Tax policy framework update

This update to the Tax Policy Framework we published in 2017 recognises we have made real progress since the work of the Silk Commission and the Wales Act 2014, which set in motion the tax devolution process. However, we still have some way to go before we are able to use the full range of devolved tax powers conferred by the Wales Act 2014. But working together, characterised by strong collaboration and co-operation, remains the cornerstone of our approach. We remain committed to continuing constructive dialogue with the UK government to progress the case for clear and stable tax devolution for Wales.

Tax devolution is important. It provides an important lever through which we are better able to deliver strategic priorities for Welsh businesses and citizens. We believe there are circumstances where it makes sense to be part of the UK system, such as in taking action on our environmental ambitions where we have worked together across governments to take forward the plastics packaging tax. We value Wales’ role in the voluntary union on the United Kingdom, alongside the other three nations that comprise the UK, and we will continue to develop and manage our devolved taxes in the context of the wider UK tax system. Indeed, successful fiscal devolution differentiates where it makes sense to be part of the UK system and where our different characteristics and priorities may make devolution of a tax more appropriate. We must continue to play our part in strengthening fiscal devolution through the development of tax policy, which reflects the tax base and policy priorities of Wales.

Public bodies in Wales have a long history of the collection and administration of taxes of which the devolution of national taxes is the latest chapter. And as the response to the coronavirus pandemic clearly evidences, local authorities in Wales, together with other partners, continue to shape policy and economic responses which make a material difference to people’s lives. As we look ahead to the delivery of our current set of tax policy priorities we will rely on the wealth of tax expertise across Wales – at local, devolved, and national levels, and beyond, to pull together and deliver the outcomes we want to achieve for Welsh citizens and businesses.

We have set out our tax policy priorities in this update to our tax policy framework, and in our tax policy work plan for 2021 to 2026. You will see our priorities align with the Welsh Government’s strategic objectives and reflect our commitment to delivering a fairer, greener, more equal Wales. This is across our devolved and local taxes where we remain committed to progressivity both in the development of our taxes as well as in our spending decisions; in the ambitions we have for local government finance reform and in particular council tax; and our decision to not raise Welsh rates of income tax while the economic impacts of the coronavirus pandemic last.

Our duties in respect of the well-being of future generations have shaped our approach to tax policy formulation in Wales. We have taken the opportunity in our update to the tax policy framework to more clearly integrate the sustainable development principle and the 5 ways of working into our ‘tax approach’. Our ‘tax approach’ taken together with our tax principles, continue to shape Welsh taxes and ensure consistency and coherence to the overall tax system in Wales.

We recognised in 2017 the importance of taxes in enabling the people of Wales to achieve together the things we cannot deliver alone. This conviction continues to resonate as we look ahead and consider the significantly changed social, economic and environmental landscape in which we will take forward our tax policy priorities. Engagement – properly working together – to meet the needs of Welsh businesses and citizens will remain the single critical factor in the achievement of our goals. It is in this spirit of furthering our ambitions for Wales together, that I present this update to the tax policy framework.

Rebecca Evans MS
Minister for Finance and Local Government

1. In Wales, the devolution of tax powers has gone hand in hand with the commitment to develop tax policy within a clear strategic framework. The Welsh Government’s ‘Tax Policy Framework’ published in 2017 provides a framework which recognises and builds on our culture of working collaboratively, involving stakeholders, partners, taxpayers and citizens in decisions that affect them. It provides clear direction and certainty in respect of our priorities for taxes in Wales.
    
2. The Tax Policy Framework sets out the fiscal devolution settlement as established by the Wales Act 2014 and 2017, and reflects the longer history of our local taxes, clearly outlining the Welsh Government’s strategic priorities for tax together with the challenges and opportunities. The Tax Policy Framework is underpinned by the Welsh Government’s tax principles and has supported the publication of annual work plans and progress reports thereafter.
    
3. Since the establishment of the Tax Policy Framework and annual tax policy cycle process, the Welsh Government has gained new knowledge and experience of developing tax policy and, in particular, of the infrastructure for devolving new taxes provided for by the Wales Act 2014. This insight, together with the last 4 years’ experience of tax devolution, has enabled Welsh Government to develop considerable tax capability and to establish a distinct Welsh approach to shaping tax policy, which keeps the needs of Welsh citizens, businesses and communities at the forefront.
    
