I believe that that is indeed the case.
Admittedly the revenue gathered from the minor taxes, although not insignificant, is relatively small in comparison with the revenue that would be available through the income tax-sharing arrangement recommended by the Silk commission. That would make the Welsh Government responsible for 10p in every pound of income tax raised in Wales. It would enable the Welsh Government to increase their borrowing capacity substantially, and would strengthen the accountability test. My intention is to return to that at a later stage of the Bill’s progress. It would also undoubtedly incentivise the Welsh Government to grow the economy in Wales and provide responsibility for its expenditure. It is also clear that fair funding and the proper resolution of the blatant inadequacies of the Barnett formula, whereby we estimate that Wales loses out on an average of £500 million a year, are desperately needed, but that resolution must not be used to block the partial devolution of income tax or the minor taxes.
4.45 pm
Non-domestic rates, or business rates, are another minor tax that it would have been ideal to devolve to Wales in this Finance Bill, thereby incentivising local authorities in Wales to expand their economic bases. Long-haul air passenger duty was devolved to Northern Ireland in last year’s Finance Bill and the Silk commission has recommended the devolution of long-haul APD to Wales.