Contributions

Lywydd, rwy'n falch o gyflwyno Bil Trethiant (Cymru) i'r Senedd, y pecyn hwn o newidiadau sy'n gam ar hyd taith datganoli trethi Cymru. Naw mlynedd yn ôl, pasiodd y Senedd hon ddeddfwriaeth yn cyflwyno'r Ddeddf trafodiadau tir a'r Ddeddf gwarediadau tirlenwi. Cefnogwyd hyn drwy sefydlu Awdurdod Cyllid Cymru. Mae Awdurdod Cyllid Cymru wedi datblygu hanes cryf o gyflawni, ac enw da am degwch sy'n seiliedig ar lefel uchel o ymddiriedaeth a pherthynas gydweithredol â threthdalwyr a'r rhai sy'n eu cynghori. Mae wedi ennill profiad gweithredol gwerthfawr o weinyddu trethi datganoledig ac wedi gwrando'n ofalus ar adborth gan drethdalwyr. Er nad yw gweinyddu trethi'n dda yn cael llawer o sylw mewn penawdau newyddion, mae'n sylfaenol i system dreth sy'n gweithredu'n dda. Mae'n falch gen i ddweud fod datganoli trethi yng Nghymru wedi bod yn llwyddiannus. Ers 2018, mae Awdurdod Cyllid Cymru wedi casglu mwy na £2.7 biliwn mewn trethi datganoledig, gan gefnogi'r gwasanaethau cyhoeddus y mae ein trigolion yn dibynnu arnyn nhw. Mae ein rhaglen lywodraethu yn cynnwys dyletswydd i sicrhau trethi teg, a thrwyddi mae'r Llywodraeth hon wedi ymrwymo i wneud yn siŵr bod refeniw yn cael ei godi mewn ffordd deg a syml. Fel rhan o'r ymrwymiad hwn, bydd angen i ni sicrhau bod ein deddfwriaeth drethi yn cael ei hadolygu a'i gwella'n rheolaidd a bod newidiadau technegol yn cael eu rhoi ar waith er mwyn gwneud yn siŵr bod y trethi yn gweithredu yn unol â'r bwriad. Mae trethi effeithiol yn dibynnu ar ansawdd y ddeddfwriaeth a'r gwaith sylfaenol o'u gweinyddu. Mae trethdalwyr yn haeddu deddfwriaeth sy'n eglur ac yn syml. Mae angen i gyrff cyhoeddus gael pwerau sy'n gymesur ac yn ymarferol, ac mae cyfrifoldeb ar Lywodraethau i ddysgu o brofiad ac i wneud gwelliannau lle mae angen eu gwneud. Dyna yw union bwrpas y Bil a gyflwynais i ddoe. Gadewch i mi fod yn glir: dyw'r Bil ddim yn cyflwyno trethi newydd; dyw e ddim chwaith yn newid cyfraddau treth na throthwyon treth, nac yn cyflwyno mathau newydd o ryddhad treth. Yn hytrach, mae'r Bil yn cyflwyno pecyn o newidiadau technegol a gweinyddol wedi'u targedu'n fanwl i dair Deddf trethi Cymru, sef Deddf Treth Trafodiadau Tir a Gwrthweithio Osgoi Trethi Datganoledig (Cymru) 2017, Deddf Treth Gwarediadau Tirlenwi (Cymru) 2017 a Deddf Casglu a Rheoli Trethi (Cymru) 2016. Pwrpas y Bil yw sicrhau bod ein trethi datganoledig yn parhau i weithredu mewn ffordd deg ac effeithiol. Mae'n Fil ymarferol sy'n canolbwyntio ar egluro system dreth ddatganoledig Cymru, ei chryfhau, a'i diogelu ar gyfer y dyfodol. Mae'r mesurau sydd ynddo yn ymateb i faterion ymarferol a thechnegol a nodwyd dros amser gan Awdurdod Cyllid Cymru, trethdalwyr, cynghorwyr proffesiynol a phartneriaid cyflawni. Mae'r Bil yn cynnwys mesurau fydd yn cefnogi Awdurdod Cyllid Cymru i gyflawni ei swyddogaethau mewn ffordd fwy effeithiol. Bydd yn egluro agweddau ar drefniadau llywodraethu yr awdurdod cyllid, bydd yn gwella'r ffordd y mae ei bwerau treth yn gweithio mewn gwirionedd, bydd yn cywiro problemau technegol sydd wedi dod i'r amlwg drwy brofiad ymarferol, a bydd yn mynd i'r afael â meysydd