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UK Labour is wrecking Welsh Labour’s election chances, says ex-Minister Lee Waters

30 Jun 2025 7 minute read
Lee Waters MS by Senedd Cymru Welsh Parliament

Martin Shipton

Labour MS Lee Waters has accused UK Labour of adopting a contemptuous attitude towards Welsh Labour and damaging the party’s chances ahead of next year’s Senedd election.

In an article for the website Labour List, he compares the current Westminster government’s dismissive attitude towards devolution with that of earlier generation politicians like Aneurin Bevan and Neil Kinnock.

Mr Waters, a former deputy minister who is stepping down as MS for Llanelli next year, places the current Welsh Secretary Jo Stevens in that tradition.

‘Distraction’

He writes: “Brought up some 10 miles from the English border in north-east Wales she has little sympathy for treating Wales differently to England. Much like Kinnock, and Nye Bevan before him, she sees these debates as a distraction from the issues facing working people in all parts of Britain.

“That is not the view of the overwhelming majority of Labour politicians in the Senedd.

“In fact the leader of Welsh Labour, Eluned Morgan, recently set out in a landmark speech a ‘Red Welsh Way’. ‘I’m interested in making sure I stand up for Wales on every occasion, and now and again that means that I will take a separate path from the UK Labour Party’ she said in asserting her distinct mandate ‘as the leader of the nation’.

“These differences reflect different traditions in the political thinking of the Labour Party, indeed in socialism more widely. But less than a year out from the most difficult election the party has faced in 26 years of devolved power, they are not just of theoretical importance.”

Condescending

Mr Waters argues that the UK Labour government’s attitude towards “trains and windmills” is indicative of a condescending approach that risks destroying Welsh Labour’s claim to be standing up for Wales.

He states: “Rail infrastructure isn’t devolved to Wales (though it is to Scotland). Around 12% of all the UK’s rail network is in Wales, yet there is no proportional share of investment set aside. In fact we haven’t even been getting the 5% share of money spent on rail in England that the population-based ‘Barnett Formula’ assumes for most policy areas. For years we’d had to settle for around 1% of all rail investment in the UK. Rail expert Mark Barry reckons conservatively, that the current constitutional arrangements have/will cost Wales circa £2bn.

“It is easy to get lost in the weeds of how rail funding works, the bottom line is that Wales has been – and continues to be – significantly underfunded. This was something Labour MPs recognised when we were in opposition but clearly not something that the Treasury has been persuaded to put right.

“The recent spending review allocated £445m of funding for Welsh rail improvements over 10 years. £34bn of enhancements for England were announced at the same time.

“Treasury Chief Secretary Darren Jones unhelpfully told an opposition MP who pointed out the inequity: ‘You might want to be a little more grateful in future’. Not great.

“Renewable energy is another glaring inequity. The seabed off the Welsh coast is the property of The Crown. But unlike in Scotland, where the Crown Estate’s revenues are devolved, the substantial fees from hosting giant offshore wind farms projects go direct to the UK Treasury.

“The Welsh Labour Government has consistently argued Wales should be allowed to leverage our rich renewable energy resources, much like how the City of London and southeast of England capitalise on their financial and political strengths.”

Economic levers

He continued: “There aren’t many economic levers Wales can pull to overcome our plight as one the UK’s poorest regions – at the wrong end of every league table. One revealing indicator is the number of people eligible to pay the additional rate of Income Tax – the top rate paid by those earning more than £125,000. Across the UK it’s 3% of earners. In Wales it is 0.4%. Just 6,000 people in a country of 3 million are additional rate taxpayers. We are poor.

“This is why First Minister Eluned Morgan has described the devolution of the Crown Estate as “an important cause for our nation”. In an overwrought section of her ‘Red Welsh Way’ speech Eluned Morgan channelled Braveheart to cry defiantly, ‘We saw them take our coal. We saw them take our water. We will not let them take our wind, not this time, not on my watch.’

“The UK party has dismissed this out of hand. And Jo Stevens defiantly said last week that her opposition to devolving the Crown Estate has been ‘vindicated’ by a round of private investment in the Celtic Sea off Pembrokeshire. It’s a hollow victory.

“Given that Eluned Morgan has set her stall on demonstrating that two Labour governments working together in office will deliver for Wales, it is hard to understand why UK Ministers are standing in the way of the Welsh Labour leader delivering one of the party’s Senedd Programme for Government commitments. And in such a defiant fashion.

“Wales gets the tap end of the bath every time. But the thing about the tap end is that the water is hotter. And in 10 months time, the temperature is set to rise.

“The last YouGov MRP poll put Labour in third place in next May’s Senedd elections, squeezed by a nationalist pincer movement of Plaid Cymru and Reform UK. The number-crunchers at Cardiff University think that if Welsh Labour’s numbers drop by another 2% the party could see our Senedd group shrink from 30 to around 12 (and that’s in a Welsh Parliament that will expand at the next election from 60 to 96). A century of Labour majority support in Wales would be over.

“There are those amongst the Welsh Labour MPs who take a short-term view that this would have some advantages for the next general election campaign. Instead of the frustration of having to contend on the doorstep with the record of a Labour-run Senedd they’d be free to run against an Opposition-led Government. A seductive, but myopic, logic.

“Put aside the fact that in the case of trains and windmills Wales is clearly being treated unfairly, the polling data should signal to orthodox Labour unionists that they are on the wrong side of history.

“Plaid Cymru now has the support of the bulk of younger Welsh people. 46% of 16-24 year old voters say they’ll vote Plaid, and another 21% would back the Greens. They also hold a clear lead among 25-49 year olds, with 36% of the vote – outpolling Labour on 22%.

