pleasure to serve under your chairmanship.

The recent Budget did very little for any part of the UK, but it did absolutely nothing for Wales. I will focus on two specific issues that could and should have benefited from this year’s Budget. I will talk specifically about the 1950s women’s pension scandal and a campaign very personal to me, the children’s funeral campaign.

By now, many on these Benches know what I am going to say regarding the unfair and unjust treatment of 1950s women. Without the time to prepare and make the necessary alternative arrangements, many women born in the 1950s are left in financial despair. That is nothing new to the Government. We have been here before and, sadly, no doubt we will be here again. It is important to reiterate that a pension is not a benefit; it is an entitlement that those women have paid into. Many 1950s women—today I am specifically talking about Welsh 1950s women—are currently in work not because they want to be, but because they have to be. Almost 200,000 women in Wales are or will be dramatically affected by the changes to the state pension and more than 3,000 in my own constituency have been unfairly treated by these changes. Many of these women are desperate. They call my office every day and tell me they have had to sell their furniture and other belongings, and are relying on family, friends and, for some, even food banks just to exist.

The ability to work and the availability of jobs are not options for all women born in the 1950s who find themselves in this position. For some of these women, their jobs are physically demanding, and because of their health they can no longer do things they were able to do when they were younger. Therefore, many of these Welsh women are having to rely on the benefits system. Case-load data for unemployment benefits, such as jobseeker’s allowance and universal credit, have significantly increased with the number of women over 60 who are accessing such benefits.

Many Welsh local authorities are stepping up to the plate and calling on the Government to make appropriate provision for these women. We know that local authorities such as Caerphilly, Neath, Port Talbot, Rhondda, Wrexham and my own in Swansea have all pledged support for a fair transitional payment for these women, and many more local authorities are working towards replicating that pledge.

We must be a voice for 1950s women and we must not give up, because, to this Government’s dismay, the problem is not going away. I am proud to say that the Welsh Government give free bus passes to every individual aged 60 or over. That puts Welsh 1950s women at an advantage, in as much as they are able to travel freely. That is especially important if they are expected to travel to benefits offices or work-trial placements as a requirement of the unemployment benefit that they have to claim to survive. As this campaign goes on, so the Government’s shame grows. Every debate that this Government hear is a missed opportunity to put this issue right. It is time the Government started listening to what these women say.

Now I turn to a very, very personal campaign: the children’s funeral fund. Many will have heard me talk about this in the Chamber on a number of occasions, but it is so important to me that I need to talk about it again. I thank all those Members, some of whom are in this room, who, on a cross-party basis, signed a letter that I recently sent to the Prime Minister. For 14 months I have been asking the Government to show compassion, to ease the pressure on bereaved parents and to introduce a UK-wide children’s funeral fund. For 14 months I have been stalled. I have had my hopes raised, only to be overlooked on Budget day, not once but twice.

Thankfully, last year, the Welsh Labour Government listened. They realised that for a relatively modest amount of money, they could make a considerable difference to bereaved parents in their hour of need. They established a children’s funeral fund, meaning that across Wales, thanks to the additional support from many national and independent undertakers, parents can bury their children without the added worry of how they will afford it.

Sadly, every year about 10,000 parents are left devastated by the death of their child. I know from personal experience that the grief is indescribable. The idea of putting a price on the funeral of your loved child is something that, undoubtedly, no one would ever want to consider, until they are forced to and face that bill.

Councils around the UK have made concessions and have also looked at scrapping the fees. As a result of my campaign, which I am very proud of, I am pleased to say that many have now scrapped their fees. For some councils, reduced budgets mean that it is just not an option. In the most extreme cases, the up-front costs of a funeral can be as high as £4,000. Even if every one of the 5,000 children who tragically die every year lived in an area that charged £4,000, the fund would still need to be only £10 million annually. We know that sum is a rarity. Most local authorities charge less than £1,000, so the amount that I am asking for is so far below £10 million that it is literally small change: it is not a big sum of money for the Treasury.

This campaign is supported across the House. I have met and I continue to meet Ministers to explain why this fund is so crucial to families, but nobody listens to me. Ministers need to follow Wales’s example. I have seen at first hand the difference it makes.

Last summer, I visited a Co-op funeral director when a young couple came in who had just had stillborn twins. The funeral director did not charge them for the funeral. When I could tell them that the Welsh Government were not going to charge them either, their relief was palpable. They had lost their children and they could not lose anything else.

It is so important that the Government listen to what I am saying and that they follow the lead of the Welsh Government and make this happen. I cannot talk any more. Please, listen.

Diolch yn fawr, Mr Hanson. I pay tribute to my hon. Friend the Member for Swansea East for the passionate and compassionate way in which she has organised her campaign. I hope that the Government will take the time to listen to her campaign. It is a pleasure to speak in this historic Welsh Grand Committee and it is sad that it is only the second to be held in the two and a half years since I was elected to this place.

The Prime Minister and her UK Tory Government have slashed funding to Wales by more than £l billion per annum, and have imposed a public sector pay cap that impacts on Welsh workers and those across the UK in our most vital public services. We have heard time and again that the Government have refused to invest in vital Welsh infrastructure projects such as the Swansea bay tidal lagoon and rail electrification. Unfortunately, the Chancellor did not use the opportunity of his autumn Budget to address those shortcomings and to invest in Welsh infrastructure, to end the Tories’ failed austerity agenda or to lift the public sector pay cap. This Budget really felt like missed opportunities for Wales. It is clear that this Tory Government have proven time and again that they have little or no respect for Wales.

I would like to concentrate briefly on three areas, the first of which is the public sector pay cap. As the shadow Secretary of State, my hon. Friend the Member for Neath, touched on this morning, although the UK Government have made pay offers in excess of 1% for some sectors, the pay cap effectively remains in place for the vast majority of public sector workers. It is important that the Government do not cherry-pick pay rises for some public sector workers in what could be seen as an attempt to divide. We need to see an end to the public sector pay cap, with a fully funded pay rise for all those working in our public services.

Local authorities have tried to help to ease the situation. The two local authorities serving my constituency, Merthyr Tydfil County Borough Council and Caerphilly County Borough Council, decided during the previous council term to become living wage employers, thus helping to mitigate the pay cap. Across Wales, the Welsh Government have indicated their support for our public sector workers and have repeatedly called on the UK Government to end the cap on public sector pay and to give workers across the UK a much-deserved, properly funded pay rise. The Welsh Government have stated:

“The UK Government must do the right thing and lift the pay cap right across the UK public sector as part of a wider strategy to end their damaging policy of austerity.”

There are suggestions that the Welsh Government could take more action, but if they did lift the public sector pay cap unilaterally, every 1% above it would take £110 million from frontline services. Clearly, that would threaten thousands of public sector jobs in Wales and is not a practical or sensible way forward. With huge cuts to the Welsh budget and local government funding in recent years, the Welsh Government are clearly unable to take further action without funding from the UK Government. It is therefore incumbent on the UK Government to take action, do the right thing and remove the pay cap across the UK. The Welsh Government have already committed to use any funding consequentials they receive from the UK Government as a result of public sector pay rises more generally to raise the pay cap for public sector workers in Wales.

Secondly, I highlight the impact of the Tory Budget and the austerity agenda on keeping communities safe in Merthyr Tydfil and Rhymney, across Wales and across the UK. The evidence is that the Tory Government are failing to keep our communities safe. That is apparent from new figures, which reveal that crime in the South Wales police and Gwent police force areas is increasing. The new crime figures show the highest annual rise in police-recorded crime since comparable records began in 2002.

Two thirds of my constituency is covered by South Wales police and the remaining third by Gwent police. In the South Wales police area, violent crime rose by 15%, sexual offences by 42% and total recorded crime by 11%. In the Gwent police area, violent crime rose by 20%, sexual offences by 31% and total recorded crime by 14%. At the same time, we know that the Tory cuts have sent police officer numbers nationwide to their lowest level in three decades. Since 2010, South Wales police have lost 257 officers, while Gwent police have lost 283. It is shameful that the public are now being forced to pay the price for the risk that the Tories took with community safety by slashing 21,000 police officers across England and Wales.

I and many other Members have built close relationships with our local forces—in my case, South Wales police and Gwent police—and have raised police cuts numerous times in parliamentary debates. I have had the privilege to spend a number of shifts with officers in both Merthyr Tydfil and Rhymney, seeing at first hand the officers’ dedication and the excellent work they are doing to keep our communities safe, despite their diminishing resources. Our police officers are working extremely hard in very difficult circumstances. However, the Government must realise that cuts have consequences, and the latest figures certainly reveal that the Tories are failing in their duty to protect the public.

Finally, I raise the issue of jobs and public procurement. In the Budget and the Brexit negotiations, the Government constantly claim that they are working hard to protect jobs and the economy. However, in recent months, there has been much speculation about Ministry of Defence contracts for the new mechanised infantry vehicles—MIVs—being awarded to German firms on a single-source-contract basis. That is deeply concerning to me as the representative of Merthyr Tydfil and Rhymney, where we have General Dynamics starting to assemble the new generation of armoured vehicles. General Dynamics has a long and proud history in south Wales, based for many years in the constituency of my hon. Friend the Member for Islwyn. The additional base in Merthyr Tydfil demonstrates General Dynamics’ commitment to the area and to Wales.

I believe that General Dynamics is well placed to compete for those contracts, and should at the very least have the opportunity to compete in an open and transparent tender process. I hope that the Secretary of State will today confirm that the Wales Office is doing all it can to ensure that the MOD will give Welsh firms, including General Dynamics, the opportunity to bid for that work, to support and sustain hundreds of Welsh jobs. I hope he will have had the opportunity to have a discussion with his colleague, the hon. Member for Aberconwy, who was the previous Wales Minister before he went to his new role as the Minister with responsibility for defence procurement.

Finally, there are many other areas where the Government need to take stock and listen. Their austerity agenda is failing—it is failing Wales and it is failing the UK. If the Government are unwilling or unable to do what is necessary to improve the lives of our constituents, they need to move aside and make way for a Government who will.

Thank you, Mr Hanson. I will be brief, so I will speak in English. I say in passing that my mam-gu—my grandmother—had to wear the “Welsh Not”, which was introduced after the Blue Books. Children were required to pass on a “Welsh Not” to a child who spoke Welsh. They were beaten at the end of the day, and she was beaten at the end of every day because she was very religious and did not want to pass on the “Welsh Not”.

I thought I would also mention, on the centenary of women’s suffrage, an Emily—not Emily Davison or Emmeline Pankhurst, but Emily Phipps. She was one of the 17 women who stood 100 years ago, and she was in fact from the Swansea area. She hid in a cave in the Gower to avoid the census, as a protest.

I just wanted to make the point that Blue Books were dreamt up by a radical who was a forerunner to a Labour party MP.

I certainly regret taking that intervention. On the Budget, the mammoth in the room is obviously Brexit. This Budget should have been preparing Wales for Brexit. Some 70% of our trade goes to the EU, and 25,000 jobs in Swansea bay depend on those exports. We wanted to see investment in infrastructure and skills to boost productivity to our most important market, but instead there has been a failure in rail investment, including the electrification of Swansea. There was no commitment on the Swansea metro that we asked for, either. I mentioned earlier that despite having 6% of the rail network, Wales gets only 1% to 2% of the overall investment.

People have mentioned the lagoon. At a time when 80% of fossil fuels cannot be exploited, if we are to avoid irreversible climate change it is plainly stupid not to invest at the start of a technology that could drive a future global export market. It is strange that the cost per unit of energy at Hinkley Point far exceeds the projected cost for the lagoon. The reason, of course, is Brexit; the Prime Minister needs to go out to China on bended knee, ignoring human rights and everything else, plead for a trade deal, and we are suffering the consequences.

On skills, the primary skills delivery system is the Welsh Assembly Government, but they have undergone cuts of some 5% in the last year alone—£900 million in cuts. That is delivering cuts on the doorstep of local schools, and Swansea is certainly suffering as a result of that.

