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Home Publications Fair funding for taxing times? Assessing the fiscal framework agreement

Fair funding for taxing times? Assessing the fiscal framework agreement

External publication

After several months of negotiations, on 19 December 2016 the UK and Welsh governments announced that they had reached agreement on a new set of rules governing the funding and fiscal powers of the Welsh Government. This ‘Fiscal Framework’ will have far-reaching implications for the future funding of Wales and was prompted by the need to consider how previously-announced tax devolution would be implemented.

This report, the third and final joint report in a series by researchers at the Wales Governance Centre and the Institute for Fiscal Studies, aims to shed light on the agreement by explaining the deal and assessing its likely consequences for Wales’ funding.



It describes and analyses the agreed block grant funding arrangements, and provides projections of the likely financial impact on the Welsh budget and relative spending per person in Wales. It also discusses the agreed changes to the Welsh Government’s borrowing and budget management tools, and evaluates how policy spill-overs and disputes will be dealt with under the agreement, and the new institutional arrangements that will be established.

 

Find out more

Presentation
Presentation given to the Welsh Assembly Finance Committee discussing the background to good tax design, tax devolution, and the need for a new fiscal framework (including adjustments to block grant funding) to accompany tax devolution.
External publication
This report outlines the key issues negotiations should consider when it comes to 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.