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BUDGET EXPLAINER

The Chancellor’s Autumn Budget this month was focused on reducing the cost of living, investing in public services and reducing the national debt.

Last year’s budget stabilised the economy, but the legacy of Tory and Lib Dem austerity, Boris Johnson’s botched Brexit deal and the pandemic, along with very difficult global events like US tariffs and Russia’s war against Ukraine all continue to have an impact on our UK economy.

Labour’s budget was rooted in fairness and responsibility: every pound spent must deliver value, the cost of living must be reduced and on tax, the wealthiest should pay the most, but everyone needs to contribute. 

Lowering Bills and Raising Living Standards

There will be a discount on energy bills of £150 next year, for the average household, with many low-income families saving up to £300. I joined Energy Secretary Ed Miliband on a visit to Citizens’ Advice in Barry, to meet energy debt advisers and local residents to hear more about how this discount will help.

Train fares have been frozen for the first time in 30 years, cutting the price of getting to work, education and leisure opportunities. This will apply to cross border services like GWR and Cross Country.

Inflation is expected to drop by 0.4%, which matters because lower inflation helps bring down interest rates, making home ownership more affordable and easing pressure on renters. Already since the general election, we have had five cuts to interest rates.

We’re increasing the minimum and living wage again, building on last April’s record rises that helped 160,000 Welsh workers. Those working full time on the National Minimum Wage will get a rise of £900 per year and 18–20 year-olds working full time on the National Living Wage will see an increase in their pay of £1,500 a year. 

Children

The two-child benefit cap will be scrapped, lifting 69,000 children in Wales out of poverty. Combined with the introduction by the Welsh Labour Government of universal free school meals, this will deliver the biggest fall in child poverty on record.

It’s a stain on our country that by the time children start school, inequality is already blighting many children’s lives. Penalising children at the beginning of their lives for decisions that are not made by them, is wrong. That’s why we have scrapped the two-child benefit cap.

Pensioners

On pensions, we are renewing our commitment to the triple-lock by increasing the basic and new state pension by 4.8 per cent. Any pensioner whose sole income is the state pension will not be required to pay the income tax that arises from reaching the income tax threshold.

We are also addressing injustices suffered by the British Coal staff superannuation scheme pensioners by transferring the £2.3 billion reserve fund to its members, which will increase pensions for 4,000 pensioners in Wales.  And we are indexing pensions in the protection fund to inflation, so no one loses out due to insolvency. This will benefit 11,000 Welsh pensioners, including Allied Steel and Wire pensioners in Cardiff East.

Fair Taxes and Responsible Spending

Every pound of taxpayers’ money will be spent wisely. Wasteful contracts are being scrapped, and funds lost to Covid fraud reclaimed. Tax reforms will make the system fairer. Landlords will pay their fair share, luxury properties in Kensington and Chelsea won’t pay less in council tax than a terraced house in Adamsdown anymore, and electric vehicle drivers will contribute to road maintenance. These changes deliver fairness without resorting to austerity.

We are also freezing tax thresholds, a decision we did not take lightly, but are doing so alongside reforms that make sure the wealthiest contribute the most. This approach means we can cut borrowing (reducing the cost of servicing national debt), keep interest rates low, and still invest in the public services people rely on.

Backing Jobs and Growth

We’ve already confirmed that Wylfa on Anglesey has been chosen as the site for the UK’s first small modular reactor (SMR) nuclear power station. This is one of the most significant industrial investments in Wales for a generation.

The project will create up to 3,000 skilled jobs during construction and deliver billions of pounds of investment, securing long-term opportunities for local people.

Two brand-new AI Growth Zones, one in North Wales and one in South Wales, will also bring thousands of good jobs, attract billions in investment, and put Wales at the forefront of the AI technologies of the future.

By combining world-class research, advanced computing power, and strong partnerships with industry and universities, the Growth Zones will drive breakthroughs that improve lives and boost economic growth. They will support businesses from start-up to scale-up, create long-term career opportunities, and ensure communities across Wales benefit from the technologies shaping the future.

The budget also included £10million for the Southeast Wales semi-conductor cluster, £4.23million for cleaning up land in Port Talbot next to the Celtic Freeport so businesses can set up and create jobs there, and £25 million for the Anglesey Freeport.

