Tax Collection and Management (Wales) Act 2016 and the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017 (Consequential Amendments) Order 2018

Lord Wigley Excerpts

Tuesday 6th November 2018 Lords Chamber

[Lord Wigley (PC)]

My Lords, I thank the Minister for introducing this order. I have two very brief questions for him. First, although he partly covered this in his speech, can he assure the House that the National Assembly fully supports the changes that have been made by this order? Secondly, as a considerable amount of devolution came into force on 30 April, does he foresee any further orders of this sort?

[Baroness Humphreys (LD)]

My Lords, I am grateful for the opportunity to speak in this debate on the order which updates UK legislation as a consequence of the Tax Collection and Management (Wales) Act 2016 and the rest of it. On these Benches, we welcome the order and recognise the landmark stride forward it represents in the Welsh people’s devolution process. We also recognise the work of the Welsh Government in designing, in their words,

“a fiscal regime that works much better for Wales”,

and results in,

“better taxes, more suited to Welsh priorities, with more Welsh tax revenues spent in Wales and improved accountability”.

We particularly welcome the setting up of the Welsh Revenue Authority as a separate legal body from the Welsh Assembly. As the Minister said, from 1 April this year, the WRA took over responsibility for the collection and management of land transaction tax and landfill disposal tax which together should raise approximately £300 million a year. The Welsh Revenue Authority will also be responsible for setting rates of income tax in Wales, and I am pleased that the Welsh Government have seen fit to maintain income tax rates in line with those of England and Northern Ireland for the coming year. However, the power to vary rates remains, and we welcome the further status the implementation of this power gives to the Welsh Government and the Welsh Revenue Authority.

From 6 April next year a proportion of income tax collected from Welsh taxpayers will, for the first time, be devolved to the Welsh Government. Income tax will continue to be collected by HMRC, but a proportion will be transferred directly to the Welsh Government to be spent on public services in Wales. The Welsh Government estimate that in total these three taxes will raise £2.5 billion for Welsh services.

These Benches also welcome the amendments contained in this order to ensure that whistleblowers who help the Welsh Revenue Authority in relation to these new taxes are protected in the same way as individuals who assist HMRC. It is a welcome inclusion. The rights of those who see wrongdoing and report it must be protected. However, I seek clarification from the Minister in relation to Section 7.3 of the Explanatory Memorandum. The second sentence reads:

“The amendments ensure that whistleblowers … are potentially protected by the provisions of the Employment Rights Act 1996”.


I wonder why the word “potentially” has been included. It seems to convey an element of uncertainty, but perhaps its use here has a legal connotation of which I am unaware.

The Welsh Government have, as I said at the beginning, cited the improved accountability that should result from these changes, and I look forward to seeing increased scrutiny from politicians and the electorate of how the money from these taxes is apportioned and spent.