I welcome the news on tolls. That tax on Welsh trade and industry has been going on for far too long. The fuel freeze should have been more sophisticated, to push us in a more sustainable direction for transport in terms of our air quality problems; there are 40,000 diesel deaths a year in Britain.

People have not talked about quantitative easing. Basically, quantitative easing lifts asset values so the rich get richer and the poor stay poor or get poorer. The value of property in Camden is now worth more than the value of all property in the whole of Wales.

On austerity, I mentioned earlier that a study done by University College London and the University of Cambridge attributed 40,000 deaths to austerity between 2010 and 2014, and 152,000 more are expected between 2015 and 2020. Until 2010, the death rate was falling by 0.7% a year; it is now rising by 0.8%. The International Monetary Fund has shown that greater inequality generates less growth. What we are doing in Britain is making the poor poorer to pay for the bankers’ greed. In so doing, we are stifling growth. All that pay freezes, cuts to benefits and universal credit do is prevent people who would spend every penny they have to reflate the economy from doing so. They are becoming ill, and becoming liabilities to our social and health services. We are in a crisis. We must invest in a stronger, fairer future for Wales and Britain. That means investing in our skills, productivity and infrastructure, especially in Wales, which is the poorest part of western Europe, particularly the valleys and west Wales.

Finally, I will mention in passing some of the issues with universal credit. Although the Labour party has said that we should pause and look again, the reality is that the universal credit system pulls together through complicated computer systems—the Inland Revenue system, the local authority system and the jobcentre system—into an integrated system that is doomed to failure, as a way of delaying and reducing overall benefit costs and cutting corners, in the hope that the poorest, who are often the most vulnerable, can cope with their own meagre allowance and pay the rent themselves rather than being tempted to spend it on other things, even though they face delays and loans. This is a mean Government causing terrible damage to Wales, particularly its poorer communities. We need to think again and invest in the future and in productivity. We need a fairer, better Wales.

Hoffwn gychwyn trwy ddathlu’r cyfle heddiw i dorri tir newydd a defnyddio’r Gymraeg fel iaith gyfartal yn un o Bwyllgorau agored Tŷ’r Cyffredin. Rwyf yn cymryd y cyfle hefyd i nodi blaengaredd yr hen Gyngor Dosbarth Dwyfor, a benderfynodd ym 1974 mai’r Gymraeg fyddai brif iaith weinyddol yr awdurdod. Ers 1996, y Gymraeg sydd hefyd wedi bod yn brif iaith weinyddol Cyngor Gwynedd, ac yn ei siambr mae’n arfer i siaradwyr Cymraeg ddefnyddio’r iaith bob amser pan yn annerch yn gyhoeddus, wrth areithio, wrth ateb cwestiynau ac wrth ymyrryd. Mae’r rheswm am hyn yn syml: er mwyn diogelu defnydd y Gymraeg yn erbyn y norm cyndeithasol o droi i’r Saesneg. Pan fydd siaradwr Cymraeg yn troi i’r Saesneg mewn amgylchedd dwyieithog, yn ddigon buan rydym yn profi bod y Gymraeg ddim yn cael ei defnyddio o gwbl. Nid mater o ddiffyg cwrteisi i bobl di-Gymraeg ydy hyn, eithr mater o gynnal lle diogel i’r iaith mewn bywyd cyhoeddus.

Hoffwn hefyd estyn fy niolch a’m cefnogaeth i bob Aelod Seneddol—o’n i’n mynd i drial eu henwi nhw ond mae yna ormod i mi ddweud—a phob aelod o staff seneddol sy’n mynd ati i ddysgu Cymraeg. Daliwch ati, gwnewch gamgymeriadau, peidiwch â gwrando ar y bobl hynny—ac ma’ ’na ormod ohonyn nhw—sy’n uchafu cywirdeb dros bopeth. A mentrwch i siarad yn hytrach nag aros yn ddistaw. Dim ond trwy ddefnyddio iaith y mae hi’n byw.

Mae pawb sydd wedi defnyddio’r Gymraeg, yn ogystal â phawb sydd wedi defnyddio’r offer gwrando ac, wrth gwrs, y cyfieithwyr yn y cefn yn arloeswyr un ac oll, gyda’n gilydd. Gan ein bod yn sôn bod y sefydliad hwn yn gwneud y defnydd gorau o dechnoleg, mae hyn y gyfle, pan fyddwn yn cael ein decantio, i gynllunio rwan i wireddu caniatáu defnydd o ieithoedd heblaw Saesneg a Ffrangeg Normanaidd i’r dyfodol. Mae yna gyfle i wneud hyn pan fyddwn ni’n mynd o ’ma.

Wrth gyfeirio yn gyntaf oll at yr hyn ddywedodd yr Ysgrifennydd Gwladol, nid yn annisgwyl yr oedd yn canmol rhinweddau Cyllideb yr hydref, yn unol â ac sy’n ddisgwyliedig o’i swydd. Roedd yn ateb yn ôl y disgwyl i gwestiynau parthed diffyg trydaneiddio rhwng Caerdydd ac Abertawe a rheilffordd y Gogledd, a diffyg penderfyniad parthed morlyn Abertawe a’r morlynoedd potensial eraill. Cyfeiriodd at gynnydd Barnett—the Barnett uplift—ond nodwn fod y rhan fwyaf ar ffyrdd benthyciadau. Siaradodd, fel eraill o’i blaid, am gydweithio trawsffiniol. Is-neges sydd i hyn, sef sut y gall Gymru helpu Lloegr.

Nid ein gorllewin ni—gorllewin Cymru—fydd prif fuddiolwr ei bwerdai gorllewinol ond gorllewin Lloegr, gyda briwsion yn unig i orllewin Cymru, dwi’n ofni. Dilynwch yr arian. Yn dilyn degawd o deyrnasu Torïaidd yn San Steffan, mae Cymru yn parhau i fod yn un o wledydd tlotaf Ewrop. Mae cyflogau wythnosol, ar gyfartaledd, yn £393 yng Nghymru o’i gymharu â £434 yn Lloegr. Mae cynhyrchedd Cymru yn 80% o gynhyrchedd y Deyrnas Gyfunol, tra bod Llundain yn nes at 150%. Mater o gywilydd o hyd yw hwsmonaeth ei Lywodraeth dros economi Cymru.

Rwyf yn troi rwan at yr hyn ddywedodd yr Ysgrifennydd Gwladol cysgodol, yr Aelod anrhydeddus dros Gastell-Nedd. Soniodd am effaith Cyllideb yr hydref ar Lywodraeth Llafur yng Nghymru, gan amddiffyn methiant i wireddu addewid polisi maniffesto i godi cap cyflogau’r sector gyhoeddus—rhywbeth sydd yn rhydd i Lafur wneud yfory yng Nghymru, pe dymunent. Roedd fy Nghyfaill anrhydeddus, yr Aelod dros Ddwyrain Caerfyrddin a Dinefwr yn siarad yn rymus am ragolygon economi Cymru, a’r cymysgiad tocsig o fuddsoddi mympwyol mewn is-adeiledd a cham-flaenoriaethu economi ac is-adeiledd rhanbarth de ddwyrain Lloegr—a goblygiadau hynny i Gymru. Roedd yr Aelod anrhydeddus dros Fynwy a Chadeirydd y Pwyllgor Materion Cymreig yn sôn yn briodol am waith y Pwyllgor ac hefyd am ei agweddau angerddol tuag at Brexit. Siaradodd yr Aelodau anrhydeddus dros Orllewin Caerdydd a thros Sir Drefaldwyn am ddarlledu yng Nghymru. Mae hyn yn bwysig, o wybod am yr ansicrwydd sy’n parhau dros ariannu S4C, a’r gyllideb sydd yn ein gwynebu mewn ychydig dros fis.

Soniodd yr Aelod gwir anrhydeddus dros Orllewin Clwyd—daeth hyn yn dipyn bach o dôn gron gan Aelodau eraill ei blaid—am gydweithio trawsffiniol. Mae ’na rybudd fan hyn am anghyfartaledd. Mae Cymru’n derbyn mwy na’i siar o garcharorion o Loegr yn y cawr-garchar yn Wrecsam. Mae’r nifer o garcharorion o Loegr sydd yn Nghymru wedi codi 76% ers mis Mawrth y llynedd.

Torrwyd araith yr Aelod anrhydeddus dros Dde Clwyd yn ei hanner gyda’r rhaniad yn ein dadl heddiw. Siaradodd yn deimladwy am ddefnyddio’r Gymraeg ac effaith yr agenda llymder. Wrth gwrs, agenda llymder gyda’i wreiddiau yma yn San Steffan, ond sydd hefyd yn cael ei arall-gyfeirio gan Lywodraeth Cymru, ac effaith hynny ar wasanaethau lleol.

Roedd yr Aelod anrhydeddus dros Faldwyn yn siarad yn deimladwy am yr hanes o deuluoedd yn colli ac ennill y Gymraeg a goblygiadau statws iaith i benderfyniadau trosglwyddo iaith yn y teulu. Siaradodd fy Nghyfaill anrhydeddus dros Arfon am oblygiadau newidiadau i fudd-daliadau i Gymru, gan gynnig awgrymiadau sy’n cynnwys datganoli, gweinyddu’r gyfundrefn nawdd cymdeithasol i Gymru a’r her o ddylunio systemau technologel-ddigidol sydd yn cynnig dewis iaith i’r defnyddiwr.

Roedd yr Aelod anrhydeddus dros Frycheiniog a Sir Faesyfed yn sôn am y niferoedd mewn gwaith yng Nghymru. Wnaeth hefyd gyfeirio at forlyn Abertawe, er mwyn nodi nad oes gan ei etholaeth yr un filltir o arfordir. Roedd yr Aelod anrhydeddus dros Ogledd Caerdydd yn sôn am sut mae’r Llywodraeth yn tanseilio datganoli a rhoi taw ar lais Cymr—croeso i fyd Plaid Cymru.

Roeddwn yn falch iawn clywed yr Aelod anrhydeddus dros Orllewin Casnewydd yn dyfynnu geiriau’r bardd Ceiriog yn yr Ystafell Bwyllgor hon. Roedd yr Aelod anrhydeddus dros Ddwyrain Abertawe yn sôn am sefyllfa merched WASPI ac rwyf yn ei chymeradwyo a’i llongyfarch am ei gwaith diflino gyda’i hymgyrchoedd. Soniodd yr Aelodau anrhydeddus dros Ferthyr Tudful a thros Gorllewin Abertawe am y cyfleoedd sydd wedi eu colli yn y Gyllideb diweddar.

Er mai testun y drafodaeth heddiw yw’r Gyllideb, y blaidd wrth y drws, wrth gwrs, yw Brexit. Er gwaetha gwaharddiad achlysurol y Cadeirydd blaenorol—dwi’n siwr tase ni wedi bod yn sôn am Gaergybi bydde fe wedi bod yn wahanol—cyfeiriwyd at Brexit gan nifer o’r siaradwyr ac ymyrrwyr. Mi wn fod Uwch Bwyllgorau Cymreig yn bethau prin, ond hoffwn gymryd y cyfle i alw am Uwch Bwyllgor Cymreig ar amaeth yng Nghymru a Brexit. Emosiynau cymysg sydd gen i wrth wrando ar siaradwyr Llafur yn mynegi pryderon am effaith y cyflwr parhaol o ansicrwydd ar economi Cymru heddiw, ac am yr angen i barhau yn yr undeb tollau. Gwell iddyn nhw gyfeirio’u cri at eu plaid eu hunain.

Roedd cryn sôn am rinweddau bargeinion twf i’r de a’r gogledd ac i’r canolbarth, a galwodd yr Aelod anrhydeddus dros Orllewin Clwyd am hyrwyddo cydweithredu rhwng Cynghrair Mersi a’r Ddyfrdwy a gogledd Cymru. Dwi’n croesawu rôl arweinwyr cyngor ym margen twf gogledd Cymru ond yn annog y Llywodraeth i gymryd camau cadarnhaol i gynnal cydweithredu gyda’n cymdogion agosaf yn y gorllewin, sef Iwerddon a Gogledd Iwerddon. O lle dwi’n byw ym Mhen Llŷn, Dulyn yw’r brif ddinas agosaf—yn nes na Chaerdydd a llawer yn nes na Llundain.

