We are negotiating a new partnership with the EU and believe that securing a broad-based security partnership, bringing closer co-operation on law and order and tackling barriers to trade will boost our economies, keep us safe and improve families’ finances. Since coming into government, I have worked with UK and Welsh Government colleagues to drive more than £1.5 billion in private investment into Wales from the likes of Eren Holding and Copenhagen Infrastructure Partners, creating hundreds of jobs and laying the groundwork for thousands more.
Only this Government can deliver cold comfort and warm words all in the same sentence. The fact of the matter is that, after the Labour-Tory hard Brexit, the Welsh economy suffered by £4 billion, trade has gone down by £1 billion and Wales has lost £1 billion in European structural and development funding. On top of that, the Labour Budget has kicked Wales even further down the track. When will the Secretary of State stand up to her Westminster masters and finally do something in the interests of the people of Wales?
Welsh businesses both large and small tell us time and again that they are being held back by red tape. We need to tackle the barriers to trade in order to help drive investment, jobs and growth for both the UK and EU economies. Nationalists can continue their obsession with the constitution, putting up borders instead of breaking down barriers, and raising taxes on working people, as they have done in Scotland.
Closer collaboration between the UK and the EU on defence and defence spending is an important part of strengthening our relationship and will be important for the Welsh economy, including for companies such as EnerSys, which I visited recently, which produce specialist batteries for defence and other applications. Will the Secretary of State say a bit more about how increased defence spending will aid the Welsh economy and companies such as EnerSys, particularly in advanced manufacturing and supply chains?
My hon. Friend is absolutely right about the potential for growth. This Government’s commitment to increase defence spending means that our strong defence manufacturing base in Wales and the skilled jobs it supports has real potential for growth. The top five suppliers to the Ministry of Defence all have a footprint in Wales, and alongside that is a strong supply chain. The forthcoming industrial strategy will set out more details as to how that advanced manufacturing base will get Government support.
Reports of a new UK-EU strategic partnership to reduce trade barriers will, at last, be a welcome boost to Wales’s food and drinks producers, given that 75% of the sector’s exports go to the EU. All producers from farm to fork of our wonderful Welsh produce make a vital contribution to Wales’s economy. Will the Secretary of State join me in celebrating all Wales’s food producers and farmers, especially those at Sioe Nefyn—Nefyn Show—on Monday, and even more so those from Sir Gâr, or Carmarthenshire, here today?
I am delighted to support the Welsh food and farming industry, and I absolutely concur with the right hon. Lady’s comments.
On another note, Policy in Practice shows that nearly half of the 10 UK local authority areas worst hit by Labour’s welfare cuts are in Wales—that is 190,000 people affected in Wales, hitting our post-industrial quarrying and coalmining communities hard. How does the Secretary of State explain to Welsh colleagues why the communities where Labour used to be strongest should now suffer so much because of her Government’s cruel welfare cuts?
As the right hon. Lady might know, none of those reforms has actually gone into effect yet, so nobody has been affected by them. We inherited a Tory welfare system that is the worst of all worlds: it provides the wrong incentives, discouraging people from working, while the people who really need a safety net are still not getting the dignity and support they need and deserve, with the taxpayer funding an ever-spiralling bill. It is unsustainable, indefensible and unfair.