Latest news with #MarkDrakeford
South Wales Argus
5 days ago
- Business
- South Wales Argus
Labour Governments at London and Cardiff are at odds
Nothing is worse than when families continue to bicker and lie to each other. This time Wales' public services will not face cuts despite a shortfall in covering a rise in employers' National Insurance contributions, according to Labour's Welsh secretary. Jo Stevens' comments appear to contradict the Welsh Government's finance secretary, Mark Drakeford, who previously warned he was facing a £36m black hole. Who can the people of Wales believe, with one blaming the other to save his job and the other defending Starmer? Many thanks Andrew Nutt, Bargoed
Business News Wales
18-07-2025
- Business
- Business News Wales
Is Wales Ready to Replace Business Rates with a Land Value Tax?
The Welsh Government is moving beyond theory and into action. Last month, Cabinet Secretary Mark Drakeford MS confirmed in the Senedd that work was now actively underway to explore replacing both Council Tax and Business Rates with a Land Value Tax (LVT). A formal public tender is now live to assess valuation methods, data needs, revenue modelling, and wider impacts — setting the stage for legislation in the next Senedd term. For ratepayers, this is not just an abstract tax discussion. It's a live policy development that could reshape the property landscape in Wales. Business rates currently raise £1.39 billion in gross revenue across 126,000 properties. The roots of this shift trace back to the Wales Act 2014, which devolved tax powers to Wales for the first time in centuries. Since April 2015, the Senedd has had legislative authority over non-domestic rates — a key component of local government funding. Now, with the formal commissioning of technical work to explore LVT, the Welsh Government is signaling that a full-scale property tax transformation is potentially on the table. A Land Value Tax, in theory, is a charge on the underlying land value — not the buildings or business activities on it. Supporters argue it encourages more efficient land use and is harder to avoid. But for ratepayers, particularly in urban or commercial environments, there are serious practical concerns. Some of the risks include: Data scarcity in built-up areas, where vacant land values are hard to establish A disconnect between tax liability and business performance, as land value ignores building use or scale Difficulties valuing special-use or restricted sites, such as cultural, public, or listed properties Speculative assessments of development potential, which may not reflect economic reality No consideration for property age, quality, or utility, treating modern and obsolete buildings the same Complex ownership structures, raising questions over who would be liable — owner, leaseholder, or occupier Uncertain fiscal and behavioural outcomes, especially in high-density urban centres where tax burdens could shift unpredictably Additionally, the biggest issue with LVT is that most people have some idea of what the rent they pay or the purchase price of their property is based upon. But the difference between the value of the property and the land it stands on is a mystery to most. The market for land is not liquid enough to support a sensible comparison-based valuation approach on the scale that is being envisaged — without creating mass confusion. Proponents often suggest that LVT would create a fairer system, where landowners bear the tax liability instead of occupiers. But this assumption is, frankly, naïve. In practice, all that will happen is that rents and prices will adjust upwards to compensate, passing the burden straight back to tenants and consumers. The notion of shifting liability away from users of property is far more complex than the theory suggests, especially in commercial leasing markets where landlords typically price in all overheads. Few would argue that the current business rates system is perfect. But rushing to replace it with an untested model, built on speculative land values and complex liability chains, carries major risks. Any new system must deliver on fairness, efficiency, and clarity. Currently, the case for using LVT to replace business rates is unproven — and for the commercial real estate sector, that is deeply concerning.
ITV News
16-07-2025
- Business
- ITV News
Mark Drakeford says Vaughan Gething 'deserved better' than his short-lived time as First Minister
Former First Minister Mark Drakeford said his successor Vaughan Gething "deserved better" than his short-lived premiership. Mr Gething was in the top position for four months before he resigned. His time in office was dogged by questions over a £200,000 campaign donation from a businessman convicted of environmental offences. Speaking to ITV Wales' Sharp End, his predecessor Mark Drakeford said he looks back on that time "with a great deal of sadness". He said: "I thought Vaughan deserved much better. "I think he was well prepared to be a First Minister. I think that he would have been a very good First Minister, and it is that hubristic sense you get, isn't it, is that somehow the thing that in the end made it all unwind was a decision he himself made that was the wrong decision, but he definitely deserved better." Mr Gething received £200,000 in a campaign donation by the director of Dauson Environmental Group Ltd, David Neal, who was convicted twice for environmental offences. Neal was given a suspended prison sentence in 2013 for illegally dumping waste on a conservation site on the Gwent Levels. His companies Atlantic Recycling and Neal Soil Suppliers were also prosecuted and ordered to pay fines and costs of £202,000. There have also been concerns about a possible conflict of interest in the money coming from a company which was loaned £400,000 by the Welsh Government-owned Development Bank of Wales (DBW). The loan from the DBW was given to Neal Soil Suppliers – a subsidiary of Dauson – in 2023 to help purchase a solar farm, at a time when Mr Gething was Economy Minister. Mr Gething has always insisted that he cannot take any decision relating to Dauson – which is based in his constituency – and the DBW is entirely independent of ministers. His four months in the top job also saw a row over a leaked phone message, which led to him sacking one of his ministers and Plaid Cymru's withdrawal of support for his Government. Although still a Member of the Senedd, he has since kept a low profile, opting not to take a position in the cabinet. Sharp End's Rob Osborne asked fellow former First Minister Mark Drakeford: "There is life after being First Minister - should he get back out there and do something now?" "I hope he will," Drakeford said. "I hope he'll find something that he wants to do and enjoys doing. "I don't think if what had happened to him had happened to me, I don't think I'd ever want to set foot in here [The Senedd] again. But he comes very regularly. He speaks in debates. "He's very good at all of that. And he must be, you know, a lot of it must be looking ahead, must it? And hoping to find something worthwhile that will use his very real talent." In September last year, Mr Gething announced he would be stepping down at the next Senedd election. The former lawyer has represented Cardiff South and Penarth in the Senedd since 2011 and had served as Economy Minister and Health Minister in Mark Drakeford's Government during the pandemic. His election as First Minister in March 2024 made him the first black leader of any European country.