“A year ago I warned that Welsh Labour faced its Scottish Labour moment. Since then the polls have got (a lot) worse because of decisions made in Westminster (not Cardiff).

“The lessons of ‘the strange death of Labour Scotland’ have not been learned. The indifference to the reasonable claims of a devolved government, the control of the party machinery by London HQ, and the disdain of Westminster MPs towards their devolved counterparts were features then and now.

“Scottish Labour paid the price for it in 2007. The SNP seized on its chance to form a minority Government and used it to build a generation of dominance. Plaid Cymru aims to do the same.

“If that comes to pass, boasts of ‘vindication’ at beating away popular demands by Welsh Labour will be pyrrhic.

“And that’s the problem of being at the tap end of the bath: you can pull the plug out if you’re not careful.”


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19 Comments
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Adrian
Adrian
2 days ago

Haha – hilarious.
…because for all those Tory government years Wales was absolutely soaring wasn’t it?

Fanny Hill
Fanny Hill
2 days ago
Reply to  Adrian

Back from your hols in Los Cristianos then?

Last edited 2 days ago by Fanny Hill
Adrian
Adrian
2 days ago
Reply to  Fanny Hill

Credit where it’s due Fanny: Welsh Labour took a good 20 years to bring Wales to its knees: Starmer’s managed to do it to the UK in less than 12 months.

Rheinallt morgan
Rheinallt morgan
2 days ago
Reply to  Adrian

That’s not fair Adrian at least he smashed the gangs.

Fanny Hill
Fanny Hill
1 day ago
Reply to  Adrian

At least he’s not abolishing the NHS.

Maesglas
Maesglas
2 days ago

Well said Lee. It’s a shame that there aren’t a few more like you in Welsh Labour. I doubt we would be at the wrong end of every league table if there were. We have not got any closer to fair deals on funding for Wales and UK Labour is worse, in some respects, than the Tories on devolving powers to Wales. A terrible disappointment. I fear their appalling behaviour towards their Welsh counterpart, risks leaving in Reform next year. Welsh Labour please stand up to Starmer’s Labour before it’s too late.

Amir
Amir
2 days ago
Reply to  Maesglas

I think their inability to stand up to UK labour is their weakness though and they will come to regret it.

Adrian
Adrian
2 days ago
Reply to  Amir

Their weakness is their utter incompetence.

Amir
Amir
2 days ago
Reply to  Adrian

No, Welsh labour have done a lot of good in the face of austerity from UK tories. We have free prescriptions, eye care is very good, no more incinerators and the 20mph made our roads a lot safer.

Les Cargott
Les Cargott
2 days ago

Lee Waters standing down is a big loss for Llanelli and the Senedd.

John Ellis
John Ellis
2 days ago
Reply to  Les Cargott

The current signs, sadly, are that if he had opted to stand again even he would have lost his seat next May to the Reform UK candidate. Whoever Labour chooses to replace him will likely, assuming the polls continue as they are right now, be even more likely to suffer a similar fate.

Undecided
Undecided
2 days ago

He has half a point; but it is indicative of Welsh Labour that it is always someone/something else to blame. Tories, health boards, Covid, UK Government, etc. It is conveniently forgotten that 26 years of Labour = failure on health, education, housing and the economy. And actually transport – it was Welsh Labour that rejected the devolution of rail infrastructure 20 years ago. That is fundamentally why they are heading for the exit. No escaping it.

Rhobat Bryn Jones
Rhobat Bryn Jones
2 days ago

Wise words which will go unheeded in Westminster. However Waters has a future as a political analyst and commentator should he choose it.

Rob W
Rob W
2 days ago

Well, tell us something we don’t already know. That is why next year’s Senedd election will be a two horse race between Plaid and Reform. I hope that anyone who is still thinking of supporting any other psrty next year will have a long hard think about which one of those two parties they’d rather win before they cast they cast their vote accordingly.

Welshman28
Welshman28
2 days ago

He’s 100% correct in his opinion, but what on earth do you expect after 25 years of a Welsh Labour Government. Just look at their record it tells you everything of failure. Can anyone show the Welsh people anything of success from the government, no they cannot. We’ve lived year after year living on Labour promises saying “it will be much improved and better next year” . Yet AGAIN this year it’s “2 year waiting lists on the NHS will be gone by spring next year” this has been said in one way or another for last 4 years. YOU… Read more »

Dai Twp
Dai Twp
2 days ago

It’s easy to agree with what Lee Waters says about the lack of funding, but in typical fashion it doesn’t tell the whole story I.e. it was Labour in the Assembly (as it was called then) that refused to take responsibility over the rail network in 2005 when offered on a plate. The most costly decision in the history of devolution on Wales and a classic example of Welsh Labour’s caution over ambition – better to manage slow decline that take any big decisions.

Felicity
Felicity
2 days ago

Without a distinctive Wales-oriented economy, any party hanging on the coat-tails of the Westminster Treasury and the Barnett formula is doomed to eventual failure.

Erisian
Erisian
2 days ago

The Welsh Labour Party should have separated itself from London/English Labour years ago.
They chose not to.
Now they complain?
Too little too late guys.

Boris
Boris
1 day ago

“The recent spending review allocated £445m of funding for Welsh rail improvements over 10 years. £34bn of enhancements for England were announced at the same time.”

Just to be clear about this, wasn’t the sum announced for Wales just fixing the shortfall that even Whitehall mandarins admitted happened under the Cons? So where’s the equivalent new funding? The dividend from having a Labour government at both ends if the M4? Because that looks to be a big fat zero.

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