The Joint Exchequer Committee (Wales) met yesterday (24 October 2016) to continue talks about the funding arrangements to be established when new tax powers are devolved to the National Assembly for Wales. Stamp duty land tax and landfill tax will be devolved in April 2018 and the Wales Act 2014 enables the partial devolution of income tax.
The UK government was represented by the Chief Secretary to the Treasury the Rt Hon David Gauke MP and the Welsh government was represented by the Cabinet Secretary for Finance and Local Government Professor Mark Drakeford AM.
The ministers had a constructive discussion about a range of options for the new funding arrangements. In particular, they considered how the block grant adjustment in relation to tax devolution should interact with the Barnett formula and the funding floor.
Ministers also discussed the circumstances under which spill-over effects from tax policy decisions should lead to a transfer of funding between governments.
The next meeting of the JEC will take place in November, after the UK government’s Autumn Statement.