Devolution of Taxes

Part of 1. Questions to the First Minister – in the Senedd at 1:36 pm on 28 January 2020.

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Photo of Mark Drakeford Mark Drakeford Labour 1:36, 28 January 2020

I thank Mike for both of those examples, both of which were considered by the Silk Commission. As Mike Hedges knows, and has alluded to, Llywydd, aggregates levy was subject to extensive litigation at European and domestic levels. That was all resolved in February of last year, and the UK Government announced a review of aggregates levy, and that was due to be published in the autumn. It wasn't published because of the general election; we now expect that that review will be published alongside the budget on 11 March. There is a strong synergy between the environmental responsibilities that are discharged here in Wales and aggregates levy, which is, after all, an environmental tax, and putting the two sets of responsibilities together would make very good sense. There are some complexities, which we expect the review to address. It's a declining tax, and the Welsh share of UK aggregates may also be declining. There are significant data issues with it, and, of course, it will bring no more money to Wales, because any money that we got through aggregates levy would just be subject to a reduction in the block grant. Nevertheless, the case for it is a strong one, and we look forward to the publication of the review.

As far as air passenger duty is concerned, the UK Government has announced a review there as well, as part of its Flybe activities, and that too is due to be published alongside the March budget. None of that requires further justification for devolution of APD to Wales. The case was thoroughly made in Silk, and it was thoroughly made in the Welsh Affairs Select Committee report, under the chairing of David T.C. Davies, now the Deputy Minister in the Wales Office. We look forward to the UK Government giving to Wales what has already been devolved to Scotland and Northern Ireland; there simply is no excuse for that tax not coming to Wales, as the Silk commission recommended.