The devolved Welsh Government have published their Programme for Government though to 2030. This is important for the people who live in this part of the UK. ICB points to this and highlights some relevant points for members.
For people that live in Wales, their Government’s Programme for office is an important document as it tells the electorate what they hope to achieve in their term of office. Therefore, residents in Wales should read Plaid Cymru’s ‘Programme for Government 2026-2030’ which is promoted as a ‘blueprint for change’. ICB highlights the Welsh Government’s plans that may affect members and their clients professionally:
- For families, there is the pledge to expand the existing 30-hour free childcare offer to cover children from the age of 9 months to 4 years, ‘progressively’ moving towards 20 hours per week for 48 weeks of the year. Progressively indicates it will start small and build;
- The pledge to establish a new ‘Economic and Fiscal Commission’ which will inform the Welsh Government about economic decision making. This body may influence Welsh Budget decisions
- The pledges to create a business-building ‘National Development Agency’, reform the Development Bank of Wales and promote payment at the Real Living Wage for medium-sized businesses;
- Reform business rates to support small businesses, specifically high street businesses in hospitality, leisure and retail;
- Via the Development Bank of Wales, improve access to finance to create, grow and sustain new co‑operative, employee‑owned and social businesses;
- Develop a ‘Skills Strategy for Wales’ which will align business needs with the necessary provision of skills, education and qualifications. There is also the pledge to create more apprenticeships;
- Deliver a new ‘Digital Strategy‘ to support the safe and ethical adoption of Artificial Intelligence (AI);
- Improve public transport services, maintaining caps on bus fares and the provision of bus passes to those over the age of 60; and
- Review some aspects of the Visitor Levy, possibly starting in 2027 and akin to the same Levy in Scotland which started in 2026 and is planned for England. The Levy is a tax by any other name
There is no mention of the existing Income Tax sharing powers (the Welsh Rates of Income Tax). However, there is the line that the Welsh Government will seek ‘further responsibilities for the Senedd over taxes in Wales’, a further revenue-generating taxation powers, like those in Scotland.
With a devolved nation, however, the things the Government can do are constrained by the things that are devolved from Westminster to their control. In this regard, ICB highlights things to look out for in collaboration with the UK Government in Westminster. Firstly, though, see page 3 which details the Welsh Government’s Cabinet Ministers and Deputy Ministers:
- As above, look for the further devolution of some taxation powers, for example the devolution of Air Passenger Duty (APD). This is devolved to Scotland and comes into force as the Air Departure Tax (ADT) in 2027;
- The pledge for the devolution of social security to meet the needs of the people in Wales. This will match the partial devolution that exists in Scotland;
- The pledge to work with the UK Government to ensure all businesses and homes have access to superfast broadband;
- The pledge to press Westminster on reforming the Barnett Formula. This is the UK Treasury mechanism used to allocate funding to the devolved nations (the block grants). ‘Fiscal reform’ is a major objective of the Welsh Government, so look for the devolution of further tax powers and greater responsibilities for revenue-generation
The Programme also says it will press the UK Government for ‘the devolution of the right to decide on the timeline, question, and process for an independence referendum’. This is like the right that is being discussed again in Scotland.
For Bookkeepers
The main point to look for from this Welsh Government are the plans to press for the further devolution of powers away from Westminster.
Devolution is complicated and varies considerably depending on the individual UK nation. Thankfully, there is no pressing for the devolution of employment law, something that is already complicated given this is devolved entirely to Northern Ireland which means, in this regard, a disunited Kingdom.