The Long-term Strategy for Taxation Levels

1. Questions to the Cabinet Secretary for Finance – in the Senedd on 5 December 2018.

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Photo of Mark Reckless Mark Reckless Conservative

(Translated)

3. Will the Cabinet Secretary make a statement on the Welsh Government's long-term strategy for taxation levels in Wales? OAQ53044

Photo of Mark Drakeford Mark Drakeford Labour 2:00, 5 December 2018

Llywydd, the Welsh Government's long-term strategy was set out in the tax policy framework published in 2017, and is reflected in the report on our tax work programme, published alongside the draft budget on 2 October.

Photo of Mark Reckless Mark Reckless Conservative

If the Cabinet Secretary is in charge, can we expect tax rates in Wales to be higher or lower in five years' time?

Photo of Mark Drakeford Mark Drakeford Labour

Llywydd, taxation rates must be judged in the prevailing economic circumstances of the time, and that is what I would expect anybody charged with responsibilities for the Welsh finances to do. 

Photo of Mike Hedges Mike Hedges Labour

Does the Cabinet Secretary agree with me about the importance of taxation to support public services in Wales? If I could remind the Cabinet Secretary, in the last three weeks, the Conservatives have asked for more money for local government, more money for further education, more money for health. How are they going to fund it if they don't want taxation?

Photo of Mark Drakeford Mark Drakeford Labour

Well, of course, Mike Hedges is absolutely right. Taxation is the admission charge we pay to a civilised society. It is through pooling the money that comes through taxation that we are all able to afford the things that around this Chamber we regard as important in the lives of people in Wales. Now, if you chose to lower taxes in Wales by 1p, the gross cost would be around £200 million. Which of our public services would have to be cut, Llywydd, to enable that to happen? You can't do the sort of voodoo economic trick that we are often offered by Members on the benches opposite, in which you cut taxes, have less money, and still are somehow able to spend more on everything that they tell us they would favour.