Welsh Leader Urges Deeper Action on Energy Costs
Wales’ First Minister, Rhun ap Iorwerth, has characterized the UK government’s latest cost of living support measures as a “missed opportunity,” advocating for more substantial interventions, particularly concerning energy prices. While acknowledging some positive elements in the announced package, ap Iorwerth stressed the need for “deeper” action to address the financial pressures faced by households and businesses. Rhun ap Iorwerth stated that “deeper” action was needed to tackle energy prices.
The UK government, through Chancellor Rachel Reeves, recently unveiled a series of measures aimed at providing relief. These include a temporary reduction in Value Added Tax (VAT) for various attractions, such as zoos and museums, throughout the summer period. Additionally, a free bus scheme for individuals under 16 in England is scheduled to commence in August. The UK government’s Welsh Secretary, Jo Stevens, defended these initiatives, describing them as “targeted” support for families and businesses.
Details of UK Government Support Measures
The VAT reduction will see the rate lowered from 20% to 5% for a range of attractions, including cinemas, soft play areas, and theatres. This temporary measure is set to run from the end of Scotland’s school term in June until schools resume in England, Wales, and Northern Ireland in September. Businesses will have the discretion to decide whether to pass this discount on to consumers. Furthermore, import taxes on certain basic food items are slated for reduction as part of a “Great British Summer Savings” campaign.
The extension of a 5p cut on fuel duty until the end of the year, rather than phasing it out as previously planned, was also highlighted. The reduced tax rate for petrol and diesel was introduced by the previous Conservative government after Russia’s full-scale invasion of Ukraine pushed prices up in 2022. Jo Stevens told BBC Radio Wales Drive that this measure would benefit individuals who rely on their vehicles for work. She also stated that the VAT reduction for visitor attractions would assist Welsh families during the summer holidays.
In contrast to England’s new free bus scheme for children, Wales already implements a £1 cap on single bus ticket fares for individuals aged 5 to 21. Stevens confirmed that the Welsh government would receive equivalent funding of £7 million for England’s bus initiative. She expressed hope that the “Plaid minority government” would allocate these funds towards targeted cost of living support.
First Minister’s Critique and Calls for Devolution
Speaking to BBC Wales, ap Iorwerth articulated his view that the chancellor’s package represented a “missed opportunity.” He emphasized the significant impact of high energy prices on struggling families and businesses, arguing that the UK government should be taking more substantial steps to address energy costs. Ap Iorwerth pledged to continue pressing the UK government for further assistance for families. He said he would continue to “press” the UK government to help families.
When questioned about potential short-term measures from the Welsh government, ap Iorwerth acknowledged that the cost of living is a primary concern for families, describing it as “number one in the list of things that worry” them. He stated that the Welsh government would utilize all available tools to provide support but did not commit to specific new initiatives. The first minister said his government had committed to keeping the £1 cap on single ticket bus travel for 5 to 21-year-olds.
Ap Iorwerth also reiterated his call for the devolution of welfare powers from Westminster to Wales, believing it would enable Welsh ministers to better target assistance. Rhun ap Iorwerth, Plaid Cymru’s leader, stated there were positives to the plans but also called for control of welfare to be devolved to the Welsh government.
The political landscape in Wales has recently seen a significant shift, with Plaid Cymru forming its first government after securing 43 out of 96 seats in the Welsh Parliament, ousting Labour from power after 27 years. Labour had previously held 30 of the 60 seats in the Senedd and had not achieved a majority during its six terms.
Jo Stevens was asked to respond to criticisms from former Labour First Minister Mark Drakeford, who suggested that Sir Keir Starmer had offered “so little” to Wales in terms of new powers since becoming prime minister in 2024. Stevens asserted that the UK Labour government has fulfilled all the devolution pledges outlined in its 2024 election manifesto.
Regarding past criticisms of the outgoing Labour-led Welsh government’s spending, including funds allocated to tree planting in Uganda, Stevens recounted her campaign experiences. She stated that during her campaigning across Welsh constituencies for the Senedd election, constituents frequently expressed frustration when public services were perceived as underperforming while funds were simultaneously directed towards such policies. “What I was told on the doorsteps, right across Wales, was that when people felt that their public services weren’t working as well as they should do, that’s when they became cross about money being spent at the same time on those policies,” she said.
