THE UK’S economy experienced an unexpected contraction of 0.1% in January 2025, according to the Office for National Statistics (ONS), raising concerns about the nation’s economic trajectory. This downturn has intensified debates over current fiscal policies, particularly those affecting rural communities and employment.​

Samuel Kurtz, Member of the Senedd (MS) for Carmarthen West and South Pembrokeshire and the Welsh Conservative Shadow Cabinet Secretary for Economy and Energy, has been vocal in his criticism of the Labour government’s recent tax policies. He argues that these measures, notably the so-called ‘family farm tax’ and ‘jobs tax’, are detrimental to economic growth and the livelihoods of people in Wales.​

The ‘family farm tax’ refers to proposed changes in inheritance tax, imposing a 20% levy on agricultural assets exceeding £1 million, set to take effect from April 2026. Critics, including NFU Cymru President Aled Jones, warn that this tax could encompass the majority of Wales’ working family farms, potentially leading to financial burdens that threaten their sustainability. ​

In addition, the ‘jobs tax’ pertains to increases in employers’ National Insurance contributions, a move that has faced opposition from business leaders concerned about its impact on employment and economic recovery. ​

Kurtz emphasizes the urgency for the Chancellor to reconsider these policies in the forthcoming budget, aiming to restore business confidence and support key sectors of the economy.​

He told The Pembrokeshire Herald: “The ONS figures confirm a decline in growth, further proof of the damage caused by Labour’s Budget last autumn.

“Labour pledged to deliver the fastest-growing economy in the G7, yet business confidence has plummeted, living standards are in decline, and jobs are being lost.

“With just 12 days until the emergency Budget, the Chancellor must reverse her damaging policies including Labour’s jobs tax and family farm tax and do whatever it takes to restore business confidence.”

The economic contraction in January underscores the challenges facing the UK government as it seeks to balance fiscal responsibility with the need to foster growth and stability, particularly in sectors vital to Wales’ economy.

THE SENEDD recently voted down a motion demanding fair funding for Wales from the High-Speed Rail 2 (HS2) project, reigniting concerns over Westminster’s treatment of Welsh interests in major infrastructure investments. The decision has sparked frustration across political lines, particularly given the widely accepted view that Wales has been unfairly denied financial compensation for a rail scheme that provides no direct benefit to the country.

A flawed classification

The root of the controversy lies in HS2’s classification as an ‘England and Wales’ project, despite not a single mile of track being laid in Wales. This designation, originally justified by the Conservative UK Government on the grounds that HS2 would benefit North Wales via a link to Crewe, has deprived Wales of consequential funding under the Barnett formula. However, the scrapping of the Birmingham-Manchester leg of HS2 by former Prime Minister Rishi Sunak further undermined this justification, leaving many to question why Wales has continued to be excluded from receiving a fair share of funding.

While Scotland and Northern Ireland have received consequential funding from the HS2 project, Wales has been left without any direct financial benefit. Estimates suggest that Wales should have received around £4bn-5bn in consequential funding if HS2 had been correctly classified as an England-only project. However, recent recalculations by the Treasury have seen those figures fluctuate dramatically, with more recent estimates dropping to mere millions—a shift that suspiciously coincides with the arrival of a Labour government in Westminster.

Cross-party recognition of unfairness

There is a broad political consensus in the Senedd that Wales has been shortchanged. In 2022, Welsh Conservative leader Andrew RT Davies broke ranks with his party to tell Boris Johnson that Wales was owed funding from HS2. Labour in Wales has long argued that the country has been systematically underfunded in rail infrastructure, and Plaid Cymru, alongside the Welsh Liberal Democrats, has also championed the cause.

Yet, despite this shared recognition of unfairness, when a motion was tabled in the Senedd this week demanding that HS2 be reclassified as an England-only project and that Wales receive its fair share of funding, both Labour and Conservative MSs voted against it.

Why did the motion fail?

The failure of the motion appears to be as much about political maneuvering as it is about policy disagreements.

The motion, proposed by Plaid Cymru, called for:

• Updated figures on the rail enhancement funding shortfall in Wales.
• A confirmation from the Welsh Government that HS2 should be reclassified as an England-only project.
• A formal request to the UK Secretary of State for Transport to release the full consequential funding to Wales.

