Politics
Ministers seek views on future of Welsh tax as clock ticks on ‘sunset clause’
MINISTERS are asking for public input on the future of tax legislation as a deadline approaches for the expiry of temporary powers granted to the Welsh Government.
Mark Drakeford, Wales’ finance secretary, said current powers to rapidly amend tax law in response to UK budget or court decisions will lapse in 2027 under a “sunset clause”.
In a statement on the future of tax-making powers, the ex-First Minister revealed the Senedd may be asked to vote on extending a temporary law until a permanent fix is found.
Prof Drakeford pointed out it is less than a decade since Wales gained new tax powers for the first time in hundreds of years, with land transaction tax replacing stamp duty in 2018.
He told the Senedd: “It is not surprising, therefore, that we continue to grapple with some of the practical ways in which those powers can best be discharged.”
He said the Welsh Government’s green paper, which includes options rather than firm plans, will be a starting point in the conversation – helping to shape more specific proposals.
Prof Drakeford explained current powers, under the Welsh Tax Acts (Power to Modify) Act 2022, end in September 2027 and can be extended to April 2031 at the latest.
He told Senedd Members: “The green paper asks if it would promote stable governance if that extension were to be voted upon in this Senedd term… to allow an incoming government sufficient time to complete the exercise that this green paper begins.”
During his statement on September 16, he stressed the need to respond quickly to changes to “predecessor” UK taxes, like stamp duty, with the risk arising at every UK budget.
The green paper explores options including an annual Welsh finance bill, an occasional tax bill, a new ‘power to modify’ law or relying on slower mechanisms that predate the 2022 Act.
Whichever path is taken, the paper suggests a similar mechanism to the UK’s Provisional Collection of Taxes Act will be required. This would allow a change to take near-immediate effect after being announced, preventing forestalling, with the full law passed later.
Land transactions tax and landfill disposals tax have raised more than £2bn to fund public services so far while the partial devolution of income tax has raised more than £15bn.

The Conservatives’ Sam Rowlands said: “What’s been proposed for consideration in this consultation could be beyond just an administrative tidy-up; it’s a move that could have far-reaching consequences for the clarity, stability and transparency of Welsh tax policy.
“Ultimately, it raises a very simple question… about how much scrutiny that process of changing tax laws in Wales will be subject to.”
Plaid Cymru’s Heledd Fychan welcomed the consultation, which runs until November 28, urging ministers to learn from international examples like the Basque economic agreement.

Crime
Welsh Lib Dems urge ministers to rethink rates relief for struggling pubs and cafés
Calls grow for Welsh Government to match support offered to English venues
THE WELSH LIBERAL DEMOCRATS have urged the Welsh Government to review its business rates policy, warning that scaling back support for pubs and hospitality risks further closures across towns and villages.
Party leader Jane Dodds, who represents Mid and West Wales in the Senedd Cymru, said ministers should act quickly to protect local venues after additional support for pubs and music venues was announced for England by the UK Government.
The measures announced by the Chancellor do not automatically apply in Wales, leaving uncertainty over whether similar help will be introduced here.
Hospitality businesses across Pembrokeshire and Carmarthenshire have already reported rising energy bills, higher wage costs and reduced footfall since the pandemic. From April, current business rates relief is expected to be reduced, a move the Liberal Democrats say could place Welsh firms at a disadvantage compared with competitors over the border.
Dodds said that pubs, cafés and restaurants form “the heart of our communities” and warned that withdrawing relief now would be “a serious mistake”.
She told the Senedd that support “cannot stop at pubs alone” and should extend to the wider hospitality sector, including restaurants and family venues that rely heavily on seasonal trade and tourism.
“When questioned, the First Minister said she needed to examine the details of the English package before committing to anything similar for Wales,” Dodds said. “Without urgent action, we risk losing viable, well-loved businesses that communities simply cannot afford to lose.”
The party is also calling for UK-wide action, including a temporary reduction in VAT for hospitality and tourism, funded by a windfall tax on large banks.
However, Welsh Government sources have previously argued that decisions on rates relief must be balanced against pressures on public finances, with ministers required to prioritise health, education and other frontline services within a fixed budget. They have said any additional support would need to be affordable and targeted.
Industry bodies have echoed concerns about the challenges facing the sector. Trade groups say many independent pubs and cafés continue to operate on tight margins, particularly in rural areas where they serve as community hubs as well as businesses.
Local operators say clarity is now key, with decisions on staffing, stock and opening hours often planned months in advance.
With the next financial year approaching, hospitality owners will be watching closely to see whether Wales mirrors England’s support – or leaves businesses to absorb the extra costs alone.
international news
Mandelson quits Labour over Epstein controversy
Former cabinet minister says stepping down is ‘in best interests of the party’ as questions raised over historic payments
LORD MANDLESON has resigned his membership of the Labour Party, saying he does not want to cause “further embarrassment” following renewed controversy over his past links to convicted sex offender Jeffrey Epstein.
The former cabinet minister and one-time UK ambassador to the United States confirmed his decision in a letter to Labour’s general secretary after fresh documents released by the US Department of Justice appeared to reference him in connection with Epstein’s finances.
The files suggest that three payments of $25,000 — totalling $75,000, about £55,000 at today’s exchange rates — were allegedly made to Peter Mandelson in 2003 and 2004.
Lord Mandelson said he had “no record or recollection” of the transactions and believes the allegations may be false, but intends to investigate the matter himself.
In his resignation letter, he wrote that he felt “regretful and sorry” to be linked again to what he described as the “understandable furore” surrounding Epstein.
He added that stepping down from party membership was the responsible course of action while he reviewed the claims.
“I do not wish to cause further embarrassment to the Labour Party,” he said. “I have dedicated my life to the values and success of the party and believe I am acting in its best interests.”
Ambassador role ended
Lord Mandelson had been appointed the UK’s ambassador to Washington by Prime Minister Keir Starmer in December 2024.
However, he was removed from the post last year after earlier revelations about his past friendship and contact with Epstein, including emails showing communication after the financier’s 2008 conviction.
The latest release of files has also included photographs said to show Lord Mandelson alongside an unidentified woman. He said he could not place the location or circumstances of the images.
There is no suggestion that appearing in the documents or photographs indicates criminal wrongdoing.
‘Deep regret’
Earlier this weekend, Lord Mandelson reiterated his regret for ever having known Epstein and apologised “unequivocally” to the women and girls who suffered abuse.
“I want to repeat my apology to the women and girls whose voices should have been heard long before now,” he said.
Epstein died in prison in 2019 while awaiting trial on sex trafficking charges, but investigations into his network of associates continue to generate political fallout on both sides of the Atlantic.
Labour has not yet issued a detailed statement beyond confirming it had received Lord Mandelson’s resignation.