amwys o ran cymhwyso'r trethi datganoledig fel eu bod yn parhau i weithredu mewn ffordd briodol ac yn ei gwneud hi'n llai posib i anghydfodau diangen neu ganlyniadau anfwriadol ddigwydd. Bydd hefyd yn sicrhau bod deddfwriaeth Cymru yn cyd-fynd â datblygiadau gweinyddol neu ddeddfwriaethol perthnasol mewn mannau eraill yn y Deyrnas Unedig, pan fo hynny'n briodol. Bydd y Bil yn gwella'r ffordd y bydd prosesau ad-dalu ac ymholiadau trethi i Awdurdod Cyllid Cymru yn cael eu gweithredu, gan fynd i'r afael â bylchau presennol o ran gwybodaeth a phwerau arolygu. Bydd hefyd yn gwella tryloywder ac yn diogelu refeniw trethi. Bydd y cynigion hefyd yn fuddiol i drethdalwyr Cymru. Er enghraifft, bydd y Bil yn egluro sut y bydd rheolau llog talu hwyr yn cael eu cymhwyso fel na fydd trethdalwyr yn talu mwy na'r swm sy'n ddyledus. Bydd hefyd yn ymdrin ag achosion lle mae perchennog tŷ o dan y dreth trafodiadau tir yn ychwanegu partner at weithredoedd teitl eiddo, er enghraifft yn dilyn ail forgeisio. Fel y mae pethau ar hyn o bryd, gallent wynebu cyfraddau preswyl uwch. Bydd y Bil hwn yn atal hynny. Mae'n bwysig nodi bod y Bil hefyd yn cynnwys darpariaethau i wella ffyrdd o rannu gwybodaeth rhwng Awdurdod Cyllid Cymru ac awdurdodau lleol. Bydd y mesurau hyn yn cefnogi'r broses o ddatblygu sylfeini trethi mwy cywir, yn cryfhau gweithgarwch cydymffurfio, ac yn cyfrannu at ymdrechion ehangach ar draws y Llywodraeth i ddefnyddio data'n well wrth ddarparu gwasanaethau cyhoeddus. Wrth wneud hynny, fe fyddan nhw'n helpu i sicrhau bod gan gyrff cyhoeddus fynediad at y wybodaeth sydd ei hangen arnyn nhw, wrth gynnal mesurau diogelu priodol i drethdalwyr. Mae mesurau diogelu priodol i drethdalwyr yn parhau i fod wrth wraidd ein dull gweithredu. Drwy gydol y gwaith o ddatblygu'r cynigion hyn, rŷn ni wedi parhau i ymrwymo i sicrhau bod amddiffyniadau priodol yn cyd-bwyso unrhyw newidiadau sy'n effeithio ar bwerau Awdurdod Cyllid Cymru. Gyda'i gilydd, mae'r newidiadau a gynigir gan y Bil hwn yn ffurfio rhaglen bwysig o fireinio a gwella, gan sicrhau bod trefniadau trethi datganoledig Cymru yn parhau i fod yn gadarn, yn effeithlon ac yn addas ar gyfer y dyfodol. Dyw'r cynlluniau hyn ddim wedi cael eu datblygu yn gwbl ar wahân. Maen nhw wedi'u seilio ar drafodaethau â threthdalwyr, cynghorwyr proffesiynol a chynrychiolwyr y diwydiant. Y llynedd, bu Llywodraeth Cymru ac Awdurdod Cyllid Cymru yn ymgynghori ar y cyd ar y cynigion ar gyfer newidiadau deddfwriaethol i Ddeddfau trethi Cymru, a liciwn i ddiolch i bawb a gyfrannodd at y gwaith. Cafwyd ymatebion manwl i'r ymgynghoriad gan drethdalwyr, cyrff proffesiynol a chynrychiolwyr y diwydiant. Roedd yr adborth yn gefnogol ar y cyfan ac yn cadarnhau y byddai'r newidiadau arfaethedig yn helpu i sicrhau bod trethi datganoledig yng Nghymru yn parhau i gael eu gweinyddu mewn ffordd effeithiol. Rwy'n edrych ymlaen at weithio gydag Aelodau ar draws y Senedd yn ystod y broses o graffu ar y Bil hwn nawr ac at glywed barn pawb ar sut y gallwn ni barhau i gryfhau trefniadau treth Cymru. Lywydd, felly, mae'n bleser gen i gyflwyno Bil Trethiant (Cymru) i'r Senedd yma.

