Tory plan to offer tax discount for living in Wales
Taxpayers could be given a discount for living and working in Wales as part of attempts to boost its underdeveloped economy.
The Government spends £18bn more on Wales every year than it gets back in tax — or £6,008 per head of the Welsh population.
At present just one in 16 people earn more than £34,000 — the rate at which the higher 40% tax band kicks in.
It is understood the Treasury is proposing to allow the Welsh Assembly taxation powers that would allow it to vary the rates of tax that apply to people who live and work in Wales.
The plan would allow parties in the Assembly to stand on a platform of tax raising or tax cutting to encourage investment and make the country more competitive. And today the leader of the Welsh Conservatives will suggest his party would cut tax for those in the middle band of 40% to boost the economy.
Andrew Davies is expected to say: “If some elements of income tax are devolved, it would be necessary to look at a period of reduced taxation for those paying the 40% tax rate.”
Belfast Telegraph Digital