Meetings

Supporting papers:

Letter from Director General, Customer Strategy and Tax Design, HMRC – 29 September 2020

Service Level Agreement for Operation of Welsh Rates Of Income Tax (WRIT) by HMRC

Welsh Rates of Income Tax HMRC Annual Report 2020

7.1 The Committee noted the Welsh Rates of Income Tax

HMRC Annual Report 2020 and Service Level Agreement.

Dyfed Alsop, Chief Executive, Welsh Revenue Authority

Rebecca Godfrey, Chief Strategy Officer, Welsh Revenue Authority

Sam Cairns, Operating Officer, Welsh Revenue Authority

Adam Al-Nuaimi, Head of Data Analysis, Welsh Revenue Authority

1.1 The Committee received a technical briefing on the Welsh Revenue Authority’s Performance Report - 2019 to 2020 from Dyfed Alsop, Chief Executive; Rebecca Godfrey, Chief Strategy Officer; Sam Cairns, Operating Officer; and Adam Al-Nuami, Head of Data Analysis.

Gareth McMahon, Welsh Government Lawyer

Andrew Hewitt, Welsh Treasury

Laura Fox, Welsh Treasury

CLA(5)-06-20 – Paper 22 - Paper from Welsh Government

The Committee received a briefing from Welsh Government officials on proposals for making changes to Welsh tax legislation.

Andrew Jeffreys, Director, Welsh Treasury

Julian Revell, Head of Fiscal Analysis, Welsh Treasury

Paper 1 – Background paper

4.1     The Committee received a technical briefing from Andrew Jeffreys, Director, Welsh Treasury and Julian Revell, Head of Fiscal Analysis, Welsh Treasury on Welsh tax forecasts.

Gareth McMahon, Government Lawyer

Andrew Hewitt, Welsh Treasury

Laura Fox, Welsh Treasury

2.1     The Committee received a technical briefing from Gareth McMahon, Government Lawyer; Andrew Hewitt, Welsh Treasury; and Laura Fox, Welsh Treasury on proposed changes to Welsh tax legislation.

Robert Chote, Chairman Budget Responsibility Committee

Andy King, Budget Responsibility Committee

Shaun Butcher, Deputy Chief of Staff

Dr Paul Mathews, Senior Analyst

Marcus Hanson, Analyst

Paper 3 – Memorandum of Understanding between the Welsh Government and Office for Budget Responsibility

Paper 4 – Terms of Reference between the Welsh Government and Office for Budget Responsibility

Paper 5 – Financial Framework between the Welsh Government and Office for Budget Responsibility

4.1 The Committee received a briefing from the Office of Budget Responsibility on tax forecasting.

Dyfed Alsop, Chief Executive, Welsh Revenue Authority

Adam Al-Nuami, Head of Data Analysis, Welsh Revenue Authority

1.1 The Committee received a private tax technical briefing from Dyfed Alsop, Chief Executive, Welsh Revenue Authority; Adam Al-Nuami, Head of Data Analysis, Welsh Revenue Authority; and Dave Jones, Data Analysis, Welsh Revenue Authority.

Paper 2 – Letter from the MfFT – 9 May 2019

Paper 3 – Welsh Government – Consultation Document: Amending the Government of Wales Act 2006 (Budget Motions and Designated Bodies) Order 2018

2.1 The Committee considered the Welsh Government’s consultation on proposals to amend the Government of Wales Act 2006 (Budget Motion and Designated Bodies) Order 2018.

2.2 The Committee agreed to respond to the consultation.

Paper 6 - Implementation of Wales Act 2014: Draft report

Paper 7 - NAO Administration of Welsh Income Tax 2017-18 Report

Paper 8 - Letter to the Secretary of State for Wales: Implementation report

Paper 9 - Letter from the Secretary of State for Wales to Finance Committee: WAIR

8.1 The Committee agreed the report, subject to minor amendments.

Adrian Crompton, Auditor General for Wales

Richard Harries, Director, Financial Audit, Wales Audit Office

Gareth Lucey, Audit Manager, Wales Audit Office

Paper 1 - Fiscal Devolution in Wales: devolved taxes and Welsh rates of income tax

3.1 The Committee took evidence from Adrian Crompton, Auditor General for Wales; Richard Harries, Director, Financial Audit, Wales Audit Office; and Gareth Lucey, Audit Manager, Wales Audit Office.

10.1 The Committee considered the evidence received.

Jim Harra, Second Permanent Secretary, HMRC

Katy Peters, Deputy Director, Personal Taxes, Knowledge Analysis and Intelligence, and Head of Professions for Economics, HMRC

9.1 The Committee took evidence from Jim Harra, Second Permanent Secretary, HMRC and Katy Peters, Deputy Director, Personal Taxes, Knowledge Analysis and Intelligence, and Head of Professions for Economics, HMRC.