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Llywydd, I'm pleased to introduce the Taxation (Wales) Bill to the Senedd; this package of changes represents the next stage in Wales's tax devolution journey. Nine years ago, this Senedd passed legislation introducing the land transaction tax and the landfill disposals tax. This was supported by the establishment of the Welsh Revenue Authority. The WRA has built a strong track record of delivery and a reputation for fairness based on high-trust co-operative relationships with taxpayers and their advisers. It has gained valuable operational experience in administering devolved taxes and has listened carefully to feedback from taxpayers. Although good tax administration may not always attract headlines, it is fundamental to a well-functioning tax system. I am proud to say that tax devolution in Wales has been successful. Since 2018, the Welsh Revenue Authority has collected more than £2.7 billion in devolved taxes, supporting public services upon which our residents rely. Our programme for government includes a duty to fair tax and commits this Government to ensuring that revenues are raised fairly and simply. As part of this commitment, we will need to ensure that our tax legislation is regularly reviewed and improved and technical changes are made to ensure that taxes are functioning as intended. Effective taxation depends on the quality of the legislation and the administration that underpins it. Taxpayers deserve legislation that is clear and straightforward. Public bodies need powers that are proportionate and workable, and Governments are duty-bound to learn from experiences and to make improvements where they're needed. That is precisely the purpose of the Bill I introduced yesterday. Let me be clear: the Bill does not introduce new taxes, nor does it change tax rates, thresholds, or introduce new reliefs. Instead, the Bill delivers a package of narrowly targeted technical and administrative changes to the three Welsh tax Acts, namely the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017, the Landfill Disposals Tax (Wales) Act 2017, and the Tax Collection and Management (Wales) Act 2016. The Bill's purpose is to ensure that our devolved taxes continue to operate fairly and effectively. It is a practical Bill focused on clarifying, strengthening and futureproofing the Welsh devolved tax system. The measures it contains respond to practical and technical issues identified over time by the Welsh Revenue Authority, taxpayers, professional advisers and delivery partners. The Bill includes measures that will support the Welsh Revenue Authority in carrying out its functions more effectively. It will clarify aspects of the WRA's governance arrangements, it will improve the way its tax powers work in practice, it will correct technical issues that have emerged through practical experience, and it will address some of the ambiguity in the application of the devolved taxes so that they continue to operate appropriately and reduce scope for unnecessary disputes or unintended consequences. It will also ensure that Welsh legislation aligns with relevant administrative or legislative developments elsewhere in the UK, where that is appropriate. The Bill will improve the operation of WRA tax inquiries and repayment processes, addressing current gaps in information and inspection powers. It will also enhance transparency whilst protecting tax revenue. The proposals will also benefit Welsh taxpayers. For example, the Bill will clarify the application of late payment interest rules so that taxpayers pay no more than is due. It will also address instances where under the land transaction tax a homeowner adds a partner onto property title deeds, for example after a remortgage. As things stand, they can face higher residential rates. The Bill will prevent that. It's important to note that the Bill also contains provisions to improve information sharing between the WRA and local authorities. These measures will