9. Debate: Welsh Rates of Income Tax

Part of the debate – in the Senedd at 5:16 pm on 8 March 2022.

Alert me about debates like this

Photo of Peter Fox Peter Fox Conservative 5:16, 8 March 2022

Can I confirm that the Welsh Conservative group will be supporting the continuation of the freeze on the Welsh rates of income tax? And I recognise all of those pressures on families that the Minister shared and, indeed, I fear things may get worse with, obviously, what's happening in eastern Europe. 

If I may, though, I just want to push the Minister a bit further on the need to clarify the Welsh Government's future intentions on Welsh rates of income tax and, in particular, the commitment to not take more in WRIT from Welsh families for at least as long as the economic impact of coronavirus lasts and, obviously, these other pressures they are experiencing now. I appreciate that in the Minister's letter to the Finance Committee, the Minister stated that there is a need to consider future fiscal prospects for Wales, as well as the current pressures facing families regarding the cost of living when deciding future taxation plans. And I think the latter, in particular, is a consideration that all of us in the Chamber can agree with. But the Minister's response didn't really provide clarity as to what the Government's medium-term thinking is on what direction we are heading. The uncertainty facing Welsh taxpayers was something that was highlighted in the Finance Committee evidence sessions by the Institute for Fiscal Studies. They suggested that the commitment had served its purpose, and that we need a more precise definition, rather than one that can be interpreted in many different ways. 

To summarise, Llywydd, I do think that the Welsh Government could be more clear in indicating how it envisages using its taxation powers in the medium to long term, and to end the current uncertainty, and to allow the Senedd to begin considering these plans and their potential impact on people's incomes. Diolch.