I'm pleased to open this debate on the Welsh rates of income tax. Welsh rates of income tax were introduced in April last year and applied to income tax payers resident in Wales. The Welsh rates for next year were announced in the draft budget. In keeping with previous commitments, there will be no changes to Welsh income tax levels in 2020-21. This will mean that Welsh taxpayers will continue to pay the same income tax as their England and Northern Irish counterparts. This will continue to provide stability for taxpayers during a time of economic uncertainty and ongoing austerity.

Together with the block grant, Welsh taxes are essential to help fund the vital public services that many in society depend on. Over the coming months and years, and as the reality of the Brexit process becomes clear, protecting these services may become more challenging. This year, the unusual lateness of the UK budget means that the UK Government's tax plans for 2020-21 and beyond are currently unknown, which is unhelpful in the context of our plans for taxation in Wales. We will monitor the UK budget for any potential impacts for Wales.

Her Majesty's Revenue and Customs continues to administer income tax in Wales, and the UK Government continues to retain full responsibility for taxation of income from savings and dividends. My officials continue to work with HMRC on the detailed arrangements for the administration of Welsh rates of income tax, and are currently in the process of transitioning to a 'business as usual' governance model, following a successful implementation period. The correct C code is now being applied to approximately 97 per cent of taxpayers, and my officials are working with HMRC to increase that proportion further.

I am pleased to inform the Chamber that, as part of a wider low-cost engagement campaign on social media, and a letter from HMRC that included a leaflet from Welsh Government to all taxpayers living in Wales, the awareness of WRIT has increased across all age groups, socio-economic groups and regions in Wales, with a 14 percentage point increase between June 2018 and June 2019. 

The Welsh Government is committed to continuing to monitor awareness and increase our efforts to engage with the wider public on our taxation system in Wales. I'm also pleased to highlight the Finance Committee's ongoing inquiry, looking at the potential impacts of different income tax rates across the Wales-England border, and I'll be attending a scrutiny session with the committee in March. I look forward to hearing the committee's views on this issue.

The Assembly is asked today to agree the Welsh rate resolution, which will set the Welsh rates of income tax for 2020-21, and I ask Members for their support this afternoon.