support the development of more accurate tax bases, will strengthen compliance activity, and contribute to wider efforts across Government to make better use of data in delivering public services. In doing so, they will help to ensure that public bodies have access to the information that they need, while maintaining appropriate safeguards for taxpayers. Taxpayer safeguards remain at the heart of our approach. Throughout the development of these proposals, we have remained committed to ensuring that any changes affecting the powers of the Welsh Revenue Authority are balanced by appropriate protections. Taken together, the changes proposed by this Bill represent an important programme of refinement and improvement, ensuring that Wales's devolved tax arrangements remain robust, efficient and fit for the future. The proposals have not been developed in isolation. They have been informed by engagement with taxpayers, professional advisers and representatives of the industry. The Welsh Government and the Welsh Revenue Authority jointly consulted last year on proposals for legislative changes to the Welsh tax Acts, and I'd like to thank everyone who contributed to that work. The consultation received detailed responses from taxpayers, professional bodies and industry representatives. The feedback was broadly supportive and confirmed that the proposed changes would help to ensure the continued effective administration of devolved taxes in Wales. I look forward to working with Members across the Senedd during the scrutiny of the Bill and to hearing everyone's views on how we can continue to strengthen Welsh tax arrangements. Llywydd, it's therefore a pleasure to introduce the Taxation (Wales) Bill to the Senedd.

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Llywydd, consultation is not a numbers game; it can often be about the detail of the consultation. It's not a surprise to me that there were few responses to this consultation that was held last year. The Bill itself, as I explained, is technical in nature. The people who will be particularly interested in this Bill are going to be those people who are representatives of taxpayers, who deal directly with the Welsh Revenue Authority on a number of the aspects that you've outlined. The powers that are being sought in this Bill are proportionate to the issues that have raised themselves as issues, both by the Welsh Revenue Authority itself over the last nine years, and by those people representing taxpayers, where there have been inconsistencies in the system that have existed, where there are obviously grey areas and gaps in the legislation, as they are currently. The powers on access, as you've outlined, are, I believe, proportionate, but that's for committees of this Senedd now to test, and I'm sure that these will be issues that will be tested in scrutiny. Sharing information isn't a bad thing in itself. I think, quite often, that people out there expect public authorities to be sharing information, rather than information needing to be duplicated at all times to different places where they interact with the public sector. But, as you've rightly challenged, it needs to be done in a way that is proportionate to the issues that are at stake and where data and those who hold data are accountable for that. We have tested the proposals in the Bill with the various pieces of legislation that are in place to guard on data protection, and we believe that we have struck the necessary place to provide a system that is more effective for the taxpayer in how they provide information to public authorities and enable a more effective system to be delivered. That's the purpose of this Bill, to make sure that how we administer and operate taxes in Wales is more efficient for the taxpayers and those who collect taxes in Wales. I think that that's a good thing to aim for, and, hopefully, the scrutiny process on this Bill will enable us to, ultimately, pass a piece of legislation that improves on tax administration in Wales.

