Llywydd, I now turn to the major building blocks of this budget, beginning with the fiscal decisions that are now made in Wales. I said last year that I intended to raise landfill disposals tax in line with inflation. As a result, the rates for 2019-20 will stand at £91.35 per tonne for the standard rate, £2.90 for the lower rate, while the unauthorised rate rises to £137.

In last year’s budget, I set the rates and bands for land transaction tax, making it the most progressive tax for people buying and selling property anywhere in the United Kingdom. I said then that I had heard and understood the calls for stability from the sector. With that in mind, and because of the deep uncertainty surrounding Brexit, I have decided to leave rates and band unchanged for 2019-20. As was the case last year, however, should the Chancellor of the Exchequer make changes to stamp duty land tax in the UK autumn budget, I will review the position here in Wales. 

Llywydd, this is the first ever budget in which a Welsh finance Minister has responsibility for setting the Welsh rates of income tax. Under the terms of the fiscal framework, 2019‑20 will be a transition year in which Her Majesty's Revenue and Customs undertakes important new administrative responsibilities for Wales. My party made a commitment in our 2016 manifesto not to raise income tax rates in Wales during this Assembly term. We did so, Llywydd, because we are acutely aware of the impact that austerity has had on so many Welsh families. I confirm today that the Welsh Government will not increase income tax rates in Wales in 2019-20, fulfilling that commitment and contributing to an orderly implementation of the new responsibilities that are now discharged here in Wales.

The careful management of our tax powers requires accurate forecasting. I thank the Bangor Business School for its important work in independently scrutinising and assuring the forecasts produced by the Welsh Government. In 2019-20, Welsh rates of income tax are forecast to contribute over £2 billion to the Welsh budget. Landfill disposals tax is expected to raise £40 million and land transaction tax £285 million. The significant rise in forecast revenues from landfill disposals tax is best attributed to the accurate collection now possible as a result of having our own Welsh Revenue Authority. In its first six months, the WRA has collected more than £100 million to support Welsh public services and has made, I believe, an outstandingly successful start as an important institution here in a devolved Wales.

Following close consultation with the Finance Committee, I announced in July the longer term forecasting arrangements to which we are committed by the terms of the fiscal framework. Starting next year, with the 2020-21 budget, the Office for Budget Responsibility will produce independent forecasts of revenues from the devolved taxes for the Welsh Government's budget process, and these forecasts will of course be shared with Assembly Members. 

Llywydd, I turn now to another important devolved revenue stream: non-domestic rates. We consulted over the summer on proposals to reduce the amount of non-domestic rates revenue lost every year through avoidance. It cannot be right that the efforts of the considerable majority, who abide by the rules and make their contribution, are undercut by a minority intent on exploiting or abusing the system. On 16 October, I will announce the outcome of the consultation and the actions we will take to reduce rates avoidance in Wales in time to be in place for next year's budget.

Llywydd, I also to intend to consult over the next 12 monthson proposals to remove charitable rate relief from independent schools and private hospitals in Wales, placing them on an equal footing with their public sector counterparts in respect of the payment of those rates. State schools and hospitals pay non-domestic rates on properties they occupy, as do a wide range of other public sector organisations. That makes an important contribution to the cost of vital local services delivered in our communities. Others should do the same.