Paper 3 - Summary Legal Briefing: The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2018

Supporting documents:

The Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2018

Explanatory Memorandum

7.1 The Committee noted the Income Tax (Pay As You Earn) (Amendment No. 2) Regulations 2018.

5.1 The Committee considered the evidence received.

Dyfed Alsop, Chief Executive, Welsh Revenue Authority

Kathryn Bishop, Chair, Welsh Revenue Authority

4.1 The Committee took evidence from Dyfed Alsop, Chief Executive, Welsh Revenue Authority and Kathryn Bishop, Chair, Welsh Revenue Authority.

Paper 2 – The UK Government's Fourth Annual Report on the Implementation and Operation of Part 2 (Finance) of the Wales Act 2014

6.1 The Committee considered the evidence received.

Rebecca Evans AM, Minister for Finance and Trefnydd

Andrew Jeffreys, Director, Welsh Treasury

Liz Matthews, Income tax policy and delivery lead

Paper 1 – Fourth annual report by Welsh Ministers on the implementation and operation of Part 2 (Finance) of the Wales Act 2014

3.1 The Committee took evidence from Rebecca Evans AM, Minister for Finance and Trefnydd; Andrew Jeffreys, Director, Welsh Treasury; Liz Matthews, Income tax policy and delivery lead, Welsh Government.

3.2 The Minister agreed to write to the Committee with the final costs of transitioning to Land Transaction Tax and Landfill Disposals Tax once confirmed.

Paper 5 – Draft response

10.1 The Committee agreed its response to the Welsh Affairs Committee inquiry on the Devolution of Air Passenger Duty to Wales.

Paper 10 – Legislative budget process

11.1 The Committee noted the paper and considered the next steps.

Paper 1 - Welsh Revenue Authority Visit

Paper 6 – Legislative budget process – scoping paper

8.1 The Committee considered a scoping paper on a legislative budget process and agreed to undertake an inquiry.

Paper 5 - Letter from the Llywydd to the Chair - Assembly Procedure for Section 116C Orders in Council - 1 March 2018

10.1 The Committee considered a letter from the Business Committee regarding proposed changes to Standing Orders in relation to an Assembly Procedure for Section 116C Orders in Council and agreed to respond.

Paper 6 – Draft report

11.1 The Committee agreed the draft report with minor changes.

Daniel Greenberg - Barrister specialising in legislation

Paper 4 - Legislative Budget Process: Discussion Paper

8.1 The Committee held an informal session with Daniel Greenberg, a barrister specialising in legislation.

7.1 The Committee considered the evidence received.

Jim Harra, Second Permanent Secretary, HMRC

Sarah Walker, Deputy Director, Devolution, HMRC

Paper 2 – Letter from HMRC to the Cabinet Secretary for Finance – 6 December 2017

Paper 3 – Letter from the Cabinet Secretary for Finance to HMRC – 13 December 2017

6.1 The Committee took evidence from Jim Harra, Second Permanent Secretary, HMRC; and Sarah Walker, Deputy Director, Devolution, HMRC on the devolution of fiscal powers to Wales.

5.1 The Committee considered the evidence received.

Kathryn Bishop, Chair, Welsh Revenue Authority

Dyfed Alsop, Chief Executive, Welsh Revenue Authority

3.1 The Committee took evidence from Kathryn Bishop, Chair, Welsh Revenue Authority; and Dyfed Alsop, Chief Executive, Welsh Revenue Authority on the preparations for the devolution of fiscal powers to Wales.

3.2 The Chief Executive agreed to provide the Committee with a note setting out what the WRA will do in the run-up to 1 April 2018 to ensure that the Land Registry work on cross border transactions is co-ordinated.

Mark Drakeford AM, Cabinet Secretary for Finance

Andrew Jeffreys, Director, Welsh Treasury

Claire McDonald, Implementation Programme Manager, Welsh Revenue Authority (WRA)

Paper 3 - The third annual report by Welsh Ministers about the implementation and operation of Part 2 (Finance) of the Wales Act 2014

4.1 The Committee took evidence from Mark Drakeford AM, Cabinet Secretary for Finance; Andrew Jeffreys, Director, Welsh Treasury; and Claire McDonald, Implementation Programme Manager, Welsh Revenue Authority on the preparations for the devolution of fiscal powers to Wales.

4.2 The Cabinet Secretary agreed to provide a breakdown of the WRA workforce in terms of numbers, types of contracts and diversity.

Paper 4 – The UK Government’s Third Annual Report on the Implementation and Operation of Part 2 (Finance) of the Wales Act 2014

6.1 The Committee considered the evidence received.

6.2 The Committee noted that the Secretary of State for Wales had declined its invite to provide oral evidence on the UK Government’s Third Annual Report on the Implementation and Operation of Part 2 (Finance) of the Wales Act 2014.

Mike Usher, Director and Sector Lead, Health and Central Government, Wales Audit Office

Richard Harries, Director, Financial Audit, Wales Audit Office

Matthew Coe, Audit Manager, Wales Audit Office

Paper 1 – Auditor General for Wales - Fiscal Devolution in Wales: An update on preparations for its implementation

Paper 2 – Welsh Government response to the report

3.1 The Committee took evidence from Mike Usher, Director and Sector Lead, Health and Central Government; Richard Harries, Director, Financial Audit; and Matthew Coe, Audit Manager on the preparations for the devolution of fiscal powers to Wales.