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Diolch i'r Aelod am y cwestiynau yna ac am y croeso i hwn fel y Bil cyntaf ar gyfer y Senedd yma. Mae'n ddrwg gyda fi nad yw e'n un o'r rhai mwyaf headline grabbing y gellid bod wedi ei greu, ond mae e'n dangos beth yw gwaith dydd i ddydd Llywodraeth, beth yw gwaith dydd i ddydd ariannu gwasanaethau cyhoeddus yng Nghymru, a sicrhau bod gennym ni'r gyfundrefn fwyaf effeithiol i weithredu ein trethi ni a'n casglu trethi ni, er mwyn gallu ariannu'n gwasanaethau cyhoeddus ni. Dyna yw pwrpas y Bil yma. Fe fydd y craffu manwl rŷch chi wedi sôn amdano, fydd yn dilyn nawr ar ôl y datganiad yma heddiw, yn ffordd o destio rhai o'r materion rŷch chi wedi'u codi yn eich cyfraniad fanna, a'r un mater a godwyd ynghynt hefyd, ar sut mae diogelu'r data yna fydd yn cael ei rannu rhwng awdurdodau perthnasol er mwyn sicrhau bod popeth yn cydymffurfio â'r ddeddfwriaeth sydd eisoes mewn lle i ddiogelu data, ond hefyd o ran yr hyn y byddai'r rhai sy'n rhannu eu manylion personol yn ei ddisgwyl oddi wrth awdurdodau cyhoeddus. Dwi'n credu bod yr hyn sydd yn y Bil yma, o ran sicrhau taw dim ond at ddibenion penodol iawn y gellir rhannu gwybodaeth o'r math yma, fod hynny yn diogelu'r hyn y byddai trethdalwyr yn ei ddisgwyl ohonom ni. Wrth gwrs, un o'r enghreifftiau cynnar yna o rannu data, a phwysigrwydd gwneud hynny o ran y trethi yn ymarferol, fydd wrth gyflwyno'r levy twristiaeth, a'r bartneriaeth yna sydd rhwng Awdurdod Cyllid Cymru ac awdurdodau lleol, neu un awdurdod lleol yn benodol. Felly, bydd honno'n enghraifft o'r defnydd o rannu gwybodaeth. Mae'r rhannu gwybodaeth yma nid dim ond er mwyn hwylustod i'r awdurdodau cyhoeddus eu hunain sydd yn gweinyddu yn y cyd-destun yma, ond bydd e hefyd o fudd i'r trethdalwyr oherwydd byddan nhw wedyn ddim ond yn gorfod cyflwyno gwybodaeth mewn ffordd sy'n fwy effeithiol iddyn nhw hefyd. Felly, mae hynna'n bwysig. Ar rai o'r cwestiynau manwl ynglŷn â'r costau sy'n deillio o rannu gwybodaeth, ac yn y blaen, byddai'n rhaid imi gyfeirio yn fanwl at y regulatory impact assessment sydd wrth fy ochr i fan hyn ar gyfer yr atebion hynny. Mae'n siŵr, wrth graffu ar yr angen i gyllido'r darn yma o ddeddfwriaeth—sydd ddim angen llawer o gyllid, hyd yn oed o sefydlu'r cyfundrefnau newydd yma—y cawn ni fwy o drafodaeth ar hynny yn y pwyllgorau. O ran y gwaith ar sut mae'r Llywodraeth yma neu a ydy'r Llywodraeth wedi gwneud asesiad o faint o osgoi ar dalu treth sy'n digwydd yng Nghymru, dwi ddim yn ymwybodol o waith penodol rŷm ni wedi ei wneud yn ddiweddar ar hynny, a byddai'n rhaid imi edrych ymhellach yn ôl cyn fy nghyfnod i ar unrhyw waith ychwanegol. Ond dwi'n meddwl efallai taw'r neges bwysig yn y darn yma o ddeddfwriaeth yn ei chyfanrwydd yw taw beth rŷm ni'n treial ei roi mewn lle fan hyn yw system sy'n fwy tryloyw i bawb—y rhai sy'n talu'r dreth a'r rhai sy'n casglu'r dreth—sydd yn deg i bawb, fel bod y wybodaeth yn glir ac yn gryno i bawb o beth yw'r anghenion. A phan fo'r system angen her neu ad-dalu, bod y gofynion o gwmpas hynna hefyd yn glir i bawb.

