North Wales MS Mark Isherwood has slammed the UK Labour Government for hitting employers with a jobs tax and farmers with a family farm tax, and called on the Labour Welsh Government to push for a reversal of both policies.
In Spokespersons Questions to the Cabinet Secretary for Economy, Energy and Planning in yesterday’s meeting of the Welsh Parliament, Mr Isherwood referred to the fact the economy has shrunk, and business confidence is low, and asked what measures the Welsh Government is taking “to mitigate the damaging effects of their Westminster colleagues down the M4”.
He said:
“I'm going to start by looking at the facts. Fact 1: the UK Government's own website states, 'Economic growth is the number one mission of the Government.'
“Fact 2: the latest economic figures have shown that the economy actually shrank in January. Despite the goal of growth, the Chancellor's Budget was clearly not a Budget for growth at all, was it? I'll ask you, therefore, Cabinet Secretary, what measures is the Welsh Labour Government taking to mitigate the damaging effects of their Westminster colleagues down the M4?”
He added:
“This UK Government inherited the fastest growing economy in the G7 and deficit levels at only 40 per cent of those inherited in 2010 by the UK Government - fact. Of course, we know why the economy has shrunk. Business confidence is low, and our small and medium-sized enterprises are now less likely to hire or invest. And, of course, a shrinking economy means lower tax revenues, which means less money to spend, without higher public borrowing, which will drive inflation and cost levels and impose cuts in the future. In fact, the latest KPMG report showed that businesses commented on ‘pausing or paring back hiring plans due to the subdued economic outlook and rising payroll costs’, coming despite the UK Labour Government inheriting the fastest growing economy in the G7.
“With the Chancellor set to deliver a mini-budget next week to try and correct the UK economy’s course, what action, if any, is the Welsh Government taking to push for a reversal of either the rise in employer National Insurance contributions or the family farm tax to help restore business confidence and investment?”
In her response, the Cabinet Secretary said “we’re going in the right direction in terms of business confidence”.
Mr Isherwood added:
“Business confidence is key, especially when Wales has the lowest wages per head, the highest unemployment per head, and so on. Already, we’re seeing BP and Equinor scaling back and halving investment in renewable energy, with focus being put on oil and gas instead. It’s clear that legacy industries are here for the long term, as we will, of course, be reliant on oil for many decades to come. But with these announcements scaling back funding for renewables, other than creating a Task and Finish Group for off-shore wind, what, if any, other steps is the Welsh Government taking to secure, for example, Floating Offshore Wind developments?”