The Wales Act 2014 gives the National Assembly for Wales one of its potentially most important powers to date – the ability to introduce new, devolved taxes.
This project, funded by the Joseph Rowntree Charitable Trust, developed proposals for new taxes which could change the behaviour of businesses, organisations and individuals, and help to create a fairer, more prosperous and sustainable Wales. We were specifically interested in taxes which improve corporate accountability for any social, economic or environmental ‘harm’, and which are not regressive in their impact.
The ‘Tax for Good’ projected ended in June 2016. See below for the outcomes from the project, the final report and other outputs.
Key impacts
The Bevan Foundation welcomes the Welsh Government’s announcement that it is to introduce a visitor levy in the near future. A visitor levy, or tourism tax, was one of the key recommendations of this project and we are pleased that the Welsh Government has acknowledged the Bevan Foundation’s role in putting a tourism tax on the policy agenda.
The Welsh Government’s announcement follows on from the inclusion of a tourism tax in its Cooperation Agreement with Plaid Cymru in 2021, which in turn followed a period of public consultation.
The Welsh Government is now working on legislation to enable local authorities to introduce a levy if they wish, with further consultation expected on the arrangements in the near future.
Key outputs
Publications and articles
Tax for Good: New Taxes for a Better Wales
The final report for the ‘Tax for Good’ project publishes our eight proposals for new devolved taxes, levies and tax credits. The full report and an executive summary are available to download here.
Devolved Taxes: The Context
A working paper that puts the potential for new taxes in the wider context of tax devolution – available here.
Response to Call for Evidence by the Independent Commission on Local Government Finance Wales
Our response to the Commission explains the role that new taxes could play in financing local government in future – read it here.
Response to Consultation on Landfill Disposals Tax
We submitted a response to the Welsh Government’s consultation on the new Landfill Tax – read it here.
Response to Consultation on Land Transaction Tax
We submitted a response to the Welsh Government’s consultation on the new Land Transaction Tax – read it here.
Options for a Welsh Income Tax
Victoria Winckler commented on the Chancellor’s 2016 autumn statement in respect of a Welsh rate of income tax – read it here.
Events
New Taxes for a Better Wales
With keynote presentations by Minister for Finance Jane Hutt AM and David Phillips, Senior Researcher at the Institute for Fiscal Studies. Read the conference report here.
Shaping Policy and Debate
We presented our emerging findings to key stakeholders at:
- the Ministerial Advisory Group on Tax
- the Welsh Government Tax Forum
We also gave evidence to the House of Lords Constitution Committee’s Inquiry into the Union and Devolution on 21st January 2016 Read our evidence
Our emerging ideas have also featured regularly in the media and in debates in the National Assembly for Wales – examples during the project are listed below. More recent examples are too numerous to list.
- Questions to the Minister for Finance and Government Business National Assembly for Wales, 16th March 2016
- Plaid Cymru Debate: A Sugary Drinks Levy National Assembly for Wales, 9th December 2015
- Wales should raise taxes to ‘change the economy, society and environment’, says think tank. Walesonline, 6th October 2015
- Tax Collection and Management (Wales) Bill: Evidence Session 1 Finance Committee, 17th September 2015
- The impact on Wales of devolution elsewhere in the UK has not been considered, warns think tank Walesonline 21st August 2015
- New Welsh taxes on tourists, fatty foods and fizzy drinks could be on the way, says leading think tank Walesonline, 12th June 2015