Welsh Labour Government Funding

This Budget gives the Welsh Labour Government nearly £1 billion in additional spending power to invest in people, public services and business support in Wales.

We have delivered another of our manifesto commitments; to make changes to the Welsh Government funding framework (known as the fiscal framework) having agreed more flexibility for Welsh Ministers to borrow and invest in vital services, increasing borrowing limits and reserves as well as updating them in line with inflation. 

This is a Budget rooted in Labour values: fairness, contribution, and opportunity for all. 

Read more about what’s in the budget in my blog here or watch my recent Budget interviews here.

NEWS FROM CARDIFF EAST

CARDIFF EAST REMEMBERS

It was an honour to join serving and former armed forces personnel, veterans, cadets, and their families at Remembrance events in Cardiff East and at the National Service in Cathays Park.

At Beaumaris Road, Rumney, William McCarthy led a moving service reflecting on the street’s proud connection to the armed forces. I also joined John Wall, Secretary of the Rumney Branch of the Royal British Legion, and Troopers Arwen and Isikeli at their annual Poppy Appeal at Sainsbury’s on Colchester Avenue. John’s dedication is unparalleled. He has raised over £14,000 for the Legion this year alone, supporting veterans and their families.

It was fitting that John led the veterans at the National Service of Remembrance in Cathays Park, where I had the privilege of laying a wreath as Secretary of State for Wales. 

I am proud to stand with our armed forces and veterans. We must never forget the sacrifices they made to keep us safe. 

ROLLS ROYCE SUBMARINES EXPANSION IN ST MELLONS

I opened the new Rolls-Royce Submarines’ Division office in St Mellons, with the First Minister and leader of Cardiff Council, Huw Thomas. This development will create over 100 highly skilled and well paid jobs in engineering and technical roles, supporting the Dreadnought programme and the AUKUS partnership, which powers the Royal Navy’s submarine fleet.

This significant local investment wasn’t secured overnight. Working with Vaughan Gething MS and our Trowbridge & St Mellons Labour Councillors, Bernie Bowen-Thomson and Michael Michael, we’ve championed St Mellons as a hub for innovation and industry.

The Cardiff Parkway project is central to that vision, improving transport links and connectivity so businesses like Rolls-Royce can expand and Cardiff East residents can access new high skilled, well-paid jobs.

Cardiff Parkway will transform travel for our community, cutting journey times to Cardiff city centre down to just 7 minutes. It will transform Cardiff East and that’s why I was so pleased to see the Chancellor confirm in the budget that the UK Government recognises the jobs and economic growth potential of Cardiff Parkway and will work with Welsh Government and the private investors to deliver it.

RHYDYPENNAU PARK IMPROVEMENTS

Exciting plans are underway to transform the children’s play area at Rhydypenau Park.

Inspired by our local reservoirs and lakes, the design has been developed in collaboration with pupils from Rhydypenau Primary School, who have also had input on the equipment that will be installed.

The new space is expected to welcome children from early next year, as work continues on site.

INTERFAITH COUNCIL EVENT

It was great to spend time with local faith communities in Cardiff East during Interfaith Week, celebrating the values that bring us together.

These events are a wonderful opportunity to strengthen connections, share experiences, and promote understanding across different traditions. A big thanks to the Interfaith Council for Wales for fostering this continued dialogue between our communities.

TESCO WINTER FOOD COLLECTION IN ST MELLONS

Last year, Tesco customers donated more than 3.1 million meals worth of food to the Winter Food Collection which is supported by Trussell Trust, Cardiff Foodbank and FareShare Cymru.

It was brilliant to join volunteers and staff at Tesco’s in St Mellons to help those who are struggling this Christmas.

NEWS FROM ACROSS WALES

KING CHARLES OPENS TRANSPORT FOR WALES HUB

I joined King Charles, on his birthday for the official opening of the new South Wales Metro Depot in Taffs Well. This new hub which has received £100 million investment will be the home of 36 new tram-trains and over 400 jobs, supporting the South Wales Metro project.

The Metro will make travel easier, greener and more reliable, connecting communities across the South Wales Valleys and Cardiff, opening up opportunities for work, education and leisure.