Yn olaf, hoffwn bwyso ar yr Ysgrifennydd Gwladol i ddod â rhagor o wybodaeth i ni yng Nghymru am y gronfa ffyniant gyfrannol—neu “shared prosperity fund”. Os byddwn yn gadael y polisi amaethyddol cyffredin a’r gronfa strategol Ewropeaidd, cronfa gymdeithasol Ewrop, o ble ddaw y gynhaliaeth a fu? Mae’r Undeb Ewropeaidd yn gweithredu egwyddor anrhydeddus o leddfu effeithiau anghyfartaledd. Does dim y ffasiwn draddodiad yma gan Lywodraeth San Steffan. Gofynnwn am ragor o wybodaeth am y gronfa ffyniant gyfrannol. Sut bydd ffyniant a thlodi yn cael eu diffinio, ac a ydy’r Ysgrifennydd Gwladol yn gallu gwarantu y bydd cyllidebau’r dyfydol yn gwneud yn siwr na fydd Cymru’n colli’r un ddimai goch dan law’r Ceidwadwyr?

(Translation) I want to start by celebrating the opportunity to break new ground today in using the Welsh language in a Committee of the House of Commons. I also take the opportunity to note the innovation of the old Dwyfor District Council that decided in 1974 that Welsh would be the main administrative language of the authority. Since 1996 Welsh has also been the main administrative language of Gwynedd Council, and in its chamber Welsh speakers tend to always use the Welsh language when speaking publicly, when making addresses, in responding to questions and in making interventions. The reason is simple: to safeguard the use of the Welsh language against the social norm of turning to English. When a Welsh speaker turns to English in a bilingual environment, all too soon the Welsh language is not used at all. It is not a matter of a lack of courtesy to non-Welsh speakers. It is a matter of maintaining a safe place for the language in public life.

I also want to take this opportunity to extend my thanks and support to all Members of Parliament. I wanted to name them, but there are far too many. I encourage all members of parliamentary staff who are learning Welsh to persevere, to make mistakes, and not to listen to the people—there are too many of them—who put linguistic correctness above all else. They should take the chance to speak rather than remain silent. Only through the use of the language will the language live. Everyone who has used the interpretation equipment knows our interpreters at the back of the room are innovators. As we discuss the fact that this institution is making the best use of technology, and given the decant, we should plan now to allow for the use of languages other than English and Norman French in future. There is a real opportunity to do so when we leave this place.

On the Secretary of State’s comments, he praised the Budget, as can be expected from one in his post. He responded to questions on the lack of electrification between Cardiff and Swansea and the north Wales main line, and on the absence of a decision on the Swansea bay tidal lagoon and other tidal lagoons. He referred to the Barnett uplift, but we note that most of that comes in the form of loans. Others from his party talked about cross-border working. The subliminal message in all this is how Wales can help England.

The western powerhouses will not be the west of Wales, but the west of England, with some crumbs from the table for the west of Wales. Let us follow the money. Following a decade of Tory rule in Westminster, Wales is still one of the poorest nations in Europe. Average weekly salaries in Wales are £393 compared with £434 in England. Productivity in Wales is 80% of the productivity of the UK, and London is closer to 150%. The Government’s management of the Welsh economy is a matter of shame.

The hon. Member for Neath mentioned the impact of the autumn Budget on the Welsh Government in failing to deliver a manifesto pledge to lift the cap on public pay. A Labour Government could do that tomorrow in Wales if they so wished. My hon. Friend the Member for Carmarthen East and Dinefwr spoke powerfully about the economic forecast for Wales and the toxic mix of ad hoc infrastructure investments, as well as the prioritising of expenditure in the south-east of England and the implications of that for Wales. The hon. Member for Monmouth, the Chair of the Welsh Affairs Committee, spoke about the work of that Committee and about his passionate views on Brexit. The hon. Members for Cardiff West and for Montgomeryshire spoke about broadcasting in Wales. That is important given the uncertainty about the future of S4C, and decisions that we are expecting in just over a month.

The right hon. Member for Clwyd West mentioned the issue of cross-border working, which was repeated a number of times by members of his party. There is an issue of inequality for Wales. In the context of cross-border working, I would like to highlight the inequality that Wales takes more than its share of prisoners from England into the super prison in Wrexham, with the number of prisoners from England and Wales having risen by 76% since March last year.

The hon. Member for Clwyd South, whose speech was cut in half due to the break in our proceedings today, spoke very powerfully on the use of the Welsh language and on the austerity agenda. Of course, austerity in Wales has its roots here, but it is also being implemented by the Welsh Government, and that is having an impact on local authorities.

The hon. Member for Montgomeryshire spoke passionately about the stories of families who had lost and gained the Welsh language, and the implications of the language status in terms of decisions on language transfer within families. My hon. Friend the Member for Arfon talked about the implications of universal credit for Wales, making suggestions that include devolving the administration of welfare to Wales, and about the challenge of designing IT systems that provide a language choice for the service user.

The hon. Member for Brecon and Radnorshire talked about the numbers in work in Wales. He also referred to the Swansea bay tidal lagoon, noting that his constituency has not a single mile of coastline. The hon. Member for Cardiff North mentioned how the Government are undermining devolution and silencing the voice of Wales—welcome to Plaid Cymru’s world.

I was very pleased to hear the hon. Member for Newport West quote the words of the poet Ceiriog in the Committee Room. The hon. Member for Swansea East mentioned the Women Against State Pension Inequality Campaign, and I applaud and congratulate her for her tireless work on that. The hon. Members for Merthyr Tydfil and Rhymney and for Swansea West talked about the opportunities missed in the recent Budget.

Although the topic of today’s discussion is the Budget, the wolf at the door is of course Brexit. Despite the occasional prohibition from this morning’s Chair—if we had been talking about Holyhead I am sure it would have been different—Brexit was mentioned by a number of speakers. We know that Welsh Grand Committees are few and far between, but I would like to take this opportunity to call for a Welsh Grand Committee on agriculture in Wales and Brexit. I had mixed emotions listening to Labour Members talking about the impact of the ongoing uncertainties in the Welsh economy and of the need to remain in the customs union. They should refer their comments to their own party.

Mention was made of growth deals for north Wales, south Wales, and mid-Wales. The right hon. Member for Clwyd West talked about the promotion of co-operation between the Mersey Dee Alliance and north Wales. I welcome the role of councils in the north Wales deal, but I encourage the Government to take positive steps to maintain collaboration with our nearest neighbours in the west: Ireland and Northern Ireland. Where I live, in the Llŷn Peninsula, Dublin is the closest capital—closer than Cardiff and much closer than London.

Finally, I urge the Secretary of State to bring us further information on the shared prosperity fund. If we leave the common agricultural policy and the European structural fund, the European social fund, where will the maintenance and the support come from? The European Union implements an honourable principle of alleviating inequality. There is no such tradition here in the Westminster Government. I ask for further information about the fund. How will poverty be defined, and is the Secretary of State able to guarantee that future Budgets will ensure that Wales does not lose a single penny at the hands of the Conservatives?

I am going to take the advice of the hon. Member for Dwyfor Meirionnydd and try the limited Welsh that I have learned in Welsh lessons here in Parliament over the past three months.

Mae’n bleser mawr i wasanaethu o dan eich cadeiryddiaeth heddiw, Mr Hanson. Mae’n ddiwrnod hanesyddol: y tro cyntaf i’r Gymraeg gael ei defnyddio yn y Welsh Grand. Llongyfarchiadau i bawb sydd wedi siarad yn Gymraeg heddiw—y rheiny sy’n siarad yn rhugl ac, yn arbennig, y rhai sy’n dysgu’r iaith! Rwyf yn talu teyrnged i Aelodau ar draws y Tŷ sydd wedi lobïo’n galed er mwyn siarad Cymraeg yma heddiw. Da iawn.

(Translation) It is a great pleasure to serve under your chairmanship today, Mr Hanson. It is a historic day: the first time that the Welsh language has been used in the Welsh Grand. I congratulate everyone who has spoken in Welsh today—those who are fluent speakers and particularly those who are learning the language! I pay tribute to Members from across the House who have lobbied very hard for the right to speak Welsh here today. Well done.

There have been many varied and interesting speeches today. The hon. Member for Carmarthen East and Dinefwr gave a great macro-economic picture of the economy and stated that the UK economy needs to be tilted away from London towards Wales and the north. I concur with that. My hon. Friend the Member for Cardiff West spoke powerfully about the legacy of Rhodri Morgan for Wales and the Welsh language, and the importance of this historic day when we are able to speak in Welsh for the first time in the Welsh Grand here in Parliament.

The right hon. Member for Clwyd West spoke about the need for a rejuvenated north Wales economy. He urged that the dithering over the tidal lagoon is ended and progress is made, which again I completely concur with. As peace breaks out, I would also fully support him on his attitude towards the all-party group on the Mersey-Dee alliance.

My hon. Friend the Member for Clwyd South spoke passionately about the importance of the Welsh language. She spoke in English in the hope of attracting the attention of leftie, liberal, lentil-eating journalists who support diversity and all minority languages in the world, except Welsh.

My hon. Friend the Member for Rhondda raised the idea of apprenticeships for workers who will work on the refurbishment of the House of Commons, with apprentices drawn from around the UK. That is an excellent idea and we should expand on it to make sure that produce from around the United Kingdom is used when this House is rebuilt and refurbished. I put in a bid for Welsh slate for the roof.

The hon. Member for Montgomeryshire mentioned the historic decline in the Welsh language and the growth deal. The hon. Member for Arfon mentioned universal credit and the impact on the most vulnerable in society. The hon. Member for Brecon and Radnorshire said that everything is hunky-dory in Brecon and Radnorshire. He took a Lib Dem seat at the election in 2015, and like a Lib Dem, he was facing both ways on the tidal lagoon, so da iawn.

My hon. Friend the Member for Cardiff North rightly made reference to Jack Sargeant’s election victory and contrasted the Welsh Government’s investment in Wales with the Tory Government cuts. My hon. Friend the Member for Swansea East is one of the greatest campaigners in the House, on the WASPI issue and on payment for children’s funerals.

My hon. Friend the Member for Newport West, author of “Commons Knowledge”, made reference to the tidal lagoon, which he fully supports. My hon. Friend the Member for Merthyr Tydfil and Rhymney mentioned the pay cap, community safety and MOD contracts. Finally, my hon. Friend the Member for Swansea West berated the Government for their lack of clarity on Brexit.

Many wise words have been spoken today, and I hope that the Secretary of State for Wales will listen. In the short time that I have, I would like to concentrate on one or two issues. The first is Brexit. Our relationship with the EU and EU countries is not viewed through the lens of what is good for the UK, but what is good for the Tory party. Businesses, universities, unions and the public are begging for leadership and direction from the Government; all they are getting is infighting and political poison. On Brexit, Cabinet members and Members on the Front Bench are like rats in a sack. That is not good enough. We are less than 13 months away from leaving the EU. We want clarity.

Wales has received £9 billion in investment from Europe, match funded by the UK. What will we get after we have left the EU? Those questions need to be answered. Airbus, Toyota and Ford are asking for a soft Brexit. Will they get it? Our Welsh universities want to know what level of co-operation or isolation there will be when we leave. When will they be told? Our Welsh farmers are asking what will happen to Welsh lamb next year, 90% of which is exported to Europe. When will they be told? Our Welsh workers want to know what will happen to their hard-won freedoms and rights, secured through Europe. When will they be told? You may have noticed a theme there, Mr Hanson. Those are right and responsible questions raised by individuals, organisations and sectors. Again, we are only 13 months away. Like us, they want answers, and I urge the Secretary of State to provide them.

