Strengthening the Union

We have reset our relationship with the Welsh Government. Our approach is based on trust and mutual respect, and is spearheaded by the new Council of the Nations and Regions, which met for the first time last month. My regular meetings with the First Minister of Wales are also driving forward our new partnership, which is already delivering for Wales. That was evident in the biggest ever real-terms Budget settlement delivered for the Welsh Government last week.

The Secretary of State has been clear that this Labour Government will build a new partnership with the Welsh Government based on co-operation, respect and delivery. Will she say how the Government will give meaning to the manifesto commitment to strengthen devolution?

The previous Conservative Government ran roughshod over the devolution settlement, including by legislating in devolved areas without consent on numerous occasions. This Government will respect the devolution settlement and work in partnership with all devolved Governments. We will honour our manifesto commitment to do that by strengthening the Sewel convention, including a new memorandum of understanding between our Governments, ensuring that the petty squabbles of the past are confined to history and we can focus on delivering for the people of Wales.

The Secretary of State has been very clear about the much-needed reset between the Welsh and UK Governments. Can she also make clear how the recent Budget has contributed to that reset?

Our Budget delivered for Wales for the first time in a generation, because the £21 billion settlement announced last week is the largest settlement in real terms since the dawn of devolution. It will provide a record boost for the Welsh Government to support vital public services in Wales, such as the NHS. It includes £25 million to maintain work to keep coal tips safe, and £320 million for investment zones in north and south Wales to power our sector strengths, which include the creative industries, life sciences and advanced manufacturing—for example, our world-leading compound semiconductor cluster. That shows the difference of Labour Governments working together.

First, may I pay tribute to my hon. Friend the Member for East Grinstead and Uckfield (Mims Davies), who has just taken on the role of shadow Secretary of State for Wales? It is a fantastic opportunity for her to champion a vital part of our Union. Secondly, may I ask the Secretary of State, who is newly in her post, what she will do to ensure that the power that brings our Union together comes out of Ynys Môn—that is Anglesey to her—so that she can ensure that the nuclear projects that keep us safe are properly invested in and not dropped, as they have been by this Labour Government? Labour Governments control both sides of the M4 now, and it is about time they delivered.

I wonder whether the right hon. Gentleman has ever been to Anglesey—or Ynys Môn, as he describes it. I am eager to see new nuclear developments in north Wales that will provide high-quality jobs across the region and drive economic growth. We recognise that a nuclear future at Wylfa could help to deliver several of our strategic objectives, achieving net zero energy independence and restoring economic prosperity across our nations and regions. Great British Nuclear completed the purchase of the site in June this year, and we will make further announcements about it very soon.

Could the Secretary of State explain how it is possible to strengthen the Union while maintaining a partitioning border in the Irish sea at the behest of a foreign jurisdiction and under its laws?

I refer the hon. and learned Gentleman to my previous answer about the resetting of the relationship with the Welsh Government, and about working together and respecting the devolution settlement with all devolved Governments.

The Secretary of State talks about respecting the devolution settlement. Mark Drakeford wrote to the Chancellor before the Budget asking for a review of Wales’s Barnett formula for transport funding, which had fallen from 81% in 2015 to 36% in 2021. However, the Budget revealed a further cut in the Welsh transport comparability factor, which is now down to 33%. How come strengthening the Union under Labour means that every major rail project in England results in Wales losing out?

We are having ongoing discussions with the Welsh Government about funding flexibilities and their fiscal framework. We will deliver our manifesto commitment to work with the Welsh Government to address the outdated fiscal framework. As the right hon. Lady knows, heavy rail infrastructure is not devolved in Wales as it is in Scotland and Northern Ireland, and the Department for Transport settlement provides a £1.1 billion cash increase to total budgets in 2025-26 compared to 2024-25.