Brexit: New Welsh spending powers set to go to UK government

The legislation would give the UK government powers to spend cash on infrastructure in Wales

Plans for a new law giving the UK government more powers to spend in Wales have been published.

The Internal Market Bill would transfer powers from the EU to the UK government to spend on areas such as economic development, infrastructure and sport.

The Welsh Government accused its UK counterpart of "stealing powers" from devolved governments.

But UK ministers said the law would allow them to replace existing EU funding programmes.

From next year, powers which had been held by the EU will be transferred to the governments around the UK.

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The UK government says the draft law is aimed at ensuring trade within the United Kingdom can continue "unhindered" under these new arrangements.

Much attention has been focused on the fact that the legislation could override key elements of UK ministers' Brexit deal with Brussels, in breach of international law.

In addition, the legislation will give ministers in Whitehall powers to spend money to replace EU funding programmes on areas that would otherwise be devolved to the Welsh Government.

The new spending powers include infrastructure, economic development, culture, sport, and support for educational, training and exchange opportunities.

A senior UK government cabinet minister insisted the powers would "drive our economic recovery from Covid-19 and support businesses and communities right across the UK".

Michael Gove, Chancellor of the Duchy of Lancaster, said: "These new spending powers will mean that these decisions will now be made in the UK, focus on UK priorities and be accountable to the UK Parliament and people of the UK."

Michael Gove said the powers would "drive our economic recovery from Covid-19"

Welsh Secretary Simon Hart said it was "vital" that seamless trade continued between the four nations, and that "investment must continue to flow unhindered".

But the Welsh Government Minister for European Transition Jeremy Miles said the powers would "sacrifice the future of the union by stealing powers from devolved administrations."

First Minister Mark Drakeford said the bill "provides ammunition to those people who would favour the breakup of the United Kingdom".

"I'm in favour of a UK Common Market and I'm in favour of a UK-wide state aid regime, but the proposals in the white paper are absolutely not the right way to go about it," he told Sky News.

Plaid Cymru Westminster leader Liz Saville Roberts said: "This bill is the single biggest assault on devolution since its creation."

Speaking to the BBC later on Wednesday, Mr Hart said he found it "pretty strange" that Labour Welsh ministers and Plaid Cymru objected to UK government plans to spend money in Wales.

"Seems to me they're more anxious about protecting their little political clique in Cardiff than they are actually doing something about economies we tried to recover from Covid and move on from Brexit," he said.

Wales has been eligible for £375m a year from EU funds with the management shared between the EU and the Welsh Government.