Amendment 8, tabled by Peter Fox, essentially adds a new review point, two years after the Act comes into force. That's in addition to maintaining the existing commitment to review the Act after four years. As we've heard, amendment 9 is consequential to the approval of amendment 8. I've given the timing for the review considerable thought, giving special consideration to how the Bill has changed as a result of the committee's report and the amendments made at Stage 2. The timing of the review of this legislation has to ensure that enough time has passed to make the review meaningful, but also that the outcome of the review will be able to inform the development of future arrangements early in the next Senedd term. This is also informed by the inclusion, of course, of the sunset provision five years after the Bill comes into force, so it's not the case that the Bill could be extended time and time again. It's very clear that the Bill will have an end date.

The review will consider the use of the power to make changes to the Welsh tax Acts and I consider that to have a review two years after it has come into force is too soon, as there's every chance that the power will not have been used at that point, rendering the review, to a large extent, meaningless. And furthermore, it does take time and resources for such reviews to be conducted if they're to be undertaken in a meaningful way. If the review was set at two years after Royal Assent, we would likely need to start work on that review not long after the Bill came into force. It also seems somewhat ineffective and repetitious to have those two reviews so close together in time when it's unlikely that there would have been much change during that time. So, for that reason, I am not able to support these amendments. 

Amendment 3, tabled by Llyr Gruffydd and supported by Peter Fox, requires that the review of the operation and effect of the Act must include consideration of alternate legislative mechanisms for making changes to the Welsh tax Acts and regulations made under those Acts. I've set out my intention to work with the committees to establish longer term arrangements for making changes to the Welsh tax Acts, which would necessarily include consideration of alternative legislative mechanisms for making changes to the Welsh tax Acts. I've also committed to specifically review the operation and effect of this Act four years after it comes into effect and that requirement is now on the face of the Bill. So, I don't consider this amendment is strictly necessary as this work will be taken forward as part of the wider considerations of those alternative legislative mechanisms. This might, but will not necessarily, include consideration of an annual or less frequent finance or taxation Bill process. I have reservations that placing a statutory requirement on the Welsh Ministers to report by a fixed date might lead to undue pressure on any working groups established to fit within that timescale, but whilst I do have those reservations, I am content to ask Members to support amendment 3, as whilst work on these long-term arrangements will be undertaken anyway, I am willing to go one step further and demonstrate my commitment by setting this out on the face of the legislation.

Amendment 4, also tabled by Llyr Gruffydd and supported by Peter Fox, requires the Welsh Ministers to consult the Senedd and other appropriate persons as part of the review of the legislation, and I am of course happy to attend any meeting of the Finance Committee, or any other committee for that matter, when they invite me, in order to discuss the detail of the work being undertaken and the emerging thinking as to what the longer term mechanisms should be. It seems to me that such a process of engagement and consultation will happen as a matter of course. In addition, the Welsh Ministers would, as a matter of course, consult appropriate persons as necessary in the development of this review, and that is how I've approached the policy development undertaken on this Bill, and the Welsh tax Acts more broadly to date, and I will ensure that, together, the longer term mechanism is right for Wales. So, in summary, in terms of this amendment, whilst I believe that it's not strictly necessary as I would in any case be writing to the Senedd to ask for their views on the review of the operation of the Act and engaging with appropriate people in the development of the review, I am of course willing to demonstrate my commitment to working together on developing this legislation by accepting amendment 4 and setting this out on the face of the legislation.

And then just to respond to some of the broader concerns that were raised during this particular section of the debate this afternoon. In the ordinary circumstances of law making—that is, where law is made as a result of considered policy development rather than required urgently or in response to external events—it is of course right that the Senedd should determine who is taxed and how they're taxed in accordance with the constitutional principles set out in the Government of Wales Act 2006. However, the power within the Bill is intended to deal with extraordinary circumstances that are distinctive to tax legislation. To provide an example, there have been many instances where new tax elements of stamp duty land tax have been introduced by the UK Government immediately or very shortly after an announcement is made, and this is generally to prevent taxpayers from forestalling—that is, bringing forward a transaction or alternatively delaying their transaction to benefit from a pre-announced tax change. The UK Government has recognised the distinctive nature of tax legislation when it provided UK Ministers with a power in section 109 of the Finance Act 2003 to be able to make any changes to stamp duty land tax legislation that are expedient in the public interest.

The Scottish Parliament provided the Scottish Government with many regulation-making powers in its devolved tax Acts, including the setting of rates and bands by made affirmative procedure regulations. And, of course, this Senedd followed the precedent set by the Scottish Parliament, and provided Welsh Ministers with a similar suite of regulation-making powers, including the setting of rates by made affirmative procedure regulations. So, this Bill is seeking to build on these precedents, developing a flexible and agile mechanism for responding to external circumstances that provide a short-term solution for this stage in our devolution journey. Colleagues will be aware that I've really sought to restrict the scope of the regulation-making power in this Bill as much as possible. It may only be used where Welsh Ministers consider it necessary or appropriate, and in line with those four purpose tests. And, very importantly, during scrutiny and in discussions with Members, the power has been further curtailed, both in what it can be used to do and the period for which it can be used.

I'm very supportive of the need to look at the long-term arrangements to make changes to Welsh tax Acts, and indeed I've committed to commencing that work with committees later in the autumn. I'm also starting to consider the scope and who needs to be involved in that work. But it's not possible, nor would it be right, for us to bring in these arrangements overnight without undertaking what is going to be really thorough policy development and engagement too, so that we have the most appropriate future legislative mechanism that meets our specific needs here in Wales.