Davies was one of 11 backbench Labour Members of the Senedd (MSs) who signed the letter attacking the way that funding for the town centres plan, Pride in Place, external, is going directly from the UK government to local councils including those in Wales.

It uses a law that gives the UK government powers to spend money in areas that are usually controlled by the Welsh government.

Another signatory to the letter, Jenny Rathbone, said the policy was “pitting one deprived area from another” and that the money had been “top-sliced” from funding to the Welsh government.

“So, that is why this is so devastating and it is absolutely about the everyday affairs of the people I represent,” she said.

The UK government previously said Pride in Place will let local people decide priorities for their areas, and that the funding was “on top of the record funding we’ve already given to Wales”.

But Plaid leader Rhun ap Iorwerth said the UK government was “bypassing devolution altogether”.

Conservative MS James Evans meanwhile said arguments about the devolution settlement “are not only tiring, they are actively distracting us from the serious challenges that the people of Wales face”.

Responding to the debate, Deputy First Minister Huw Irranca-Davies repeated Welsh government calls to devolve powers over the Crown Estate and the justice system.

“The strength of our record as a Welsh Labour government and as a Welsh Labour party is that we stand up for devolution and we deliver for the people of Wales,” he said.