Read more about the South Wales Metro project here.

SUPPORTING WELSH STEEL

I visited Tata Steel’s world-class galvanising facility at Llanwern, Newport, to see the product being manufactured and meet management, union reps and steelworkers. I reaffirmed the UK Labour Government’s commitment to the future of steelmaking in Wales and across the UK.

We discussed the global market challenges, but also the opportunities facing the industry, including trade defence measures, energy costs, and the transition to green steel.

The galvanising facility at Llanwern is a vital part of the UK’s steel industry, supplying high-quality steel products to sectors such as automotive, construction, and engineering.

Steel remains a cornerstone of UK manufacturing and a key driver of economic growth. We are determined to work with industry and unions to deliver a competitive, sustainable future for Welsh steel.

FLOODING IN MONMOUTH

Storm Claudia caused terrible flooding, but the way people in Monmouthshire have come together to support each other has been incredible. Volunteers, council teams and emergency services have worked day and night to help residents and businesses clean up and begin the recovery.

I went to Monmouth to meet the Council leader, Chief Executive and Council staff to thank everyone who’s pitched in, particularly volunteers running the Humanitarian Centre at Shire Hall who are providing critical support to affected residents.

Alongside Monmouthshire Labour MP Catherine Fookes, I visited residents who were still cleaning up flood water and assessing damage, as well local businesses like Little India and Adrian Gaunt Jewellers on the High Street. Their determination to get fully back to business is inspiring.

AFFORDABLE TRAVEL FOR YOUNG PEOPLE

Young people can now travel for just £1 for a single fare or £3 for a day ticket on bus services across Wales. The scheme is open to everyone aged 5–21 and will run until August 2026.

Since launching in September for 16–21-year-olds, the scheme has already been a success, with nearly a quarter of a million journeys made. Extending it means more children and young people can access school, college, work, and leisure affordably.

This support helps families keep more money in their pockets and makes it easier for people to choose buses over cars, cutting emissions and helping us reach our climate goals.

Find out more about the scheme here.

TRAINING FOR THE NEXT GENERATION OF ENGINEERS

It was brilliant to attend the opening of the new High Value Engineering (HiVE) facility in Ebbw Vale this month. Delivered by Blaenau Gwent Council and Coleg Gwent, and backed by over £15 million from the UK Labour and Welsh Labour Governments, HiVE is equipped with cutting-edge robotics, advanced manufacturing technology and immersive digital tools.

This centre gives students practical experience and the skills they need for careers in aerospace, automotive, motorsport and advanced materials manufacturing. It will also help tackle Wales’s science, technology, engineering and maths (STEM) skills gap, creating a pipeline of talented young people ready for the new jobs we are creating.

Watch my video from the visit or read more here.

800 MILITARY HOMES UPGRADE

The UK Labour Government is delivering the biggest upgrade to Armed Forces housing in more than 50 years. Over the next decade, more than 40,000 homes will be modernised, refurbished or rebuilt, including 801 here in Wales. Families will see real improvements like new kitchens, bathrooms and heating systems. At the heart of these improvements will be a new, dedicated Defence Housing Service which will put their voices at the heart of the decisions.

This transformation builds on the landmark deal earlier this year to bring 36,000 military homes back into public ownership - saving taxpayers money and reinvesting those savings into fixing forces’ housing.

“Homes fit for heroes” has been promised before. We’re making it happen. Our Armed Forces and their families deserve nothing less, and it’s our duty to deliver.

Read more about the improvements here.

EURO 2028 MATCHES TO BE HELD IN CARDIFF

It’s brilliant news that Cardiff will host the opening match of Euro 2028 at the Principality Stadium. In total, six games will be played here, including group fixtures and a quarter-final bringing tens of thousands of visitors and boosting our local economy.

Major events like this are massive for Wales, showcasing everything we have to offer and creating unforgettable moments. I’m proud that the UK Labour Government supported this successful bid and I can’t wait to welcome fans from across Europe.

Watch my video celebrating the news here.

TRANSCEND PACKAGING

Transcend Packaging in Caerphilly, has developed a widely recyclable and home-compostable coffee cup in partnership with Starbucks.

