Ben Lake
MP for Ceredigion Preseli · Plaid Cymru · United Kingdom
“First, I thank the right hon. Member for Orkney and Shetland (Mr Carmichael) for securing this important urgent question. I have spoken to coastguard rescue officers from Ceredigion Preseli in recent weeks, and they all share common concerns.”
“One of my constituents submitted a request for their pension just over a year before their proposed retirement date, but is still waiting—sadly, it is little wonder that the June date has been missed.”
“I thank the Minister for her statement on the actions the Government will take to try to restore the public’s faith in our democracy. She mentioned that the “know your donor” rules will be strengthened, in particular with regard to the location of potential donors.”
“I thank the hon. Member for securing this debate and for the way that he has outlined the issue at hand. I also commend him on the Bill that he brought forward.”
“For the inquiry to secure justice for victims and survivors in Wales, it is essential that it fully understands the devolved context in Wales and the various lines of accountability that arise from it. One way to achieve that would be for Wales to receive a specific investigation as one of the inquiry’s designated local areas.”
“I am grateful that my hon. Friend has reiterated that point, and I will do likewise. Many of my constituents who have been affected and infected by this scandal have asked me to emphasise the point that even the updated scheme does not properly recognise the long-term consequences of interferon treatment.”
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“The Secretary of State may be aware that in Wales a policy of providing free school meals to all primary school children is being progressed thanks to an agreement between Plaid Cymru and the Welsh Government. Will he speak with colleagues in the Treasury about potentially uprating the public sector budget so that that important provision is not affected by rising food prices?”
“In particular, the Government should bring forward ECO4—the energy company obligation—legislation without delay to ensure that insulation measures are installed for the poorest households as soon as possible. Reports, and the discussion this afternoon, suggest that the Chancellor may well be contemplating a one-off windfall tax on energy companies as a means of partly funding such a support package. I want to let him know that he would enjoy the support of many Members on both sides of the House should he decide to do that, because families in my constituency quite simply cannot afford the price of continued inaction.”
“As chair of the all-party parliamentary group on fuel poverty, I urge the Government seriously to consider National Energy Action’s proposals for a new social tariff to enhance protection for the most vulnerable customers. Such a proposal should be accompanied by efforts to increase the visibility of, and support offered through, schemes such as the discretionary assistance fund, and by an extension of the warm home discount and winter fuel payment to all low-income households. That would address the short-term pressures emanating from higher energy prices. A long-term solution would be a significant increase in funding for energy-efficiency measures.”
“We need significant investment in our public transport infrastructure. We sometimes forget that rising petrol and diesel prices have a severe impact on public services. When those prices increase, maintaining rural bus routes and school transport services becomes harder. Perhaps more worryingly, crucial workers, such as social carers, find it difficult to afford to work. In constituencies such as mine, with a higher-than-average number of retired and elderly people, that is a particular concern. Some short-term relief could be gleaned from the rural fuel duty relief scheme, which I urge the Government to extend to Wales. The crisis is having a real and immediate impact on people across the UK, and is among the most pressing issues requiring Government action.”
“In addition to the increases arising from a higher energy price cap, rural areas have seen large increases to already high standing charges. For example, the daily rates for households in my constituency of Ceredigion are on average 50% higher than those levied in London. Compounding the crisis for my constituents is the fact that some 35% of households are not connected to the mains gas grid, so rely on heating oil. On average, they have seen a 150% increase in the cost of their fuel deliveries—that is, when they are able to receive deliveries—as they are not protected by the energy price cap. Rising energy prices not only squeeze household budgets; coupled with higher fuel prices, they threaten the rural economy and risk stoking a wider social crisis. I take no pleasure in noting that Wales is the most car-dependent nation in the UK.”
