Part of 1. Questions to the Minister for Finance and Local Government – in the Senedd at 1:52 pm on 15 February 2023.
Diolch yn fawr iawn, Llywydd. Last week, Minister, you recall, I'm sure, Plaid Cymru making our case for the further devolution of tax powers, in that instance providing Wales with the ability to set our own income tax bands in line with powers already being exercised in Scotland, of course. Now, unfortunately, you and your colleagues voted down our motion, despite mounting evidence that the current income tax bands, which are, let's not forget, set by the UK Government for Wales, despite them being an exceedingly poor fit for the Welsh tax base. Now, a recent Institute of Welsh Affairs report stated that if you were designing an efficient system of income taxation for Wales, then the bands wouldn't look like they look now.
However, what's also apparent, of course, is that the Welsh Government's current agenda for the further devolution of tax powers, which includes an ambition to establish a vacant land tax is being undermined by a consistent lack of engagement and co-operation from the UK Government. You've described the agreed process for devolution of tax competence to Wales as 'not fit for purpose', so can you tell us, therefore, what recent discussions you've had with the UK Government regarding the review and reform of the process by which new tax powers are devolved? And what recommendations has the Welsh Government made to the UK Government in this regard?