This agreement implements the powers in the Wales Act 2014. It supports the devolution of stamp duty land tax and landfill tax. It also supports the creation of Îʶ¦ÓéÀÖ rates of income tax.
Documents
Agreement on the Îʶ¦ÓéÀÖ Government’s fiscal framework , file type: PDF, file size: 377 KB
PDF
377 KB
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Details
The arrangements include:
- changes to the Barnett formula with a new needs-based factor set at 115%. This was recommended by the Holtham Commission to reflect the characteristics of the population in Wales.
- the National Assembly to be able to set Îʶ¦ÓéÀÖ rates of income tax from April 2019
- a block grant adjustment that reflects the income tax base in Wales.
- Increased capital borrowing powers. The Îʶ¦ÓéÀÖ Government’s capital borrowing limit will be increased to £1 billion and the annual limit to £150 million.
- creation of a new Îʶ¦ÓéÀÖ cash reserve. This will act as a 'savings account' to help the Îʶ¦ÓéÀÖmanage budget fluctuations as a result of tax devolution.
- Independent oversight. Independent bodies to have a role in helping resolve disputes on matters relating to the fiscal framework.