8. What discussions is the Welsh Government having with local councils about a tourism tax? OQ57795

We are engaging local authorities, businesses and representative groups across a range of design options for a tourism tax, alongside the potential benefits and impacts. A consultation will take place later this year to ensure consideration of all views in the development of this levy. 

Thank you, First Minister, for the answer. First Minister, I've seen claims from Welsh Government Ministers that seem to suggest that any proceeds from a tourism tax would be ring-fenced in some way so that councils can increase tourism spending. I'm not really sure how Ministers can make that claim, because the obvious current flaw is that, whilst the Welsh Government could ensure that any moneys raised could be ring-fenced, it doesn't appear that the Welsh Government can do anything to protect councils' existing tourism budgets. Unless there is that safeguard, we could see an introduction of a series of additional taxes across the country that leave no discernible mark on the amount of money being spent on tourism. So, can the First Minister clarify whether the Government has the power to force councils not to decrease existing tourism spending when introducing a tourism tax, and if so, would they use it?

If the Member wishes to, he can contribute those views in the consultation to which the Welsh Government is committed alongside our colleagues in Plaid Cymru, because the raising of a tourism levy is part of the co-operation agreement that we have struck. We will certainly explore in that consultation the hypothecation of the money raised through a local tourism levy in order to support the services that local communities provide and that make tourism successful in the first place. If it is the policy of the Conservative Party that the budgets of each local council should be set here in the Senedd and that we should act to prevent local authorities—elected, by the way, by people in their own areas—from varying the investments they make in different parts of their responsibilities, well, that is news to me. I wasn't aware that it was the policy of the Conservative Party, but if it is, there'll be a chance for you to make that clear in the consultation. 

I thank the First Minister.