News
Policing powers stay with Westminster as devolution debate reignites in Wales
THE UK GOVERNMENT has ruled out handing control of policing and criminal justice to Wales, triggering fresh political debate over whether the Senedd should ever take responsibility for law and order.
South Wales Central Conservative MS Andrew RT Davies said ministers were “right” to block further devolution, warning that separating Welsh forces from England would weaken efforts to tackle organised and cross-border crime.
His comments follow an exchange in the House of Commons, where Liz Saville-Roberts pressed the Home Secretary on transferring powers to Cardiff Bay. The Government confirmed it does not believe policing and criminal justice should be devolved.

“Must reflect the reality on the ground”
Mr Davies said proposals from Plaid Cymru and other devolution campaigners ignore how crime and communities operate in practice.
“The Senedd must not be put in charge of policing,” he said.
“Senedd ministers have an appalling track record on law and order. As senior police officers say, reforms must reflect the reality that many Welsh communities look east towards England far more than they do to other parts of Wales.”
Senior officers have echoed that concern.
Amanda Blackman, Chief Constable of North Wales Police, recently said her force area is “very much connected from a criminality perspective” to Merseyside and Cheshire.
“Our population move, if you like, is more east to west, west to east than it is north to south,” she said, pointing to the daily flow of commuters, shoppers and offenders across the border.
Long-running constitutional argument
Wales currently has four territorial forces – Dyfed-Powys, South Wales, Gwent and North Wales – but funding, legislation, prisons and the courts all remain under Westminster control.
Supporters of devolution argue this creates a “jagged” system, where services like health, housing and education are run by the Senedd but justice is not.
Plaid Cymru has repeatedly called for Wales to follow Scotland and Northern Ireland, both of which run their own justice systems.
They say decisions made in Cardiff could better reflect Welsh priorities, invest more in prevention, and link policing with mental health, youth services and social care.
A Plaid source said: “Communities in Wales should not have to rely on London to decide how their streets are policed. Justice should sit alongside the other services that deal with the causes of crime.”
Cost and complexity concerns
But critics warn that splitting away from England could come at a high price.
Establishing a separate legal and prison system would mean new administrative structures, courts oversight, inspection bodies and funding arrangements.
There are also practical questions around serious organised crime, counter-terrorism and specialist units that currently operate across England and Wales.
Former policing leaders have previously cautioned that criminals do not respect borders, and intelligence-sharing could become more complicated if systems diverge.
For rural areas such as Mid and West Wales, including Pembrokeshire, officers often work closely with English counterparts on drugs, county lines and cross-border burglary gangs.
Little appetite for change – for now
With the current Government making clear it has no plans to devolve the powers, the issue appears unlikely to change in the short term.
However, with constitutional reform regularly debated ahead of future elections, policing remains a live political question.
For now, responsibility for law and order stays firmly with Westminster – but the argument over who should control Wales’ justice system looks set to continue.
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