Swansea & Wales hit hardest by Budget says Geraint Davies in Welsh Grand

Geraint Davies, Labour & Co-operative MP for Swansea West said Swansea and Wales are hit hardest in yesterday’s annual one day Welsh Grand debate in Parliament to discuss the Budget and it’s implications for Wales.

Speaking directly to Secretary of State for Wales Cheryl Gillan Geraint Davies said

“Wales currently receives £9200 public expenditure per head compared to just £8200 across the UK. We have the highest public expenditure per head of any UK region on enterprise & economic development and employment and the second highest after Northern Ireland on social protection.

“This means Wales is particularly vulnerable to public expenditure cuts which will also have a greater knock on effect on private sector jobs here. The Government should give extra support to those regions hardest hit by its sweeping cuts in public sector jobs, pay freezes and pension reductions.

“In Wales we need extra money in our funding that recognises we have 24% of employment – some 319.000 people - in the public sector employment compared with 20% in England. In Swansea nearly 40% are dependent upon public sector jobs so we face a real squeeze from the Liberal Democrat & Conservative Budget.

“In Wales the value of economic production per head – the Gross Value Added – is nearly a third less than the UK average. At £15,200 we have the lowest GVA per head of all UK regions some 28% below the £21,200 UK average.

“The Lib Dem Tory plan is to first slash funding for Wales and to reduce our MPs from 40 to 30. Then they will offer Wales a poison chalice by saying ‘if you don’t like it raise your own taxes’ in the knowledge that we have a third less economic capacity to do so than the average UK region.

“This is a Tory Budget backed by the Liberal Democrats who have done nothing to stop VAT hikes or the depth and pain of cuts.

“The Conservatives said they’d cut £4 for every £1 they raised in taxes and the Lib Dems said they’d cut just £2.5 for every £1 of tax to reduce the deficit and warned of a Tory VAT bombshell.

“Now the Liberal Democrats support a Tory budget cutting £4 for every £1 raised in tax and a massive increase in VAT that they campaigned against during the election. They should hang their heads in shame having mislead the voters in the election.

“In Swansea we see the spectacle of the local Liberal Democrat Council making the deepest cuts to education of any Council in Wales whilst Liberal Democrat MPs from Wales vote for cuts to education in England, cuts in the money for Wales, VAT increases and cuts in benefits.

“Swansea is more vulnerable than anywhere to the Budget cuts and the Liberal Democrats in Swansea Council and Parliament are inflicting the maximum pain on Swansea people through this unfair and unnecessary budget.

“This Budget is not the most effective and fairest balance between economic growth, tax increases and savings to get the deficit down over a reasonable timescale.

“This budget makes cuts that are too deep too soon and threatens future economic growth that is the only long term way of balancing the books. It hits too hard, too soon and in the wrong place. Those with least will be hit first and hardest and this is wrong.

“Meanwhile the Tory Lib Dem plan to cut Wales’ voice from 40 to 30 MPs will mean less pressure to have a fair settlement for Wales and less chance of relocation of big Whitehall departments to Wales to provide more jobs.

“This is a bad budget for Wales and a terrible budget for Swansea. The Government must recognise the disproportionately painful impact on Swansea and Wales of its plans and should provide more support to those hit hardest.”