Welsh Government to get landfill tax powers

HM Treasury and the Wales Office have proposed to give the Welsh Government full control of administering its own landfill tax, under plans announced today (November 18).

The proposal was among a number of measures outlined by the government aimed at giving the Welsh Government greater power over its own tax revenues, which, it is claimed, will allow the Welsh government budget to benefit more directly from growth within the country.

Devolution of landfill tax to the Welsh Government was one of the proposals recommended by the Silk Commission, established in October 2011, to review the case for handing over some fiscal powers to Wales.

The government has accepted the Commissions recommendation, ceding that the landfill tax should be fully devolved to the Welsh Government, with Welsh Ministers given full control over all aspects of the tax in Wales.

Other measures which have been approved by the government are the devolution of Stamp Duty, as well as the ability to create new taxes with the UK governments agreement, and full devolution of non-domestic business rates raised in Wales.

Cooperation

Commenting on the measures announced today, chief secretary to the Treasury, Danny Alexander, said: I am delighted that my work with Jane Hutt, the Welsh government finance minister, and close cooperation between our two governments has delivered this excellent outcome for Wales.

The package of financial powers we have published today will be a powerful tool, bringing greater financial accountability and transparency to the Welsh government. This is a good outcome for Wales.

Legislation to implement the reforms is due to be published before the end of March 2014, with the UK keen to bring the proposals into law before the next General Election in May 2015.

Legislation

Secretary of State for Wales, David Jones, said: The government believes in devolution and were determined to deliver. Accepting the Silk Commissions key recommendations on financial devolution strikes the right balance and marks an important step in Wales devolution journey.

These new powers will make for more accountable government for the Welsh people. It is now up to the Welsh Government to seize this once in a generation opportunity to drive forward Wales economic development, and to use this opportunity to secure the growth and prosperity that Wales so desperately needs.

The move follows the devolution of control of landfill tax in Scotland to the Scottish Government, as part of a provision of the Scotland Act 2012. From April 2015, the Scottish Government will be fully responsible for setting levels of taxation and for the revenue generated from the tax (see letsrecycle.com story).

Figures published by the Welsh Government last week show that the country landfilled around 40.9% of the total 1.55 million tonnes of waste it produced in 2012/13, with a recycling rate of 52.6% (see letsrecycle.com story).

Wales finance minister Jane Hutt, said: Now that things are moving forward, we need to keep up the momentum. The priority now is to get the reforms turned into law, so that we can start to use our new powers to boost the Welsh economy.