Thank you for the opportunity to open this debate on the Welsh rates of income tax. As you know, Welsh rates of income tax were introduced in April 2019 and apply to income tax payers resident here in Wales. The Welsh rates for next year were set out in the draft budget announcement in December. In keeping with previous commitments, there will be no changes to Welsh income tax levels in 2021-22. This will mean that Welsh taxpayers will continue to pay the same income tax as their English and Northern Ireland counterparts. This will continue to provide stability for taxpayers as we seek to address the longer term impacts of the pandemic and the UK Government's Brexit deal.

Together with the block grant, Welsh taxes are essential to help fund Welsh public services upon which many in society depend. Protecting these services is now more important than ever, and there are significant challenges going forward. It is disappointing that the future planned freeze to the basic rate threshold of income tax, included in the UK Government's budget announcement last week, impacted more on those least able to afford to pay. This runs counter to our commitment to delivering progressive tax systems here in Wales.

My officials continue to work closely with HMRC, which is responsible for the administration of WRIT. I'm pleased to report that the WRIT project has been formally closed after successful implementation. The final cost of the implementation project was just under £8 million, which was lower than the original forecast. One of the final elements of the project was to amend the annual tax summary that's available to every taxpayer, via their HMRC personal account. For Welsh taxpayers, this now shows the amount of WRIT they have paid for the tax year. Alongside this, we have developed an online WRIT calculator, providing a breakdown of where individual contributions have been allocated across key public services. These two products raise awareness and understanding of WRIT and how it's spent, delivering public services here in Wales.

I was also pleased the National Audit Office's report on the administration of WRIT, published in January, confirmed that HMRC has adequate rules and procedures in place to ensure the proper assessment and collection of Welsh rates of income tax, as well as the appropriate governance measures. The Senedd is asked today to agree the Welsh rate resolution, which will set the Welsh rates of income tax for 2021-22, and I ask Members for their support this afternoon.