12. Debate: Welsh Rates of Income Tax 2021-22

Part of the debate – in the Senedd at 4:26 pm on 9 March 2021.

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Photo of Rebecca Evans Rebecca Evans Labour 4:26, 9 March 2021

Thank you very much to Mark Reckless for his comments in the debate. I have an update for him that might change his mind in terms of the value of Welsh rates of income tax, because based on current forecasts, the net impact of WRIT is an increase of £30 million in 2021-22, and that, of course, is in contrast to the minus £35 million forecast in the Welsh taxes outlook in December. And that's partly to do with the result of recent data showing relatively higher earnings performance for income tax payers here in Wales. So, potentially that could change Mark Reckless's view of Welsh rates of income tax, although I suspect it won't be quite enough to do that. But I'm glad that he recognised the importance of taxpayer communication, because we are working closely with HMRC to ensure that people here in Wales are increasingly aware of Welsh rates of income tax. And our surveys, which we've commissioned by Beaufort Research, do show that there is an increase in terms of people's awareness. And as I've mentioned in the Finance Committee and in my opening remarks, we have introduced some new items this year, including that WRIT calculator that individuals can use online to see exactly where their Welsh rates of income tax are going in terms of supporting public services here in Wales. So, I think that's another step forward in terms of education, awareness, and also, importantly, transparency here in Wales. I'm grateful to Mark Reckless for his contribution, but would ask all colleagues to support our Welsh rates of income tax today. Thank you.