Decision details
Ymchwiliad i weithredu Deddf Cymru 2014 a’r Fframwaith Cyllidol - Sesiwn dystiolaeth 4
Decision Maker: Finance Committee - Fifth Senedd
Status: Complete
Is Key decision?: Yes
Purpose:
The Finance Committee undertook an inquiry into the implementation of the Wales Act 2014 and the operation of the Fiscal Framework. The inquiry also considered public awareness of fiscal devolution and taxation in Wales.
The Committee published its report (PDF, 2MB) on 2 February 2021. The Committee received responses from the Welsh Government (PDF, 208KB) HM Revenue and Customs (PDF, 106KB) and the Senedd Commission (PDF, 211KB).
Terms of Reference
Taxation
- The Welsh Government’s tax principles, whether these have been met and whether the current tax regime and proposed new taxes align with these principles;
- How successful the administration of Welsh taxes and the Welsh Rates of Income Tax has been;
- What possible future tax changes could look like and what scope there is for a different approach to taxation in Wales;
- How the mechanism for devolving powers for new Welsh taxes has been performing.
The Fiscal Framework
- Consider the fiscal framework processes and how funding is allocated to the Welsh block grant;
- Examine the application of the Barnett Formula and the criteria for excluding specific funding from the formula;
- Consider the block grant adjustment mechanism and the effectiveness of the adjustment model;
- Review the suitability of the budget management tools such as the Wales Reserve, and the ability to borrow;
- Evaluate the treatment of spill-over effects and the mechanism for agreeing these effects;
- Draw comparisons between
Wales and other international fiscal frameworks.
Evidence session |
Date, Agenda and Minutes |
Transcript |
Video |
Office of Budget Responsibility Robert Chote, Chairman |
Read transcript |
Watch on Senedd.tv |
|
Audit Wales Adrian Crompton, Auditor General for Wales Richard Harries, Audit Director Mark Jeffs, Audit Manager |
Read transcript |
Watch on Senedd.tv |
|
Wales Governance Centre Dr Ed Poole, Senior Lecturer Guto Ifan, Research Associate |
Read transcript |
Watch on Senedd.tv |
|
Professor Gerry Holtham |
Read transcript |
Watch on Senedd.tv |
|
HM Revenue & Customs Ruth Stanier, Director General, Customer Strategy and Tax Design Jackie McGeehan, Deputy Director of Income Tax Policy |
Read transcript |
Watch on Senedd.tv |
|
National Audit Office Gareth Davies, Comptroller and Auditor General Darren Stewart, Director Ben Rodin, Audit Manager Lee Summerfield, Director |
Read transcript |
Watch on Senedd.tv |
|
Institute of Fiscal Studies David Phillips, Associate Director |
Read transcript |
Watch on Senedd.tv |
|
Wales Revenue Authority Dyfed Alsop, Chief Executive Rebecca Godfrey, Chief Strategy Officer Sam Cairns, Chief Operating Officer |
Read transcript |
Watch on Senedd.tv |
|
Welsh Government Rebecca Evans MS, Minister for Finance and Trefnydd Andrew Jeffreys, Director, Welsh Treasury Julian Revell, Head of Fiscal Analysis, Welsh Treasury |
Read transcript |
Watch on Senedd.tv |
Decisions:
3.1 The Committee took evidence from Professor Gerry Holtham, Hodge Professor of Regional Economy, Cardiff Metropolitan University on its inquiry into the implementation of the Wales Act 2014 and operation of the Fiscal Framework.
Publication date: 12/11/2020
Date of decision: 09/11/2020
Decided at meeting: 09/11/2020 - Finance Committee - Fifth Senedd
Accompanying Documents:
- Restricted enclosure View reasons restricted