1. What assessment she has made of the potential impact of the rise in employer national insurance contributions on employment in Wales. (903058)

I am sure the whole House will wish to join me in sending our deepest sympathy to the family, friends and neighbours of Joanne Penney, who was callously murdered in Talbot Green on Sunday. It is a shocking and horrific crime.

We have protected the smallest businesses and more than doubled the employment allowance to £10,500, meaning that over half of small and micro businesses will pay less or no national insurance contributions at all. In Wales, small and medium-sized companies account for 99.3% of total enterprises.

Businesses across Wales, like those across my constituency of South West Devon, are being hit not only by Labour’s job tax but by the increasing minimum wage, rising costs and other business tax increases. Each of those alone would force many to reduce their workforce, but the combination of all three means that businesses are thinking twice about filling job vacancies or creating new posts. What reassurances can the Minister give to businesses across Wales, and to companies such as Serpells in my constituency, that their business has a promising future between now and the next election, when the Labour Budget shows them the complete opposite?

If the Conservative party cares so much about employment and business in Wales, perhaps the hon. Lady should explain why her colleagues in the Senedd voted last week to block thousands of new apprenticeships and more than £300 million of support for businesses in Wales. Her party voted against that.

Let us go to the shadow Front Bench. I call the shadow Secretary of State for Wales.

Who is the Secretary of State battling for, Kazakhstan or Wales? Labour’s political choices mean countless jobs in Wales are at risk due to the national insurance rise. The damaging impact that is having in the Minister’s back yard is clear, with more than 1,800 jobs reportedly at risk at Cardiff University—in one of the many sectors that are desperately trying to stay afloat due to the Welsh Government’s jobs tax and the Labour Government’s impact on the Welsh economy. With Cardiff University ploughing on with its Kazakhstan campus, can the right hon. Lady be happy with the offshoring of those roles in that sector and many others because of the continued fallout from the autumn Budget?

I am not sure where the hon. Member has got the idea about outsourcing jobs. It was her party that told our universities across the country to go out and recruit international students, which they did. Now, because of that and because of what happened under her Government’s watch, those international students are not coming any more. She should, again, look to her colleagues in the Senedd. There is the education budget; her party voted against it. She needs to talk to her colleagues in the Senedd.

I call the Liberal Democrat spokesperson.

The national insurance increase is set to hit high streets in Wales hard, with many traders saying that they will lay off staff as a result. Last week, the Government announced £100 million of funding to be spent on reinvigorating Welsh high streets, but no towns in the Swansea, Neath or Amman valleys were on that list. Will the Secretary of State clarify the criteria used to select the successful towns and whether areas such as Ystalyfera can expect to benefit from future funding? That is one high street that is certainly worth investing in.

The criterion for the announcement last week is publicly available; I suggest the hon. Gentleman has a look at it.

Diolch yn fawr iawn, Lefarydd. I am sure the House will join me in remembering the Llandow air disaster in which 80 people lost their lives 75 years ago.

Elaine’s Hair and Beauty Salon in Llanrug, Pitian Patian Nursery in Llanwnda and care homes and GP surgeries across Dwyfor Meirionnydd tell me that national insurance hikes coming in just a few weeks will stop them hiring new staff. The Secretary of State’s Government say they are cutting welfare to get people into jobs. What jobs?

Plaid Cymru’s manifesto for the general election had £5 billion of unfunded commitments. If the right hon. Lady’s party were in power, we would be facing the same legacy that we had from the Conservative party: a £22 billion black hole that has meant that we have had to take difficult decisions. Her constituents will want more investment in our NHS, more investment in our public services and more investment to support businesses; her party voted against all that in the Welsh budget.

If the Government agreed with the Secretary of State’s counterpart in Cardiff, we would have the money from the Crown Estate as well. Back in 2015, the Secretary of State and I walked through the same Lobby to vote against what she then described as despicable Tory welfare cuts, and she dared the break the Labour Whip to do so. Given the evidence of her strong convictions on the issue, how can she justify remaining in a Cabinet that is intent on implementing Tory-style welfare cuts?

We inherited a Tory welfare system that is the worst of all worlds: it has the wrong incentives; it discourages people from working; the people who really need a safety net are still not getting the dignity and support that they need; and the taxpayer is funding an ever-spiralling bill. It is unsustainable, indefensible and unfair. Our principles for reform are clear: supporting those who need support, restoring trust and fairness in the system, fixing that broken assessment process and the disincentives and supporting people to start, stay and success in work. The right hon. Lady should support that.

2. What recent discussions she has had with the Welsh Government on devolving the Crown Estate. (903059)

I recently met the Deputy First Minister to discuss a wide range of issues, including the Crown Estate. The UK and Welsh Governments are focused on taking maximum advantage of the opportunities that floating offshore wind in the Celtic sea presents for Wales, which could create over 5,000 jobs and £1.4 billion of investment to the UK economy in the coming years.