This major breakthrough in sustainability is being used across the UK and starting to be exported overseas. Supported by UK Labour Government funding through the Cardiff Capital Region, it’s a fantastic example of how investment in green technology and advanced manufacturing creates jobs and puts Wales at the forefront of global innovation.

TEN YEARS OF RENT SMART WALES

Ten years ago, Welsh Labour delivered Rent Smart Wales to make renting fairer and safer. Since then, over 50,000 landlords have registered, 200,000 properties have been licensed, and hundreds of prosecutions have been made to tackle bad practice. It’s raised standards, improved enforcement, and given tenants confidence that they’ll get the support they need if there are problems with their property. Labour made this happen because everyone deserves a decent, secure place to live.

The Welsh Labour Government has built on this success with the Renting Homes (Wales) Act which has simplified rental agreements and strengthened rights, with longer notice periods, better safety checks, and protection from unfair evictions. Together, these changes put renters first and make housing fairer for families across Wales.

Learn more about Rent Smart Wales here.

NEWS FROM PARLIAMENT

ABOLISHING POLICE & CRIME COMMISSIONERS

The introduction of Police & Crime Commissioners (PCCs) by the last Tory Government created a costly additional structure that hasn’t delivered the accountability communities were promised. The role of PCCs has never been well known or understood, reflected in the very low turnout of voters in PCC elections.

The Home Secretary has announced new reforms, so policing is directly accountable to local elected representatives. This will strengthen oversight and ensure decisions reflect the priorities of the people police forces serve.

The savings from scrapping PCCs will fund more neighbourhood police on the beat, helping to fight crime and keep our communities safe.

The changes are about accountability not about the work of individual Police and Crime Commissioners. I want to thank all current and former Police and Crime Commissioners across Wales for their service. They have worked hard for their communities, but it’s time for a system that really delivers local scrutiny and accountability.

BANNING TICKET TOUTS

The UK Labour Government has announced plans to make it illegal for tickets to concerts, theatre, comedy, sport and other live events to be resold for more than their original cost.

Touts buy large volumes of tickets online, often using automated bots, before relisting them on resale platforms at hugely inflated prices. The new proposals will stamp out this practice, improving access for genuine fans when tickets go on sale and ending rip-off pricing on the resale market.

WELFARE REFORM

Disabled people will lead the first full review of Personal Independence Payment (PIP) since its introduction over a decade ago.

This review will ensure PIP reflects the realities of life, from rising mental health conditions to the growing number of disabled people in work. It will look at how PIP supports independence and participation in society, and how assessments unlock wider help.

Putting disabled people at the heart of this process means policy shaped by lived experience. That will create a system that is fairer, more responsive, and focused on dignity and inclusion.

COP30

The Prime Minister attended the COP30 summit in Brazil this month, putting UK leadership at the heart of the global effort to fight climate change.

This is about creating opportunities for the UK, good jobs, energy security and sustainable growth. For Wales, it means playing a leading role in the UK Labour Government’s clean energy plans for 2030, from new nuclear at Wylfa to offshore wind and carbon capture. 

Global action and local investment go hand in hand. These commitments will deliver skilled jobs and long-term growth for communities across Wales, whilst driving the transition to cleaner energy. 

REFORMING THE ASYLUM PROCESS

The Government has announced the most significant reforms to the asylum system in a generation, designed to make the system fair, reduce dangerous small-boat journeys, and ensure support goes to those who need it.

The new plans will speed up decisions, so people aren’t left in limbo, expand safe return agreements, and stop legal loopholes that frustrate removals. They will also tackle exploitation and illegal work, while holding uncooperative countries to account.

The asylum system inherited from the Tories was unfit for purpose and broken. Labour is sorting out the chaos that they left behind, building a system that works, whilst ensuring fairness, security and compassion.

UK SUBMITS BID FOR 2035 WOMEN'S FOOTBALL WORLD CUP

The UK has submitted a bid to host the 2035 Women’s Football World Cup. This would be the biggest single-sporting event ever staged here.

Wales will play a key role, with Cardiff City Stadium, the Principality Stadium and Wrexham Racecourse among 22 venues across the UK. 

Hosting matches will bring global attention, inspire the next generation, and boost local economies in North and South Wales.