Let’s hope Mr Johnson’s priorities include Wales
THE visit of new UK Prime Minister Boris Johnson was always likely to evoke colourful and forthright language, from supporters, opponents and neutral observers.
It certainly rang true earlier this month, with a Welsh farmer accusing Mr Johnson of playing “Russian roulette”. Warnings of “civil unrest” also came from the Farmers’ Union of Wales, if the UK was to exit the European Union without a deal on October 31.
First Minister Mark Drakeford issued his own stark message – that a no-deal exit would be catastrophic for the Welsh economy.
Mr Johnson countered by insisting striking a deal with the EU was the primary aim and pledged to support the country – particularly the food and farming sector.
With an estimated worth of £6.1bn to the Welsh economy, the sector’s 14,000 businesses will be looking on intently hoping the prime minister is as good as his word.
Wales as a whole will remain watchful over where Mr Johnson’s priorities lie.
We similarly need to ensure that all parts of the country benefit from new funding mechanisms.
Prime Minister Johnson has also revealed his wish for every household in the UK to have access to a full fibre broadband connection by 2025 – the plan before his premiership was for a full fibre roll out by 2033.
This is quite remarkable given that only last month Ysgol Llanychllwydog, a school in Fishguard, finally received access to a broadband connection.
Whenever the previous connection failed, the school’s headteacher was required to drive 10 minutes to the next school to send an email to report it.
Perhaps this demonstrates both the challenges Mr Johnson faces with his pledge, and also just how isolated parts of Wales are.
How can the areas in need be brought up to speed, in terms of broadband, infrastructure and business support?
Much has been made of funding being agreed for Cardiff’s long awaited bus interchange. It will receive a further £15m of Welsh Government funding, an addition to the £15m paid for the underlying land.
It is the final element of the capital’s £400m regeneration scheme, set to be the largest privately funded development project seen in Wales, and the eye watering numbers at play underline the project’s significance. Cardiff plays the lead role in Wales’ commercial activities, but a thriving country needs a strong supporting cast.
Looking at the Valleys – more specifically its empty homes – the Government has promised £10m to the Taskforce area, which will be extended to both Gwendraeth and Amman Valleys.
Town centres are in line for a £7m boost to help key rural economies across Carmarthenshire, Pembrokeshire, Swansea and Neath Port Talbot. Undoubtedly, this represents a welcome step – but it pales in comparison to Cardiff’s investment.
The challenge, however, is how existing EU funding will be replaced post-Brexit, if it is to be replaced at all.
Wales has been a recipient of EU structural funds for three decades, and the nation is fairly unique in this sense as it’s the only part of the UK to receive such funding, with the exception of Cornwall.
The Welsh Government has previously disclosed that EU funding into Wales is worth £680m each year.
The stakes are clearly high and an abrupt stop to such funding come Brexit would have serious consequences for the Welsh economy.
Currently almost the whole of Wales, along with other parts of the UK, are classed as “transition” regions for investment from EU money.
Post-Brexit, this fund is set to be returned to the Shared Prosperity Fund in Westminster. As such, it is vital that an agreement on a postBrexit funding deal is sought now rather than later.
At the time of writing, the Government’s one-year “fast-tracked” Spending Review has just been announced, with Chancellor Sajid Javid advising journalists that a shorter spending round would provide “financial certainty” for departments.
The date has not as yet been set, but it is anticipated to be September.
Risk and reward – this is the paradox many are choosing to base Brexit commentary on.
Putting politics to one side, the next couple of months are crucial for Westminster, the Senedd, Holyrood and Stormont to work collaboratively to secure certainty and a clear plan to protect business.
A gamble? It may well be. But working together could just put the odds back in favour of the whole of the UK.
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