In the 2011 Scottish National party manifesto, we committed to have the equivalent of 100% of Scotland’s electricity generated from renewables. The SNP met that target and then some, thanks to the devolution of the Crown Estate and to working with industry. It is now delivering jobs and clean, green energy to Scotland and throughout the UK. Why should Wales not have the same opportunity?

I will not take any lectures on the Crown Estate from the hon. Member, whose party’s mismanagement of the Scottish seabed resulted in Scottish assets being sold off on the cheap. We are focused on doing whatever it takes to secure more than 5,000 jobs in Wales and the billions of pounds of investment that the Crown Estate can unlock for Wales.

Does the Secretary of State agree that the Government’s priorities should be ensuring that the Crown Estate can unlock thousands of new well-paid jobs in Wales that will come with floating offshore wind, rather than being distracted by calls to devolve the organisation in the middle of this national mission, which would risk the investment, jobs and lower energy bills that Wales desperately needs?

My hon. Friend is absolutely right. Like her, I want people in Wales to benefit from those 5,300 new jobs, particularly young people, so that they do not have to leave Wales, where they have grown up, to earn or learn. I want that £1.4 billion boost to the economy. We are not prepared to put all that at risk of market fragmentation, undermining or potentially destroying developer confidence in FLOW, and have to watch that investment go elsewhere in the world.

3. What estimate she has made with Cabinet colleagues of the number of farms affected by changes to agricultural property relief and business property relief in Wales. (903060)

8. What estimate she has made with Cabinet colleagues of the number of farms affected by changes to agricultural property relief and business property relief in Wales. (903066)

I have spoken to the farming unions in Wales, and I understand their strength of feeling. These changes are expected to affect around 500 claims across the whole UK, with very few in Wales. Meanwhile, most importantly, the Welsh Government and this Government have protected the farming budget at its current level, while the Welsh Conservatives tried to block that money from reaching farmers by voting against the Welsh Government’s budget last week.

The Scotland Office is conducting a series of agricultural roundtables, talking directly to farmers and putting together statistics to push back against the orthodoxy that only a tiny number of very wealthy estates will be affected, which is simply not the case. This increasingly looks like a war on farmers by the Treasury. What part is the Minister playing in fighting back against it?

The Treasury is confident in its figures. Specific questions on the methodology are a matter for the Treasury, but I repeat that the changes to APR are expected to affect only 500 claims across the whole UK, with very few in Wales. As the hon. Member knows, we are committed to our farmers, through keeping the £337 million block grant, which the Welsh Government have passed on to farmers directly.

Farmers across the UK have already been rocked by the changes to APR and BPR, and yesterday we had shock news that the Department for Environment, Food and Rural Affairs will take no new sustainable farming incentive applications in England. What reassurances can the Minister give farmers in Wales that the sustainable farming scheme will be delivered in full and on time on 1 January next year?

As the hon. Gentleman knows, my good friend the Deputy First Minister of Wales has spent a lot of time talking to farmers. We have absolutely protected the budget for farmers, as have the Welsh Government, so the full £337 million will go directly to farmers, despite his colleagues in the Senedd trying to block it last week.

I call the Chair of the Welsh Affairs Committee.

The Welsh Affairs Committee is launching its inquiry into farming in Wales this week, because we know that farming is a cornerstone of the Welsh economy. The Welsh Government budget contained over £300 million to support Welsh farmers. Does the Minister agree that it is a shame that the Opposition parties are playing fast and loose with farmers’ livelihoods by voting against the Welsh Government budget last week?

Indeed, my hon. Friend is absolutely right. It is an utter disgrace that Opposition parties decided to vote against the budget last week. They were effectively trying to block money going to farmers—what a disgrace.

I call the shadow Secretary of State.

The Government have said that they are concerned, as we all are, about our future security, so why is food security expendable in Wales and beyond? That is the message from farmer Stella Owen of the National Farmers Union Cymru, who has said that the Government’s actions are “destructive” and

“threaten the future of family farms”

across Wales. How many of those family farms is the Minister prepared to see go under before she and the Secretary of State step up and act in the interests of that key sector by helping the men and women who are livid, worried and fearing for their livelihoods?

As I am sure the shadow Secretary of State has been reminded many times, difficult decisions had to be made to fund our public services, but the changes still leave a significant amount of relief in place. Farming parents will typically be able to pass on up to £3 million to their children without paying any inheritance tax at all, and above that amount inheritance tax will be paid at a reduced effective rate of up to 20%, rather than the standard 40%. Estates have up to 10 years to pay any tax due, and it will be interest-free. Those terms are not available to others. That fair and balanced approach maintains support for family farms while also fixing the public services on which we, including farmers, rely.

