Diolch, Llywydd. Thank you for the opportunity to open this debate on the Welsh rates of income tax resolution for 2022-23. Welsh rates of income tax were introduced in April 2019 and apply to income tax payers resident in Wales. Welsh rates of income tax raise around £2 billion each year towards the funding of the Welsh Government budget. The Welsh rates for the next financial year were announced in the draft budget. There will be no changes to Welsh income tax levels in 2022-23. 

This will mean that Welsh taxpayers will continue to pay the same income tax as their England and Northern Irish counterparts, and this will continue to provide some stability for taxpayers during a time of uncertainty and wider global economic challenges. Together with the funding received through the block grant, Welsh taxes are essential to help fund the vital public services that we all depend on. Over the coming months and years, as we deal with the impact of the unwinding of the pandemic measures, such as furlough, as well as the cost-of-living crisis and the impacts that now are being felt as a result of the invasion of Ukraine, protecting these services will become more challenging. In addition to considering the economic impact of coronavirus, we need to recognise that people in Wales are facing an unprecedented cost-of-living crisis fuelled by soaring energy bills. Day-to-day prices of food, fuel, energy, clothes, travel and rent are all going up as inflation rises. 

The Bevan Foundation's snapshot of poverty revealed that more than a third of Welsh households do not have enough money to buy anything beyond the everyday essentials, and are having to cut back on their heating, electricity and water, and a quarter are having to cut back on food for adults. Alongside this, the UK Government's decision to increase national insurance contributions on top of the tax changes it previously announced in its March 2021 budget means that families already face a significant increase in their tax burden from April. The Resolution Foundation has calculated that families face a £1,200 hit from April as energy bills and taxes rise. 

All this means that it's clear that now is not the time to consider changes to Welsh rates of income tax. My officials will continue to work closely with HM Revenue and Customs, which is responsible for the administration of WRIT. I am confident that our robust processes and good working relationships with HMRC provide a strong basis for the effective and efficient use of WRIT going forward. I'm pleased to report that the first WRIT outturn figures for 2019-20 were published by HMRC last year. The outturn figures were close to the forecasts, providing further reassurance that the forecasting process and the end-of-binning data are robust. The next outturn for 2020-21 is due to be published this summer, and this will be the first year where the outturn will impact on the Welsh Government's budget, with any required adjustments applied to the budget in 2023-24 in accordance with the fiscal framework agreement.  

I will of course keep Members informed on this as we move forward, and I look forward to the debate today. The Senedd is asked today to agree the Welsh rates resolution that will set the Welsh rates of income tax for 2022-23, and I ask Members for their support this afternoon.