On December 3, 2025, a political tremor shook the United Kingdom’s devolution settlement as eleven Welsh Labour Members of the Senedd (MSs) broke ranks to deliver a sharply worded letter to Prime Minister Sir Keir Starmer. Their message? Wales, they argued, is being sidelined by a UK Government that is not only stalling on further devolution but actively rolling back powers previously transferred to Cardiff Bay. The controversy centers on the UK Government’s use of the Internal Market Act 2020 to fund local projects in Wales, bypassing the Welsh Government and raising profound questions about the future of devolution in the UK.
The letter, signed by more than a third of Labour’s Senedd group—including former cabinet members and senior figures—accused the UK Labour Government of acting in a manner “at best deeply insensitive, at worst a constitutional outrage.” According to BBC, the letter was not signed by any sitting Welsh Government ministers but included prominent names such as Mick Antoniw, Hannah Blythyn, Alun Davies, John Griffiths, Lesley Griffiths, Julie Morgan, Jenny Rathbone, Rhianon Passmore, Carolyn Thomas, Mike Hedges, and Lee Waters. The signatories represent a significant cross-section of Welsh Labour’s political weight.
At the heart of the dispute is the ‘Pride in Place’ programme, a UK Government initiative designed to provide direct funding to Welsh local councils for projects like fixing bus shelters, reopening park toilets, and providing bins. While on the surface these may seem like routine community upgrades, the method of delivery has ignited fierce debate. As reported by Nation.Cymru, the programme operates in areas that are “wholly devolved”—meaning that, under the current settlement, these responsibilities should fall squarely under the remit of the Welsh Government, not Westminster.
The letter lambasted the UK Government’s use of the Internal Market Act (UKIMA) to “impose” the Pride in Place scheme without the consent of the Senedd or Welsh Ministers. “Regeneration is a devolved matter. Yet UKIMA is being used to give the UK Government authority to provide financial assistance without requiring consent from the Senedd or Welsh Ministers,” the letter stated. The signatories recalled how the Welsh Government had previously brought a Judicial Review against the Conservative government over the same legislation, which they viewed as “an unwarranted attack on devolution.”
“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,” the MSs wrote. Their frustration was palpable as they continued, “If this was being done by a Tory Government, we would be calling for a judicial review. This must never happen again.”
Beyond the immediate controversy over the Pride in Place programme, the letter aired broader grievances about the failure to advance long-promised reforms. In opposition, Labour had raised expectations of reforming the outdated Barnett Formula—a mechanism for allocating funds to devolved administrations—and of devolving further powers over rail infrastructure, policing, justice, and the Crown Estate to Wales. “Not only is the Government not progressing these but it is rolling back the existing devolution settlement,” the letter charged, as reported by The National.
The design of Pride in Place, the letter argued, “has cut out the democratically elected Welsh Government in a policy area that is fully within its remit.” Welsh local authorities are now required to seek Whitehall approval for spending, a move described as “ineffective and wasteful, and no way to spend public money.” The MSs warned, “Wales needs and deserves to be treated as an equal part of the UK and the UK Government has a responsibility to act to deliver this equality. The signs are clear that the public understands this, we must demonstrate that we do too.”
First Minister Eluned Morgan, while not a signatory, raised these concerns directly with Prime Minister Starmer at a meeting at Chequers the previous week, according to BBC. A Welsh Government spokesperson confirmed, “As a government we’ve been clear about our position on the use of these powers. The first minister raised this directly with the prime minister on Friday.”
The fallout from the letter was swift and cut across party lines. Plaid Cymru MS Mabon ap Gwynfor called the move “extraordinary,” suggesting that Labour in Wales was “falling apart just months before a crucial election.” Gwynfor accused the party of being “in complete disarray, with no influence whatsoever over their London colleagues.” Plaid Cymru, he argued, was “focused entirely on Wales—on protecting public services, fighting for fairness, and providing the new leadership the people of Wales deserve.”
The Welsh Liberal Democrats, too, weighed in. Leader Jane Dodds said, “You cannot claim to respect Wales while designing Welsh programmes from Whitehall. It shows a deep lack of understanding and a worrying disregard for the Senedd.” According to Nation.Cymru, Dodds saw the letter as proof that the UK Government’s approach was out of step with the spirit of devolution.
Political opponents outside Wales also seized on the moment. SNP MPs Chris Law and Keith Brown used the letter to bolster their case for Scottish independence, arguing that Labour’s record on devolution was poor and that the only way to protect the powers of Scotland’s Parliament was through independence. “Before the election, Labour promised more powers for Scotland and Wales, but whether it’s on the internal market act or Pride in Place funding, their abysmal record shows the opposite,” Brown said, as cited by The National.
Conservatives, meanwhile, painted the episode as evidence of Labour’s internal chaos. A party spokesperson told Nation.Cymru, “Labour are in chaos. Just a week after their Budget for Benefits Street designed to appease Labour members across the country, Welsh Senedd Members have broken ranks to criticise Starmer. Only the Conservatives have the team, plan and leader with a backbone to deliver for every corner of the United Kingdom.”
From the UK Government’s perspective, the Pride in Place programme is a positive investment. A spokesperson responded on December 3, 2025, “We’re working hand in hand with the Welsh Government to deliver real change for communities across Wales in partnership. Providing well-targeted funding will help achieve this—with Pride in Place putting local people in the driving seat to decide their priorities, whether that’s their high street, local businesses, or community spaces. And it provides extra investment on top of the record funding we’ve already given to Wales, as we make sure communities get the support they deserve.”
Yet, within Welsh Labour itself, the letter has exposed deep divisions. While one MS told BBC that “we can’t say nothing as our own government walks all over it,” another insisted the letter was “just stirring and posturing for self gain.” A Labour MP went further, expressing anger at colleagues for “opposing vital investment into Welsh communities,” suggesting that debates over constitutional theory are “hugely out of step with the priorities of our constituents.”
As the Senedd election looms in 2026, the debate over devolution, the Internal Market Act, and the future of Welsh self-government has rarely felt more urgent. The letter from the eleven MSs has thrown a spotlight on the tensions simmering beneath the surface—not just between Cardiff and Westminster, but within Wales’s own governing party. Whether this moment marks a turning point in the devolution debate remains to be seen, but one thing is clear: the question of who wields power in Wales is far from settled.
