Draft 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

Chris Ruane Excerpts

Wednesday 14th November 2018 General Committees

[Chris Ruane (Vale of Clwyd) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Pritchard. I, too, welcome the Minister to his place. I hope that he lasts a little longer—or perhaps a lot longer—than his predecessor.

The draft order has the Opposition’s support. It amends existing legislation to reflect the existence of the Welsh Revenue Authority, and we welcome the ability of the WRA to raise up to £300 million in tax, which is indeed welcome in Wales. It is a further devolution of powers, and Labour, as the party of devolution—we introduced devolution to Wales, and indeed to Scotland, Northern Ireland and London—is naturally supportive of that.

However, it is a little disappointing that although Whitehall is giving devolution with one hand, it is taking it away with the other. There is a debate this afternoon at 4.30 on the shared prosperity fund, which we believe the Government will use to take power, finance and responsibility away from Wales, but that remains to be seen.

No one wants to be held here longer than they ought to, so I will highlight what the Opposition support. Article 2 recognises that the Welsh Government must be able to decide themselves whether Assembly Members could be the chairperson or a non-executive member of the Welsh Revenue Authority. We welcome that addition, because the decision should be made by the Assembly. We welcome articles 3 and 4, which ensure that the WRA is subject to existing laws and regulations. The Minister mentioned the Freedom of Information Act 2000, which Labour introduced. Consequently, we support the extension in this legislation, as we support the right of whistleblowers to whistle and blow without being penalised.

Article 5 applies to the WRA the same reporting requirements that are currently applied to HMRC in relation to money laundering and terrorist financing. Again, we support those responsibilities being moved to the WRA. Having gone through those few brief points, we support the order before us.

[Nigel Adams]

I thank the hon. Gentleman for his valuable contribution. The order provides for a number of consequential changes to UK law as a result of Assembly Acts to establish the Welsh Revenue Authority and a land transaction tax in Wales. I welcome the Opposition’s support. I cannot possibly describe my first run-out as Minister as a love-in, but it was as collaborative—

[Chris Ruane]

Well, it wasn’t a kicking.

[Nigel Adams]

It certainly was not a kicking. When I played rugby in Cardiff against the Welsh Assembly a couple of years ago, that is exactly what we got. I welcome the collaborative approach of the hon. Gentleman, and between us and the Welsh Government to manage the transition to devolved taxes. The order is further evidence of that approach. We will continue to work constructively with the Welsh Government in preparing for the introduction of Welsh income tax rates from next April. These powers provide substantial levers for the Welsh Government to support the Welsh economy and to deliver a mature devolution settlement for Wales. I commend the order to the Committee.

Question put and agreed to.