The Secretary of State made much of the increase in funding to Wales in the Budget, but his figures were demolished by the shadow Secretary of State for Wales, who rightly pointed out that much of the increase was in the form of loans that have to be paid back. She pointed out that the smoke and mirrors of those announcements cannot obscure the fact that, by 2020, the Welsh budget will be £1.1 billion less than it was in 2010. Let me put that in a historical perspective. When I came to Parliament in 1997, the Welsh block grant was £6.5 billion. By 2010, when Labour left office, it was £15 billion—it had doubled. Over the 10-year period between 2010 and 2020, the Welsh block grant will have decreased by £1.1 billion.

Several speakers spoke about the missed opportunity in the Budget to end austerity. The Government have tried austerity for eight years—it is the only tool in their box—and it has not worked. All we have had is cuts, cuts and more cuts. Other economies have tried a mixture of prudent cuts and sensible, targeted investment. That worked in the 1930s in America under Roosevelt, who was elected four times. It worked under Obama, and it worked in France and Germany. We need to pump-prime our economy. We are eight years on, and our wages are lower than they were 10 years ago. What little growth that exists is channelled into the hands of the rich, who have seen massive increases to their salaries, benefits and bonuses. Targeted pump-priming in Wales could have included the electrification of the rail line to Swansea and Holyhead, and tidal lagoons in four areas around Wales. Those are lost opportunities.

The Secretary of State made much in his introduction of the £600 uplift in the national living wage, which was announced in the Budget. Let us put that in perspective, in terms of the cuts experienced by the vast majority of workers since 2010. It is plain to see that the cuts are aimed at the most vulnerable in our society: 80% have fallen on the backs of women. Is it any wonder that data I uncovered last week reveals that 20% of local authorities have witnessed a decrease in female life expectancy since 2010—this on the anniversary of women’s suffrage. Wages have been frozen in the public sector for years. Teachers are £5,000 worse off now than they were 10 years ago. The cruellest cuts have fallen on the poorest, the disabled, the unemployed and the dying, who have been hit with benefit freezes, the bedroom tax, botched universal credit and a public sector pay cap. It is not just about the cuts; many of those groups have been demonised by the Government. The Government have promoted zero-hours contracts, the gig economy and in-work poverty. Indeed, 66% of those in poverty are actually working. There was nothing for those groups in the Budget.

Those are the statistics. Let me give hon. Members the stories. Don Lane, a DPD courier—self-employed in the gig economy—was fined £150 for attending a medical examination for his diabetes. He later collapsed and died of the disease. That may not have happened in Wales, but every single one of us, regardless of our party, knows of cases like that in our constituencies.

In 2016, Darren Taylor of Connah’s Quay applied for personal independence payments after his wife was diagnosed with breast cancer. The Department for Work and Pensions refused. In January 2017, he reapplied. Despite the fact that the pain his wife was going through left her largely confined to the house, the DWP said that she was not ill enough to qualify for an enhanced rate. The family appealed the decision, but before receiving a tribunal date Belinda Taylor died aged just 44, leaving four children. Three months after she died, the award was made to the family. That is the reality of the Budget that was passed by the Government. It hits the poorest in our communities. I ask the Minister to think again and to take the message back from all these good people on both sides of the Committee that austerity is not working.

Mae wedi bod yn bleser gwasanaethu o dan eich cadeiryddiaeth, Mr Hanson. Hoffwn ddiolch hefyd i fy Nghyfaill gwir anrhydeddus, Ysgrifennydd Gwladol Cymru am ei ddatganiad agoriadol a’i gyfraniad allweddol, ac hefyd i’n Hysgrifenyddion Seneddol Preifat, fy Nghyfeillion anrhydeddus yr Aelodau dros Sir Drefaldwyn a dros Brycheiniog a Sir Faesyfed.

Rydw i newydd orffen fy mis cyntaf fel Is-Ysgrifennydd Gwladol Cymru ac rydw i’n croesawu’r cyfle i ddathlu’r garreg filltir hon trwy gloi trafodaeth ddiddorol yr Uwch Bwyllgor Cymreig. Hoffwn ddiolch i’r Aelodau anrhydeddus am gymryd rhan yn y drafodaeth hon. Mae’n amlwg i mi ein bod ni i gyd am gael y gorau i Gymru. Rydym ni i gyd am weld Cymru fwy llewyrchus ac, yn anad dim, rydym ni i gyd am weld Cymru sy’n addas ar gyfer y dyfodol.

Gan mai dyma’r tro cyntaf i fusnes seneddol gael ei gynnal yn Gymraeg, rydw i am barchu’r Uwch Bwyllgor Cymreig a thraddodi cymaint o fy araith â phosib yn Gymraeg. Fodd bynnag, gan fy mod i’n ymgyfarwyddo o'r newydd â’r iaith hyfryd hon, dydw i ddim yn teimlo’n ddigon hyderus i draddodi’r araith gyfan yn Gymraeg. Gobeithio y bydd yr Aelodau anrhydeddus yn deall os byddai’n troi i ymateb yn Saesneg.

(Translation) It is a pleasure to serve under your chairmanship, Mr Hanson. I thank my right hon. Friend the Secretary of State for Wales for his opening statement and key contribution to this fascinating debate. I also thank our Parliamentary Private Secretaries, my hon. Friends the Members for Montgomeryshire and for Brecon and Radnorshire.

I have completed my first month as the Under-Secretary of State for Wales and I welcome the opportunity to celebrate that milestone by closing our interesting discussions in the Welsh Grand Committee. I thank hon. Members present for taking part. It is clear that we all want the best for Wales. We all want to see a more flourishing and prosperous Wales and, above all, a Wales that is fit for the future.

As this is the first time that parliamentary business has been undertaken through the medium of Welsh, I want to respect the Welsh Grand Committee by giving as much of my speech as possible in Welsh. However, as I am currently reacquainting myself with this wonderful language, I do not feel confident enough to deliver my whole speech in Welsh. I hope hon. Members will understand if I break off and respond in English.

I grew up in Anglesey, as hon. Members know, and I learned Welsh as a second language—my family do not speak Welsh. I am slightly concerned because—I must confess—I stood for the old Gwynedd County Council in the 1990s. I was not successful.

The Conservative party.

I translated my leaflet into Welsh because I thought it was important to have it in both languages. I had it checked by Councillor Goronwy Parry, who was a Conservative councillor in Anglesey, and much to my surprise, he said that most of it was all right. At the last minute, however, I thought I would be clever and put a slogan on the front that said, “A local man for local needs”. Knowing that the word for need is “angen”, I thought I had my Welsh correct, but I put, “Dyn lleol am angau lleol”. Hon. Members will know that that means, “A local man for local death”. That is why I will stick to English for the rest of my speech, if I may.

My right hon. Friend the Secretary of State for Wales touched on some remarkable points in his opening statement and I want to convey how significant they are for Wales. With my roots firmly in Anglesey, I welcome the north Wales growth deal and I am delighted that formal negotiations have begun. I look forward to working with local partners to ensure that we agree on a deal that is right for the whole of north Wales.

The Budget delivers for Wales through a range of commitments, such as the fair funding settlement for the Welsh Government, a city or growth deal to cover all parts of Wales, an increase in rail infrastructure investment, further work on sector deals and the development of cross-border opportunities.

We have shown that Wales is open for business. There has been a positive response to the planned abolition of the tolls, and I am looking forward to that building new links between the south of England and the south of Wales. The Budget not only helps to shape Wales but helps every individual by saving them money by abolishing tolls and freezing fuel duty and by providing them with extra funds by increasing the personal allowance and the national living wage.

References have been made to two people who I, too, want to comment on. When my Welsh was much better, I used to spar with Rhodri Morgan on Welsh-language politics shows. He was always a most courteous man, and very kind to a very young person. I will also offer my congratulations to Jack Sargeant on his election last night; I wish him well in the job that he is doing.

I want to touch on the economy. We have heard mention of the north Wales growth deal, and the tributes and compliments paid to Ken Skates. I am yet to meet him, but I plan to do so. I have written to him to say that I am keen to meet him to see how we can work together to progress the north Wales growth deal. It is important and I look forward to that constructive engagement and co-operation. I have already met the leaders of the north Wales growth deal, Councillor Aaron Shotton and Councillor Dyfrig Siencyn. We had a very constructive meeting and I look forward to working with them in the future.

I am acutely aware, and hon. Members have mentioned, that we must ensure that the growth deal is as beneficial to north-west Wales as it is to north-east Wales. As someone who grew up in Anglesey but then moved and lived in Wrexham, I can see the qualities of both those areas, and I look forward to working with them. Equally, we must get on with the mid-Wales growth deal. I look forward to working with hon. Members so that we can build on the successes of the Cardiff and Swansea deals and maximise opportunities presented by the toll changes.

We talk about the corridors of power in this Parliament, but I hope that north, mid and south Wales will become the true corridors of power for England and Wales. A big part of that will be improving connectivity, particularly broadband, and I am acutely aware of the need for us to spread that out further. It is good news that 95% of premises in Wales are connected, but we have to do more for rural areas in particular.

I want to talk about universal credit, which a number of Members have raised. It is important that we recognise that the benefits system was in need of some major changes. The hon. Member for Arfon talked about that very sensibly. We have to make sure that people do not get themselves trapped on benefits. I do not mean that in the sense of some political language that people may use. Genuinely, it cannot be right that somebody who works a minute over 16 hours is in danger of losing all their benefit. That is the idea behind this. In the Budget, we listened to the concerns people raised and we brought about changes to make it a better system. As far as I am concerned, as we roll this out we should continue to learn lessons from the people we work with, and we will continue to do so. It is important to recognise that unemployment has come down in Wales by 73,000 since 2010. We have brought in a national living wage, and the personal allowance is helping 61,000 Welsh workers out of tax altogether. We should celebrate that. Those figures relate to 2017-18 and compare favourably with just two years ago.

I now want to come to the points raised by the hon. Member for Swansea East about child burial fees. I spent most of my life before coming here working in the children’s hospice movement, and I am acutely aware of the really difficult time that parents go through when they lose a child. I have not been blessed with the fortune of being a father myself, but I have seen the real difficulties that families go through. While cross-Government work is looking at the support that can be offered to bereaved parents, by simplifying the payments and so on, on a personal level I would like to meet her to see what I can do going forward.

I am conscious that I have about a minute left. I will finish by saying that, yes, there has been talk about austerity and about the payments for Wales, but let us not forget why we are in this position in the first place. [Interruption.] I have 30 seconds—I had better shut up! I thank all hon. Members for their contributions. I look forward to having many more debates with them in the future, when I hope my Welsh will be much improved and I can speak even more.

Question put and agreed to.

Resolved,

That the Committee has considered the matter of the Autumn Budget as it relates to Wales.

Committee adjourned.