Robert Chote, Chairman of Office for Budget Responsibility

6.1 The Committee took evidence from Robert Chote, Chairman of Office for Budget Responsibility on forecasts for devolved taxes.

Liz Matthews, Welsh Revenue Authority Operations Project Manager

Gurvinder Bhakar, Lawyer, Treasury Team

Andrew Hewitt, Land Transactions Tax Project Manager

Sarah Govier, Devolved Tax Policy Project Manager

3.1 The Committee received a technical briefing on Tax Statutory Instruments from the following Welsh Government officials: Liz Matthews, Welsh Revenue Authority Operations Project Manager; Gurvinder Bhakar, Lawyer, Treasury Team; Andrew Hewitt, Land Transactions Tax Project Manager; and Sarah Govier, Devolved Tax Policy Project Manager.

Liz Matthews, Welsh Revenue Authority Operations project manager

Gurvinder Bhakar, Lawyer, Treasury Team

Andrew Hewitt, Land Transactions Tax project manager

Sarah Govier, Devolved Tax policy project manager

Tom Taylor, Tax Administration project manager

Paper 7 – Summary of Key points

11.1 The Committee noted the productive trip to Scotland and how useful the sessions had been.

5. The Committee met with Revenue Scotland.

3. The Committee watched First Ministers Questions.

2. The Committee met with the Finance and Constitution Committee.

4. The Committee met with the Scottish Fiscal Committee.

Fair Funding for Taxing Times? Assessing the Fiscal Framework Agreement

6.1 The Committee received a briefing from the Wales Governance Centre on the Fiscal Framework.

6.1 The Committee considered the evidence received.

Mark Drakeford – Cabinet Secretary for Finance and Local Government

Andrew Jeffreys – Director, Treasury, Welsh Government

Dyfed Alsop – Welsh Revenue Authority Implementation Director, Welsh Government

Paper 2 – The second annual report by Welsh Ministers about the implementation and operation of Part 2 (Finance) of the Wales Act 2014

Paper 3 – Evidence paper from Cabinet Secretary for Finance and Local Government – 9 March 2017

4.1 The Committee took evidence from the Cabinet Secretary for Finance and Local Government, Mark Drakeford AM and his officials Andrew Jeffreys and Dyfed Alsop on the Welsh Government report Implementation of Fiscal Provisions in the Wales Act 2014 (Part 2).

4.2 The Committee also took evidence on the Fiscal framework agreed with the UK Government in December 2016.

Huw Vaughan Thomas – Auditor General for Wales

Mike Usher –Director and Sector Lead, Health and Central Government, Wales Audit Office

Richard Harries - Director, Financial Audit, Wales Audit Office

Paper 1 - Wales Audit Office Report: Preparations for the implementation of fiscal devolution in Wales

3.1 The Committee took evidence from the Auditor General for Wales, Huw Vaughan Thomas and his officials Mike Usher and Richard Harries on the Wales Audit Office report – Preparations for the implementation of fiscal devolution in Wales.

Robert Chote – Chairman, Office for Budget Responsibility

6.1 The Committee scrutinised Robert Chote on the tax forecasts for Wales by OBR.

Dyfed Alsop – WRA Implementation Director, Welsh Government

Claire McDonald – WRA Implementation Programme Manager, Welsh Government

Jo Ryder – WRA People Project Manager, Welsh Government

6.1 The Committee received a technical briefing on the Welsh Revenue Authority from Dyfed Alsop, WRA Implementation Director, Welsh Government; Claire McDonald, WRA Implementation Programme Manager, Welsh Government; and Jo Ryder, WRA People Project Manager, Welsh Government.

3.1.1 The Committee agreed to write again to the Secretary of State for Wales.

Mark Drakeford AM, Cabinet Secretary for Finance and Local Government

Andrew Jeffreys, Treasury Director, Welsh Government

Ed Sherriff, Head of Fiscal Strategy, Welsh Government

Paper 1 - The agreement between the Welsh Government and the United Kingdom Government on the Welsh Government’s fiscal framework – December 2016

3.1 The Committee took evidence from Mark Drakeford AM, Andrew Jeffreys and Ed Sherriff on the Fiscal Framework.

Paper 1 - Wales Audit Office Report - Preparations for the implementation of fiscal devolution in Wales – December 2016

Paper 2 – Preparations for the implementation of fiscal devolution in Wales: Response from Welsh Government

6.1 The Committee noted the report and agreed to invite the Auditor General for Wales to provide oral evidence in the New Year.

2.1.1 The paper was noted.

Paper 7 - Letter from the Cabinet Secretary for Finance and Local Government – 27 October 2016 – Devolution of fiscal powers to Wales

8.1 The Committee noted the letter from the Cabinet Secretary for Finance and Local Government and agreed to undertake a short inquiry on the implementation of the Wales Act 2014 in the New Year.