Gross Value Added

Lord Anderson of Swansea Excerpts

Wednesday 13th January 2016 Lords Chamber

[Lord Ashton of Hyde]

Obviously, the premise of the independence party was based to a large extent on the oil price, but as my noble friend has said, it has fallen, from $120 per barrel in 2012, and is predicted to fall as low as perhaps $25. That is a very important factor to take into account.

[Lord Anderson of Swansea (Lab)]

Does the Minister agree that a similar picture of comparative poverty emerges from tax receipts in Wales? The last figures I saw suggested that only 4,000 Welsh taxpayers are in the top tax band. The question is surely this: what are we going to do about it? Does that not have implications for the Barnett formula, and will the Minister confirm that the comparative position in Wales is deteriorating?

[Lord Ashton of Hyde]

The trouble with comparing England and Wales is that England has a population of about 53 million, while the population of Wales is some 3 million, so it is a difficult comparison to make. A better comparator would be the regional differences in England. But obviously, what we want is for more people to go into higher tax bands in Wales because the economy is booming and we are doing our bit to help that through investment. We hope that, when the devolution settlement is reached under the new Wales Bill, the Welsh Assembly will be able to play their part in growing the Welsh economy.