Part of 2. Questions to the Minister for Finance and Trefnydd – in the Senedd at 2:54 pm on 26 June 2019.
Thank you for raising the issue of, as it's called, the '£1 billion black hole' in Scotland as a result of their moving to the Scottish rates of income tax. Obviously, it takes a number of years for that reconciliation in tax to be undertaken. So, it's only now that they're understanding really the impact. I think part of the reason why I can take some heart from the way in which we're doing things differently in Wales is because we do have the OBR scrutinising our figures and advising us there, whereas in Scotland it was the Scottish Fiscal Commission. So, we have the same organisation as the UK Government has scrutinising their figures. So, I think that they use, obviously, the same methodology and are able to consider the same impacts. So, I think that that does give us some protection rather than using two different organisations with two different methodologies to understand and analyse the data.
As I said, I met with the Office for Budget Responsibility. It's something, obviously, we will take a very close interest in. We're less exposed, again, than Scotland because we only have the 10p rate of income tax devolved to us, whereas the situation in Scotland is quite different because they have different powers devolved to them in respect of income tax. But, obviously, reconciliation and the importance of accurate and good data is something that we're, obviously, as you would imagine, holding as a high priority because we don't want to be in a situation in years to come where we find that we are having to pay back money that we had factored into our budgets over a number of years.