Autumn Budget as it Relates to Wales (Morning sitting)

The Committee consisted of the following Members:

Chairs: David Hanson, †Albert Owen

† Andrew, Stuart (Parliamentary Under-Secretary of State for Wales)

† Antoniazzi, Tonia (Gower) (Lab)

Bebb, Guto (Parliamentary Under-Secretary of State for Defence)

† Brennan, Kevin (Cardiff West) (Lab)

† Bryant, Chris (Rhondda) (Lab)

† Cairns, Alun (Secretary of State for Wales)

Clwyd, Ann (Cynon Valley) (Lab)

Crabb, Stephen (Preseli Pembrokeshire) (Con)

† David, Wayne (Caerphilly) (Lab)

† Davies, Chris (Brecon and Radnorshire) (Con)

† Davies, David T. C. (Monmouth) (Con)

† Davies, Geraint (Swansea West) (Lab/Co-op)

† Davies, Glyn (Montgomeryshire) (Con)

† Doughty, Stephen (Cardiff South and Penarth) (Lab/Co-op)

† Edwards, Jonathan (Carmarthen East and Dinefwr) (PC)

† Elmore, Chris (Ogmore) (Lab)

Evans, Chris (Islwyn) (Lab/Co-op)

Flynn, Paul (Newport West) (Lab)

Griffith, Nia (Llanelli) (Lab)

† Harris, Carolyn (Swansea East) (Lab)

Hart, Simon (Carmarthen West and South Pembrokeshire) (Con)

† Hoare, Simon (North Dorset) (Con)

† Jones, Mr David (Clwyd West) (Con)

† Jones, Gerald (Merthyr Tydfil and Rhymney) (Lab)

† Jones, Susan Elan (Clwyd South) (Lab)

Kinnock, Stephen (Aberavon) (Lab)

† Lake, Ben (Ceredigion) (PC)

Lucas, Ian C. (Wrexham) (Lab)

† McMorrin, Anna (Cardiff North) (Lab)

Moon, Mrs Madeleine (Bridgend) (Lab)

† Morden, Jessica (Newport East) (Lab)

† Rees, Christina (Neath) (Lab/Co-op)

† Ruane, Chris (Vale of Clwyd) (Lab)

† Saville Roberts, Liz (Dwyfor Meirionnydd) (PC)

Smith, Nick (Blaenau Gwent) (Lab)

Smith, Owen (Pontypridd) (Lab)

Stevens, Jo (Cardiff Central) (Lab)

Tami, Mark (Alyn and Deeside) (Lab)

† Thomas-Symonds, Nick (Torfaen) (Lab)

Williams, Hywel (Arfon) (PC)

Kenneth Fox, Rebecca Davies, Committee Clerks

† attended the Committee

Welsh Grand Committee

Wednesday 7 February 2018

(Morning)

[Albert Owen in the Chair]

Autumn Budget as it Relates to Wales

Bore da pawb. Rwyf am siarad Saesneg i ddechrau. I am going to speak in English to explain the House rules and give some information about the translation equipment. It may help if I remind Members that this session will run until 11.25 am. We shall meet again at 2 pm, and the debate on the motion will continue until 4 o’clock. I have no power to impose a time limit on speeches, but I ask Members, and particularly the Front Benchers, to curtail their speeches if possible, so that everyone has an opportunity to speak.

Under the resolution of the House of 9 January, Committee members may speak in Welsh and English, but I ask that points of order are made in English, for the sake of the official record and for technical reasons. Everyone should have translation equipment. Channel 0 is for whatever is being said in English or Welsh, and channel 1 is for the translation. Please switch off the equipment if you are not using it to listen, because there will be a little feedback if everyone has it on. I am now going to do a test in Welsh.

Dwi am wneud prawf yn Gymraeg i wneud yn siwr bod yr offer yn gweithio yn iawn. Ydy popeth yn iawn? Da iawn. Diolch yn fawr iawn. Galwaf ar yr Ysgrifennydd Gwladol i symud y mesur.

(Translation) I am going to test the equipment to ensure that everything is working properly. Can everyone hear me? Excellent. Thank you. I call the Secretary of State to move the motion.

Diolch Mr Cadeirydd. Cynigaf,

Bod y Pwyllgor wedi ystyried Cyllideb yr hydref mewn perthynas â Chymru.

Mr Owen, diolch am y cyfle i agor y drafodaeth heddiw. Mae’n bleser gwasanaethu o dan eich cadeiryddiaeth unwaith eto. Rwy’n falch o fod yn siarad gyda chi i gyd heddiw yn yr iaith Gymraeg. Mae’r iaith yn bwysig i mi, yn bwysig i’r gymuned rwyf yn ei chynrychioli ac yn ganolog, yn amlwg, i hanes a diwylliant Cymru.

(Translation) I beg to move,

That the Committee has considered the matter of the autumn Budget as it relates to Wales.

Thank you, Mr Owen, for allowing me to open the debate. It is a pleasure to serve under your chairmanship. I am proud to speak to the Committee in the Welsh language, which is important to me and to the community that I represent and is integral to the history and culture of Wales.

Os gai wneud bach mwy o dro.

Rwy’n gwybod bod llawer o Aelodau ar y Pwyllgor heddiw wedi ymgyrchu ac wedi galw am y newid hwn ers blynyddoedd, ac hoffwn gydnabod bob ymdrech gan bob aelod. Mae heddiw yn ddiwrnod hanesyddol i’r Senedd ac i Gymru ac, yn uniongyrchol, hoffwn sôn am y Gweinidog dros Swyddfa’r Cabinet a Changhellor Dugiaeth Caerhirfryn, a wnaeth gefnogi’r alwad drawsbleidiol a ddaeth ar y pryd.

Mae’n bwysig ein bod yn dod at ein gilydd yma, yn fforwm yr Uwch Bwyllgor Cymreig, ac mae’n bleser agor y drafodaeth hon trwy drafod Cyllideb yr hydref mewn perthynas â Chymru. Hoffwn amlinellu’r gwaith mae’r Llywodraeth yn ei wneud i sicrhau ein bod yn mynd i’r afael â’r heriau economaidd mewn ffordd sy’n codi’r economi ym mhob rhan o’r Deyrnas Unedig, gan gynnwys Cymru. Dyna pam y bydd y mesurau yng Nghyllideb yr hydref—fel y cynlluniau i wella cysylltiadau rheilffyrdd yng Nghymru, buddsoddi mewn bargeinion dinesig a thwf, a chyllid ychwanegol i Lywodraeth Cymru—yn rhoi rhagor o bŵer gwario i Gymru a fydd yn rhoi hwb i’r economi leol ac yn galluogi Cymru i ffynnu.

(Translation) Let me make a little progress.

Many Committee members have campaigned for this change for many years, and I pay tribute to every Member’s work. This is a historic day for Parliament and for Wales. My right hon. Friend the Minister for the Cabinet Office and Chancellor of the Duchy of Lancaster backed the cross-party call for this change. It is essential that we come together in the forum of the Welsh Grand Committee, and it is a pleasure to open this debate on the matter of the autumn Budget as it relates to Wales.

I want to outline the work that the Government are doing to ensure that we meet economic challenges in a way that increases prosperity in all parts of the UK, including Wales. The measures in the autumn Budget, such as plans to improve Welsh rail links and to invest in city and growth deals, and of course the additional funding for the Welsh Government, will provide Wales with greater spending power, which will bolster the local economy and enable Wales to thrive.

Rwyf yn ddiolchgar i’r Ysgrifennydd Gwladol ac yn ddiolchgar hefyd ddaru’r Llywodraeth newid ei meddwl ynglŷn â defnydd yr iaith Gymraeg yn y Pwyllgor yma. A ydy’r Ysgrifennydd Gwladol yn meddwl bod hynny, efallai, yn arwydd bod y Llywodraeth yn barod i newid ei meddwl, er enghraifft, ynglŷn â’n haelodaeth o’r undeb tollau? Mae hynny’n hynod o bwysig i ni.

(Translation) I am grateful to the Secretary of State for giving way, and to the Government for changing their mind on the use of the Welsh language in the Committee. Does he believe that that is a sign that the Government are willing to change their mind, for example, on our membership of the customs union, which is very important to us?

Rwyf yn ddiolchgar am yr ymyrraeth gan y Foneddiges anrydeddus. Mae’r hen rheolau wedi bod yn eu lle dros ddegawdau ac roeddwn felly yn falch iawn bod y Llywodraeth yma wedi cefnogi’r newidiadau a ddaeth ar lefel drawsbleidiol.

Ni all y Llywodraeth weithredu ar ei phen ei hun i gyflawni’r newidiadau sydd eu hangen ar Gymru. Dyma pam rwyf am bwysleisio fy awydd i gydweithio’n agos gyda Llywodraeth Cymru er budd Cymru. Rwy’n annog Llywodraeth Cymru i ddefnyddio ei phŵerau ei hun a’r Cynulliad i gyflawni buddiannau economaidd tebyg i Gymru.

Rwyf yn edrych ymlaen at drafodaeth ddiddorol a bywiog heddiw yma yn y Pwyllgor.

(Translation) I am grateful to the hon. Lady for her intervention. The orders have been in place for decades, so I was pleased that this Government supported the changes that came about on the basis of cross-party support.

This Government cannot act alone to deliver the changes that Wales needs, so I reiterate my desire to work closely with the Welsh Government in the best interests of Wales. I urge the Welsh Government to use their powers and the Welsh Assembly’s powers to deliver similar economic benefits to Wales.

I look forward to an interesting and stimulating debate.

The Secretary of State talks about the Welsh Government using their functions to their economic benefit. One way that he could use his powers would be to secure the tidal lagoon at Swansea by working with the Welsh Government on the financial offer that they put to the Prime Minister. That will bring real economic prosperity across south Wales and beyond.

Rwyf yn falch bod y Bonheddwr anrhydeddus wedi gofyn y cwestiwn. Fel rwyf wedi dweud yn y gorffennol, byddem yn hapus i weld y cynllun yn mynd yn ei flaen, ond mae’n rhaid inni ddangos gwerth am arian. Ni fedrwn gefnogi’r cynllun heb brofi gwerth am arian. Mae fy swyddogion, yn ogystal â swyddogion yr Adran Busnes, Ynni a Strategaeth Ddiwydiannol—BEIS—a swyddogion Llywodraeth Cymru, wedi cwrdd. Mae Pwyllgor Dethol Materion Cymreig wedi gofyn am dystiolaeth gan Brif Weinidog Cymru. Yn amlwg, wnawn ni ddal ati i gydweithio i geisio dangos gwerth am arian. Rhaid hefyd gofio mae’r Llywodraeth hon a roddodd ganiatâd cynllunio wedi’r etholiad yn 2015, sydd yn dangos ein bod ni’n awyddus i’r cynllun llwyddo, ond ni ddylem ei gefnogi heb brofi gwerth am arian, oherwydd ein trethdalwyr a’n cymunedau ni byddai’n cefnogi’r cynllun, gyda’r pergygl bod y gost yn llawer mwy iddyn nhw na beth sydd yn cael ei gyflawni mewn llefydd eraill.

(Translation) I am pleased that the hon. Gentleman raised that question because, as I said previously, I would be very happy to see that project go ahead. Obviously, however, we must test its value for money, because none of us would wish to support that funding without it being proved good value for money. I have considered this with officials from the Department for Business, Energy and Industrial Strategy and in the Welsh Government, and the Welsh Affairs Committee has asked to take evidence from the Welsh First Minister. We will continue to work together to test the value for money of the plan. We must also bear in mind that it was this Government who gave planning permission for the project after the 2015 election, which shows that we are eager to see it succeed. However, we do not believe we should support it if there is no value for money. Taxpayers and our communities will support this project, but not if it is not good value for money and the cost will be higher than what has been achieved in other countries.

Does my right hon. Friend appreciate that the Swansea tidal lagoon is supported not only in the Swansea area but right across Wales? It is an advanced technology that could be of enormous benefit to the British economy, and it would also be welcomed in north Wales where a large tidal lagoon has been proposed for the coast in my constituency and that of the hon. Member for Vale of Clwyd. Will my right hon. Friend speak in very strong terms to his colleagues in BEIS about this matter?

Out of courtesy, I will respond to my right hon. Friend in the language in which he raised the issue. Of course we would like this project to happen and I recognise the enthusiasm for it, but I am sure that he would not want any project to go ahead that does not prove to be value for money. Many claims have been made about the technology and the export potential, and about the regeneration of the economy that the tidal lagoon would provide, but I am sure he would want the Government to scrutinise those claims appropriately and establish whether the project is genuinely value for money. We must not forget that our constituents will be asked to support it, and if they support this project over other projects that might be better value for money, there is a risk of higher energy costs.

I understand fully that the benefits or otherwise of the project must be scrutinised, but how long is that scrutiny likely to take?

My right hon. Friend will recognise that this is a dynamic environment and costs in the energy industry are changing at various stages. Indeed, there has been a significant change in energy costs since this project was first proposed.

My right hon. Friend will remember as acutely as I do the debates about the merits and demerits of the Cardiff bay proposals in the ’80s and early ’90s. I am sure we all accept the need to make an economic case and to ensure value for public money, but does he accept that the message that the tidal lagoon proposal sends about a commitment to renewable energy and to the industrial base of Wales is very strong? That must be taken into account when making the economic assessment of the proposition.

