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Politics

Conservatives promise tax cuts

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rtdaviesANDREW RT DAVIES continued to hone his vision of Wales as the ‘low tax capital of the Union’ as he claimed that Plaid Cymru would raise income tax in Wales.

Referring to an interview Ms Wood gave to Andrew Neill after the Chancellor’s Spending Review last week, Mr Davies claimed that “Within minutes of the Chancellor’s announcement, Leanne Wood admitted that she plans to use the new tax levers to raise additional funds, that a Plaid administration would hike your taxes.”

Ms Wood said that as a priority, Plaid Cymru would ‘maximise the amount of money in the budget to spend on public services.’

In response to a question about taxation, Ms Wood said that she was not in a position to give that information at this point in time.

When asked whether she would raise taxes, Ms Wood pointed out that there were different rates of tax, and Plaid would look at what they intended to do with each of those.

“If you leave the tax rates as they are, as there is every chance that we could, the fact that you are investing in job creation and are then able to realise the benefits – that is the purpose of having income tax powers,” she added.

However, the leader of the Welsh Conservatives, Andrew RT Davies, saw instead the potential for tax breaks:

“The Chancellor’s announcements on income tax present us with an opportunity to break the mould, to think radically and offer hardworking families the support they need,” he said.

“I can categorically say that no Welsh Conservative Government under my leadership would ever use these powers to raise your taxes.

“Welsh Labour has no interest in taking responsibility for the money it spends and raises. The current arrangement suits them, because it allows them to shirk responsibility, blaming everyone but themselves for years of managed decline.”

Mr Davies pointed at his party’s record of removing tax obligations from the low-paid: “Conservatives in Government have already taken almost 160,000 people out of paying tax, and the Welsh Conservatives are now putting plans in place to deliver a cut in the basic rate of income tax.

“I want to be clear. Hardworking families would benefit under a Welsh Conservative Government.

“We’ve already pledged to scrap stamp duty on all properties valued up to £250,000 for first-time buyers. We now have an opportunity to be just as radical with income tax and it’ll mean more money for every family in Wales.”

An income of around £60,000 PA would be necessary to get a mortgage on a £250,000 home. However, Mr Davies was happy to pledge further benefits to struggling members of the middle class: “It’s also crucial to look at a cut to the higher ‘aspirational’ rate, which has the potential to benefit small businesses, create job opportunities and boost economic growth,” he added. The aspirational rate is thought to refer to the 40p tax rate, which applies to those earning over £41,000PA.

“Whilst Leanne Wood will be going into this election planning to raise your taxes, Welsh Conservatives will be campaigning to make Wales the low tax capital of the Union,” Mr Davies added.

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News

Delays to Wales’ tribunal system ‘deeply troubling’

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SENEDD Members urged ministers to press ahead with urgently needed reforms of the Welsh tribunal system or risk leaving the courts unable to cope with demand.

Adam Price, Plaid Cymru’s shadow justice minister, warned the clock is ticking on the Welsh Government’s proposals to modernise and unify Wales’ tribunal system.

The proposals followed 2021 recommendations for reform from the Law Commission, which warned the devolved tribunals evolved haphazardly and “it is difficult to call them a ‘system’”.

But, with only a year to go until the next Senedd election, the Welsh Government has rejected calls to commit to bringing forward a tribunal bill before the end of term.

Mr Price, whose partner is a judge in the non-devolved tribunal system, described ministers’ refusal to commit to the “absolutely crucial” legislation as deeply troubling.

“We need this legislation now,” he said. “It’s essential to resolve the significant operational, financial and administrative challenges facing Welsh tribunals today.

“Delaying this essential legislation is not prudent governance. It’s negligence, actually.

“It risks leaving our tribunals unable to cope with current demands, let alone future responsibilities, such as youth justice or education appeals. It weakens Wales’ justice infrastructure and compromises our commitment to fair and accessible justice.”

Contributing to a debate on the Welsh tribunal president’s annual report, Mr Price called for full transparency around plans to devolve further parts of the justice system to Wales.

He said: “Anything less, in our view, would be an abdication of responsibility – leaving Wales’ justice system underserved, undervalued and ill-prepared for the challenges ahead.”

