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Politics

UK Government’s ‘considerable offer’ not enough

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Breaking up's so hard to do: A UK single market on Westminster's terms

IN A speech delivered at Airbus’ Broughton HQ, Theresa May’s effective deputy, Cabinet Office Minister David Lidington, has attempted to allay fears of a Westminster power grab of devolved powers following the UK’s departure from the EU.

Mr Lidington, claimed the UK Government had made a ‘considerable offer’ to the devolved administrations with a commitment that the ‘vast majority’ of powers returning from Brussels will start off in Edinburgh, Cardiff and Belfast rather than Whitehall.

Mr Lidington, said his plans marked “a very big change to the EU Withdrawal Bill that is before Parliament and a significant step forward in these negotiations.”

He continued: “If accepted, this offer puts beyond doubt our commitment to a smooth and orderly departure from the European Union, in a way that doesn’t just respect the devolution settlements, but strengthens and enhances them.”

Mr Lidington warned that a “divided country at home” would be “weaker, less secure and less prosperous overseas​.”​

The problem with Mr Lidington’s words is that ‘the vast majority’ is not all powers currently vested in the UKs’ devolved administrations within the EU. Moreover, the clear message that the Westminster government wanted to maintain the unity of an internal market within the UK suggests that powers will have to be taken from the devolved governments and retained permanently by the UK parliament in order to make that arrangement work. However, the UK government’s stance on agriculture, a key issue for the Welsh Government, has been extensively trailed by Michael Gove and Defra ministers for months and cannot have taken it by surprise.

Mike Russell, the Scottish Brexit minister, said: “However they try to dress this up, the UK government is using Brexit to try to take control of devolved powers without the agreement of the Scottish parliament. It is totally unacceptable for the Tories to unilaterally rewrite the devolution settlement.”

First Minister, Carwyn Jones, said: “As currently drafted, the Bill allows the UK government to take control of devolved policy areas, such as farming and fishing, once the UK has left the EU. This is an unacceptable attack on devolution in both Wales and Scotland.

“We now need further progress that goes beyond warm words and I hope the ‘very big changes’ promised in the speech equate to sensible amendments to the bill which respect devolution. We will continue to work with the UK and Scottish governments to that end.”

Welsh Liberal Democrat Leader Jane Dodds commented: “Common frameworks in certain areas will certainly be important after Brexit and we would never want to put the UK’s common market at risk. However, it must be up to devolved Governments to decide if they want to enter common frameworks in devolved areas and to negotiate suitable frameworks. The UK Government cannot and must not impose frameworks on devolved Governments.

“Brexit will have huge implications for sectors such as agriculture. Brexit will cut our farmers off from their key markets and dismantle the financial support they rely on. Decisions on these vital areas must be made in Wales and address the unique needs of Welsh farmers.”

The Welsh Conservative spokesman on Europe, Mark Isherwood AM, said: “Welsh Conservatives have been steadfast in our belief that the devolution settlement must be respected with the necessary changes made to the EU Withdrawal Bill.

“As we’ve stated from the outset, we would also expect that leaving the European Union would not undermine the devolved settlement and would result in more powers making their way to the Welsh Assembly.

“It is vital that we now protect the UK’s single market and that’s why it is imperative the Welsh Government engages positively with the UK Government in this process to ensure the frameworks relating to devolved matters are agreed by all parties.”

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Welsh tax plans for 2019 revealed by Finance Minister Rebecca Evans

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FINANCE MINISTER Rebecca Evans has announced the Welsh Government’s Tax Policy Work Plan for 2019.
This year’s plan focuses on developing the government’s approach to taxation in Wales – exploring the scope for continued improvement to tax administration, while further strengthening the links between tax and policy areas, and ensuring taxes remain fair throughout this process.
The plan aims to develop government proposals to build the Welsh tax base, while continuing to make the case for devolution of air passenger duty to Wales, taking forward consideration of land and property taxation, and continuing to work with the UK Government on disposable taxes and other environmental taxes. The Welsh Government will also explore further the funding options for social care in the future, progress plans to devolve powers for a vacant land tax to Wales, and develop thinking on a tourism tax.
Ensuring Welsh taxes are working effectively is a key priority in 2019. Following the successful introduction of land transaction tax and landfill disposals tax last year, and with Welsh rates of income tax going live on April 6, the government will continue to work closely with the Welsh Revenue Authority and HMRC. As part of this coordinated approach the government will also consider options for developing information resources, including data sharing and analysis to strengthen the evidence base for tax policy decisions and improved tax administration in Wales.
Continuing to build on the government’s open and transparent tax policy making process also remains a key priority. A long-term plan to build capacity on tax policy and administration will be developed, and work with the UK and other devolved governments to share best practice and address common challenges will continue. The aim is for Welsh taxpayers to understand the government approach to taxation and be clear how their taxes are supporting public services in Wales.
The Minister for Finance and Trefnydd said: “Our annual tax policy work plan is an important part of the communication process, building on what we have achieved and learned so far and identifying areas we want to explore further.
“I am committed to ensuring our tax policy is developed in an open and transparent manner and this plan is an invitation to anyone who wishes to contribute to our thinking, and help shape Welsh tax policy.”
The Welsh Government’s tax policy is being developed in line with the principles set out in the Tax Policy Framework. A report summarising the main findings will be published alongside the draft Budget in the autumn.
The full tax policy work plan for 2019 is available at: https://beta.gov.wales/tax-policy-work-plan-2019

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Lib Dems slam ‘botched’ scheme

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THE WELSH Liberal Democrats have slammed the Conservative Government for their “hapless treatment” of EU citizens after the Home Office released guidance on the new EU Settlement Scheme.

