YesCymru respond to ‘viral’ map showing Wales’ welfare deficit

Stephen Price

Welsh independence group YesCymru has responded to a graphic being shared widely by anti-independence groups, arguing that it highlights “the economic failure of a ‘Union’ focused solely on London and the South-East of England”.

Data shared by the Adam Smith Institute earlier month showed that England and Wales spend £1.27 in welfare for every £1 they receive in income tax and National Insurance; only 25% of constituencies are net contributors.

Using figures from the ASI’s new Welfare Sustainability Tracker, the data shows that England spends £1.25 in welfare for every £1 of income tax and National Insurance it receives; for Wales, that number is £1.88.

That means Wales spends nearly twice as much in welfare as its workers pay into the system.

The Tracker reveals that, across England and Wales, welfare spending exceeds the income tax and National Insurance contributions paid by workers. Only London and the South East generate more in income tax and National Insurance than they receive in welfare spending. Every other region runs a deficit on this measure.

Another finding from the Adam Smith Institute was that: “Reform UK is the major party with the highest proportion of welfare-dependent constituencies: 7 of its 8 seats spend more on welfare than they contribute in income tax.”

Viggo Terling, Chief of Staff and Digital Manager at the Adam Smith Institute, said: “A welfare state that spends more than it raises through income tax and National Insurance is one that increasingly relies on other taxes and borrowing to stay afloat.

“Our Tracker exposes the scale of this imbalance. With only London and the South East contributing more through these taxes than they receive in welfare spending, we must ask serious questions about the long-term sustainability of the system.

“A compassionate welfare state must also be a financially sustainable one.”

The data and map have been shared widely online, with many anti-Welsh democracy groups jumping on the graphic and using it to make a case for staying in the UK, leading to arguments that the union is at fault for Wales’ current economic climate.

Responding, YesCymru wrote on Facebook and Instagram: “Opponents of Welsh independence are sharing this graphic based on research by the Adam Smith Institute, a right-wing, free-market think tank, claiming it proves Wales cannot afford independence.

“What it really shows is the economic failure of a ‘Union’ focused solely on London and the South-East of England.

“Wales was once a global industrial powerhouse, rich in natural resources, talent and innovation. Generations of Welsh workers helped create enormous wealth.

“Yet today, Wales remains one of the poorest parts of the UK.”

The post adds: “For centuries, Westminster has controlled the major decisions shaping our economy, while wealth and power have been extracted to and concentrated in London and South-East England.
“Meanwhile, small independent European nations like Ireland, Iceland and Denmark have built prosperous economies.

“Wales still has abundant natural resources, a strong agricultural sector, huge wind and tidal energy potential, and a skilled workforce.

“We do not lack the resources, talent or potential to prosper. What we lack is control over our own economic future.

“The real issue isn’t whether Wales might struggle under independence. It’s why, after centuries of London rule, a nation with so much potential is still struggling.

“Wales has never been Westminster’s priority. Wales will never be Westminster’s priority.

“Westminster isn’t the answer to Wales’s economic problems. It’s the problem.

“Wales deserves better. Wales deserves independence!”

View the full data set here.