“It is a real pleasure to follow the hon. Member for Barnsley East (Stephanie Peacock), who made a powerful speech. Her constituents’ accounts sadly chime with those of many in Ceredigion. I also add my voice to those of others who have spoken of the pain that rising energy bills are causing to households the length and breadth of the UK. Sadly, the impact of the rises is being felt acutely in Wales, where even before the current crisis a third of children and a quarter of working-age adults lived in poverty. I regret to note that reports suggest that as many as 45% of households in Wales could now be in fuel poverty following the latest energy price cap increase. The experience of rural areas underlines the urgent need for action.”
“Diolch, Madam Deputy Speaker. I echo concerns that others have raised that the privatisation of Channel 4 might jeopardise its investment in communities across the UK as part of its public service remit, and its quotas relating to commissioning content in each nation of the United Kingdom. That investment has amounted to more than £77 million in Wales in the past 10 years, and supported over 200 jobs in 2019 alone. Will the Minister elaborate on how the Government will seek to ensure that that valuable contribution continues, even if privatisation proceeds?”
“(4) The proceedings on any further Message from the Lords shall (so far as not previously concluded) be brought to a conclusion one hour after their commencement. —(Michael Tomlinson.) Question agreed to.”
“2)): Consideration of Lords Amendments (1) Proceedings on consideration of Lords Amendments shall (so far as not previously concluded) be brought to a conclusion six hours after their commencement. (2) The proceedings— (a) shall be taken in the order shown in the first column of the following Table, and (b) shall (so far as not previously concluded) be brought to a conclusion at the times specified in the second column of the Table. TABLE Lords Amendments Time for conclusion of proceedings 1, 4 to 9, 52, 53, 10 to 20, 54, 2, 3, 43 to 51, 21 Three hours after the commencement of proceedings on consideration of Lords Amendments 22, 24, 23, 25 to 27, 40, 28 to 39, 42, 41 Six hours after the commencement of those proceedings Subsequent stages (3) Any further Message from the Lords may be considered forthwith without any Question being put.”
“Ordered, That Ben Lake, Hywel Williams, Liz Saville Roberts, Richard Thomson, Claire Hanna, Stephen Farry, Alison Thewliss, Geraint Davies, Jonathan Edwards, Wendy Chamberlain and Beth Winter present the Bill. Ben Lake accordingly presented the Bill. Bill read the first time; to be read a Second time on Friday 6 May , and to be printed (Bill 2 88 ). Nationality and Borders Bill (Programme) (No. 3) Motion made, and Question put forthwith (Standing Order No. 83A(7)), That the following provisions shall apply to the Nationality and Borders Bill for the purpose of supplementing the Orders of 20 July 2021 (Nationality and Borders Bill (Programme)) and 7 December 2021 (Nationality and Borders Bill (Programme) (No.”
“By devolving the administration of different aspects of the shared prosperity fund to Wales, the Government will ensure the levelling-up agenda respects local democracy and harnesses the energy and focus of every tier of government towards the realisation of a coherent strategy. Failure to do so will mean that the levelling up we all hope to bring about will continue to elude us, no matter how lofty the rhetoric we employ or the number of policy documents we produce. Only by devolving the management and administration of the shared prosperity fund can we hope to bring about a transformational programme that will meet our societal, economic and climate action responsibilities. Question put and agreed to.”
“There is ample evidence in favour of a bold and extensive retrofitting scheme, and in response to last year’s Budget, Plaid Cymru echoed calls by the Future Generations Commissioner for Wales for a £3.6 billion investment programme over 10 years to improve the efficiency of the Welsh housing stock. It has been estimated that by delivering a long-term funding settlement that would leverage further investment from the private sector, guarantee green jobs and deliver much-needed energy efficiency improvements, this measure could deliver average annual savings of some £418 for Welsh households. If we applied such an infrastructure programme—developed by, and tailored for, each of the nations and regions of the UK—we could secure real long-term energy savings for UK households. Unfortunately, that opportunity was missed in the autumn.”