4. Whether she has had recent discussions with the Welsh Government on the implementation of cancer strategies. (903061)

I have regular discussions with my Welsh Government colleagues about health. I am pleased to see clear progress in cancer services in Wales. In December, performance against the 62-day cancer target was the best we have seen since August 2021, but no one should ever be complacent about cancer, which is why our two Governments are committed to working closely on cancer, sharing best practice and delivering better outcomes for patients across England and Wales.

Since August 2020, not a single health board in Wales has met its cancer target, leaving patients waiting months for their referral to start treatment, and despite recommendations to implement screening programmes properly, the standard for uptake is not being achieved, leading to poorer health outcomes. As the Department of Health and Social Care embarks on developing a strategy for England, how will the Secretary of State for Wales ensure that those issues are not repeated there?

I can tell the hon. Gentleman that there is now positive progress on waiting lists. Both Governments are working together in a spirit of genuine collaboration to cut NHS waiting lists and build an NHS fit for the future. The Welsh Government have committed more than £600 million in extra funding to health and social care in their budget for 2025-26. They are also setting up a national cancer leadership board to improve cancer care. Thanks to those investments, Welsh NHS services are improving, including for cancer, and waiting lists are falling.

Will my hon. Friend outline how she is working in partnership with the Welsh Government to improve cancer and health outcomes? Could she try to help me understand why on earth, in the Welsh budget vote last week, the Conservatives and Plaid Cymru voted against £600 million more for our Welsh NHS?

I really cannot explain why Conservative colleagues in the Senedd voted against that budget. Not only are the Welsh Government delivering £600 million; they are also delivering a specific package on cancer care. The initial phase, which is going to focus on breast, skin, gynaecological, lower gastrointestinal and neurological cancers, will improve productivity and efficiency in how health boards deliver care. This includes sending people straight to tests without an out-patient appointment. Alongside this, the Welsh Government are implementing a wider range of service improvements, from reducing smoking and tackling obesity to HPV vaccination and diagnostic and generic strategies.

5. What discussions she has had with the Welsh Government on steps to support the Welsh tourism industry. (903063)

Wales has a world-class tourism offer. I fully support the Welsh Government’s support for the tourism sector through Visit Wales and other initiatives. Last month, the UK Government announced a £15 million investment for Venue Cymru in Llandudno and the Newport transporter bridge. These are two key projects that will help to boost the tourism and culture sector in Wales.

The tourism and hospitality sector in the UK is one of the most heavily taxed in Europe. Will the Secretary of State press the Chancellor to reduce the tax burden in this area to help drive local economies that rely on tourism in Wales and in constituencies such as mine on the Isle of Wight?

I would gently remind the hon. Gentleman that his party in government put the highest tax burden in 70 years on the people and businesses of this country, leaving a £22 billion black hole that we have had to try to sort out.

More than 40 countries and holiday destinations around the world have introduced a form of visitor levy, including Greece, Amsterdam, Barcelona and California. What work is the Secretary of State doing with the Welsh Government to support our vital tourism industry?

My hon. Friend has one of the most beautiful constituencies in Wales, and I know that tourism is critical to his local economy. Indeed, tourism probably remains the only way to see a Conservative MP in Wales after the general election. The visitor levy is set to raise up to £33 million for the tourism sector across Wales. Last week, Conservatives in the Senedd voted to block £15.6 million of support for Welsh tourism.

I call the shadow Secretary of State, Mims Davies.

Sadly, there will be no more Easter family fun at Oakwood, which has made it clear that its final demise, after covid, is due to Labour’s looming tourism tax, the job tax and sky-high business rates from the Senedd, meaning that it is all over. How many more tourist and hospitality businesses need to tell the UK Government that their “closed” signs will be going up and staying up due to decisions made by the Treasury? Will the Secretary of State stand up for the businesses and jobs in Wales who know that they are being taken for the worst ride possible—frankly, even more vomit-inducing than Megafobia—by this Government of broken promises?

Last week, the hon. Lady’s colleagues in the Senedd voted against extra money for tourism—[Interruption.] They did! Maybe she should have a conversation with Darren Millar, her colleague in the Senedd, but I do not think they are having that sort of conversation at the moment because they are still arguing about who is leading the Tories in Wales.

6. What recent discussions she has had with the Welsh Government on NHS waiting lists. (903064)

I regularly meet the First Minister to discuss a wide range of matters, including NHS waiting lists. The latest data shows positive progress in reducing long waiting times and the size of the waiting list, thanks to investment by both the UK and Welsh Governments.

