Abstract:
Since its inception, the Welsh Government has had powers over local taxation - determining the structure of council tax (with councils then setting the headline tax rate) and the structure and level of business rates. The late 2010s saw the Welsh Government gain powers over a number of other taxes, including the power to vary income tax rates on non-savings, non-dividends income. Devolved taxes now account for around 21% of the Welsh Government's budget for day-to-day (resource) spending. The Welsh Government has made only modest changes to tax policy during the current Senedd term. But more is scheduled to come, with a visitor levy and regular revaluations of council tax legislated for, and the potential for broader reforms to Wales's local tax regime. The Welsh Government has only relatively limited powers over benefit policy, but has the ability to make somewhat bigger changes than it has to date, if it so wished.