“Instead, we are at very real risk of seeing competition, rather than co-operation, between various groups and authorities bidding for funding, resulting in a disjointed approach to key issues such as energy efficiency and a failure to realise the promise of economic regeneration. Instead, through this Bill, Plaid Cymru and Members from across the UK are advocating using the shared prosperity fund as a means to level up the UK through fostering greater collaboration among its nations and regions. Such an approach is far more likely to achieve the transformational change that we all desire and to realise important objectives such as a more energy-efficient housing stock.”
“Instead, we must commit ourselves to delivering a step change in our energy system, towards which I believe the shared prosperity fund, if managed effectively, could make an important contribution. The Government promised in 2019 to replace EU regional funding with a programme that is “fairer and better tailored to our economy.” So far, however, the amount of funding allocated to that end has failed to match the promise of the UK Government’s levelling-up rhetoric. Just as worrying is the lack of a joined-up approach that brings together communities, local authorities and the Welsh Government to address the unique challenges that Wales faces.”
“Indeed, the Green Alliance cross-party think-tank offers a sobering fact for proponents of fracking: the first four days of the current gas crunch in September saw the greatest gas export from the UK to Europe on record, as domestic producers sought the best price for their product. Finally, there is the small matter that fracking is a devolved matter, and it has been banned in Wales since 2018 following a Plaid Cymru motion. Wales also joined the Beyond Oil & Gas Alliance at COP26, but, worryingly, the UK Government refused to commit this week to respecting devolved powers over fracking. There is no solace to be found in the technologies of the past.”
“To do so would not only be to forget the calls made at COP26 in November or the latest Intergovernmental Panel on Climate Change report on climate change, but grossly to overstate the short-term benefit of shale gas extraction and to underestimate its cost. Cardiff University recently concluded that 1,016 fracking pads would be needed to replace just half of the UK’s gas imports to 2035. This would mean the construction of one shale gas pad approximately every five days over the next 15 years across our country. What is more, additional domestic gas production is unlikely to translate into lower prices for UK consumers, as our prices reflect Europe’s gas markets, with which we are intricately interconnected.”
“This also affects our climate ambitions, of course, with housing responsible for about 20% of our carbon emissions. Some will argue that the Chancellor has already helped address the energy crisis by providing a rebate to UK households. However, I would argue that this measure was insufficient at its introduction and is even less adequate now. I realise that calls on the Government to introduce a windfall tax on cash-rich oil and gas producers—we should remember that the largest producer in the North sea has just reported $1.7 billion in profit—are likely to go unheeded. Nevertheless, the Government must ensure that they do not revert to a business-as-usual approach to energy supply, or fall for the siren call of those who would have us believe that salvation can be found in greater exploitation of fossil fuel reserves.”
“Households and businesses across the UK are feeling not just a pinch, but a hammer blow from rising energy bills. Given that they have already risen by 54% and likely to rise further due to our dependence on fossil fuels, the Wales fiscal analysis team has calculated that the average Welsh household on a default dual-fuel tariff will see its energy bill rise by £693 from April. Wales is particularly vulnerable in this respect. We have the highest-poverty and child poverty rate of the four nations, with almost one in four people, and 31% of our children, living in poverty. Our vulnerability to energy price shocks is compounded by having the oldest, least energy-efficient housing stock in the UK, with a fifth of homes in Wales built before 1900, and the lowest proportion of dwellings rated energy performance certificate C grade or above.”
“I beg to move, That leave be given to bring in a Bill to require the Secretary of State to report to Parliament on the merits of devolving management and administration of the money allocated to Wales via the Shared Prosperity Fund to the Welsh Government. Ahead of the spring statement tomorrow, surging energy bills and increasing costs of living are rightly making us nervous. We are at a critical juncture not only in overcoming the legacy of the covid-19 pandemic and the devastating consequences of the war in Ukraine, but in how we approach levelling up. What I advocate today through this Bill is a clear UK-wide commitment to lower energy bills and to meeting our net zero targets by improving energy efficiency in homes and businesses, delivered through a devolved shared prosperity fund.”