I am appalled to hear that Plaid Cymru voted against £600 million of extra investment to bring down NHS waiting list in Wales, but I am afraid that this is a familiar story for our Scottish Members. Does the Secretary of State agree that nationalist parties will always prioritise niche constitutional distractions over delivering priorities for working families and what they need and deserve?

I could not agree more with my hon. Friend. Plaid Cymru Members will have to explain to their constituents why they voted against £600 million extra for the NHS last week, blocking crucial funding from reaching our hospitals, NHS staff and patients in Wales.

One of the issues with waiting lists in Wales, as is the case all across the United Kingdom, concerns those who have been waiting first for diabetes diagnosis and then for treatment. There used to be a strategy in Westminster that encompassed not just England, but Scotland, Wales and Northern Ireland. Would the Secretary of State support a similar strategy for the four regions together to address diabetes and what it is doing to this country?

We are talking about nations and regions, rather than just regions, but I would be happy to have a discussion with the hon. Gentleman outside the Chamber about that matter.

7. What recent assessment she has made of the strength of the Union. (903065)

Our United Kingdom is going from strength to strength and is underpinned by a transformed relationship between the UK and devolved Governments. In Wales, that means a partnership between our two Governments delivering on the issues that matter most to people: reforming the NHS and public services, and attracting investment and new jobs through freeports, investment zones and our industrial strategy.

Today the Senedd will vote on a motion to redesignate High Speed 2 as an England-only project. Previous calculations suggest that Wales missed out on around £4 billion from the project. Welsh Ministers have now claimed that the amount is £431 million—quite the difference. With the Welsh Government abandoning their ambitions and the UK Government refusing to budge on full consequential funding, is the Labour party now waving the white flag on Wales’s missing billions?

The Government absolutely acknowledge that the previous Conservative Government short-changed Wales for years on rail investment, including because of HS2. One of our top priorities is to reverse those years of historic underfunding in Wales’s infrastructure. The Secretary of State met the Transport Secretary and the Welsh Government Transport Minister Ken Skates immediately before Christmas, when they agreed on a direction of travel that we hope will deliver new rail investment in Wales. The UK and Welsh Governments have agreed a prioritisation of rail improvement projects developed by the Wales Rail Board. That would inform our respective Departments’ work in the run-up to the spring spending review.

Investment in Wales by the UK Government demonstrates the strength of the Union. I was therefore delighted to see the UK Labour Government announce their plan for neighbourhoods, which will see a £100 million investment in Welsh communities, with £20 million of that going into my constituency, straight into vital local resources such as high streets and youth clubs. Does the Minister that this Labour Government are committed to bringing growth to areas of Wales that were previously ignored by the Conservatives?

Indeed. With the UK and Welsh Governments working together, we have secured more than £1.5 billion in investment and hundreds of jobs in Wales. Of course, we have established investment zones in Cardiff, Newport, Wrexham and Flintshire to provide a rocket-boost to sector strengths, such as advanced manufacturing.

9. What discussions she has had with the Welsh Government on school standards in Wales. (903067)

The UK Government have delivered the biggest Budget settlement in the history of devolution, with £21 billion of new money for the Welsh Government. The Welsh Government are investing almost £200 million this year to support school standards across Wales, plus a further almost £170 million next year. The hon. Member’s Welsh Conservative colleagues tried to block that funding by voting against the Welsh Government Budget last week.

Children in Wales have the lowest PISA —programme for international student assessment— scores in the United Kingdom and are significantly below the OECD average. Does the Minister believe that that could be related to 26 years of Labour government in Wales?

I will take no lectures from the Conservatives. Their attacks ring hollow given the chronic underfunding of education and public services over the 14 years they were in power. Now, the UK and Welsh Governments are working together to ensure that every young person has the opportunity to succeed, by investing over £260 million extra in education and more than £260 million in local government, which sets school budgets in Wales. In spite of the shenanigans of Plaid and the Conservatives voting against the Welsh Government’s Budget, Labour is getting on and delivering certainty and support for teachers across Wales through increases to education and local authority budgets.

Does my hon. Friend welcome, as I do, the additional £20 million announced by the Welsh Government last week to improve education standards, on top of the £262 million extra in total for education in Wales? Is she as perplexed as I am as to why the Conservatives and Plaid Cymru voted against extra money for education in the Welsh budget?

Like my hon. Friend, I am absolutely astounded by the way that Plaid Cymru and Conservative Senedd Members voted against the budget, but the important thing is that this year the Welsh Government will be investing an additional £1.1 million in literacy, numeracy and science support in schools. The Welsh Government have also announced a £10 million investment package for literacy and numeracy in the coming year, increasing local capacity to support schools, national support programmes and interventions to support budding learners.