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I thank the Member for those questions and for welcoming this as the first Bill in this Senedd. I'm sorry that it isn't the most headline grabbing Bill that could have been introduced, but it does show the day-to-day work of Government, the day-to-day work of funding public services in Wales, and ensuring that we have the most efficient regime in order to collect our taxes and administer our taxes, in order to fund our public services. And that's the purpose of this Bill. The detailed scrutiny that you mentioned, which will now follow today's statement, will be a means of testing some of the issues that you have raised in your contribution, and the same issue that was raised earlier too, in terms of how we safeguard the data that will be shared between relevant authorities in order to ensure that everything complies with the legislation that is already in place in terms of data protection, but also in terms of what those sharing their personal details would expect from public authorities. I believe that what's contained within this Bill, in terms of ensuring that it's only for very specific purposes that that data can be shared, that that does safeguard what taxpayers would expect of us. Of course, one of the early examples in terms of data sharing, and the importance of doing that in relation to taxation on a practical level, will be on the introduction of the tourism levy, and that partnership between the Welsh Revenue Authority and local authorities, or one local authority specifically in this context. So, that will be an early example of the use of information sharing. That information sharing isn't done just for the convenience of the public authorities themselves who administrate in this context, but it will also benefit the taxpayers because they will then only have to present information in a way that is more efficient for them too. So, that's important. On some of the detailed questions on the costs emerging from information sharing, and so on, I would have to refer in detail to the regulatory impact assessment that I have by my side here in order to provide those responses. I'm sure that as we scrutinise the need to fund this Bill—which doesn't need a great deal of funding, even in establishing these new regimes—that we will have more discussion on that in committees. In terms of the work on how this Government or whether this Government has carried out an assessment in terms of how much tax avoidance happens in Wales, I am not aware of specific work that we've done recently on that, and I would have to look further back to before I came into post for any additional work that's been done in that area. But I think that the important message in this piece of legislation as a whole is that what we're seeking to put in place here is a system that is more transparent for everyone—those paying taxes and those collecting taxes—a system that is fair for everyone, so that the information is clear and concise for everyone in terms of the requirements. And when the system needs challenge or repayment, that the requirements of that too are clear for everyone.

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Thank you for those issues. I probably over-egged it in my second sentence in trying to seek that headline in describing this piece of legislation, because I see it primarily as a piece of legislation that reflects on what's happened over the last 10 years, as we've introduced taxation and used devolved taxes in Wales, as we've set up the operation of the Welsh Revenue Authority, and about how, over that period, there has been a recognition of where amendments need to be made in order to operate the tax system more effectively. So, it is about the operation of the current taxes that we have in place. There will be many here who believe, as I do, that there should be further devolution of pieces of taxation powers to this Senedd, but this Bill is not about that. This Bill is about the effective administration of the taxation powers that we do hold. I hope that, whatever our different views in this Chamber would be on devolution of further taxation powers, in the effective administration of the current taxation powers that we have, we can all unite to try and create a system that is as effective as it possibly can be. In terms of any savings and any more effective work that would release more savings into the system, my initial reaction to the question from you is to think that they are minor in significance of money that would be provided by those savings, so I suspect that, in the main, they will be part of strengthening and reinvesting in the means of effective collection of taxes. On unannounced inspections, you are right that the powers that we are seeking in this Bill on unannounced inspections for LDT would merely bring us in line with the powers currently in place in England under HMRC, and also in Scotland, so we are merely replicating those powers.

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O ran y gwaith gydag alinio prosesau a sicrhau bod yna weithdrefnau sy'n galluogi unrhyw groesgyffwrdd sydd ei angen rhwng HMRC ac Awdurdod Cyllid Cymru, mae'r gwaith yna yn mynd yn ei flaen lle mae angen i hynny ddigwydd. Felly, mae hwnnw'n fater sy'n rhan o waith beunyddiol Awdurdod Cyllid Cymru. O ran y vacant land tax, y dreth ar dir gwag, fel y dywedais i wrth Sam Rowlands, dyw'r Mesur penodol yma ddim yn Fesur sy'n cael ei ragdybio neu ei gynllunio mewn unrhyw ffordd i baratoi ar gyfer trethi newydd i Gymru. Mae gwaith y Bil yma yn sefyll yn ei hawl ei hun, ac yng nghyd-destun y trethi sydd eisoes yn weithredol yng Nghymru, ac yn eu gwneud nhw yn fwy effeithiol. O'n safbwynt ni fel Llywodraeth, yn sicr, rŷn ni'n parhau i ddisgwyl oddi wrth Lywodraeth San Steffan am y cadarnhad terfynol o ddatganoli'r dreth tir gwag, y vacant land tax. Mae'r ymrwymiad yna wedi’i roi gan Lywodraeth San Steffan, ond mae'r cadarnhad terfynol i ddatganoli hwnnw yn dal yn cael ei ddisgwyl gan y Llywodraeth. Rydym ni yn dal yn pwyso ar hynny, ac rydw i wedi gwneud hynny yn fy ymwneud i gyda'r Trysorlys yn ystod y misoedd diwethaf. Mae cyfle gyda nhw, hyd yn oed yn y gyllideb yr wythnos nesaf gan y Canghellor, i fod yn cyhoeddi penderfyniad ar hyn. Cawn weld a fydd hynny yn y gyllideb.