“I am interested to hear about the shadow Secretary of State’s proposals for Scotland. Has he had an opportunity to raise them with his colleagues in the Welsh Government, who have done exactly the same as the Scottish Government, whom he has criticised so heavily?”
“An expanded relief to allow eligible employers to reduce their national insurance liabilities would achieve several key objectives. First, it would make widespread and welcome pay rises more financially sustainable for businesses. Secondly, it would reduce the risk of higher costs being passed on as higher prices to consumers. Thirdly, it would help to protect businesses’ ability to invest, which would boost our economy’s productivity and economic growth at such a crucial time. In sum—with time to spare, Mr Deputy Speaker—I urge the Chancellor to make use of the slightly improved picture of public finances and take the opportunity next week to introduce measures to help families and businesses and to avoid the energy crisis turning into a shock that stalls the economy.”
“Secondly, I urge the Chancellor to support the Road Haulage Association’s call for an essential user category to be developed to reduce petrol prices for key services, such as logistics, and essential professions with high mileage, such as carers. Indeed, I have been told by constituents who are carers and who typically travel upwards of 50 miles a day that they are recompensed by only 30p a mile. At current fuel prices, that is simply unsustainable. I draw attention to the impact that the rise in national insurance contributions will have on families, a point that has been well made today, and on businesses. It is effectively a tax on employment, which is why Plaid Cymru supports the proposal to increase the employment allowance from £4,000 to £5,000 a year, as advocated by the Federation of Small Businesses.”
“Sadly, they depend on private car use for essential journeys, whether going to work or going shopping. With the RAC calculating that, on current rates, the Treasury will take an additional £2.9 billion from fuel prices, my party is calling on the Chancellor to urgently implement two measures. First, he should reform the rural fuel duty relief to extend it to more rural areas in Wales and improve its eligibility criteria to account for local transport provision. That would bring immediate relief at the pump for rural areas and would target areas with below UK average investment in public transport infrastructure, which would hopefully incentivise the longer-term solution that is represented by better public transport links.”
“With the price of heating oil and liquid gas rising, I have heard accounts from constituents whose heating costs have trebled in the few months since September last year. That is a pressing issue that is hitting rural areas. Another driving force of the crisis in rural areas is the rising cost of fuel at the pump. Unfortunately, Wales has the highest car dependency in the UK with nearly 80% of commutes done by private car. Nearly half our businesses are located in rural areas where, sadly, people would be lucky to have multiple bus services a day. Of course I wholeheartedly support the rapid decarbonisation of our transport system to meet our net zero commitments, but many of my communities are devoid of the public transport infrastructure that would make that a reality.”
“Diolch yn fawr, Mr Deputy Speaker. I shall endeavour to ensure that I am seated again in just under five minutes. It is a pleasure to follow the hon. Member for Midlothian (Owen Thompson). In the interests of time, I will say that I agree with every point that he made. Indeed, many points have been made this afternoon with which I would like to associate myself. We have heard a lot about the various pressures that are combining to fuel the cost of living crisis and those points have been well made. We have heard about the rising cost of heating homes. I very much associate myself with the comments of the hon. Member for Tiverton and Honiton (Neil Parish), who drew attention to the fact that for many people in rural areas, the cost of heating their home has been further exacerbated by many premises being off-grid.”
“That is what this Government and this Prime Minister are doing to the UK and that is why this Bill needs to be amended to respect the devolution settlement. As I said, I will not be pushing our new clause to a vote tonight, but we will be supporting amendment 3 if it is put to a Division. I hope that Opposition Members as well as Government Members will acknowledge the seriousness of these constitutional concerns and accept the amendment as a first step towards government by consent, rather than imposition.”
