3. 3. Statement: The Tax Policy Framework

Part of the debate – in the Senedd at 3:00 pm on 13 June 2017.

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Photo of Mr Simon Thomas Mr Simon Thomas Plaid Cymru 3:00, 13 June 2017

(Translated)

As Chair of the Finance Committee, I’d just like to welcome the report from the Cabinet Secretary and just tell you about a few of the things that the Finance Committee are doing that go hand in hand, hopefully, with the Government’s intentions, and to give that scrutiny perspective to the work of Government.

May I say at the outset that I want to say just how readable this framework is, and not just the foreword—the rest of it, too, is free from some of the complex language that we hear from Government from time to time? And that’s an important point, because many people in Wales still aren’t fully aware of the devolution of taxes that is happening, and certainly aren’t aware of the devolution of income tax. A referendum, of course, would have created that awareness. I’m pleased that there isn’t going to be such a referendum, but I also think that there’s a job of work for us all to inform people about this issue, and I would like to hear, perhaps, a little more from the Government as to what they are doing to promote this framework and to disseminate the message on the devolution of taxation. We should also welcome the fact that we have, in this framework, a purpose and a clear objective for taxation in Wales; principles that have been clearly set out. One could disagree with them—I don’t do so, personally, but one could disagree with them—and at least you do know what the Government’s purposes are in taxation, and that’s very different to some other Governments, including the other Governments of these isles.

Now, the Finance Committee has already shown a commitment to scrutinise taxation policies and the further devolution that’s going to happen, and I think we’ve already seen the outcome of that work, with the two Bills that the Cabinet Secretary mentioned, and the work that the Finance Committee has done in scrutinising both of those Bills, for example leading to the commitment to provide a community scheme on the landfill Bill, has shown that there is work to be done jointly here between Government and the Assembly. And we, as a committee, also have a big interest in the establishment of the Welsh Revenue Authority, and as well as holding the pre-appointment hearing with the candidate for chair of the authority, we will continue the work of scrutinising the preparation for the establishment of the authority, particularly their digital activities, before they start or take on board their full functions next April.

I think it’s also important to remind Assembly Members that a change is to be proposed next week to our Standing Orders to ensure that we do have new Standing Orders and a protocol agreed with the Finance Committee and the Government in order to ensure that we in the Assembly have the necessary tools to scrutinise Government as they introduce these new taxes, and that very interesting suggestion that we heard today from the Cabinet Secretary of a debate on new taxes, and I think everyone will be interested in looking at that. Just in that context, if I may ask the Cabinet Secretary: as the Finance Committee, as he already knows, is already enquiring into the possibility of building upon our new Standing Orders to move towards a parliamentary framework that would run hand in hand with the Government’s fiscal framework, does he have any work in the pipeline to look at processes such as a finance Bill or other processes? Because, at present, we do want to see how the Parliament can be strengthened in that regard.

I welcome the fact that the framework talks of other taxes. It’s important to note that council tax and non-domestic rates are just as important to many people as the taxes that we’ve already seen devolved, and in that context, too, there is a very important paragraph in the framework—paragraph 49, I believe—which discusses how the Government will publish data and how it will gather data in moving forward. The Finance Committee is visiting Scotland this week, and on Thursday, we hope to have discussions with the Scottish Fiscal Commission. Now, I know that the Government isn’t going to establish such a commission, but the Cabinet Secretary mentioned the work that will be done by Bangor University, and I would also like to know how the Government is going to publish this information, and how it will ensure that we, as Assembly Members, but also members of the public, have the most recent data and the most up-to-date information in order to ensure that the decisions taken in the name of the Welsh Government, and in the name of the people of Wales therefore, are the right ones and are evidence based.

This statement is to be welcomed, and the framework is to be welcomed, and I look forward—and I’m sure that all members of the Finance Committee look forward—to scrutinising this information in more detail, but also to work with Government in order to ensure that we have the best possible systems in place, in a parliamentary sense, over these new taxation powers.