SAM ROWLANDS, Member of the Welsh Parliament for North Wales, says Conservatives will use devolved tax powers to put more money back in people’s pockets if they are successful in next year’s Senedd elections.
Mr Rowlands, Welsh Conservative Shadow Secretary for Finance, Transport and Infrastructure was speaking in the Welsh Conservatives debate on taxation.
He said: “The fundamental issue is that the economic picture in Wales is abysmal. Pay packets here are the lowest in Great Britain, whilst unemployment rates are the highest in the country, and this comes at a time when businesses are slapped with the highest business rates, higher than Scotland or England, and more businesses, sadly, are dying in Wales than being created.
“Whilst the Welsh Labour Government have squandered hundreds of millions on vanity projects, ranging from the default 20 mph speed limit to bloated Senedd reform, Welsh Conservatives are calling for public money to be spent effectively on the areas where that money is really needed.
“We will use devolved tax powers to put more money back in people’s pockets. We will be delivering a 1p cut to the basic rate of income tax, with 1.7 million people receiving a tax cut, meaning the average working family will be £450 a year better off.
“These packages of proposals—income tax reduction, supporting our businesses through business rates reductions, supporting our communities through democratically responsible decisions through a local referendum on council tax rises when they’re over that 5% threshold—these would be the start of economic change in Wales.”
Last week, the Welsh Conservatives made a policy announcement outlining that a Welsh Conservative Government would cut the basic rate of income tax by 1 pence, a tax cut for 1.7 million people, saving the average Welsh family £450 per year. The income tax cut would cost £299m, 1.15% of the Welsh Government’s total £26 billion budget. The cut will be funded via efficiency savings in all Welsh Government departments, while protecting funding for health, schools and support for farmers.
In the Senedd this week, the Welsh Conservatives brought forward a debate on their tax-cutting agenda, to ensure Welsh taxpayers’ get more value for their money, whilst having more money in their pocket. Labour and Plaid voted against tax cuts.
This announcement comes as part of the Welsh Conservatives’ wider tax-cutting agenda, which includes the elimination of business rates for small businesses, the restoration of rate relief for the retail hospitality and leisure sector to 75% (currently 40%) and enforcing local referenda for councils wishing to raise council tax by over 5%.
Mr Rowlands added: “The Welsh Labour Government, propped up by Plaid Cymru, have squandered hundreds of millions on pet projects while our public services suffer.
“Yet Labour and Plaid voted against our Welsh Conservative proposals to cut tax and put more money in people’s pockets.
“Only a Welsh Conservative Government will root out waste, drive out inefficiency, and deliver better value for money.”
The motion which was debated read:
To propose that the Senedd:
1. Regrets that:
a) Welsh pay packets are the lowest in Great Britain;
b) business deaths continue to outpace business births; and
c) if council tax had risen by the same rate in Wales as has been the case in England since 2010, the average Band D household in Wales would be £350 a year better off.
2. Calls on the Welsh Government to:
a) deliver efficiency savings, outside of health, schools and farming budgets, to deliver a 1 pence cut in the basic rate of income tax;
b) restore business rate relief to 75 per cent for the retail hospitality and leisure sector;
c) eliminate business rates for small businesses; and
d) ensure local referendums for councils proposing council tax rises by over 5 per cent in a single financial year.