4. In moving forward, and through this update to our Tax Policy Framework, we will continue to embed our ‘tax approach’ as we seek to take forward and deliver the Welsh Government’s priorities for Welsh taxes over the 6th Senedd.

5. The devolution of certain tax powers to Wales provided us with a new and important lever through which to deliver better, more positive outcomes for our citizens. Our Tax Policy Framework explored the way and extent to which we could utilise our new powers to meet Welsh needs; and outlined our initial priorities for Welsh taxes.
    
6. This update to our Tax Policy Framework serves to situate and firmly integrate Welsh taxes and tax policy into our policy-making and national strategic infrastructure.
    
7. In this document we explain how we make and deliver tax policy in Wales, and then set out the tax policy priorities that we will take forward over this 6th Senedd term. In doing so:
    
   • We recognise how tax policy proposals are formulated within and reflect the framework provided by the Well-being of Future Generations (Wales) Act 2015 and the national strategic priorities outlined in the Welsh Government’s Programme for Government.
   • We reinforce our tax principles by supporting them with a clear commitment to our tax approach– i.e. the way we do tax in Wales.
   • Recognising the role of the wider tax system and Welsh taxes we explain the added importance we place on sustainability considerations, particularly in the context of the climate and nature emergency.
   • The need to ensure our tax measures remain proportionate and progressive is explained as we emphasise and highlight the importance of undertaking our new socio-economic duty.
   • We illustrate the contribution Welsh taxes make to funding our public services before setting out the tax policy priorities we will progress over the next 5 years.
   • We are committed to working transparently and will remain accountable to our partners, stakeholders and citizens whom we will continue to involve and engage in our work, reporting against progress annually as we drive forward the delivery of our objectives.

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8. As the first country in the world to legislate in 2015 for the well-being of current and future generations, Wales is used to doing things differently to ensure we all work together to improve our environment, our economy, our society and our culture. For people, for our planet. For now, and for our future. The Well-being of Future Generations (Wales) Act 2015 (from here on referred to as the Act) serves to codify our approach to policy development and delivery, including tax policy and delivery, in Wales.

9. The Act sets out 7 well-being goals to work towards in order to achieve the Wales in which we want to see and live:
    
   • A prosperous Wales
   • A resilient Wales
   • A healthier Wales
   • A more equal Wales
   • A Wales of more cohesive communities
   • A Wales of vibrant culture and thriving Welsh language
   • A globally responsible Wales
      

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10. Through the Programme for Government (2021), the Welsh Government continues to demonstrate its commitment to creating a more equal, fairer and socially just Wales; striving to place sustainability and protecting the most vulnerable at the heart of its objectives. The Programme for Government sets out the ambitious and radical set of commitments which Welsh Ministers intend to deliver this term.
     

11. Using the unique framework provided for by the Act, the Programme for Government sets out 10 well-being objectives from which specific actions fall1. Together these actions will deliver a stronger, more resilient, greener and fairer Wales for now and future generations. The 10 well-being objectives are explained in the Well-being Statement published alongside the Programme for Government (2021) and serve to maximise our contribution to the 7 well-being goals.

    The 10 well-being objectives are:

    • Provide effective, high quality and sustainable healthcare
    • Continue our long-term programme of education reform, and ensure educational inequalities narrow and standards rise.
    • Protect, re-build and develop our services for vulnerable people
    • Celebrate diversity and move to eliminate inequality in all of its forms.
    • Build an economy based on the principles of fair work, sustainability and the industries and services of the future.
    • Push towards a million Welsh speakers, and enable our tourism, sports and arts industries to thrive.
    • Build a stronger, greener economy as we make maximum progress towards decarbonisation.
    • Make our cities, towns and villages even better places in which to live and work.
    • Embed our response to the climate and nature emergency in everything we do.
    • Lead Wales in a national civic conversation about our constitutional future, and give our country the strongest possible presence on the world stage.
       

12. The goal of creating a more equal Wales is integral to our tax policy considerations, and is reflected in one of our 5 tax principles. Furthermore, the Well-being of Future Generations framework is inherent in ‘our tax approach’ (discussed further later in this document); and embodies the Sustainable Development Principle’s 5 ways of working identified in the Well-being of Future Generations Act.

    The sustainable development principle’s 5 ways of working are:

    • Collaboration
    • Integration
    • Involvement
    • Long-term
    • Prevention
       

13. Collaboration and involvement are at the heart of how we work on tax policy, while we embody integration by actively considering with others how tax policy can further the Welsh Government’s strategic objectives and the delivery of the 7 well-being goals. Balancing immediate needs with longer-term considerations to prevent any future harm to our economy, society, communities and the natural world are also inherent in our priorities.

