10. What legal advice has the Counsel General given to the Welsh Government on the devolution of more taxation powers? OQ57617

I thank the Member for the question. Four years since beginning the process to devolve new powers for a vacant land tax, we have still not been able to secure these powers. It is quite clear now that the process is not fit for purpose.

Thank you for that answer. On a recent visit to Wales, Counsel General, the Prime Minister said that

'devolved governments had to take more responsibility on raising their own finance.'

Could you therefore tell us which new taxation powers the UK Government has offered the Welsh Government? And, if none have been offered, what do you, Counsel General, think that the Prime Minister meant when he said that the Welsh Government should take more responsibility for raising its own finance?

Well, I think that the best answer to that question is that I think that I will have to ask the Minister when I meet with him because, at the moment, as far as I'm aware, the discussions on the issue, for example, of a vacant land tax—. We want such a tax because of the potential of such a tax to deliver our housing and regeneration ambitions.

The crux seems to be that, what should be happening is that the engagement with the UK Government in respect of the devolution of tax powers in certain areas should be a matter of which taxes are appropriate for devolved Government. Well, that has already been established. Where the UK Government now seems to be heading is that it wants to know how we intend to use them. Well, quite frankly, if the power is appropriate to be devolved, it is for this place to determine the best way of using that particular power. Consequently, the discussions go around in circles and the powers, which I think come from the 2014 Act, really are not fit for purpose, and there is a desperate need for change.

There are other areas of taxation, of course, that would assist us, whether it is to do with value added tax, whether it is to do with air passenger duty, and of course there's a lot of talk by the UK Government about air passenger duty. Well, we've been asking for levelling up on the air passenger duty taxation side for quite some time, and it's still not recognised.

I thank the Counsel General.