A green paper published in Cardiff sets out options for reforming the process for altering Land Transaction Tax and Landfill Disposals Tax, which together raise substantial sums for Welsh public services.
At present, some changes require a full Act of the Senedd, while others can be made through regulations. Ministers say the current system can be too slow to respond to urgent issues such as tax avoidance schemes or changes to equivalent UK taxes.
One option under consideration is an annual Welsh finance bill — the equivalent of Westminster’s Finance Act, which is the legislation that follows the UK Government’s Budget and turns tax measures into law. This is separate from the Budget speech itself, and is the formal process by which changes announced by the Chancellor each year are enacted.
Other options include expanding existing powers under the Welsh Tax Acts (Power to Modify) Act 2022, allowing ministers to make more changes by regulation — a proposal likely to spark debate over scrutiny and accountability.
Finance Secretary and former First Minister, Mark Drakeford said:
“Our Welsh taxes play a crucial role in funding the public services that matter to people across Wales. It’s important we have the right mechanisms in place to keep our tax system fair, effective and responsive to change. At the same time, we must ensure that the mechanism is appropriately scrutinised by the Senedd.
This consultation is about finding the best way forward for Wales – whether that’s through annual tax bills, different legislative processes, or improving our current system. I encourage anyone with an interest in how Wales manages its finances to have their say.”
The consultation runs until 28 November 2025, with findings due early next year. Any reforms could have a lasting impact on how quickly — and by whom — tax rules in Wales are rewritten.
