Impact of variations in national and sub-national income tax

Since April 2018, Welsh Government has had responsibility for some of the taxes paid in Wales, including the new Welsh Rates of Income Tax (WRIT) that came into force in April 2019.

The Finance Committee conducted an inquiry into the possible impact of different income tax rates across the Wales-England border.

Terms of reference:

  • To examine the effects of sub-national income tax variations in international tax systems on the behaviour of low, medium and high income earners, particularly migration and tax avoidance.
  • To understand how low, medium and high income earners may respond to income tax rate divergence for each tax band between Wales and England.
  • To understand the level of divergence in income tax rates that could trigger a behavioural change in low, medium and high income earners in Wales and England.
  • To assess the monetary impact on WRIT revenue with varying levels of tax rate divergence.

The Committee published its report (PDF, 2MB) on 2 July 2020. The Welsh Government responded (PDF 440KB) to the Committee’s report on 16 September 2020.

Evidence session

Date, Agenda and Minutes



David Phillips, Associate Director, Institute for Fiscal Studies

Thursday 27 February 2020

Read transcript of Evidence Session 1

Watch Evidence Session 1 on Senedd TV

Ed Poole, Senior Lecturer in Politics and International Relations, Cardiff University

Guto Ifan, Research Associate, Wales Governance Centre, Cardiff University

David Bradbury, Head of the Tax Policy and Statistics Division, OECD

Bert Brys, Head of the Country Tax Policy and Personal and Property Taxes Units, OECD

Sean Dougherty, Senior Adviser, OECD

Thursday 27 February 2020

Read transcript of Evidence Session 2

Watch Evidence Session 2 on Senedd TV

Professor James Foreman-Peck, Professor in Economics, Cardiff University

Wednesday 4 March 2020

Read transcript of Evidence Session 3

Watch Evidence Session 3 on Senedd TV

Professor Kent Matthews, Sir Julian Hodge Professor of Banking and Finance, Cardiff Business School

Dr Long Zhou, Research student, Cardiff Business School

Thursday 12 March 2020


Read transcript of Evidence Session 4

Watch Evidence Session 4 on Senedd TV

Rebecca Evans AM, Minister for Finance and Trefnydd

Anna Adams, Deputy Director, Head of Tax Strategy Policy and Engagement, Welsh Government

Tom Nicholls, Economic Adviser, Welsh Government

Thursday 12 March 2020


Read transcript of Evidence Session 5

Watch Evidence Session 5 on Senedd TV


Business type: Committee Inquiry

Status: Complete

First published: 04/10/2019