I absolutely accept my hon. Friend’s point. Ultimately, however, the project must prove to be value for money because otherwise taxpayers will risk paying more than they would for an alternative source of energy, in addition to pushing up consumer prices. Two years ago, we were considering the crisis in Tata Steel, which is adjacent to the proposed site for the Swansea bay tidal lagoon. One of Tata’s core concerns was the rising cost of energy. It is not in anyone’s interest for a project to go ahead that risks driving up energy costs. It is therefore only right that we scrutinise this project to establish whether it provides value for money, as is believed.

Hon. Members mentioned delay. There is a chance that the UK could become a world leader in this technology, and if we delay this project we will miss out. We missed out on wind power, but we have a chance with tidal. Four of the six potential sites for lagoons are in Wales, so Wales could become a world leader. The Secretary of State should see the vision and develop the vision.

The hon. Gentleman is on the record as saying that it is worth paying over the odds for paying for a scheme of this type. If we are paying over the odds, at what level do we stop? What is he prepared to ask his constituents to pay? How much is he prepared to ask his constituents to add to their electricity prices to support such a scheme? I ask him to think long and hard about this. How much over the odds is he prepared to pay?

Is the Secretary of State aware that we paid over the odds for nuclear power in the 1950s and 1960s, and that in the long term the investment was paid back? Paying over the odds in the initial period will have a long-term payback. We will get energy from this project for the next 125 years, and we will be able to time that energy to the minute. I believe that it is worth investing in, even if it is over the odds in the short term.

Order. May I say two things? First, if hon. Members are patient, they will get the opportunity to make lengthy speeches themselves. Secondly, if you are not using the translation system, can you switch it off, please, because there is feedback going through the system?

I am not sure that nuclear is the comparison I would make as a previous long-term decision, but that is an interesting contribution none the less.

Buasai’r Ysgrifennydd Gwladol yn annog Prif Weinidog y Cynulliad i ddod o flaen y Pwyllgor Materion Cymreig i esbonio’r cynnig a wnaeth i’r Llywodraeth? Ar hyn o bryd, dydy e ddim yn barod i ddod a dydw i ddim yn deall pam.

(Translation) Would the Secretary of State encourage the First Minister to appear before the Welsh Affairs Committee to explain the proposals he has made to the Government? At the moment, he is not willing to come, and I do not understand why.

Rwyf yn ddiolchgar i fy Nghyfaill anrhydeddus am godi’r pwynt. Yn amlwg, dydw i ddim yn gwybod pam nad yw Prif Weinidog y Cynulliad yn fodlon rhoi tystiolaeth i’r Pwyllgor Dethol. Yn amlwg, byddai hynny’n cryfhau’r sylwadau sydd wedi eu gwneud a, hefyd, yn rhoi mwy o fanylion ynglŷn â’r gefnogaeth mae Llywodraeth Cymru yn fodlon rhoi. Yn amlwg, rwyf yn awyddus i gydweithio’n agos gyda Llywodraeth y Cynulliad, fel yr ydym wedi gwneud gyda chymaint o wahanol gynlluniau dros yr amser rwyf wedi bod yn Ysgrifennydd Gwladol a’r rhai sydd wedi bod o’m blaen.

(Translation) I am grateful to my hon. Friend for raising that point. I do not know why the First Minister of the National Assembly is not willing to give evidence before the Select Committee. Obviously, that would strengthen the comments that have been made, and would give further clarity about the support that the Welsh Government are willing to give. I am eager to collaborate with the Welsh Government, as we have done on many schemes during the period that I have been Secretary of State.

Rwy’n gallu rhannu rhai o’r pryderon ynglŷn â’r model contracts for difference. Mae’n ffordd ddrud iawn o ariannu prosiectau fel hyn ac mae’r pris, yn y pen draw, yn cwympo ar y defnyddwyr. Pam nad yw’r Llywodraeth yn edrych ar model o ariannu cyfalaf uniongyrchol? Yn y pen draw, mae pobl yn talu naill ai trwy brisiau ynni neu drwy trethi. Byddai’n llawer rhatach i bobl dalu trwy eu trethi na thrwy brisiau ynni.

(Translation) I share some of the concerns about the contracts for difference model. It is a very expensive way of funding such projects, and the ultimate price will fall on the consumer. Why are the Government not looking at a direct capital funding model? People pay either through energy prices or through their taxes, and it is far better that they pay through taxes rather than energy prices.

Yn amlwg, pa bynnag ffordd mae unrhyw brosiect neu gynllun fel hyn yn cael ei ariannu, mae’n rhaid bod trethdalwyr yn cefnogi’r peth. Dyna’r pwynt sydd yn cael ei wneud, felly mae’n rhaid ein bod yn profi gwerth arian unrhyw fath o gynllun, a byddwn yn tybio bydd yr Aelod dros Ddwyrain Caerfyrddin a Dinefwr yn cefnogi’r peth. Mae’n rhaid ein bod yn cefnogi gwerth yr arian a gwerth unrhyw gynllun a dyna wirionedd y peth yn y pen draw.

Yn ei ddatganiad o’r Gyllideb, nododd fy Nghyfaill anrhydeddus y Canghellor gynlluniau i sicrhau cynnydd o £1.2 biliwn i gyllideb Llywodraeth Cymru. Mae’r cynnydd yn y cyllid yn cynnwys, am y tro cyntaf, mwy na £65 miliwn dros y tair mlynedd nesaf o ganlyniad i wella fformiwla Barnett o ryw 5%, a gytunwyd yn fframwaith cyllidol Llywodraeth Cymru. Mae hyn yn addasu grant bloc Llywodraeth Cymru i adlewyrchu’r ffactor seiliedig ar anghenion a gytunwyd yn ei fframwaith cyllidol.

Mae’r drafodaeth ynghylch cyllid Cymru wedi bodoli ers datganoli—ac ers degawadau—a’r Llywodraeth hon sydd wedi rhoi sicrwydd ariannol tymor hir i Gymru. Ar hyn y bryd, mae Llywodraeth Cymru yn cael £120 am bob £100 cymaradwy sydd yn cael ei wario yn Lloegr.

(Translation) Evidently, whichever way a scheme such as this is financed, taxpayers must support it. That is the point. Therefore, we must test the value for money of any such scheme, and I believe that the hon. Gentleman will support that. That is the truth of the matter.

In my right hon. Friend the Chancellor of the Exchequer’s Budget statement, he set out plans to increase the Welsh Government budget by £1.2 billion. The increased funding includes, for the first time, more than £65 million over the next three years resulting from the 5% Barnett formula boost agreed in the Welsh Government’s fiscal framework, which adjusts the Welsh Government block grant to reflect the needs-based factor, as agreed by their fiscal framework.

Many hon. Members will know that that discussion about the Welsh budget has taken place since devolution and has gone on for decades. This UK Government have given long-term financial security to Wales. The Welsh Government receive £120 for every equivalent £100 spent in England.

Mae’r Ysgrifennydd Gwladol yn gwneud pwynt diddorol iawn. Wrth gwrs, mae yna ryw gynnydd wedi bod yng nghyllideb Llywodraeth Cymru, ond a yw e’n hapus, fodd bynnag, gyda sut mae’r cynnydd yna’n cymharu gyda’r cynnydd yng nghyllideb yr Alban, neu hwnnw yng nghyllideb Gogledd Iwerddon yn sgil y gytundeb rhwng Llywodraeth y Deyrnas Unedig a phlaid yr Unoliaethwyr Democrataidd?

(Translation) The Secretary of State makes an interesting point. Yes, there has been an increase in the Welsh Government budget, but is he happy about how that compares with the increase in Scotland or Northern Ireland, given the deal between the UK Government and the Democratic Unionist party?

Yr unig ffordd gallaf ymateb yw trwy gyfeirio at beth ddywedodd Llywodraeth Cymru a Gerry Holtham ar y pryd. Dywedodd Gerry Holtham ei fod yn “setliad teg iawn”, ac fe wnaeth Llywodraeth Cymru eu hunain gyhoeddi, yn y Cynulliad, y byddai’r fargen hon yn darparu cyllid tymor hir teg i Gymru. Dyna beth ddywedodd Gweinidogion y Cynulliad ym Mae Caerdydd.

(Translation) I can only go back to what the Welsh Government and Gerry Holtham said at the time. He said it was a very fair settlement, and the Welsh Government said in the Assembly that the deal would provide fair, long-term funding for Wales. That is what the Assembly’s Ministers said in Cardiff Bay.

The Secretary of State talks about the needs of Wales. A couple in my constituency are moving into a property. As a result of the move from employment and support allowance to universal credit, they will be £169 a month worse off, and they will be hit by the bedroom tax. Has not the Budget done absolutely nothing for that couple, and indeed for many of my other constituents?

The best way out of poverty is to encourage people into work and to progress within a work environment. Universal credit has been transformational in that. I point the hon. Gentleman to the data: unemployment in his constituency and others across Wales and the whole of the UK has fallen by close to 50%, depending on the community, and the greatest effect is being felt in areas where universal credit is being rolled out.

There are two responses to that. First, the jobs referred to are often, I am afraid, zero-hours contract jobs and very insecure. They are not the jobs where people can build a life, whether by taking out a car loan or indeed having a mortgage. Secondly, and worse still, we talk of jobs as a route out of poverty, but the Government have driven in-work poverty up to record levels.

I do not recognise the hon. Gentleman’s points. The working environment is changing, and that is exactly why today the Government published our response to the Taylor review, which recognises the further rights we need to give workers to protect those who find themselves in what they consider to be vulnerable situations. That is an example of the Government responding to concerns raised. I am sure the hon. Gentleman will give credit to Matthew Taylor and the work he did on the report.

Yn unol ag argymhellion Comisiwn Holtham, a’r hyn y cytunwyd arno yn y fframwiath cyllidol, ni fydd y swm y soniais amdano—sydd yn cael ei roi yn y grant bloc dan fformiwla Barnett—byth yn disgyn yn is na £115. Dyma’r cyllid gwaelodol—“funding floor”—mae rhai wedi bod yn galw amdano ers degawdau, a’r Llywodraeth yma sydd wedi cyflawni hynny. Yn unol â’r cytundeb hwn, mae Llywodraeth Cymru yn gallu tyfu’r economi, denu buddsoddiadau newydd, cynnal eu gwasanaethau cyhoeddus a chefnogi pobl sydd yn gweithio’n galed ar hyd a lled Cymru.

Ar ôl datganoli treth stamp ar dir a threthi tirlenwi ym mis Ebrill, yn ogystal â chyfraddau treth incwm yng Nghymru y flwyddyn nesaf, bydd Llywodraeth Cymru yn gallu codi mwy o’u cyllid ei hunain trwy’r trethi hyn. Bydd hyn yn gwneud Llywodraeth Cymru, a’r Cynulliad yn gyffredinol, yn llawer mwy atebol i’r bobl maent yn eu gwasanaethu. Am y tro cyntaf, yng Nghyllideb yr hydref fe wnaeth Llywodraeth y Deyrnas Unedig addasu grant bloc Llywodraeth Cymru i ystyried hyn, gan roi rhagor o gyfrifoldeb i Lywodraeth Cymru dros y bobl maent yn eu gwasanaethu. Fel ddywedais ynghynt, wnaeth Gerry Holtham gefnogi’r newid a wnaeth Llywodraeth Cymru dderbyn y newid a’i groesawu ar y pryd.

Mae Cyllideb yr hydref yn cynnwys mesurau penodol a fydd o fudd uniongyrchol i Gymru. Yn ogystal â pharhau i gefnogi’r bargeinion dinesig ar gyfer Caerdydd ac Abertawe trwy fuddsoddi £615 miliwn dros yr 20 mlynedd nesaf, cyhoeddwyd yn y Gyllideb bod Llywodraeth y Deyrnas Unedig yn croesawu cynigion ar gyfer bargen twf i ganolbarth Cymru ac y byddai’n dechrau trafodaethau ffurfiol ar gyfer bargen twf i ogledd Cymru.

(Translation) In accordance with the Holtham Commission’s recommendations, agreed through the fiscal framework, the sum given via the block grant under the Barnett formula will not fall below £115. Some have called for that funding flow for decades, and it is this Government who have delivered on those calls. In accordance with the agreement, the Welsh Government have the means to grow the Welsh economy, to attract investment, to maintain public services and to support hard-working people across Wales.