Labour’s Mike Hedges, who chairs the Senedd’s justice committee, similarly stressed the importance of introducing legislation on tribunals as soon as possible.

Labour MS Mike Hedges
Labour MS Mike Hedges

The Tories’ Paul Davies echoed this position. He also raised concerns about training, with the judicial college having no remit to train devolved tribunal members.

“My concern is this mirrors slow progress with the reform of the Welsh tribunals,” he said.

He added that use of the Welsh language remains low in the legal system.

Mr ab Owen warned: “If it doesn’t happen before the 2026 election, there is no guarantee that it will happen at all. I think it’s quite something how strongly in favour the president of the Welsh tribunals was for reform in his report – that cannot be ignored.”

Responding to the debate on March 11, Julie James said the First Minister will make a statement on the Welsh Government’s legislative plans shortly after Easter.

Julie James MS, counsel general designate and minister for delivery
Julie James MS, counsel general and minister for delivery

Ms James, who is counsel general, the Welsh Government’s chief legal adviser, said: “We’re still fully committed to reforming the devolved tribunals.

“But I’m not in a position to say yet whether the tribunals Bill will make it into that programme. There is much competition for space in year five.”

Ms James told the Senedd the Welsh tribunals budget has increased from £4.1m to £6m.

“That’s a real commitment to making sure our tribunals have the resources they need,” she said. “We’ve reinstated pay parity for tribunal members, with an 8% uplift, bringing their pay in line with those in the reserved system.”

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Climate

Kurtz Champions green energy at Empower Cymru 2025 conference

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SAMUEL KURTZ Member of the Senedd for Carmarthen West and South Pembrokeshire, delivered the closing address at the Empower Cymru 2025 conference this week.

The event, held at Techniquest in Cardiff, brought together industry professionals from wind and solar energy, oil and gas, education providers, and other key stakeholders to discuss the future of Wales’ energy sector.

Closing the conference, the Shadow Cabinet Secretary for Economy and Energy highlighted the prosperity that energy production can bring to communities that have long felt left behind.

He reaffirmed his commitment to advocating for pragmatic policies that encourage investment in renewable energy, including hydrogen production and carbon captur, while being realistic about Wales’ need for oil and gas for the foreseeable future.

Speaking after the event, he said: “It was fantastic to see so many people from across the energy sector come together to discuss Wales’ future. We have talked at length about our country’s incredible potential for renewables, thanks in part to our extensive coastline and access to the Celtic Sea, but now is the time for action.

“If we can demonstrate that Wales is open for business, we can attract investment in infrastructure and education, ensuring secure energy supplies, creating green jobs, and generating prosperity for our local communities.

“For too long, industrial decline has led to fewer job opportunities and economic stagnation in parts of Wales. By embracing energy production, we have the chance to reverse that trend, revitalise our economy, and safeguard our economic and energy security during these turbulent times.”

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News

Banks accredited as part of scheme to protect SME construction payments

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THREE high street banks have achieved special recognition as part of a Welsh Government scheme to protect payments to SMEs on large scale public sector construction projects.

Barclays, NatWest and Lloyds have all been declared Nominated Service Providers, after meeting new criteria for the Project Bank Accounts (PBA) initiative.

PBAs are ring-fenced bank accounts which ensure supply chain construction businesses involved in public sector schemes receive payment in five days or less. This helps ease cash flow when traditional payment timescales for subcontractors not using PBAs can be up to 90 days. PBAs also protect payments against insolvency.

SMEs using the three accredited banks can be confident they will receive a high level of support when setting up PBAs.

The Cabinet Secretary for Finance and Welsh Language, Mark Drakeford, said: “Project Bank Accounts offer strong support to our construction industry. By ensuring SMEs receive payments within five days, we’re providing cash flow protection that helps these businesses thrive.

“Having three major banks now accredited as Nominated Service Providers strengthens this initiative, giving SMEs the confidence and support they need.”

PBAs are a condition of funding on all in scope Welsh Government construction projects and are encouraged as best practice for the wider public sector.

The Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans, said:

“Construction-based SMEs in Wales have told us that long waits and chasing late payments burdens their businesses and prevents them from expanding and securing new contracts.

“We have worked with the banking sector to address this issue and I am delighted Barclays, NatWest and Lloyds are the first three banks to meet the new criteria of this scheme.”

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