Item 7 on the agenda this afternoon is the Landfill Disposals Tax (Tax Rates) (Wales) (Amendment) Regulations 2020. And I call on the Minister for Finance and Trefnydd to move the motion. Rebecca Evans.

Motion NDM7240 Rebecca Evans

To propose that the National Assembly for Wales; in accordance with Standing Order 27.5:

1. Approves that the draft The Landfill Disposals Tax (Tax Rates) (Wales) (Amendment) Regulations 2020 is made in accordance with the draft laid in the Table Office on 7 January 2020.

Motion moved.

The Welsh Revenue Authority has successfully been collecting and managing landfill disposal tax for the last two years. It has worked closely with landfill site operators to support them in the administration of the tax, and has established a strong working relationship with Natural Resources Wales. So far, in the first two quarters of this financial year, tax assessed is £21 million and accounts for just over 530,000 tonnes of waste.

I will now talk to the Landfill Disposals Tax (Tax Rates) (Wales) (Amendment) Regulations 2020, which relate to setting the 2021 tax rates for landfill disposals tax. These regulations set the standard, lower and unauthorised disposal rates for landfill disposals tax, which, subject to the outcome of today’s debate, will apply to taxable disposals made on or after 1 April.

In developing these regulations, consideration has been given to how the rates being set support the objective of reducing waste sent to landfill. A reduction in LDT rates may encourage greater landfill disposals in Wales, which is not consistent with the Welsh Government’s aim to reduce landfill disposals. Increasing rates might incentivise unauthorised disposals of waste. These regulations maintain an appropriate cost to the disposal of waste to landfill sites to incentivise more environmentally sensitive activities, such as the reduction and recycling of waste.

In accordance with the announcement of the draft budget in December, the standard and lower rates for landfill disposals tax will increase in line with the consumer price index. This approach also ensures that the rate remains consistent with the UK tax for the next financial year, providing the stability that businesses have so clearly told us they need.

By setting the same tax rate as the UK Government, public services in Wales will continue to benefit from tax revenue, while ensuring that the risk of movement of waste across the border is reduced. The standard rate will be increased to £94.15 per tonne and the lower rate will be £3 per tonne. The unauthorised rate will be set at 150 per cent of the standard rate, which seeks to encourage illegal operators to take their waste to an authorised landfill site and to sort their waste for onward recovery, reuse and recycling in order to reduce the amount of waste landfilled. The unauthorised rate will be £141.20. So, I ask the Members for their support for these regulations this afternoon.

Thank you. Can I call on Dai Lloyd to speak on behalf of the Constitutional and Legislative Affairs Committee? Dai.

Thank you very much, Deputy Presiding Officer. Yes, these are the Landfill Disposals Tax (Tax Rates) (Wales) (Amendment) Regulations 2020 before us. We laid our report in respect of these regulations before the Assembly—indeed, the Senedd—on 21 January. Our report raised one small but important merits point under Standing Order 21.3(i). 

The regulations will amend the standard rate, the lower rate and the unauthorised disposals rate for landfill disposals tax that will apply to taxable disposals made on or after 1 April 2020 in Wales. I hope that you're all following me. [Laughter.]

In accordance with section 25 of the Tax Collection and Management (Wales) Act 2016, the Welsh Revenue Authority must pay the collected taxes into the Welsh consolidated fund. As a provisional or made-affirmative instrument, the regulations were signed into law on 6 January 2020, but must be approved by the Assembly in order for the regulations to continue to have effect. Thank you very much.

Thank you. Minister to reply.

I will just take the opportunity to thank the Chair and the Constitutional and Legislative Affairs Committee for their work in scrutinising this piece of legislation.

The proposal is to agree the motion. Does any Member object? No. Therefore, the motion is agreed in accordance with Standing Order 12.36.

Motion agreed in accordance with Standing Order 12.36.