29.01.18
Governments formally agree on first Welsh devolved taxes in 800 years
The UK and Welsh governments have come to a decision on new devolved tax powers for Wales paid directly to the National Assembly, the first new taxes for 800 years.
Following a discussion period between the two parties, stamp duty land tax and landfill tax will both be replaced in April, with the equivalent Welsh taxes taking their place.
Liz Truss, chief secretary to the Treasury, met with Welsh Government finance secretary Professor Mark Drakeford on 10 January to discuss changing the tax system as part of wider devolution plans.
“We are committed to giving the National Assembly for Wales more responsibility to raise its own funding and that is why further income tax powers will follow next year,” Truss said.
“This will give the Welsh Government greater powers to shape their economy.”
She went on to refer to government plans for £1.2bn of investment in the Welsh budget, which comes on the back of last week’s call to develop a “Western Powerhouse” between Bristol and Cardiff.
Drakeford, who finalised the plans along with Truss, said this was the first step in wider devolution plans.
“The devolution of these taxes represents a significant milestone for Wales, helping us to make Wales a fairer nation and to grow the Welsh economy,” he commented.
“Today’s meeting was also an opportunity to reflect on the good and constructive relationships which have developed in taking fiscal devolution forward over this period. I look forward to this continuing.”
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