Air Passenger Duty (APD) - First Minister Responds to UK Government Decision not to devolve APD15/12/2017 As part of the St David’s Day Agreement (Feb 2015) on the future of devolution in Wales the UK Government announced that it would consider the case for devolving APD to the National Assembly, however on the 29 March 2017 David Gauke MP, former Chief Secretary to the Treasury, wrote to Mark Drakeford AM confirming that the UK Government’s would not devolve APD to Wales based on responses to the Treasury’s consultation and on HMRC analysis. The First Minister has written to Theresa May PM to object to that decision, the letter is attached in the link below.
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Finance Secretary Mark Drakeford has announced that a permanent Small Business Rates Relief scheme (SBRR) will be introduced from 1 April 2018. The scheme will continue to be developed during 2018/19, the Welsh Government will provide additional relief for certain businesses, including £5m of support to continue the temporary High Street Rates Relief scheme into 2018-19 and an additional £1.3m funding to local authorities, for them to use their discretionary powers to provide targeted relief to support local businesses which would benefit most from additional assistance.
The number of properties eligible for small business rates relief will be limited to two properties per business in each local authority. This means big businesses won’t benefit disproportionately from the scheme and rates relief will be targeted to support local businesses. This releases approximately £7m which is being reinvested in other areas of relief. Full Cabinet Written Statement http://gov.wales/about/cabinet/cabinetstatements/2017/smallbusinesratesrelief/?lang=en The Non-Domestic Rating (Small Business Relief) (Wales) Order 2017 http://www.assembly.wales/laid%20documents/sub-ld11322/sub-ld11322-e.pdf Consultation summary of responses document https://consultations.gov.wales/consultations/delivering-tax-cut-small-businesses-new-small-business-rates-relief-scheme-wales Contact for further information: Local Taxation Policy Branch, Cathays Park, Cardiff, CF10 3NQ Email: LocalTaxationPolicy@gov.wales A survey indicating that 2017 has been a successful year for the tourism industry in Wales has been welcomed with cautious optimism by a Mid Wales tourism leader.
Rowland Rees-Evans, chairman of MWT Cymru, says the figures produced by The Tourism Barometer were generally positive but warned that business profit margins were being squeezed by rising costs. The Tourism Barometer provides ‘snapshots’ of industry performance and assesses business confidence throughout the year. The barometer revealed that nationally 42% of the businesses surveyed had more visitors than last year, while 39% reported a similar level – in Mid Wales the figures were 44% and 35%. More than half (54%) of food venues fed more people in 2017 than they did last year and 50% of attractions and activity operators had seen more visitors. Two in five (42%) serviced accommodation operators said that 2017 had brought more staying visitors. Forty-one per cent of caravan and campsite operators welcomed more people and 43% of self-catering operators reported a similar number of visitors to last year, with around a third (35%) taking more bookings. A third (33%) of businesses said their own marketing, including social media, had contributed towards the increase in visitors. Two fifths (39%) of businesses reported an increase in profitability while 35% said profits were about the same as last year. The survey also showed that 39% of operators had noticed more British people enjoying their holidays and short breaks in Wales. About half of respondents expected more visitors next year and a further 45% expected the same level. The main barriers to growth identified by tourism businesses were rising costs, local authority austerity measures, economic conditions and changing business regulations. Mr Rees-Evans, who runs Penrhos Park, a country club, golf complex and holiday park at Llanrhystyd, near Aberaeron, said: “The survey shows that we are attracting more visitors to Wales but also reflects concern about the rising costs that are eating into the profitability of businesses. “Speaking on behalf of Penrhos Park, I can vouch for the fact that more British people are staycationing and that there is a trend towards shorter breaks. Our forward bookings for 2018 have been good which is very positive.” Looking forward to 2018, which has been themed ‘Year of the Sea’ by Visit Wales, he believes that Ceredigion and Meirionnydd are well placed to benefit due to the popularity of their coastline. Mr Rees-Evans encouraged tourism businesses located near rivers and lakes in Mid Wales to take advantage of the water-based theme next year. He is also keen for tourism businesses to benefit from Visit Wales’ promotion of the scenic Wales coastal route and the A470 road through the heart of Wales during 2018. HMRC is looking at introducing conditionality as a means to combat tax avoidance. This means that anyone applying for certain licenses must show the licensing authority that they are properly registered for tax. Last year HMRC consultated on a suggestion it might be applied to sharing economy accommodation, now HMRC is undertaking a follow-up consultation on how it might apply to HMOs and taxi licensing, which may be of interest to some members.