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In terms of the work of aligning processes and ensuring that there are systems in place that would allow any overlap required between HMRC and the WRA, that work is progressing where that needs to happen. That is an issue that is part of the day-to-day work of the WRA. In relation to the vacant land tax, as I told Sam Rowlands, this particular Bill is not one that has been planned in any way to prepare for any new taxes for Wales. This Bill exists in its own right in the context of the taxes already in operation in Wales, and making them more effective and efficient. In terms of our view, as a Government, we continue to await final confirmation from the Westminster Government in relation to the devolution of the vacant land tax. That commitment has been made by the Westminster Government, but the final confirmation of devolution is still being awaited. We are still pressing for that, and I've done that in my engagement with the Treasury over the past few months. They have an opportunity, even in next week's budget from the Chancellor, to announce their decision on this. We will wait and see if that is included in the budget.

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The power to withhold payment pending investigation is a power that the WRA has sought in order to enable it to withhold, if it deems that necessary, while an investigation is being conducted. On the point that you have made in terms of ensuring that there is good and effective clarity and guidance as to when and how that power to withhold will be used, I think that that's a very sensible point. I'm sure that it's one that has already been considered. I'll certainly take it away in terms of asking the right questions on your behalf in terms of how a power such as this would then be put into use.

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This is about making the tax system that we have clearer for all concerned, so that the rights that people have in the context of a tax system are made clear, as well as the responsibilities that they have to pay tax in accordance with the law of the land. As I explained earlier, in terms of the unannounced inspections that I think you were referring to, that is a power that's already operational in England and in Scotland under their taxation regimes on LDT, and therefore I think it's a proportionate measure that we're taking. The costs involved in this legislation are minimal, as are the benefits: £2.6 million you referred to, over 10 years; they're not significant amounts of money. The purpose of this legislation is not to raise funding for public services further than currently, but it is to make a tax system that is more rigorous and more operationally effective than it currently is. These kinds of changes in the tax system, in the context of the UK Government, are introduced as part of the orderly rota of UK finance Bills that come every year, every budget, and these types of small changes are put into the annual UK finance Bill. In this context, we've created a Bill that has happened now, and it's the first time, in the first nine years of this Senedd's responsibility for taxation, and therefore it's a collection of various aspects of work that both the WRA and taxpayers themselves, or those people representing taxpayers, have found to be areas that need to be either strengthened, clarified or changed as a result of the practice of taxation in Wales over the past nine years.