14. The commitment to not raise Welsh Rates of Income Tax from families feeling the impacts of the coronavirus pandemic; the work we are prioritising on strengthening the Welsh tax base; and our continuing work with the UK government to introduce a plastics packaging tax for 2022 are all ways in which we consistently seek to meet immediate needs whilst retaining a focus on the longer-term.

15. Following the 2021 Senedd elections, the First Minister published the Welsh Government’s Programme for Government – 2021-2026. The Programme for Government is ambitious and radical, recognising the scale of activity required as we recover from and begin to look beyond the unprecedented impact of the coronavirus pandemic, as well as our changed placed in the world after Brexit. In fundamentals however, it remains true to the distinctly Welsh values of community, equality and social justice.

16. Building upon our commitment to achieve a carbon neutral public sector by 2030, our Programme for Government makes the need to tackle the climate and nature emergency integral to all our activity. The Programme for Government commits to ensuring we ‘embed our response to the climate and nature emergency in everything we do’. The vision for a net zero carbon Wales continues to drive activity as set out in the net zero carbon plan and the new 10-year Wales Infrastructure Investment Plan where the ambition for a zero-carbon economy is paramount.

17. Our tax policy priorities (set out later in this document) align with the commitments in the Programme for Government. Tax policy will play its role in addressing the climate and nature emergency, too. However, we recognise that changing behaviour through specific taxes (such as exploratory work on a disposable plastic tax) is not enough. We must take every opportunity to make our tax system green, fair, and inclusive.

18. Tax policy and our tax system will play its part in tackling the climate and nature emergency by consistently designing in the features that make tax collection and management as green as possible. Working in an integrated and joined up way where possible and appropriate, we will look to incentivise behaviours that support our green ambitions. In this way, we will ensure our work leads to practical and meaningful improvements for people living in Wales.

19. The Welsh Government has 5 core tax principles which serve to ensure a consistent and strategic approach to tax policy development and delivery in Wales. The consistent assessment and application of these principles provides for the alignment of tax policies with wider Welsh Government objectives. Our taxes also need to operate coherently and cohesively as part of a wider UK tax and benefits system. Aligning our approach against these core principles should ensure we are better able to address the wider needs of Welsh citizens and businesses.

    Welsh taxes should:

    • Raise revenue to fund public services as fairly as possible.
    • Deliver Welsh Government policy objectives.
    • Be clear, stable and simple.
    • Be developed through collaboration and involvement.
    • Contribute directly to the Well Being of Future Generations Act goal of creating a more equal Wales.
       

20. Our tax principles reflect the Welsh Government’s values and objectives. They provide the platform from which we can build into our thinking and policy formulation sustainability considerations; and the importance of ensuring Welsh taxes remain proportionate and progressive (discussed further below). As such, together with our tax approach, our tax principles provide a clear set of criteria from which to assess the contribution of tax policy and our wider tax system in creating a green, fair and inclusive Wales.

21. In the same way that our tax principles shape Welsh taxes and serve to bring coherence to the way Welsh taxes operate within the wider tax system, we are committed to ensuring consistency and coherence in the way we develop and deliver our tax policy priorities.

22. We will continue to act in accordance with the Sustainable Development Principle so that we meet the needs of current generations without compromising the ability of future generations to meet their own needs. This means using the five ways of working (see earlier) from the Well-being of Future Generations framework as the basis of how we will deliver our ambitions.

23. Our stakeholders and partners will recognise the value we place on communication, learning from experts and working collaboratively. While the way we approach and deliver our work is not new, we take the opportunity here to set out the way we do tax in Wales. Presented below as a set of values, ‘our tax approach’ aligns with our tax principles and bring greater rigour to our tax policy framework.

