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Plaid leader reacts to Welsh government Financial Statement

21/06/2022

Plaid Cymru’s leader has reacted to the financial statement issued by the First Minister of Wales by claiming it did not address the economic needs of Wales.  Ieuan Wyn Jones AM said that while Plaid Cymru do welcome Labour's shift on elements of tax devolution, there is some way to go before Labour matches Alex Salmond's ambitions for Scotland and the danger of Carwyn Jones’s approach was that Wales will be left behind.

The Ynys Mon AM said that on key economic areas such as corporation tax, Carwyn Jones failed to give clear direction on where the government stood.  Ieuan Wyn Jones AM said the uncertainty of Labour’s approach risked Wales losing the confidence of the business community, and it was essential that the Welsh government took forward definitive proposals when discussing the way Wales is funded with the UK government.

Ieuan Wyn Jones AM said:

"It is a step in the right direction that Carwyn Jones has accepted Plaid Cymru’s position that we need to move to a needs based funding formula.  This would be a far fairer system of funding for Wales.  However, Labour in Westminster is steadfast against any reform.  The question remains can Carwyn Jones deliver on this given his own leadership in Westminster, particularly the shadow chancellor Ed Balls, vigorously oppose Wales getting its fair share? 

"I have urged the Welsh government to accept the need to shorten the timescale for the implementation of the Holtham Commission’s recommendations.  Since the election in May Scotland has raised the bar and we cannot allow Wales to be left behind.  We can’t be the poor relation to the rest of the economies of the UK.

"The First Minister says he believes that what’s good enough for Scotland is good enough for Wales, yet he rejects Wales gaining the same level of financial devolution.  The government’s current approach to areas like corporation tax, seem very confused.  Saying that Wales should have financial tools to improve its economy but that its government will not argue the case for them to be devolved, does not inspire confidence.

"What is important now is that the Welsh government starts taking a definitive stance on what they want to achieve."