Chancellor accused of treating Wales as an ‘afterthought’ in major speech

Mark Mansfield

The new Chancellor has been accused of overlooking Wales in his first major speech setting out the UK Government’s plans to boost economic growth.

Plaid Cymru and the Welsh Liberal Democrats criticised John Healey after he used a speech in Coventry to promise more investment, innovation and jobs, alongside greater devolution of financial powers to English regions.

Mr Healey, who succeeded Rachel Reeves at the Treasury under Prime Minister Andy Burnham, also pledged to “draw a line” under rising costs faced by businesses and announced that a “roadmap to fiscal devolution” would be set out at next month’s Budget.

But Plaid Cymru said Wales received little attention in the speech despite the Chancellor’s emphasis on transferring powers out of Whitehall.

Plaid’s Treasury spokesperson Ben Lake MP said: “The Chancellor’s speech today gave little reference to Wales and our economic potential. This will be disappointing to many who have been hoping for change under the new Burnham Government.

“Central to today’s speech was devolving powers to English communities. Regrettably, there was little mention that Wales also needs the fiscal firepower to unlock our economy’s potential.

“Wales’s economic potential is significant, and our communities are rich in opportunities from renewable energy to advanced manufacturing. However, too often key investment decisions are made in Westminster, and the wealth we do generate flows away from our communities.

“If the Chancellor is serious about turning a corner, the Autumn Budget must give Wales the investment and fiscal powers we need to create good jobs, grow our economy and keep more of the wealth we generate here in Wales.”

The speech came as Cardiff Capital Region was selected for the next phase of the National Wealth Fund’s regional partnerships programme, alongside South Yorkshire, Liverpool City Region and the North East of England.

The £27.8bn fund, which is wholly owned by HM Treasury but operates independently of government, will provide investment expertise to help develop infrastructure and regeneration projects across south-east Wales capable of attracting public and private finance.

Specialists from the fund will work with Cardiff Capital Region to identify and develop potential investments, although no individual projects or new funding for the region have yet been announced.

Similar partnerships are already operating in Greater Manchester, Glasgow City Region, the West Midlands and West Yorkshire.

‘Afterthought’

Welsh Liberal Democrat Westminster spokesperson David Chadwick MP welcomed the Cardiff partnership but said it did not go far enough.

He said: “The Chancellor talks about delivering growth in every postcode, but once again Wales appears to be an afterthought.

“While the new partnership with the Cardiff Capital Region is welcome, there is no new guaranteed funding or projects for Cardiff or Wales attached to today’s announcement.

“Wales has been shortchanged for too long, missing out on billions in rail investment and receiving a disproportionately low share of research and development funding.

“These structural issues need to be addressed if we are serious about unlocking Wales’ economic potential.

“Wales cannot simply be tacked onto an economic strategy designed elsewhere. We need a proper economic development plan for Wales, backed by the necessary powers and investment in infrastructure, innovation and skills, including in our rural and coastal communities and former mining heartlands.”

‘Growth Britain’

In his speech, Mr Healey pledged to make “Great Britain Growth Britain again” and said reducing the cost of doing business would be central to his approach.

He said: “Let me be clear: I recognise that the cost of business – that’s energy bills, regulation burdens, planning constraints, labour costs – have grown since Covid, and I want to draw the line.

“Whether it is the cost of business or the cost of living, the only way we deal with these in the long term is growth.”

The Chancellor also sought to reassure financial markets over government borrowing, promising to meet the fiscal rules at next month’s Budget and control spending.

He said the rising burden of debt interest meant the Government had to be “honest about the need to control Government spending”, but insisted there was an “optimistic story” to tell about an economy with “huge latent potential”.

Mr Healey announced £150m through the British Business Bank for fast-growing firms in the north of England and plans for a “Northern 500” group of ambitious mid-sized businesses led by regional mayors.

He also said reforms intended to prevent legal challenges delaying energy projects would be extended to other major infrastructure schemes, including transport and water.

Artificial intelligence

The Chancellor said the Government should embrace the opportunities offered by artificial intelligence and set an aim of having “sandboxing powers” in place next year to allow businesses to test new technologies.

Mr Healey refused to rule out tax rises in next month’s Budget, saying: “If I respond to speculation now, that only fuels more speculation.”

The Conservatives and Reform UK also criticised the speech, with Shadow Chancellor Andrew Griffith describing Mr Healey as “continuity Rachel Reeves”.

Reform UK Treasury spokesman Robert Jenrick said the speech would “change absolutely nothing”, while accusing the Government of failing to deliver economic growth.

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