Wales’ Finance Minister Jane Hutt has welcomed the UK Government’s announcement that it aims to fully devolve non-domestic rates to Wales in April 2015, with devolution of stamp duty land tax and landfill tax following in April 2018.
The UK Government made the announcement in a Command Paper accompanying the Wales Bill, which was also published today.
Jane Hutt said:
“In recent months I have been leading constructive discussions with the UK Treasury on our new financial settlement. I am glad that that we have secured agreement to set ambitious target dates for tax devolution, starting with non-domestic rates, which will be fully devolved in Wales from April 2015. This move will bring Wales into line with Scotland and will ensure that we benefit from the growth in this tax base over time. It will also make it easier to set business rate policy in a way that meets the needs of Welsh citizens and firms.
“Full devolution of stamp duty and landfill tax will take longer, since these require passage of the Wales Bill by the UK Parliament. The Assembly will also have to legislate to introduce replacement Welsh taxes, which will come into effect when the UK taxes are ‘turned off’ in Wales. An April 2018 date for introducing the new Welsh taxes is ambitious but achievable. I will continue to develop my plans to ensure that those taxes are simpler and fairer, while supporting jobs and growth.”
The Wales Bill and Command Paper deliver several improvements to the draft Bill that was published before Christmas, including:
- New powers for the Assembly to set its own budgetary procedures, as recommended by the Silk Commission;
- A commitment to review the borrowing ceiling for capital investment – currently set at £500 million – at each UK Spending Review, and to take the impact of inflation into account when revising the ceiling;
- A signal that the UK Government will consider devolving powers to borrow through issuing bonds, as has recently been granted to Scotland; and
- Creation of a Joint Exchequer Committee, which will be a new forum for Welsh and UK Ministers to discuss tax matters.
Jane Hutt added:
“I am pleased that the UK Government is continuing to make good progress in legislating to deliver new financial powers and responsibilities to Wales. We have secured important improvements to the draft Bill by working collaboratively with the UK Government. I look forward to working with the Chief Secretary to the Treasury, Danny Alexander over the coming months to establish a better funding settlement for Wales within a strong UK.”