“It betrays a blatant disregard for the constitutional framework of the UK, and further obscures the regulatory regime for workers, businesses and professional qualification providers. Hon. Members should not mistake these concerns as mere trivial matters; they speak to the growing chasm of distrust between the Governments of the British Isles. Indeed, just last week, the Welsh Labour Education Minister accused the UK Government of acting in a manner that breaches the Sewel convention. Let us consider, for a moment, the implications of that statement: a Government Minister from one nation is accusing the Government of another of tearing up the constitutional convention that has been so instrumental in ensuring good governance and positive intergovernmental collaboration across our isles.”
“I do not intend to detain the House for long, but it is a pleasure to rise to speak in support of Plaid Cymru’s new clause 5, which would require the Secretary of State or the Lord Chancellor to obtain the consent of the devolved Governments when acting in areas of devolved competence. Although I will not be seeking to divide the House on that, I hope that the new clause, alongside the repeated interventions of the devolved nations, will encourage the Government to reconsider their approach. In its current form, the Bill represents an example of the Government legislating in devolved matters without having first secured the consent of Wales’s Parliament or, indeed, consent from any of the devolved nations.”
“The Secretary of State will be aware of widespread concern that the rising cost of fertiliser will add further inflationary pressures to the price of food. Indeed, I have been told by one farmer of a quote for £930 a tonne plus VAT for a shipment that last year cost about £280. What steps can the Government take to address this crisis and ensure that our food security is not undermined?”
“May we please have an urgent statement on rising fuel and energy costs, and their impact on rural areas? Prices have increased substantially in recent weeks. Some constituents have seen their heating oil bills more than treble this year, and others have simply been told that no deliveries are available to them. We have all now grown accustomed to seeing pump prices increase by some 10p or 20p a litre in a matter of days. Ceredigion is especially vulnerable to such price hikes, as it has areas where more than 80% of homes are off the mains gas grid and, sadly, a lack of public transport infrastructure means that we have a greater dependence on car use for essential journeys. So may we have an urgent statement on the possibility of introducing temporary rebate schemes to help alleviate some of this cost?”
“This would help hard-pressed communities weather this crisis, rather than what the Government propose to do, which is to increase the tax on them. The decision to increase national insurance contributions is a choice, and we have heard a lot about that this afternoon; politics is always about making difficult choices. People across Ceredigion have told me loudly and clearly that this is the wrong choice for the situation in which we find ourselves.”
“Member for Aberdeen North (Kirsty Blackman) said so clearly and eloquently, in a generation, households can ill-afford this tax hike and neither can our businesses. From Brexit to covid, with all the corresponding supply chain disruption, loss of business and inflationary pressures, there is growing evidence that businesses just cannot withstand further pressure. Indeed, there is a risk that by increasing national insurance contributions, the Chancellor will increase the cost of employment, which will be reflected either in job losses or in even higher prices to the consumer down the line. We need targeted relief, perhaps through a reformed rural fuel duty relief scheme, to help with costs for the motorists in my area, who do not have the luxury of public transport infrastructure to use just to go to the shop or to attend work every day.”
“Rising energy costs are matched by rising fuel costs, and in rural areas the lack of public transport infrastructure forces many to be dependent on private car use. Some 80% of commuters depend on the car, so it is a real concern when pump prices increase by some 10p a litre in a matter of days. I have been told that some stations in my constituency have seen increases of 15% or even 20% in the past week or so. That is why the proposed national insurance hike, which will increase tax on average earnings in Wales by more than £250, is so mistimed. Wales already has the highest poverty and child poverty rate among the four nations of the UK, with almost one in four people, and 31% of our children, living in poverty. As we face potentially the worst drop in living standards in more than half a century or, as the hon.”
“Nearly a fifth of households in Wales are not connected to the gas grid, and in rural areas like Ceredigion the figure can be as high as 80%, meaning they are completely unprotected from spikes in energy prices. Indeed, constituents of mine have seen the price of heating oil treble since September, and many have been informed this week that delivery to our area is currently unavailable. With rural fuel poverty already at some 14%, I fear for my constituents if the situation continues. I support the Bill proposed by the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry), which would at least bring off-grid homes into some sort of regulatory arrangement that would mitigate them in respect of some of the more volatile differences in the energy market.”