Following the devolution of stamp duty land tax and landfill tax from April, in addition to the Welsh rate of income tax next year, the Welsh Government will be able to raise more of their own funding through those taxes. That will make the Welsh Government—and the Assembly in general—much more accountable to the people they serve.

For the first time, in the autumn Budget the UK Government adjusted the Welsh Government’s block grant to take that into account, giving the Welsh Government further responsibilities and making them more accountable to the people they serve. As I said earlier, Gerry Holtham supported this change, and the Welsh Government accepted and welcomed the change at the time.

The autumn Budget also includes specific measures that will be of benefit to Wales. In addition to continuing to support the Cardiff and Swansea city deals by investing £650 million over the next 20 years, the Budget announced that we as a UK Government are open to proposals for a mid-Wales growth deal. We will also begin formal negotiations for a north Wales growth deal.

Ar fargen twf canolbarth Cymru, un o’r pethau rwyf yn siwr y bydd y tri ohonom sydd yn cynrychioli etholaethau yng nghanolbarth Cymru yn dweud yw cysylltedd—connectivity. Mae dirfawr angen i wella ar hyn yng nghanolbarth Cymru ac rwyf yn fawr obeithio y bydd modd cynnwys hyn yn y fargen yma.

(Translation) On the mid-Wales growth deal, one of the issues for the three of us who represent constituencies in mid-Wales is connectivity. We truly need to make improvements to that in mid-Wales and I hope that it can be included in the growth deal.

Rwyf eisiau tynnu cymunedau at ei gilydd: yn amlwg cymunedau o Geredigion ac o Bowys, ond hefyd rwyf yn gobeithio bydd cyfleoedd i rai o’r siroedd yn Nghymru ac ar yr ochr arall i gydweithio er mwyn denu buddsoddiant newydd i’r ardaloedd ac er mwyn cefnogi’r economi. Mae hynny’n golygu y byddai pob rhan o Gymru yn cael budd o’r gefnogaeth leol a phenodol y mae bargeinion dinesig a thwf yn ei chynnig. Ac mae hyn, wrth gwrs, ar ben y fformiwla Barnett newydd sydd wedi ei chytuno.

(Translation) I am very much in favour of bringing communities together, whether they be the communities of Ceredigion or of Powys, but I am also eager to give opportunities to some of the counties of Wales—and those on the other side of the border too—to work together to attract new investment into those areas and to support the economy. Our policy means that every part of Wales will benefit from the local, targeted support offered by the city and growth deals. That is above the new Barnett formula that has been agreed.

Rydym yn croesawu bob cyhoeddiad am fargen twf gogledd Cymru, ond byddwn yn ei chroesawu’n fwy pan fydd yn digwydd. Pryd mae’n mynd i ddigwydd?

(Translation) I welcome any announcement on a north Wales growth deal, but I will welcome it more when it happens. When will it happen?

Rydw i’n falch fod y Foneddiges anrhydeddus wedi gofyn y cwestiwn. Y peth sydd wrth wraidd y cynlluniau twf a’r bargeinion dinesig yw bod y grym yn nwylo’r awdurdodau lleol a busnesau lleol. Felly, rydym yn rhoi cyfle at ei gilydd ac, yn amlwg, yn gobeithio bydd y Foneddiges anrhydeddus yn fodlon cydweithio gyda’r cymunedau a’r busnesau er mwyn eu bod yn cyflawni’r cynlluniau ac i ddod â realiti i’r broses wrth ei bod yn datblygu.

Fel Aelodau Seneddol o bob cwr o Gymru, mae’n bwysig ein bod i gyd yn rhan o’r broses hon. Felly, rwyf yn falch iawn y llwyddodd gymaint ohonoch i ymuno â Swyddfa Cymru cyn y Nadolig i glywed yn uniongyrchol gan ein partneriaid lleol ynglŷn â’u cynnydd yng ngogledd Cymru. Yn amlwg, mae angen mwy o waith i gefnogi’r gwaith da sydd wedi mynd o’i flaen.

(Translation) I am glad that the hon. Lady asked that question. What lies at the heart of the growth and city deals is that the power lies in the hands of local authorities and local businesses, so we are giving them an opportunity to come together. We hope that she is willing to work with communities and businesses to achieve the deals and to make them a reality as they develop.

It is important that Members of Parliament from all parts of Wales are part of the process. I was therefore delighted that so many of the Members present were able to join us before Christmas to hear directly from local partners on the progress that they are making in north Wales. Obviously, we need more work in that regard to support the good work that has taken place already.

Mae angen i’r Ysgrifennydd Gwladol fod yn effro i’r perygl o weithio’n drawsffiniol: y bydd yr ardaloedd tlotaf, sef yr ardaloedd yn y gorllewin, o hyd yn olaf yn y dewisiadau. Rydym wedi cael yr un profiad gyda chysylltedd, lle mae dechrau gyda’r prif drefi yn golygu bod y cymunedau pellaf i ffwrdd yn cael eu anghofio erbyn y diwedd.

(Translation) The Secretary of State must be alive to the dangers of working on a cross-border basis: that the poorest areas—those in the west—will be left behind. That is the same problem we have had with connectivity, which started in the main towns, so the most remote communities were ultimately forgotten.

Rwyf yn falch iawn fod y cwestiwn yna wedi cael ei ofyn. Rwyf yn deall y peryg ac yn ymwybodol o’r sensitifrwydd. Mae’n rhaid bod y partneriaid lleol yn ymateb i hyn, er mwyn bod setliad gan bawb. Os nad yw pawb yn gytûn, yn amlwg, bydd y bargen dinesig a’r bargen twf ddim yn cael cefnogaeth gen i na’r partneriaid lleol eraill. Mae’n rhaid fod pawb yn gytûn yn y broses. Rwyf yn awyddus i weld busnesau ledled y rhanbarth a thu hwnt yn hybu'r bargeinion hyn, gan adeiladu ar gryfderau'r ardaloedd—pob ardal—gweithio'n drawsffiniol a rhoi hwb i'r economi lleol.

Roedd y Gyllideb hefyd yn cydnabod bod angen gwella ein rhwydwaith rheilffyrdd, gan roi hwb i gysylltiadau a gwella teithiau i gwsmeriaid ar y trenau mwyaf diweddar.

(Translation) I am very glad that that question was asked. Obviously, I understand the risk, and I am aware of the sensitivity that arises. Local partners must respond to that to ensure that the settlement is for everyone, because if everyone is not agreed, obviously the city or growth deal would not be supported, whether by me or by other local partners. Everyone must be agreed on the process. I am keen to see businesses across the region and from further afield driving the deals, building on the strength of the regions—that is all regions, cross-border too—and boosting the local economy.

The Budget also recognised the need to see further improvements to our rail network, boosting connectivity and delivering better journeys on the newest trains.

What possible justification can the Secretary of State give for the breaking of a promise to electrify the railway line—

Order. I hate to interrupt, but will the hon. Gentleman either put his headphones on or take them off, because of the feedback? I am taking advice from the technicians.

What possible justification can the Secretary of State give for breaking the promise to electrify the railway line from Cardiff to Swansea?

I am grateful to the hon. Gentleman for asking that question, but he will be fully aware of the calls by the Public Accounts Committee, which is formed on a cross-party basis, for every element to be reviewed case by case for value for money. Projects that were not deemed to be value for money because there would be no improvement, such as the time to be delivered between Cardiff and Swansea, did not justify the additional sums of money made available. Under the current proposals, it will be the same trains travelling on the same track arriving at the same time as would have been the case under electrification that went the whole way to Swansea or stopped in Cardiff.

When the previous Tory Prime Minister, David Cameron, said how transformational that project would be and committed to it, he was wrong, was he?

The hon. Gentleman will be well aware that when that commitment was made, the intention was to use electric-only trains rather than bimodal trains.

The former Secretary of State for Transport also categorically stated in the House of Commons that the valleys lines would be electrified by the end of 2018. There is absolutely no prospect of that happening, is there? Why do Conservative politicians keep making promises that they know they have no prospect of fulfilling?

The hon. Gentleman is well aware that that responsibility has been passed over to the Welsh Government, with additional money being made available by the UK Government for that scheme. I suggest that he puts that question to his colleagues in Cardiff Bay, because the former Transport Secretary would have been repeating the claims and the comments that had been made by politicians in Cardiff Bay.

Given that there are new proposals on the table for the straightening of the line to Cardiff and Swansea to reduce the journey time by half an hour, alongside Swansea metro, will the Secretary of State look positively at those ideas as part of a wider city deal? Given that Wales has 6% of the track line and only about 2% of the investment in railway infrastructure, he should be standing up for Wales, rather than sitting down and thinking about his job before he thinks about Wales.

In the first instance, I would say that of course we will look at whatever project comes forward. The hon. Gentleman will be aware of demands that have been made. The First Minister made positive statements about a Swansea parkway station earlier this week in the Assembly, and there are demands coming from some community leaders in Swansea about such a station. Those are issues that we are happy to look at, and the Chancellor talked about proposals of that sort.

If any other project comes forward, we will happily look at it, but I remind the hon. Gentleman that in 13 years of Labour Government only 3 miles or 12 miles of track were electrified—there is a debate about that and we are not sure which, but I will happily give the benefit of the doubt and say that it was 12 miles. I also remind hon. Members that Wales was left as one of those nations, along with eastern European nations such as Moldova and Albania, with not a single track of electrified railway.

Mr Owen, gyda’ch cytundeb, ildiaf i’r anrhydeddus Aelod dros Dwyrain Caerfyrddin a Dinefwr.

(Translation) With your permission, Mr Owen, I will give way to the hon. Member for Carmarthen East and Dinefwr.

O ystyried hoffder y Llywodraeth Prydeinig o drenau dau-danwydd yng nghyd-destun rheilffyrdd Cymru, gallaf gymryd mai trenau dau-danwydd bydd yn rhedeg ar HS2, HS3 a Crossrail 2?

(Translation) Given the Government’s liking for bimodal-fuel vehicles for Welsh railways, may I assume that bimodal trains will be running on HS2, HS3 and Crossrail?

Rwy’n siwr bydd y Bonheddwr anrhydeddus yn cefnogi edrych ar unrhyw brosiect i ddefnyddio’r dechnoleg orau posib ar gyfer cyflawni’r gwariant a’r gwerth arian sydd ymhob prosiect.

Gaf i symud ymlaen, Mr Owen? Rydym wedi gwella’r cysylltiad yng ngogledd Cymru, gan roi budd i bobl ar ddwy ochr y ffin. Bydd gwasanaethau uniongyrchol o ogledd Cymru i Lerpwl ar gael am y tro cyntaf mewn degawdau, diolch i’r buddsoddiad o £16 miliwn i’r Halton curve. Nawr rydym yn darparu prosiect ail-signalu gwerth £50 miliwn i uwchraddio rheilffyrdd gogledd Cymru. Byddai moderneiddio prif linell rheilffordd arfordir y gogledd yn rhoi hwb sylweddol i gysylltiadau trafnidiaeth y rhanbarth. Mae ein rhaglen moderneiddio Great Western, gan gynnwys ein buddsoddiad o £5.7 biliwn mewn trenau IEP o'r radd flaenaf, yn torri 15 munud oddi ar yr amseroedd teithio o dde Cymru i Lundain.

(Translation) Obviously, I am sure that the hon. Gentleman will be supportive of any project that will use the best possible technology to achieve the expenditure and the value for money that all projects require.

May I move on? We are improving connectivity for north Wales, benefiting people on both sides of the border, and direct services from north Wales to Liverpool will be possible for the first time in decades. That is thanks to our £16 million investment in the Halton curve. We are now delivering a £50 million re-signalling project to upgrade north Wales’s railway, and modernising the north Wales coast main line would be a significant boost to the region’s transport links. Our Great Western modernisation programme, including a £5.7 billion investment in new, state-of-the-art IEP trains, will cut journey times from south Wales to London by 15 minutes. At the Budget

Rwyf yn fwy na hapus i ildio, ond rwyf hefyd yn gwbl ymwybodol o’r amser sydd yn cael ei gymryd.

