Part of the debate – in the Senedd at 4:45 pm on 23 January 2019.
These are historic days for us as a nation. They are historic times for us as a democratic body. There are uniquely Welsh taxes being levied for the very first time in modern times, and it’s an important step for us in terms of the maturity of this Assembly, the maturity of the Welsh Government and the need for a culture change—the need to think differently about the work of Government.
The Government is being forced to think more creatively and, in that regard, of course, we don’t have to change taxation rates in order for taxation powers to be valuable. As we heard from the Conservative spokesperson: increasing the tax base is what’s important. That’s the challenge now: to ensure that economic opportunities are created that create a greater tax base that can then, of course, be spent on Welsh services, and that is why we agree with clause 1 of today’s motion, recognising
‘the vital importance of attracting people, businesses and investment to Wales as a means of growing taxing revenue in Wales.’
But, indeed, we wish to add to that, because there is far more than that entailed in this. What our amendment says is that we need to emphasise
'the priority of ensuring economic growth and increases in revenue through supporting indigenous businesses.'
That is crucially important, of course, and I do hope to have support for that amendment.
Although we don’t necessarily need to change tax rates, we must be willing to think creatively about how we use powers to vary tax rates, and that’s why we can’t agree to support clause 2 of the motion, not because we as a party at the moment wish to increase income tax—we haven’t come to decisions on that as of yet—but because we think that insisting that the Government doesn’t use those powers sets quite an unfortunate precedent at the beginning of this period, as we adopt taxation powers for the very first time.
We must be ready to think creatively. We were established as a body that was a spending body, but becoming a body that also levies taxes is part of the maturing process that is part of the national journey that we’re on as a nation. We didn’t legislate at the outset. We are now a legislature, and I hope that that has enabled us to develop, over time, a Welsh approach to legislation. We historically did have a uniquely Welsh way of legislating—I’m thinking of the laws of Hywel Dda, which were strikingly different to the legislation that has become characteristic of the modern United Kingdom—and there is nothing that should preclude us from developing taxation models that are different and uniquely Welsh. That is why I wouldn’t want to see limitations placed on the power of any Government to make decisions that could be of benefit to the people of Wales. What we say in our second amendment, which deletes point 2, is that we want to promote
‘a mature civic discussion regarding how best to use new devolved taxation powers for the economic and social benefit of Wales.’
And what we mean by that is that we are on a journey towards creating a uniquely Welsh taxation model, and I would also invite the Conservatives to do that.