“Member for Leeds West (Rachel Reeves) mentioned in her opening remarks that when the facts change, so should our policies. It is worth repeating that the situation in which we find ourselves is drastically different from last week, let alone last year. It is important that the Government consider that fact. The cost of living crisis has been well discussed this afternoon. Inflation is surging and could exceed 8% in the coming months, if some estimates are correct, as energy, food and other essentials become even more expensive. The situation is especially acute in rural areas like mine in Ceredigion, where rising fuel and energy prices are inflicting a heavy toll on household finances.”
“It is a pleasure to follow the hon. Member for Sheffield South East (Mr Betts), who spoke powerfully about a number of the challenges facing households across the country. I particularly support his comments about the inadequacy of the council tax regime. I very much hope that the work of the Welsh Government and Plaid Cymru will bring about a more progressive system, at least as it relates to Wales. I urge the Government to cancel the planned national insurance increase. If they cannot bring themselves to do so, they should at least postpone its implementation. It has been said a number of times in this debate, but it is worth repeating, that now is not the time to place a further cost on families and businesses. The hon.”
“T10. The airline Wizz Air has offered to fly Ukrainian refugees from Poland, Slovakia, Hungary and Romania, and there are indications that Cardiff airport could be a destination for some of these flights. I understand that there have been initial discussions with the Welsh Government, but would the Secretary of State lend his support to co-ordinating a post-flight visa processing facility at Cardiff airport, so that Ukrainians fleeing the warzone can be brought to Wales quickly and safely?”
“The shared prosperity fund must be administered by each nation, rather than being disbursed in a fashion that turns nations and regions against each other. Not only is that inefficient but it undermines devolved responsibilities for economic development, a point made by my hon. Friend the Member for Carmarthen East and Dinefwr (Jonathan Edwards). The shared prosperity fund must be better resourced and must work with rather than over the devolved nations. Anything else would be further proof that Westminster does not work for Wales. It would also call into question whether it works for the persistence of this Union.”
“If we look to the EU and its €750 billion covid recovery fund, or to Germany’s historic €2 trillion, or £71 billion annual, investment in east Germany, we have an idea of the scale of the funding that levelling up truly requires. I urge the Government, in the light of some of those examples, to raise their ambitions when it comes to levelling up—to levelling up levelling up, even—and to perhaps look at committing 1% of GDP over the coming decade, equivalent to some £22 billion annually, to the shared prosperity fund and the task of levelling up the nations and regions of the United Kingdom. Sadly, in terms of governance, the UK Government are already repeating past mistakes by adopting the same centralised Whitehall model that created many of the regional inequalities in the first place.”
“Quite simply, we need to get the shared prosperity fund right—a task that has been made even more difficult by a less than auspicious start. The Government dragged their heels in publicising the detail and in implementing the fund itself, and we now know that it also represents a broken manifesto promise, at least as it relates to Wales. On page 15 of the Welsh Conservative manifesto, the party committed “to ensure that no part of the UK loses out from the withdrawal of EU funding”. The Welsh Government have recently calculated that the Welsh budget will instead be £1 billion worse off by the year 2024 than if we had continued to receive EU funding through the structural funds.”
“It is a pleasure to serve under your chairmanship, Sir Edward. I will begin by thanking the hon. Member for Belfast South (Claire Hanna) for securing this debate and for the welcome opportunity to discuss the shared prosperity fund’s governance and scale, as well as the promises that were made to the devolved nations. Levelling up is an economic necessity, and for decades Plaid Cymru has drawn attention to the chasms that separate our nations in economic development, social opportunity and political attention. That is why, although I applauded the long-term vision contained in the levelling-up White Paper, I am concerned that it lacks the requisite funding and structural reform necessary to realise that vision.”