Here's the link to the consultation which is open until 2nd March 2018 https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/665924/Tackling_the_hidden_economy_-_public_sector_licensing.pdf The Office for Road and Rail is undertaking a consultation on ways to improve assisted travel arrangements provided by train operators. Specifically they are seeking views on:
This will be of interest to those providing travel for elderly or disabled customers and for business wanting to improve the ability of customers to reach their premises using public transport. The consultation is open until 31 January and is available on the following link. http://orr.gov.uk/rail/consultations/open-consultations/improving-assisted-travel-consultation Suzy Davies AM: Will the Cabinet Secretary provide an update on the Welsh Government's proposed new taxes?
Mark Drakeford AM: Simply to say that it remains my intention to test the new Wales Act 2014 powers during 2018. Suzy Davies AM: Okay. Well, thank you for that answer as well, because it gives me a bit of a steer on timing there. Last month, following a debate on potential tourism tax in Bridgend council, the Labour cabinet member for regeneration there said, 'As the cabinet portfolio holder for tourism, I would say that this is the least likely of the Welsh Government options for a new tax to find favour across Wales.' And then went on to say 'I think most people would strongly support the alternative proposal of a tax on disposable plastics.' The Labour leader of Swansea council has today said he favours a social care tax. When Labour leaders in my region are already dismissing the tourism tax as an idea, would it not be a good idea to actually save some money by not developing that idea and concentrating on the other three options? Mark Drakeford AM: Llywydd, I'm very glad to see individuals around Wales taking an interest in this debate, and it's interesting to see that there are a variety of views out there, and that is exactly what we had hoped would happen by bringing forward the debate in the way that we have. It would have been very easy for the Welsh Government to have acted as the UK Government does in fiscal matters by keeping everything entirely to itself and attempting to spring a surprise on everyone else after a decision has been made. I have been very keen to go about our fiscal responsibilities in an entirely different way, to be far more open, to be far more engaged with people who have views. I listen very carefully to what people in all parties say about the four different ideas that we have brought forward. The leader of Swansea would be correct to say that, in terms of public reaction, there has been more support for a plastics tax than any of the other items that we put on our list, but that is not to say that there isn't interest in all of them or that the debate should not continue. Neil Hamilton AM: To revert to the experimental tax case that Suzy Davies mentioned earlier on in relation to a tourist tax, has he not seen that Ian Edwards, the chief executive of the Celtic Manor, has recently said, 'Along with everybody else in our industry, I was stunned by news of a proposed new tourism tax for Wales being considered' by the Welsh Government? He said that 'A tourism tax would seriously jeopardise our ability to continue our rapid recent growth as a resort and carry on making this valuable contribution to the Welsh economy.' In the same sentence that the Cabinet Secretary uttered to me, in that debate that I referred to a moment ago, that there was no evidence that lower tax boosts growth, he also said that badly designed taxes can hamper growth. The Cabinet Secretary has certainly announced a number of ideas for hampering growth in the Welsh economy. I hope he will reject these ideas. Mark Drakeford AM: Llywydd, there's little for me to add to what I said earlier on this whole matter. We're having a debate about different possibilities that exist for Wales. The views of anybody who has a view are welcome, whatever they may be, and we will take them into account when we come to make our decision. We will take the views of Celtic Manor into account. The Welsh Government is a very significant investor in Celtic Manor. It has received many millions of pounds in direct aid from the Welsh taxpayer. We will take its views into account, alongside anybody else's. That's the point of having a debate. Neil Hamilton AM: I appreciate that the Cabinet Secretary has an open mind and he's not in a position today to announce any final decisions, because that's the whole point of the consultation process, and I appreciate that having put £22.5 million into Celtic Manor he should want to get a good return on that investment. Therefore, I hope that that's going to inform his decision taking in this respect as well, because Ian Edwards said further in the article that I'm quoting that 'Adding extra cost to staying in Wales would have just as damaging an effect on attracting business events as it would on attracting leisure visitors. Securing large