This 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 farming.
The income tax cut comes as part of the plan to cut out waste and deliver efficiency in Government, with the Welsh Labour Government continuing to squander hundreds of millions of pounds on pet projects whilst our public services and infrastructure in Wales has crumbled.
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 percent.
Under Labour, the UK tax burden is set to hit an all-time high leaving taxpayers paying more but getting less in return. The UK Labour Government’s decision to increase employer national insurance contributions has been detrimental, yet Keir Starmer’s response to this is now allowing Indian workers coming to the UK not having to pay national insurance.
In the Senedd next week, the Welsh Conservatives are bringing 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.
Commenting ahead of the debate, Welsh Conservative Shadow Secretary for Finance, Transport and Infrastructure, Sam Rowlands MS, said:
“The Welsh Labour Government has squandered hundreds of millions on pet projects while our public services suffer. Yet under Labour, the British tax burden is set to hit an all-time high, with taxpayers paying more for less.
“A Welsh Conservative Government will root out waste, drive out inefficiency, and deliver better value for money.
“As part of our bold plan to fix Wales, 1.7 million people will receive a tax cut. The average working family will be £450 per year better off, giving them the choice of how to spend their hard-earned money.”
The motion which will be debated next week reads:
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.