The Home Office has confirmed that for the duration of the trial period, until 30 March, EU citizens applying to stay in the UK must either use an Android phone or travel to one of 13 ‘document scanning’ centres instead.

For Holyhead, the closest ‘document scanning’ centre is Trafford.

According to an analysis by the Welsh Liberal Democrats, EU citizens travelling from Holyhead would face costs of £55 on the train for at least a six and a half hour round trip. The drive would be a 224-mile round trip costing around £56 in fuel.

The only document scanning centre in Wales is in Caerphilly. Travelling from Pembroke to Caerphilly and returning the same day by rail would cost £32.10 (the cheapest available fare at the time of enquiry), the cheapest off-peak fare from Aberystwyth would be £77.10 return. By car at an average of 40mpg, the cost of travel would be at least £27 to and from Pembroke, while from Aberystwyth the cost would be at least £25. Both car journeys represent round trips of over 180 miles.

Welsh Liberal Democrat Leader Jane Dodds said: “Too many people in Wales are deeply anxious about their right to stay. Many of them fill vital roles in the health service, our schools and the tourism sector. They want to register as soon as possible, but Theresa May’s hapless treatment of EU citizens could result in a new Windrush scandal.

“For anyone who doesn’t have an android phone, this botched scheme means they will have to travel. For people in Holyhead, that means facing a 224-mile round trip and paying over £50 for the privilege. This postcode lottery is simply unacceptable.”

Liberal Democrat Home Affairs Spokesperson Ed Davey MP said: “Following significant pressure, the Prime Minister said there will be no financial barrier for any EU nationals who wish to stay. How long did that commitment last?

“It is Conservative Ministers who have made a mess of Brexit. They should either pay the cost for EU citizens or change the application system and ensure EU citizens are made to feel welcome in the UK.

“Ultimately, the best way to avoid all of this mess is by giving the people the option to remain in the EU with a final say on Brexit.”

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Retailers’ no deal reality check

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THE HEADS of the UK’s major food retailers, including McDonald’s, M & S and Asda, have written to MPs and dramatically spelt out their view of the risks of leaving the EU without an agreement.

The warning comes shortly after the revelation that Britain has begun stockpiling food, fuel, spare parts and ammunition at military bases in Gibraltar, Cyprus and the Falklands in case of a no-deal Brexit.

With all contingency plans routinely labelled ‘Project Fear’ by those Brexiters stuck on transmit instead of receive, the retailers have taken a significant risk in sticking their collective head above the parapet by trying to address a substantial issue which is rather glossed by those proclaiming the benefits and underplaying the downside of a crash out Brexit.

The letter is backed by the British Retail Consortium, which represents over 70% of Britain’s retailers by turnover.

The Government said that it was taking special measures to minimise the impact of a no-deal Brexit on supermarkets’ suppliers and insisted that food was not going to run out as a result.

“The government has well-established ways of working with the food industry to prevent disruption and we are using these to support preparations for leaving the European Union.”

The Food and Drink Federation, which represents thousands of food processors and manufacturers, has said a no-deal Brexit would be a “catastrophe”, with uncertainty undermining investment and constraining businesses’ ability to plan and export.

DEAL OR NO DEAL: THE LETTER

On behalf of our businesses and the wider food industry, we want to highlight to you the challenges for retailers and the consequences for millions of UK consumers of leaving the European Union without a deal at the end of March. While we have been working closely with our suppliers on contingency plans it is not possible to mitigate all the risks to our supply chains and we fear significant disruption in the short term as a result if there is no Brexit deal. We wanted to share with you some practical examples of the challenges we are facing.

Our supply chains are closely linked to Europe – nearly one-third of the food we eat in the UK comes from the EU. In March the situation is more acute as UK produce is out of season: 90% of our lettuces, 80% of our tomatoes and 70% of our soft fruit are sourced from the EU at that time of year. As this produce is fresh and perishable, it needs to be moved quickly from farms to our stores.
This complex, ‘just in time’ supply chain will be significantly disrupted in the event of no deal. Even if the UK government does not undertake checks on products at the border, there will still be major disruption at Calais as the French government has said it will enforce sanitary and customs checks on exports from the EU, which will lead to long delays; Government data suggest freight trade between Calais and Dover may reduce by 87% against current levels as a result. For consumers, this will reduce the availability and shelf life of many products in our stores.

We are also extremely concerned about the impact of tariffs. Only around 10% of our food imports, a fraction of the products we sell, is currently subject to tariffs so if the UK were to revert to WTO Most Favoured Nation status, as currently envisaged in the no-deal scenario, it would greatly increase import costs, which could in turn put upward pressure on food prices. The UK could set import tariffs at zero but that would have a devastating impact on our own farmers, a key part of our supply chains.

Our ability to mitigate these risks is limited. As prudent businesses we are stockpiling where possible, but all frozen and chilled storage is already being used and there is very little general warehousing space available in the UK. Even if there were more space it is impossible to stockpile fresh produce, such as salad leaves and fresh fruit. Retailers typically store no more than two weeks’ inventory and it becomes difficult to restock stores if the supply chain is disrupted. We are also attempting to find alternative supply routes but there are limited options and not enough ferries, so this could only replace a fraction of the current capacity.

We are extremely concerned that our customers will be among the first to experience the realities of a no deal Brexit. We anticipate significant risks to maintaining the choice, quality and durability of food that our customers have come to expect in our stores, and there will be inevitable pressure on food prices from higher transport costs, currency devaluation and tariffs.

We are therefore asking you to work with your colleagues in Parliament urgently to find a solution that avoids the shock of a no deal Brexit on 29 March and removes these risks for UK consumers.

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