Plaid Cymru MP calls for “reversal of austerity” ahead of UK Government budget

Plaid Cymru’s Treasury spokesperson, Ben Lake MP, has said the people of Wales deserve a “reversal of austerity” ahead of the UK Government’s Budget on October the 30th.

Mr Lake is warning that anything short of substantial reforms will be a failure to meet the needs of Wales.

Demands

In addition to £4 billion in rail funding, Mr Lake is calling for a 2% tax on wealth over £10 million, arguing that such a measure could generate £24 billion annually for the UK while promoting social fairness.

This runs alongside demands made of Labour in Wales by Plaid Cymru, calling for HS2 to be re-classified as an England-only project, replacing the Barnett Formula with a needs-based formula, devolution of the Crown Estate in Wales, an end to the two-child benefit cap and a restoration of Winter Fuel Payments.

Mr Lake stressed the importance of empowering Wales to control its own resources, like the Crown Estate, to fuel local growth. He urged Labour to protect Welsh small businesses from the planned National Insurance hike, warning it could undermine their essential role in the Welsh economy.

Costs

With suggestions of a significant increase in fuel duty, Mr Lake also called on the UK Government to ensure that people in rural areas without public transport are not unfairly penalised.

Ben Lake MP said: “Welsh public services are face serious budget shortfalls that urgently need to be addressed. Furthermore, the ongoing HS2 saga is depriving Wales of up £4 billion in rail funding – money that could transform our public transport infrastructure. The Labour Party’s election campaign centred on a promise of change, and so now in Government they must deliver it.

“The UK’s wealth gap is among the largest in the developed world, so it is crucial the Government creates opportunities for everyone in this Budget. Certain tax increases that have been speculated in recent weeks would disproportionately impact rural areas, with increased fuel duty penalising rural communities deprived of a functioning public transport system, while a rise in Employers’ National Insurance could threaten small businesses – the backbone of our economy. Protecting these businesses is crucial, as they fuel local growth and opportunity.

“The Government must also turn its talk of local empowerment into action by empowering communities to shape their own economic futures. It could do so in this Budget by granting Wales greater control over its resources, including the Crown Estate, in addition to ensuring that decisions on the future iterations of the Shared Prosperity Fund are made in Wales.

“In opposition, the Labour Party supported Plaid Cymru’s calls for the £4 billion owed to Wales in rail funds. It cannot renege on this call now that it is in government. This Budget is its chance to prove that ‘change’ was more than just a slogan.”