First Minister in denial on taxation powers


Welsh Government fails to recognise the tangible benefits of taxation powers

Plaid Cymru has criticised the First Minister for failing to accept the importance of taxation powers to respond to the economic crisis. In response to questions from the leader of Plaid Cymru Leanne Wood, the First Minister denied that tax-varying powers could help deliver the economy out of recession.

Plaid Cymru has once again called on the Welsh Government to pursue the devolution of taxation powers as a lever to bring about economic recovery. The ability to vary taxes would offer a real incentive for the government to bring about change to the economy and to finally take action to help Wales’ struggling economy.

The leader of Plaid Cymru Leanne Wood said:

“The Welsh economy is in a continued downward spiral so it’s difficult to understand why the First Minister is in denial about what can be done help Welsh workers and their families. Tax varying powers would give the Welsh Government real teeth to get to grips with the economic crisis and is a necessary step to ensure that the Government is properly accountable for the Welsh economy.

“In other European countries, the governments have varied taxes to mitigate the worst effects of the economic downturn, which within the UK has affected Wales particularly badly. There is no reason why the Welsh Government should not be able to do what other European governments can do.

“Wales is one of very few countries in the world that has the responsibility for spending money without the responsibility for raising that money. Tax varying powers would be a very powerful lever to reduce our dependence and to get to grips with the economic crisis. The sooner the First Minister wakes up and acknowledges that, the better.”