24. In developing and delivering our tax policy priorities we will:

    • Co-produce our tax policy proposals, collaborating with our partners to ensure proposals align with effective wider policy objectives and delivery mechanisms and ensure alignment with budgetary considerations in respect of taxation and spend.
    • Seek to mainstream tax and tax policy thinking by taking an integrated approach through greater joining-up across the Welsh Government and with our partners and delivery agencies, to drive delivery of national and local policy objectives.
    • Ensure evidence-based policy development, implementation; and evaluation by drawing on the widest range of information and data available to inform our work, including sourcing and collecting new data as appropriate. In this way we will seek to understand the root causes of issues to prevent problems from occurring or getting worse.
    • Adopt an integrated approach to undertake distributional and impact analysis (see Budget improvement plan) where possible to ensure tax policy is progressive and proportionate in the round, taking account of our responsibilities under the socio-economic duty, thereby positing that those with the broadest shoulders contribute the most.
    • In looking to the long term we will understand the key drivers and trends likely to affect tax policy in the coming years.
    • Place environmental sustainability considerations at the heart of our tax policy deliberations, providing the necessary platform for delivering the Welsh Government’s key commitments in respect of decarbonisation and delivering a net zero carbon Wales.
    • Work to increase awareness and understanding of Welsh taxes to enable more citizens to remain informed and get involved in revenue raising and spending priority debates and decisions that affect them.
    • Ensure our responsibilities in respect of the Well-being of Future Generations (Wales) Act 2015 remain integral to policy development, delivering the right outcomes for Wales.
       

25. In Wales, we have a long history and an established culture of working together, learning from others and keeping our stakeholders informed of our objectives and progress. Our Tax Policy Framework recognises that fiscal and tax devolution to Wales provided for new areas of work and therefore, new opportunities to develop and strengthen direct engagement and relationships with citizens, businesses, partners and stakeholders.

26. As we continue to make progress on this journey, we will take every opportunity to embed a strategic, and distinct Welsh approach to the way we do tax here in Wales. This means fostering a good understanding and effective engagement across national, devolved and local government; taxpayers; and the wider socio-economic environment in which we all co-exist. It means sharing good practice and lessons learnt from local government, the WRA, HMRC, the devolved administrations and internationally.

27. We will continue to constructively engage with the UK government as we press for continued and stable tax devolution to Wales, and as we develop policy that fits within the wider tax and benefit system.

28. Our commitment to evidence based policy making recognises the crucial role evidence plays at the different stages of the policy process:

    • Planning – identifying the need to intervene, understanding the population of interest, identifying options and helping to appraise them, and learning ‘what works’ from past experience in Wales and elsewhere. This includes understanding Wales’ future and the trends and drivers that may affect tax policy in the future.
    • Implementation – assessing the understanding of the policy, identifying barriers and addressing successful implementation and identifying and sharing good practice.
    • Monitoring and impact evaluation – assessing whether the policy is delivering its intended outcomes and any unintended consequences, assessing whether the policy is providing the best value for money.
       

29. Our approach involves engaging the research capacity and expertise within Welsh Government, working with partners in devolved and national governments, developing our link with international stakeholders and, where appropriate, commissioning external research and evaluation. Previous examples include working with the Wales Fiscal Commission, the Office for Budget Responsibility and the Organisation for Economic Co-operation and Development (OECD).

30. The Well-being of Future Generations Act’s 5 ways of working provide for the practical application of the sustainable development principle where we seek to balance the needs of current generations without compromising the ability of future generations to meet their own needs. These are embedded in our tax approach as set out above.

31. The importance of sustainability considerations in all our thinking, activity, and outcomes has become critical as we simultaneously seek to stretch our resources to continue to manage the implications of the coronavirus pandemic whilst seeking to mobilise activity with pace to tackle the climate emergency. Going forward we will strengthen the way tax policy work takes account of, assesses, and furthers our commitments in respect of sustainability and the wider response to the climate and nature emergency.

32. There are 3 ways in which we will embed sustainability into our tax policy development work.

    1. The first is through rigorously applying the Well-being of Future Generations Act’s sustainable development principle in our tax policy-making.
    2. The second is through the continued prioritisation of specific tax ideas which can directly impact on our environmental commitments. An immediate priority remains to work with the UK government on the development of primary powers in the UK Environment Bill for single-use plastic charges.
    3. The third way in which we will work to embed our response to the climate and nature emergency in tax policy is through the manifestation of our tax principles and approach.
        

33. We recognise taxes represent an important lever through which we can deliver specific policy objectives; change behaviour; and of course raise revenue to support our valued public services. However, taxes will not be the most appropriate tool for delivering objectives in all circumstances. By working to mainstream thinking about taxation, specific taxes, and tax policy more generally across Welsh Government, we can support the delivery of wider Programme for Government commitments.

