External publications

For Wales don’t (always) see Scotland: adjusting the Welsh block grant after tax devolution

Date: 24 October 2016
Authors:
Publisher: Wales Governance Centre at Cardiff University

The newly created Joint Exchequer Committee (bringing together Welsh Government and Treasury Ministers) is responsible for the negotiation of the new Fiscal Framework that is needed as taxes are devolved to Wales.

This report, produced with the Wales Governance Centre at Cardiff University, outlines the key issues these negotiations should consider when it comes to one of the trickiest decisions: how to adjust the block grant funding Wales currently receives to account for the newly devolved revenues, and how to update these adjustments over time. This decision is at the heart of ensuring tax devolution happens in a way that is seen as fair to both Wales and the rest of the UK.

The report argues that differences between the Welsh and the Scottish economies, and between their devolution settlements, mean that the model agreed between the Treasury and the Scottish Government is unlikely to be the right one for Wales.