However, Labour and Conservative MSs rejected the motion, with Labour opting instead to delete its contents entirely and replace it with a statement highlighting the supposed benefits of having a Labour government in Westminster. Several Welsh Conservative MSs indicated that they might have supported the motion if Plaid Cymru had not included language that criticised the previous UK Government’s unfulfilled pledge to electrify the North Wales Main Line. This suggests that party rivalries overshadowed any genuine attempt to secure additional funding for Wales.

Apathy and absenteeism in the debate

The broader issue at play is the growing sense of disengagement from Senedd members during opposition debates. The HS2 debate saw conspicuously low attendance from both Conservative and Labour MSs. Onlookers noted that only two or three Conservatives were present, while Labour benches had around seven members in attendance. Such poor participation, despite the significance of the topic, raises concerns about whether some MSs are taking their duties seriously.

Welsh Liberal Democrat MS Jane Dodds described the debate as “depressing,” noting that while all parties seem to agree that Wales has been shortchanged, they were unable to unify on the issue.

Labour’s dilemma: Party loyalty vs Welsh interests

The shift in Labour’s stance on HS2 funding is notable. Before Keir Starmer’s election as Prime Minister, Welsh Labour had been vocal in demanding fair funding for Wales. However, since the new UK Government took office, Labour MSs in Cardiff Bay appear to have softened their approach, likely to avoid disrupting relations with their Westminster counterparts.

This reluctance to push for what is widely acknowledged as a fair claim for Wales has led to accusations that party loyalties are being prioritised over the national interest. Labour backbencher Alun Davies, one of the few to go on record about the issue, acknowledged the problem, stating that while HS2 funding is a historic and ongoing issue, the real solution lies in the full devolution of rail infrastructure.

The bigger picture: Structural inequality in UK funding

At its core, the HS2 funding dispute highlights a deeper issue: Wales remains the only UK nation without full control over its rail infrastructure funding. Without these powers, Wales is at the mercy of UK Government decisions that consistently prioritise England’s transport needs while leaving Welsh infrastructure underfunded.

Even if Plaid Cymru’s motion had passed, the UK Government would still have had to be pressured into acting. However, the rejection of the motion sends a worrying signal that the Welsh political establishment is not willing to present a united front on an issue of major financial importance.

In the end, the Senedd’s decision to reject the motion is a stark reminder of how political maneuvering can obstruct meaningful progress. While MSs from across the political spectrum claim to support fair funding for Wales, when the opportunity arose to take a stand, party interests and political calculations took precedence. The failure to secure HS2 consequential funding is not just a financial injustice—it is yet another example of how Wales continues to be placed at the back of the queue when it comes to Westminster’s spending priorities.

TERRAQUEST will provide its Planning Portal service for planning applications in Wales from 31 March 2025, following an agreement with the Welsh Government.

The launch of Planning Portal, which is already used for more than 97% of planning applications across England, will enable applicants to submit applications and receive vital updates in respect of Welsh sites. 

The new service will be bi-lingual, offering both Welsh and English language options. Current users of Planning Applications Wales will be able to keep the same account and transfer to the new service.

Applicants will benefit from an improved service, including standardised payment options across all 25 Welsh authorities which, in turn, will streamline application submissions and address a key cause of invalidations.

In addition, Planning Portal will offer a built-in location plan tool that generates compliant plans, captures spatial data and transfers digitally to the Welsh authorities – reducing reliance on third-party tools.

The new portal will also ease the process for developers operating in both England and Wales, with a uniform experience across both countries.

It is anticipated that additional features will be added, including integration with building control applications, enabling a comprehensive service from a single platform.

Cabinet Secretary for Economy, Energy and Planning Rebecca Evans said: “We said we wanted to streamline the planning process in Wales and speed up the decision-making process on important projects and that’s exactly what we are doing. This seamless transition to a trusted provider and partner will help ensure consistency and speed across the planning process and provide continuity for applicants.”

Geoff Keal, CEO at TerraQuest added: “We will deliver both a seamless transition and an enhanced user experience for customers. Planning Portal is a tried and tested planning tool that offers a highly efficient service that has helped thousands of consumers navigate and keep up-to-speed with the progress of their applications. We look forward to working with the Welsh Government and new customers in Wales.”