34. We can seek to “embed our response to the climate and nature emergency in everything we do” by working with other policy areas to maximise how the tax system can support our efforts to tackle the climate and nature emergency. This approach will encourage greater collaboration, innovation and efficiency in delivering national policy objectives.

35. Taxes present an important lever for the Welsh Government to use in realising some of its objectives. However, the driving ambition remains to build an equal Wales – an equally prosperous, resilient and healthy Wales for all our citizens. As we rebuild from the impacts of the coronavirus pandemic we need to ensure that our communities hardest hit do not continue to feel the cumulative impacts of social and economic disadvantage.

36. The Socio-economic Duty came into force in Wales in March 2021 and provides another vital tool in supporting our efforts to reduce social and economic inequality and thereby deliver improved outcomes for all. We will adhere to the requirements of the Socio-economic Duty in all our tax policy formulations, recognising its value in adding rigour to our integrated impact assessment processes. We will embed the Duty in the development of tax policy by gathering and considering the full range of evidence, and consulting widely to better understand the needs of those affected and assess the potential socio-economic impact on different groups.

37. We recognise the place of tax to both raise revenue for essential public services as well as providing a tool through which to shape and deliver policy objectives. Striving for progressivity and ensuring tax burdens remain proportionate to the ability to pay are fundamental to the way in which we will ensure our taxes are fiscally sustainable and enable progressive spending across Wales. We will seek to strengthen wider understanding of the link between taxation and revenue raising; and our budget and spending decisions. This means thinking progressively in the round.

38. We will continue to work with our partners to develop our capability to undertake distributional analysis on the impact of taxation and the impact of public spending across the income distribution to inform strategic fiscal decisions. In time, and as we develop our capability in this area, our approach will provide important data to further inform our considerations around socio-economic disadvantage and support activity to reduce inequalities of outcome in line with the Socio-economic Duty.

39. A significant proportion of the funding for our public services comes from local taxes and devolved taxes collected in Wales. These are:

    • council tax
    • non-domestic rates (NDR)
    • land transaction tax (LTT)
    • landfill disposals tax (LDT), and
    • Welsh rates of income tax (WRIT)
       

40. Prior to the devolution of certain tax powers to Wales, the Welsh budget was funded primarily through the block grant from the UK government. A fiscal framework was agreed between the Welsh Government and the UK government to take account of the devolution of specific Welsh taxes and for the appropriate adjustment of the block grant to Wales.

41. Local authorities have been collecting local taxes for a number of decades with council tax and non-domestic rates contributing significant revenues, which help to fund vital local authority services including education, social care, housing and policing. Revenues from these 2 local taxes must fund local authority expenditure. While non-domestic rates is collected and administered locally, it features in the Welsh Budget allocations as Annually Managed Expenditure, primarily due to the distributive arrangements required as part of the annual Local Government Settlements. Council tax is set and administered by local authorities within an established legal framework.

42. Chart 1 depicts the Supplementary Budget for 2021-2022 and illustrates the contribution Welsh taxes make to the budget available to Welsh Government to spend on delivering public services in Wales. Council tax sits outside the Welsh Government Budget and generates another £1.9 billion (after reductions). The £19.9 billion budget is made up of Welsh rates of income tax 10%, land transaction tax and landfill disposals tax 2%, non-domestic rates 6%, borrowing and reserve drawdown 1%, and block grant 81%.

43. Welsh taxes remain an important lever through which the Welsh Government can raise revenues to distribute in line with its spending priorities to for example, tackle inequality and address the climate emergency. Therefore, the strategic development and delivery of existing Welsh taxes and any future taxes needs to align and integrate with the wider fiscal and budget strategy and delivery.

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44. The first Tax Policy Framework (2017), set out our strategic approach to delivering tax policy in Wales. Four years on, this update provides the opportunity to restate our continuing commitment to engagement, research, analysis and learning with our partners to progress our core priorities for taxes and tax policy development in Wales. Alongside these existing priorities, our programme of work reflects the specific commitments in respect of Welsh taxes contained in the Programme for Government.

