£200m could be saved to help tackle cost of living crisis in Wales – Llyr Gruffydd MS
The Welsh Government should use their tax-varying powers for the first time to maintain the basic rate at 20p from April 2023 and repurpose the extra funds to tackle the cost of living crisis, Plaid Cymru has said.
On Friday, the Treasury announced that the basic rate of income tax will be cut to 19% from April and that the additional rate of tax, paid at 45% on incomes of over £150,000, will be scrapped.
Slamming the Treasury’s plans of tax cuts to the rich as “economic madness”, Plaid Cymru’s finance spokesperson in the Senedd Llyr Gruffydd MS said that Wales had the opportunity to reject the Tories’ “fantasy economics” by using tax-varying powers to protect the basic rate at 20p and keep tax levels as they are.
This, he said, would offer over £200m in additional funds to the Welsh Government budget which could be used to directly tackle the cost-of-living crisis.
Mr ap Gruffydd said that Wales could choose a different path of “fairness and prosperity”.
Around 1,290,000 people in Wales are on the basic rate of tax.
Plaid Cymru Spokesperson for Finance Llyr Gruffydd MS said,
“Tax cuts for the rich, removing the cap on bankers’ bonuses, and trickle-down Trussonomics – the economic madness announced by the Treasury last week will do absolutely nothing to drive growth in the Welsh economy and future generations will be paying off this Tory debt for decades to come.
“We in Wales have an opportunity to make a stand and reject the Tories’ fantasy economics by using our tax-varying powers for the very first time to protect the basic rate at 20p in April 2023 and keep tax levels as they are now.
“Doing this would offer an additional £200m a year to the Welsh Government’s budget which can be used directly to help ease the pressure of the cost-of-living crisis, protect public services and shield the vulnerable from Tory cruelty.
“Westminster may have resigned itself to becoming an economic basket case, but we in Wales can choose another path – one of fairness and prosperity.
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