conferences and association meetings is a very competitive sector and an additional tax on the thousands of delegates who attend these events would be a significant deterrent to those considering Wales as a venue.' So, clearly, this is a vitally important issue for the whole of the hospitality sector in Wales, and the sooner we announce that we're not going to go ahead with a tourist tax, the easier it will be for them to relax and sleep easy in their beds. Mark Drakeford AM: Llywydd, I hear the case that the Member has made. He will be aware that others make a very different set of propositions. Other people would say that taking a very small amount of money from people who are clearly not short of money—they're coming to stay in the Celtic Manor—that a very small addition to their nightly stay would create a pool of money that could be further invested in enterprises like the Celtic Manor and other tourism possibilities that would attract more people into Wales in the future, and that investment of that sort, delivered by people who, after all, are enjoying the benefits of all the investment that the public purse has made in that sector—that that is not an unfair thing to ask of them, and actually creates a benign cycle in which small amounts of individual contributions are aggregated and allow significant new investments, that benefit the industry, to be made. Now, I am not saying that the Welsh Government has come down on either side of this argument. All I'm saying is that in this area, as in all others, there are many competing analyses of what would work best, and the point of having a debate is to allow all those arguments to come out into the open, and then to be properly weighed up. Proposals for a Mid Wales Growth Deal to help build a Welsh economy fit for the future have been welcomed by the chairman of an independent organisation that represents around 600 tourism and hospitality businesses in the region.
Chancellor Philip Hammond mentioned during his Autumn Budget statement that the UK government is open to proposals for a Mid Wales Growth Deal. Rowland Rees-Evans, MWT Cymru chairman, told the organisation’s annual meeting at the Royal Welsh Showground in Builth Wells that a Growth Mid Wales Partnership had been set up to take the proposal forward in Powys and Ceredigion. MWT Cymru would be represented on the partnership. He said the growth deal was a fantastic opportunity for Mid Wales and he encouraged members to work together in collaboration to come up with exciting ideas for headline attractions to promote and drive forward the region’s economy. “Ministers are talking about our region and there has now been the promise of money coming from Westminster,” he said “As we are four years behind the City Deals in Cardiff and Swansea, we must keep knocking at the door and talking to politicians. “It’s the only way in the future that we will get things done because the money available in the public sector is decreasing. I feel positive about the proposal because, currently, Mid Wales has very little support. “Over the next two years, we will hopefully have plans on the table and now is the time for growth. Tourism is an important part to the Mid Wales economy and we must drive this forward.” One member suggested that Mid Wales should express an interest to house a proposed National Football Museum for Wales. . HMRC have launched a range of digital products to make completion of Self-Assessment easier, so if you need to complete your 2016-17 tax return and don't know where to start you can choose from a selection of live or recorded webinars, online guides and short YouTube videos to support you in completing the return.
Live webinars - no special equipment is needed, simply select the links provided and connect using your desktop computer or any smart device. You can submit questions using the text box. Self Assessment help and support live sessions: You can listen to live Q&A and get answers to your questions, from business expenses to paying tax and National Insurance. Book here Self Employment help and support sessions: This webinar is aimed at sole traders and self-employed partnerships, with help on a range of topics including allowable and simplified expenses, your tax return and budgeting for your tax bill. Book here How to complete your online tax return: Get the help you need completing your Self Assessment tax return. Book here Can’t make these dates? The links will be updated and new dates will be added throughout January. You can also take a look at the e-learning packages available, including topics such as 'Business expenses for the self-employed' which are designed specifically for businesses - these can be used at a time that suits you. There’s also a selection of short YouTube videos, covering topics such as: The HMRC YouTube channel has a range of videos to support you with your Self-Assessment. You can view them, and other films, here. The deadline for filing your tax return is 31 January 2018. Details of all these products can be found on the GOV.UK website. |