Wales’ First Minister, Rhun ap Iorwerth, has labelled the UK government’s latest cost of living measures, including temporary tax cuts at visitor attractions, as a ‘missed opportunity’. Speaking to the BBC, ap Iorwerth, leader of Plaid Cymru, argued that more substantial action on energy prices was urgently needed to support struggling families and businesses.
The Chancellor’s package, announced by Rachel Reeves, includes a temporary reduction in VAT from 20% to 5% for attractions such as theme parks, zoos, and museums. This discount is set to run from the end of June until September 1st, coinciding with school holidays across England, Wales, and Northern Ireland. The measure also extends to children’s cinema tickets, soft play, theatres, and children’s meals in restaurants and cafes. Additionally, import taxes on some basic foods are being reduced as part of a ‘Great British Summer Savings’ campaign. The existing 5p cut on fuel duty is also being extended to the end of the year.
While acknowledging some positives in the plans, ap Iorwerth stressed that these measures did not go far enough, particularly concerning the persistent issue of high energy prices. ‘When we see the impact of high energy prices on hard-up families and on businesses too, and the steps that can be taken and should be taken by UK government on energy prices and off-grid energy prices, that’s the further action that we think we need to see from UK government,’ he stated.
The Welsh government, led by a Plaid Cymru minority administration, is committed to supporting its population within its devolved powers. Ap Iorwerth indicated that the Welsh government would continue to ‘press’ the UK government for more comprehensive support. When questioned about potential short-term measures from the Welsh government, he acknowledged that the cost of living remains the ‘number one in the list of things that worry’ families and pledged to do ‘everything we can using the tools at our disposal.’ However, he stopped short of committing to specific new initiatives.
A key demand from ap Iorwerth is the devolution of welfare powers to the Welsh government. He believes that granting Wales greater control over welfare policy would enable ministers to better target support to those most in need within the Welsh context. ‘We need to see deeper action on energy prices,’ he reiterated, emphasizing that this would have a more significant and lasting impact than the current proposals.
Jo Stevens, the Labour UK government’s Welsh Secretary, defended the measures, describing them as ‘targeted’ at families and businesses. She highlighted that the VAT reduction for visitor attractions would benefit Welsh families during the summer holidays and that the extended fuel duty cut would assist those who rely on vehicles for work. Stevens also noted that Wales would receive approximately £7 million in equivalent funding for England’s free bus travel scheme for under-16s, a policy that contrasts with Wales’ existing £1 cap on bus fares for under-21s.
Stevens expressed hope that the Welsh government would utilise this £7 million funding for targeted cost of living support. The political landscape in Wales has recently shifted, with Plaid Cymru forming its first government earlier this month, ending 27 years of Labour administration. This new dynamic places ap Iorwerth in a position to advocate strongly for Welsh interests on the national stage.
The First Minister also reaffirmed his government’s commitment to maintaining the £1 cap on single bus ticket fares for individuals aged 5 to 21. This policy is seen as a direct measure to alleviate some of the financial pressures faced by younger people in Wales. The ongoing debate over the adequacy of the UK government’s cost of living support package underscores the persistent challenges faced by households across the nation, with devolved administrations like Wales seeking greater autonomy and more impactful interventions.
The criticism from ap Iorwerth reflects a broader sentiment among some devolved nations that the UK government’s approach to the cost of living crisis has been insufficient, particularly in addressing fundamental issues like energy costs. The call for devolved welfare powers further signals a desire for more tailored policy solutions that reflect the specific economic conditions and needs of Wales.