“I hope that today’s statement will offer much needed certainty to constituents of mine who are desperately worried about the safety of their family members, but I would be grateful if the Home Secretary could clarify two particular examples that have been shared with my office. First, will adult siblings and their dependent children be able to join their UK family under the Ukrainian family scheme? Secondly, will unaccompanied grandchildren be able to do the same?”
“Diolch, Mr Speaker. The fund’s 5% target for content in the indigenous languages has been invaluable to producers of Welsh language children’s programmes such as an upcoming drama series about children’s mental health and, of course, the production of new episodes of “Sali Mali”. Mike Young, the producer of “Sam Tan” and the creator of “SuperTed”, has previously stated that those much-loved favourites would not have been made without state support. Will the Minister agree to meet me to discuss the impact of the fund’s closure and ways we can secure the future of original children’s content in the Welsh language?”
“The Chancellor will be aware that nearly 20% of households in Wales are not connected to the mains gas grid. In rural areas such as Ceredigion, that figure actually rises to more than 80%. Research by the Office for National Statistics notes that Ceredigion suffered the highest increase in fuel bills over any area in mainland UK in the past year, increasing by £863 on average. Will the Chancellor confirm whether the rebate announced today will also apply to households that are not connected to the main power grids?”
“Six of the nine areas in Ceredigion rank in the bottom 10% of areas across the UK for decent broadband coverage. How will the hardest-to-reach premises, such as those in Ceredigion, be targeted for public investment?”
“I accept that the public finances are in a precarious position, but, if the Government seek to convince us that they cannot afford greater support for in-need households or greater measures to tackle the climate crisis, they must do more to recover the billions of pounds of public money lost to fraud and hold those who have benefited from unscrupulous deals to account. If they fail to do so, they will have little moral authority to increase tax on households and businesses in April.”
“However, it makes me think of a few examples from Ceredigion of businesses that were in receipt of furlough funding and entitled to it—HMRC accepts that—but, due to some clerical errors in real-time information submissions, now have to repay thousands of pounds. HMRC acknowledges that those businesses would have been entitled to that money, but sadly they have fallen foul of RTI submission rules. One can accept that—those are the rules—but here are businesses being pursued for thousands of pounds for a clerical error while we see the potential for writing off billions of pounds of money lost to fraud. It is difficult for those businesses to accept that they must be brought to task when others are getting away with it. We find ourselves facing a mounting national debt alongside cost of living and climate crises.”
“Indeed, it found that between 2015 and 2020, HMRC did not “evaluate the effectiveness” of the 10 largest tax reliefs supporting economic and social objectives. Those unevaluated reliefs cost about £117 billion, which is some 5% of the UK’s GDP. One could argue that we have been very lax with our public finances for quite some time, yet such laxity does not always extend to smaller businesses. I listened with great interest to the Paymaster General’s remarks, and I accept that the need for speed, which we have discussed, meant that there was always a risk of some fraud. I do not think that necessarily justifies there being no need for checks and safeguards on any of the schemes.”
“That prompts the question of what the Treasury could afford, if it wished, to end the cost of living crisis and build towards our net zero transition, or indeed honour promises to match EU regional funding for Wales and other parts of the UK that previously received it. The outrage and indignation that we have heard is understandable, but the mismanagement of some of our public finances by the UK Government should not come as a great surprise. One need only read some of the Public Accounts Committee’s work to understand that there are many examples of serious mismanagement of public finances. I call to mind its July 2020 report that concluded that “HMRC does not understand the impact of any of the largest tax reliefs”.”
“I intend to keep my remarks brief by focusing on some of the startling figures already raised in the debate, foremost among which is that about 26% of public money unlawfully taken from covid-19 schemes is likely not to be recovered by HMRC, so £4.3 billion of the total £5.8 billion stolen from covid-19 support schemes will be in effect written off. It is important to put the figures in some context. In doing so, I would like us to consider another large figure: £3 billion. That, at just over half the cost of the moneys lost to fraud, is the cost of increasing working-age benefits and pension credit by 6%—the likely inflation rate by April—rather than the planned 3.1%.”