(Translation) I am happy to give way, but I also feel very aware of the time that is being taken.

If the Secretary of State is serious about improving cross-border connectivity between parts of my constituency and Bristol and beyond, can he get the Department for Transport to improve those cross-border rail services that take my constituents to Bristol, Bath and beyond to work? They are woefully inadequate.

Rwyf yn falch iawn i ymateb yn bositif. Mae’r ymgynghoriad yn mynd yn ei flaen ar hyn o bryd ynglŷn â franchise Great Western Railways a pha fath o fodel y dylem gydweithio i’w sicrhau, ac rwyf yn argymell bod y Foneddiges anrhydeddus yn ymateb i’r ymgynghoriad. Rwyf eisiau gweld y cysylltiadau gorau posib rhwng Caerdydd, Casnewydd, Bryste a llefydd y tu hwnt yn gyflym ac yn effeithiol, er mwyn iddynt addasu at y cyfleoedd newydd a ddaw yn y rhanbarth sydd yn datblygu wrth i ni gael gwared o’r tollau ar bont Hafren. Hoffwn hefyd dalu teyrnged i’r Foneddiges anrhydeddus am ei hymgyrchu i gael gwared o’r tollau.

(Translation): I am very happy to respond positively. The consultation is under way on the Great Western railway franchise and the type of model that we should be collaborating to get. I recommend that the hon. Lady responds to that consultation. Obviously, I want to see the best possible connections between Cardiff, Newport and Bristol, and further afield. They should be quick and efficient for us to grasp the new opportunities that will arrive in a region that is developing, as we get rid of the tolls on the Severn bridge. I pay tribute to the hon. Lady for her campaigning to remove those tolls from the bridges.

Hoffwn fwrw ati i orffen yr araith rhywfaint a byddaf yn ildio yn nes ymlaen. Mae fy Ffrind gwir anrhydeddus Canghellor y Trysorlys hefyd wedi amlinellu gwaith ar gyfer y dyfodol i lunio cynigion ar gyfer cynlluniau rheilffyrdd posib eraill ar hyd a lled rhwydwaith Cymru. Roedd ein strategaeth ddiwydiannol yn sail i gyhoeddiadau’r Gyllideb ac rydym yn awyddus i adeiladu ar y bargeinion a gyhoeddwyd ar gyfer y sectorau deallusrwydd artiffisial, lle mae Casnewydd yn rhagori; gwyddorau bywyd, lle mae Cymru eto ar flaen y gad, gyda nifer o ddatblygiadau cyffrous ac arloesol; a’r diwydiant cerbydau yng Nghymru, sy’n gartref i Toyota, Ford ac Aston Martin.

(Translation): Let me make some progress and I will give way later. The Chancellor of the Exchequer has outlined further work to develop proposals for other potential rail schemes across the Wales network. Our industrial strategy was a basis of the Budget announcements. We are keen to build on the sector deals on artificial intelligence that were announced, where Newport excels. In life sciences, Wales is at the forefront of several exciting and pioneering developments. In the automotive industry, Wales is home to Toyota, Ford and Aston Martin.

Ar y nodyn hwnnw, crëwyd cryn dipyn o gynnwrf cwpl o wythnosau yn ôl pan ddatgelwyd y pwerdy gorllewinol. Wrth gwrs, roedd yn siomedig i ni yng Ngheredigion mai gorllewin Lloegr yr oedd yr Ysgrifennydd Gwladol dros Gymru yn cyfeirio ati. O ran deallusrwydd artiffisial, eto dyma gyfle ar gyfer cynllun twf canolbarth Cymru. Mae Prifysgol Aberystwyth yn ganolfan arbenigol, felly byddai’n dda gweld unrhyw fesurau sydd gan y Llywodraeth i geisio ysgogi hyn.

(Translation): On that point, a few weeks ago there was quite some excitement when the western powerhouse was announced. It was unfortunate for Ceredigion that the Secretary of State referred only to south-east Wales and the south-west of England. On AI, there is an opportunity for the mid-Wales growth deal. Aberystwyth has great expertise in that area, so it would be good to see any proposals from the Government to encourage that development.

Rwyf yn ddiolchgar am y pwynt sydd wedi ei wneud a byddwn yn gobeithio y bydd Prifysgol Aberystwyth a phartneriaid lleol yn dod at ei gilydd er mwyn defnyddio’r arbenigedd lleol i dyfu’r economi a denu mwy o fuddsoddiad. Mae hynny’n swnio’n syniad cyffrous iawn o ran y fargen i dyfu’r economi.

Mae disgwyl i hyn fod o fudd i Gymru mewn sawl ffordd. Bydd yn cryfhau Cymru o ran ymchwil ac arloesi ac yn rhoi hwb i gysylltedd 5G ar gyfer busnesau bach a chanolig hanfodol Cymru. Fe gyhoeddwyd hefyd y bydd cronfa her yn cael ei sefydlu i drawsnewid y diwydiannau adeiladu, amaethyddiaeth a chynhyrchiant. Fel rhan o’n cynllun i hybu arloesi, rydym wedi ymrwymo i wario £2.3 biliwn ychwanegol ar ymchwil a datblygu ledled y Deyrnas Unedig, yn ogystal ag £21 miliwn pellach i ehangu Tech Nation dros y pedair mlynedd nesaf. Mae disgwyl i fusnesau digidol gael budd o’r ganolfan Tech Nation yng Nghaerdydd.

Rydym hefyd yn edrych ymlaen at ddatblygu cyfleoedd twf trawsffiniol ymhellach. Mae hyn i’w weld yn fwyaf amlwg yn ein hymrwymiad i ddiddymu tollau’r bont Hafren erbyn diwedd y flwyddyn, fel y soniais gynt. Mae hyn yn rhoi neges bwerus i fusnesau, cymudwyr a thwristiaid bod Cymru ar agor i fusnes. Bydd y polisi yn cryfhau'r cysylltiadau rhwng cymunedau ac yn helpu i drawsnewid rhagolygon economaidd de Cymru a de-orllewin Lloegr, gan greu coridor twf sy’n ymestyn o Geredigion, yr holl ffordd trwy Abertawe, Caerdydd a Chasnewydd i Fryste, Caerfaddon a thu hwnt. Bydd yr ymrwymiad hwn yn arbed tua £115 y mis i gymudwyr sydd yn teithio bob dydd. Ni fydd rhaid i gludwyr dalu £20 am bob lori sy’n cludo nwyddau chwaith. Bydd hwn yn newid mawr i’r tirlun economaidd ac yn cynnig cyfleoedd newydd i dde Cymru.

Bythefnos yn ôl, bum yn cynnal uwchgynhadledd yn y Celtic Manor yng Nghasnewydd, lle daeth partneriaid lleol at ei gilydd i drafod y cyfleoedd a fyddai’n dod yn sgil diddymu'r tollau. Roedd y digwyddiad yn llwyddiant ysgubol: daeth dros 350 o fusnesau a ffigyrau amlwg o Gymru a de orllewin Lloegr at ei gilydd i drafod ac ystyried y cyfleoedd newydd. Roedd 90% o’r rhai a oedd yn bresennol yn teimlo y byddai diddymu’r tollau yn rhoi hwb i'w busnes, ac roedd 97% yn teimlo y byddai diddymu’r tollau o fudd i Gymru. Mae hyn yn ddechrau partneriaeth gyffrous a hir-dymor ymysg diwydiant, academia, cymdeithas sifil a busnes. Gyda’n gilydd gallwn chwarae rhan allweddol yn y gwaith o hybu cynhyrchiant a ffyniant ledled y Deyrnas Unedig, lle bod Cymru i gyd yn elwa.

Roedd y Gyllideb hefyd yn amlinellu amrywiaeth o bolisïau ar gyfer y Deyrnas Unedig gyfan a fydd o fudd i Gymru. Rydym yn rhewi'r dreth danwydd am yr wythfed flwyddyn yn olynol, gan arbed bron i £9 i’r gyrrwr cyffredin yng Nghymru pan fydd yn llenwi ei gar. Rydym yn codi'r cyflog byw cenedlaethol, a fydd yn rhoi £600 o godiad cyflog blynyddol i weithwyr llawn-amser yng Nghymru. Rydym yn cynyddu lwfansau personol, bydd o fudd i fwy na 1.4 miliwn o bobl yng Nghymru. Bydd elusennau ledled Cymru yn elwa o dros £660,000 o gyllid LIBOR, gan gynnwys Gofal a Thrwsio Gogledd Ddwyrain Cymru, sy'n rhoi cyfleoedd gwaith a hyfforddiant i gyn-filwyr.

Mae Cymru mewn sefyllfa dda i fanteisio ar y cyfleoedd a ddaw yn sgil gadael yr Undeb Ewropeaidd. Cymru oedd y wlad wnaeth dyfu gyflymaf yn y Deyrnas Unedig yn 2016 a Chaerdydd oedd y brifddinas wnaeth dyfu gyflymaf. Ers y refferendwm, mae cwmnïau wedi dangos hyder yng Nghymru trwy fuddsoddi ynddi. Yn 2016-17, cafodd dros 2,500 o swyddi newydd eu creu trwy 85 o brosiectau yng Nghymru, o ganlyniad i fuddsoddiad mewnol.

(Translation): I am grateful for that point. I hope that Aberystwyth University and local partners will come together to use the expertise available locally, to grow the economy and to attract further investment. That sounds like a very exciting idea for the growth deal.

It is expected that Wales will benefit in many ways. Wales’s research and innovation will be boosted, as well as 5G connectivity for Wales’s vital small and medium enterprises. It was also announced that an innovation fund will be established to drive agriculture and productivity. As part of our innovation drive, we have committed to spend an additional £2.3 billion on UK-wide R&D, in addition to £21 million to expand Tech Nation over the next four years. Digital businesses in Wales are set to benefit from the Tech Nation hub based in Cardiff.

We look forward to further developing cross-border growth opportunities. That is most obvious in our commitment to abolish the Severn tolls by the end of the year, which I mentioned earlier. That sends a powerful message to businesses, commuters and tourists that Wales is open for business. This policy will strengthen the links between communities and help to transform the joint economic prospects of south Wales and the south-west of England, creating a growth corridor that stretches from Ceredigion through Swansea, Cardiff and Newport, to Bristol, Bath and further afield. This commitment will save the average commuter about £115 a month, and hauliers will no longer pay £20 for every truck transporting goods. It will make a profound change to the economic landscape and will offer new opportunities for south Wales.

Two weeks ago, I hosted a summit at Celtic Manor in Newport, which brought together local partners to discuss the opportunities arising from the abolition of the tolls. The event was a remarkable success. It was attended by more than 350 businesses and leading figures in Wales and the south-west of England, who all came together to discuss and consider the new developments. Some 90% of the attendees felt that their businesses will be boosted by the abolition of the Severn tolls, and 97% felt that the removal of the tolls will benefit Wales. It was the start of an exciting long-term partnership with industry, academia, civil society and business. Together, we can play a key role in driving productivity and prosperity across the whole of the UK, and all of Wales will benefit.

The Budget also outlined a range of UK-wide policies that will benefit Wales. We are freezing fuel duty for the eighth successive year, and the average driver in Wales will save nearly £9 every time they fill up their car. We are increasing the national living wage, which will deliver a £600 annual pay rise to full-time workers in Wales. We are increasing the personal allowance, which will benefit more than 1.4 million people in Wales. Charities across Walesincluding Care & Repair North East Wales Ltd, which supports training and employment opportunities for veteranswill benefit from more than £660,000 of LIBOR funding.

Wales is well placed to seize the opportunities presented by exiting the EU. In 2016, Wales was the fastest-growing nation in the UK, and Cardiff was the fastest-growing capital city. Since the referendum, companies have shown their confidence by investing in Wales. In 2016-17, more than 2,000 new jobs were created through 85 projects in Wales as a result of inward investment.