Plaid Cymru’s Treasury spokesperson Jonathan Edwards MP has said in response to the UK Budget that the depth and pace of Government public expenditure cuts could lead to a “decade of economic stagnation”.
In conjunction with the Budget, the Office for Budgetary Responsibility has downgraded growth forecasts for this year.
Plaid Cymru has said that the UK Government should have focussed on growth first, rather than making severe cuts.
Mr Edwards raised concerns that there was precious little to alleviate the pain of the cuts to Wales, as announced last year and yet to come into effect, nor was there any evidence of the so-called ‘respect’ agenda at work.
However, the party warmly welcomed the UK Government’s u-turn on creating a fuel duty stabiliser, which was voted down in the Commons when Plaid Cymru tried to introduce such a mechanism just a few weeks ago.
Speaking after the Chancellor’s statement, Mr Edwards said: “The UK Government should have focussed sensibly on growth first, rather than making severe cuts.
“The truth is that the UK Government has no plan B, and worryingly there is a very real threat of a decade of economic stagnation.
“We welcome some initiatives in the Budget such as the introduction of a fuel price stabiliser, something we have been campaigning loudly for over a number of years.
“We also welcome the simplified state pension, set at £140, again something that was a key part of our General Election manifesto last year.
“We welcome the increase in income tax personal allowances too, a long-standing Plaid Cymru policy, but ordinary families are already being hit by the VAT increase which started back in January.
Mr Edwards added that there was precious little for the Welsh Government in this Budget.
He continued: “Last year, the ConDems confirmed Labour plans for capital investment cuts of more than 40% – stopping the Welsh Government building new schools and new hospitals.
“Plaid is the only party doing anything to improve our economy in Wales such as through our proposed new Build for Wales investment vehicle which would raise up to £500m and create up to 50,000 jobs in Wales.
“Crucially, the UK Government has failed once again to tackle the issue of Barnett reform or the £385m End Year Flexibility that they mugged from the Welsh Government a few months ago. Plus the scandal of the Housing Revenue Account Subsidy Scheme which pick-pockets £100m per annum from the poorest communities in Wales remains unresolved. These are massive sums of money which deserve to be invested in Wales.
“Ultimately, this was a Budget of small beer compared to the cuts announced last year and the destructive effects that those will have on our communities.”