South Wales Argus
11-07-2025
- Business
- South Wales Argus
More families access free childcare through Flying Start
In Wales, the Flying Start programme has exceeded its targets during the second phase of the Welsh Government's expansion plan, which launched in April 2023 and aims to offer funded childcare to all two-year-olds. To date, more than 10,000 children have benefited from the scheme, surpassing the goal of reaching 9,500 additional children. Dawn Bowden, minister for children and social care, said: "This significant expansion has exceeded our targets, bringing quality early years support to thousands more children. "High quality early years provision helps to maximise child development outcomes and supports the best start in life. "I'm immensely proud of our Flying Start workforce for making this possible as we work towards universal childcare for all two-year-olds." Over the past two years, more than 13,400 children and families have been offered places, with 80 per cent taking up the offer in 2024-25. Flying Start offers 12.5 hours of free, high-quality childcare each week for eligible two-year-olds. The Welsh Government has invested an additional £25 million this year to expand the programme further, with a third phase expected to reach more than 4,000 additional children across Wales. The scheme also supports the government's goal of reaching one million Welsh speakers by 2050, with more than 2,000 places in phase two taken up at Welsh-medium settings. Mark Drakeford, cabinet secretary for finance and Welsh language, said: "It's encouraging to see more families choosing Welsh-medium childcare."
Yahoo
10-07-2025
- Yahoo
Welsh councils to charge visitors per night as tourist tax approved for 2027
Visitors to Wales could start paying £1.30 extra per night after a landmark law was passed to allow Welsh councils to introduce a tourist tax. The new law, named the Visitor Accommodation (Register and Levy) Etc. (Wales) Bill, was passed by the Senedd on Tuesday, giving power to councils to introduce a levy on overnight stays. The Welsh government stated that the money raised from the levy would be reinvested in tourism-related expenses, such as improving toilets, footpaths, beaches, visitor centres and other activities. The law will not come into force immediately, as councils that want to apply the tax will need to go through a consultation process with their local communities, meaning the earliest possible introduction date will be in 2027. The levy will be set at £1.30 per person per night when staying in various types of accommodation, including hotels and bed and breakfasts. This is 5p more than what was initially suggested when the bill was proposed back in November. If visitors are camping or staying in a hostel in Wales, councils will only be able to charge 75p per person per night. The charge will also only be applicable is the visitor is over 18 years old. The government said that the visitor levy rates have been set at a low level compared to other destinations worldwide, and exemptions have been limited to reduce complexity. Finance secretary Mark Drakeford said upon the law's passing: 'Visitor levies are used successfully all over the world. 'They ensure the pressures and opportunities tourism bring are balanced fairly between visitors and residents. We want the same for Wales. 'The levy is a small contribution that will make a big difference to our communities, helping to maintain and enhance the very attractions and services that make Wales such a wonderful place to visit and live. 'By voting to back this measure, Wales is joining many other worldwide destinations which already benefit from similar levies.' Wales has followed Scotland in introducing a visitor levy law, after the Scottish Government passed its own act allowing councils to tax on overnight accommodation if they wish to do so. Edinburgh became the first to vote in January to add a five per cent surcharge on visitors' overnight stays by 2026. Glasgow then followed, giving the green light to introduce a tourist tax on accommodation in its city by 2027. English legislation does not allow cities to create a visitor levy; however, using legal workarounds has meant Liverpool and Manchester have introduced a form of tourism levy. Tourism taxes have also been introduced in popular tourist destinations worldwide that have been impacted by overtourism, affecting natural landscapes and the lives of locals. In April 2024, Venice became the first city in the world to charge admission for daytrippers and has continued the levy between April and July this year. The €5 (£4.26) charge to enter the historic centre of Venice did little to deter visitors last year, but did bring in €2.4m for the city.
