Fiscal outlook for Wales reflects Westminster incompetence

Austerity and de-industrialisation a dent in Welsh tax take.

Plaid Cymru leader Leanne Wood has today said the first OBR publication of tax revenue forecasts for Wales is a vindication of her party’s long held view that Westminster can’t be trusted with Wales’ economy.

The OBR figures predict that Wales will lag behind the rest of the UK in terms of income tax receipts, due largely to the high numbers of workers in Wales who are on low wages. The OBR’s publication also highlighted Wales lagging behind the UK average for average earnings.

Leanne Wood claimed this as further evidence of Westminster’s inability to delivery prosperity for Wales.

Leanne Wood said:

“The current state of Wales’ public finances come as no surprise. The latest figures are symptomatic of the economic and fiscal neglect of Wales by successive Westminster Governments. The figures vindicate Plaid Cymru’s longstanding contention: Westminster cannot be trusted with Wales’ public finances or with our economic prospects. We want to bring our government home and rebalance wealth across the UK so Wales can reach the economic potential we all know it can achieve.

“A combination of historic – and intentional – de-industrialisation of our country and more recent austerity policies, have been a disaster for communities across Wales.

“Only one corner of the UK has benefited from the pro-banking anti-industry agenda of the last thirty years or so. Plaid Cymru wants to enshrine in law a requirement to target investment and job-creation in those areas of greatest need. It’s time for Wales to assume the economic and fiscal levers – as well as the resources, needed to prosper and in order to close inequality.”

Ms Wood also expressed disappointment that the OBR had not been asked to publish a comprehensive overview of Wales’ Public Finances. The Silk Commission recommended that Wales’ complete fiscal position should be published in a similar way to Scotland’s (known as GERS).

Ms Wood added:

“The Silk Commission recommended greater transparency in terms of Wales’ fiscal position. It called on the UK and Welsh governments to do so and this was accepted by all parties. There is no justification for not doing so and I have written to the Secretary of State and First Minister asking when they intend full disclosure of Wales’ public finances.”