5. Statement by the Cabinet Secretary for Finance: Vacant Land Tax

Part of the debate – in the Senedd at 5:18 pm on 15 May 2018.

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Photo of Mr Simon Thomas Mr Simon Thomas Plaid Cymru 5:18, 15 May 2018

(Translated)

Thank you very much, Deputy Llywydd. I welcome today’s statement from the Cabinet Secretary. Of course, Plaid Cymru welcomes the fact that we are using these new powers, and that there is a process in place to reach agreement with the Westminster Government as to how these powers should be transferred to Wales. It is important, as the Cabinet Secretary has said, that we look at the evidence, and we certainly wouldn’t oppose such a tax in principle, but we would want to see that this is going to work in a Welsh context and would tackle that fundamental question as to whether this is what is holding development for housing or regeneration back in Wales, or whether there are other factors at play here.

In that context, you say in your statement that you want to establish a specific group as part of the advisory group that you have to look at this area. May I just ask you to tell us a little more about how you hope that group will work? Will it be a group that will be outward facing? Will it be gathering evidence? Will it be available to attend Finance Committee, for example, to share its findings? Or, is it an entirely—I won’t say 'secretive', but is it going to be behind the scenes within Government? What sort of group is this? I ask so that people can feel confident that the work is being done in the broadest means possible.

You also say in your statement, and I agree entirely—and it’s what I’ve just mentioned, if truth be told—that there are a number of factors that impact on the fact that land is left undeveloped in Wales, despite having planning consent. You have another proposal in terms of sites that are stalled, as you describe them, and in the budget of this year you mentioned using financial transactions capital for that purpose. I’m not sure whether you can give us an update as to whether that is working, but specifically, how do you believe that that would go hand in hand with any proposed vacant land tax? Because clearly if the availability of funding isn’t shifting some of these sites, is the tax going to mean that this land is going to be shifted? There seems to be something else that is holding these developments back, and in that context, of course, planning and consent for wayleaves and so on, there are a number of factors that can impact upon land and the development of land. So, if you could just give us some idea of how you are going to consider this bigger picture. I accept that you say in your statement that you will do that, but what specific steps will you take in order to ensure that the tax will meet any specific needs and demands?

May I also ask, on the final point—a point that has been raised relatively recently relating to land in Wales? The Labour Party at a UK level has talked about the right to purchase land for affordable housing—it’s a sovereign land trust, as it’s been described, I believe. Your Cabinet Secretary for rural affairs, who is responsible for planning, has mentioned that this is a possibility in Wales or is at least something that could be considered. Again, this is another development that will have to fit in to any tax development of this kind, because we are talking about a number of different ways of skinning a cat here, as it were. So, how does this concept fit into these proposals? And will you, when you transfer—? Let’s say that you do decide, to proceed with this tax, will we as an Assembly be able to consider the tax, not as a stand-alone issue, but in the context of these packages of policies that I’ve mentioned, and there may be others, so that we have a more comprehensive idea of the broader policy of Government towards land, the development of land and planning?