45. These priorities include:

    • Not take more in Welsh Rates of Income Tax from Welsh families for at least as long as the economic impact of coronavirus lasts.
    • Seek to reform council tax to ensure a fairer system for all.
    • Consult on legislation permitting local authorities to raise a tourism levy.
    • Explore and develop effective tax, planning and housing measures – which could include local rates of Land Transaction Tax – to ensure the interests of local people are protected.
    • Keep the 1% increase in Land Transaction Tax charged on second home purchases.
    • Make the case for clear and stable tax devolution in Wales whilst pursuing agreement with the UK government on a fit for purpose mechanism for devolving new tax powers to Wales.
    • Continuing to manage Welsh taxes, working collaboratively with our delivery partners including the Welsh Revenue Authority, local government, HMRC and the Valuation Office Agency within a wider UK context.
    • Prioritising activity to better understand and strengthen the Welsh tax base, particularly in the context of the coronavirus pandemic.
    • Undertaking independent and objective reviews of Land Transaction Tax and Landfill Disposals Tax to inform any necessary improvements to their policy and operational delivery.
    • Delivering the Bill on Enabling Changes to Welsh Tax Acts.
    • Exploring and implementing creative opportunities to raise wider awareness of taxes alongside improving awareness and engagement around Welsh budgets.
       

46. The policy development and delivery process can span multiple calendar years. Therefore, to increase transparency and enable real and valuable input and engagement with our work, we have set out our tax policy priorities for the next 5 years in our strategic tax policy work plan for 2021 – 2026. This represents a move away from the process of publishing annual work plans although we will continue to formally report on progress on an annual basis.

47. Recognising the importance of our tax powers and abilities in increasing democratic accountability and strengthening that direct relationship between the Welsh Government and taxpayers, we will continue our efforts to raise wider awareness of Welsh taxes and tax policies across Wales.

48. All citizens in Wales have a stake in Welsh taxes, whether as taxpayers or as beneficiaries of public services funded through taxation, or both. As the Welsh Government continues to develop its tax capabilities, there is a need to engage widely, to secure views and advice to help shape future plans, and to assist sectors of Welsh society to understand what the Welsh Government is seeking to achieve. Engagement with communities and businesses, and the organisations who can represent their views and experiences, is fundamental to the Welsh Government’s approach.

49. We have established a clear process of engaging and involving tax and sector specific experts, our partners and other stakeholders in the formulation of tax policy. We will continue to work collaboratively in this way. We will proactively engage stakeholders through a variety of channels, with the aim of drawing on their expertise and knowledge to effectively co-design, co-produce and co-deliver tax policy which fits the Welsh context.

50. Engagement is an integral aspect of developing tax policy and we will seek to expand and enhance our channels as listed below, to ensure we engage meaningfully with the widest audience possible. Our engagement channels include:

    Formal Consultation Processes

    We will continue to undertake both targeted and open public consultations in the development of tax policy. Targeted consultation will include those deemed to be impacted by the respective tax proposal.

    Tax Engagement Group

    The Welsh Government’s Tax Engagement Group is a forum of professional and practitioner experts who come together to consider and advise on the potential impacts on communities and businesses in Wales of existing and emerging developments in Welsh tax policy, legislation and administration, and for identifying opportunities to increase wider understanding of Welsh tax policy.

    Annual Tax Conference

    The Welsh Government’s annual tax conference is another important mechanism for engaging with key stakeholder groups and individuals on tax policy in Wales.

    Public and Taxpayer Engagement

    We will seek to engage with the public and taxpayers to raise awareness and provide updates about public spending and taxation in Wales via the Welsh Government’s website and through social media on our twitter channels @WelshTreasury and @TrysorlysCymru.

    Academic community

    We will continue to seek independent and academic input into tax policy ideas to help us evaluate choices and the impacts of our decisions.

51. Taxes can serve different purposes from raising revenue to influencing behaviour to shape and deliver specific outcomes. In taking forward activity across the different Welsh taxes and range of tax policy proposals we will clearly articulate the specific policy objective for individual tax policies. This discipline will provide for a robust tax policy-making process. We will also seek to consistently apply project management principles to the development of our tax policy priorities and work streams, which will facilitate annual reporting against progress.

52. We had previously published annual work plans presenting our policy aspirations for Welsh taxes and tax reform. However, this update to our Tax Policy Framework already sets out the Welsh Government’s strategic commitments in respect of taxation. We will prioritise these strategic commitments over the course of this 5-year Senedd term. Therefore, as we situate taxation and align and integrate tax policy development and delivery within the wider Welsh Government fiscal and budget processes, we will embed the discipline of working across the Welsh Government to publish details of our tax plans alongside our spending plans, and provide progress reports on our strategic tax priorities to inform key fiscal events. This discipline will ensure transparency in delivering our fiscal strategy.