Diolch yn fawr, Llywydd. At Stage 2 in front of the Finance Committee, there was a discussion of an amendment tabled by Steffan Lewis that would have enabled local authorities to make representations about the higher rate of tax. I’m grateful for subsequent opportunities to discuss this matter with the Member, because I have no difficulty with the general principle that we need to engage with local authorities on the impact of higher rates on communities, and that that impact could include a discussion about rates and bands. But as Nick Ramsay has said already, local authorities are able to express their views on any aspect of this Bill at any time under existing local government legislation. A local authority does not need to be given the power in this Bill to make representations; they have that power now.

There are a number of practical difficulties with the amendment as well, as presented this afternoon, which means I cannot ask Government supporters to vote for it. Firstly, I’m advised that an amendment that states that the local authority may make representation about rates and bands might actually cast doubt on whether others can make such representations, or whether a local authority can make representations about other matters, such as the operation of the tax more generally.

Secondly, there are concerns that this amendment would, in effect, introduce a statutory process that must be followed before rates and bands are varied. This would be unprecedented in UK tax terms, and would undermine the principle that decisions about rates and bands must rest with the Government and the National Assembly.

Llywydd, with all that said, let me underline my support for the basic intention behind amendment 30. In order to ensure that local authorities are alert to the opportunity they already have to express views on the operation of the higher rates in their area, including discussion on rates and bands, I will write to local authorities following the May elections of this year to draw their attention to the commitment I have made today to engage with them on the operation of the higher rates in their communities. That engagement needs to be properly informed by evidence. When the tax goes live, the WRA will collect and hold the relevant data. I can confirm this afternoon that the WRA will analyse land transaction tax data in relation to the higher rate on a local authority basis. This analysis will be used to inform discussions with local authorities on the impact of the higher rates in their areas. More broadly, that evidence will also support a wider look at the impact of the higher rates on communities, once the land transaction tax is in operation. I intend to publish my tax work plan for the next 12 months in the late spring, alongside writing to local authorities, so that these actions can complement one another.

Llywydd, while I’m unable to support amendment 30, I hope I’ve said enough on the record this afternoon to demonstrate that this is a matter on which local authorities can make representations, that we will ensure that their ability to do so is drawn actively to their attention, and that work will be undertaken to ensure that any such representations receive an informed response from Government.