“Constitutional outrage”: Lee Waters and Mike Hedges join Senedd Labour revolt over UK Government funding bypass

Local MSs slam Whitehall for cutting out Welsh Government in regeneration decisions — warning devolution is being rolled back.

Kit Peters
4 Min Read
Composite image of Prime Minister Keir Starmer, Swansea East MS Mike Hedges, and Llanelli MS Lee Waters — all central figures in the ongoing row over UK Government funding decisions in Wales. Photos: Keir Starmer – Number 10 Downing Street; Mike Hedges – Welsh Labour; Lee Waters – Lee Waters

Two prominent South West Wales politicians — Llanelli MS Lee Waters and Swansea East MS Mike Hedges — have joined a growing rebellion inside Welsh Labour over UK Government funding decisions that bypass the Senedd.

In a strongly worded letter to Prime Minister Sir Keir Starmer, signed by over a third of Labour Members of the Senedd, the group accuses Westminster of using Tory-era powers to override devolved responsibilities — calling it “deeply insensitive” and “a constitutional outrage.”

“Why is Whitehall deciding where to fix bus shelters in Wales?”

At the heart of the row is the Pride in Place programme, a UK Government initiative that funds local regeneration projects — including bins, toilets and bus shelters — directly through councils, without going through the Welsh Government.

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The letter slams the use of the UK Internal Market Act 2020, originally passed by the Conservatives, to impose funding decisions in areas like regeneration that are fully devolved.

“Why is the UK Government directly funding Welsh Councils to fix bus shelters, reopen park toilets, and provide bins?” the letter asks.

“For our own Government to then come in and use the very same powers to act in devolved areas is at best deeply insensitive, at worst a constitutional outrage.”

Local voices speak out

Lee Waters, a former Welsh Government cabinet member, and Mike Hedges, one of the longest-serving MSs in the Senedd, are among 11 signatories demanding that Wales be treated as an equal part of the UK.

The group warns that the current approach undermines the Welsh Government’s authority and risks wasting public money by duplicating existing programmes.

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“If this was being done by a Tory Government, we would be calling for a judicial review,” they write.

Pressure mounts on Starmer to act

The letter calls on the Prime Minister to recommit to devolving powers over rail infrastructure, policing, justice and the Crown Estate — pledges made in opposition but not yet delivered in government.

That last demand is particularly sensitive. Welsh Labour has long backed the devolution of the Crown Estate, arguing that profits from Welsh land and seabed should benefit Wales directly. But earlier this year, UK Labour ministers rejected a Commons amendment that would have transferred control, sparking anger among Senedd members and comparisons with Scotland, where the Crown Estate is already devolved.

With Llanelli MS Lee Waters and Swansea East veteran Mike Hedges among the signatories, the row has brought the issue home to South West Wales. Both have warned that bypassing the Welsh Government on regeneration projects undermines devolution and risks wasting public money.

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The pressure is now firmly on Downing Street to respond — and to show whether Labour in power will deliver the reforms it promised in opposition, or face growing unrest from its own ranks in Wales.

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1 Comment
  • The facts are starting to hit home. That Westminster’s Parties 🥳 want to keep control of Waes and it’s assets. Play games with the Senedd, including their own party that is in charge of the Senedd. Making a point that Westminster is the boss. Let’s ask the question here, what Westminster political party would or has ever put Wales first. Question 2. What Nation is ranked the most deprived and why.

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