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Diolch, Ddirprwy Lywydd. Heddiw, dwi eisiau rhoi diweddariad i'r Aelodau am ein hystyriaethau ynglŷn â system y dreth gyngor, mater sy'n bwysig i aelwydydd, cymunedau a gwasanaethau cyhoeddus ym mhob rhan o Gymru. Mae yna gydnabyddiaeth gyffredinol bod y sail ar gyfer bandiau'r dreth gyngor wedi dyddio a'i bod wedi'i seilio ar brisiadau eiddo yn 2003. Yn Lloegr ac yn yr Alban, mae wedi'i seilio ar brisiadau 1991. Bydd Aelodau'n ymwybodol bod Deddf Cyllid Llywodraeth Leol (Cymru) 2024 wedi sefydlu amserlen ar gyfer cylchoedd ailbrisio'r dreth gyngor, gan gynnal yr un cyntaf yn 2028, ac yna bob pum mlynedd wedi hynny. Heddiw, gallaf i roi'r wybodaeth ddiweddaraf i Aelodau'r Senedd am ein bwriadau o ran ailbrisio, a sut y byddwn ni’n archwilio ffyrdd o wneud y dreth gyngor yn decach. Rwy'n cydnabod y gwaith a wnaed ar y pwnc hwn ar draws y Llywodraeth yma a chynt, ac fel rhan o'r cytundeb cydweithio.  Dros yr haf, fel Llywodraeth Cymru sy'n newydd, rŷn ni wedi bod yn gwneud gwaith pellach i ddeall beth fyddai bwrw ymlaen â'r ailbrisio yn ei olygu i aelwydydd ar hyd a lled Cymru. Mae'r gwaith hwnnw wedi tynnu sylw'n glir at faterion a heriau allweddol y mae angen i ni eu hystyried. I fod yn glir, dyw ymrwymiad y Llywodraeth hon i system dreth gyngor tecach ddim wedi newid. Rŷn ni'n cydnabod y dadleuon o blaid diweddaru'r system, fel y gwnaethom y tymor diwethaf. Ac rŷn ni’n cydnabod y farn bod angen inni ystyried sut y gall y dreth gyngor adlewyrchu'r amodau economaidd yng Nghymru ar hyn o bryd yn fwy effeithiol. Ond, fel y gwyddon ni, mae unrhyw ailbrisio yn anochel yn arwain at newid i aelwydydd. Mae hyn yn amlwg o'r ailbrisio diwethaf a ddigwyddodd yng Nghymru yn 2005. Mae'n werth atgoffa ein hunain mai Cymru yw'r unig genedl sydd wedi ailbrisio eiddo ers cyflwyno'r dreth gyngor, ac o ganlyniad, gwyddom na ellir cyflawni ailbrisiadau yn deg heb gefnogi aelwydydd sy'n symud i fyny bandiau. Mae gwaith ymchwil yn amcangyfrif y gallai tua chwarter yr aelwydydd weld eu band treth gyngor yn cynyddu, y gallai chwarter arall weld eu band yn gostwng, ac na fyddai hanner yr aelwydydd yn gweld fawr ddim newid. Pe baem ni am weithredu newid ar y raddfa hon mewn ffordd gyfrifol, dwi'n credu y byddai'n rhaid inni fel Llywodraeth ddarparu cymorth ariannol eto i liniaru'r effeithiau ar aelwydydd a fyddai'n symud i fand treth uwch, fel y gwnaethpwyd yn 2005. Allwn ni ddim cyfiawnhau'r risg o gyflwyno annhegwch newydd i'r system, yn enwedig ar adeg pan mae aelwydydd eisoes yn wynebu pwysau ariannol sylweddol. Y dull y byddem ni'n ei ffafrio fyddai cynnydd graddol dros amser, a fyddai'n helpu aelwydydd i addasu i newidiadau yn eu biliau, yn debyg i'r ffordd rŷn ni'n cefnogi busnesau drwy ailbrisiadau ardrethi annomestig. Byddai'r cymorth y byddwn ni eisiau ei ddarparu i aelwydydd, ochr yn ochr ag ailbrisio'r system dreth, yn golygu cost sylweddol i'r Llywodraeth. Ein hasesiad yw y gallai darparu'r rhyddhad dros dro y byddai'r Llywodraeth yma eisiau ei gyflwyno gostio hyd at £80 miliwn yn y flwyddyn gyntaf ar ôl yr ailbrisio. Mae fy nghydweithwyr i yn y Cabinet a finnau'n cytuno bod hyn yn rhywbeth hynod heriol i'w ariannu o ystyried y rhagolygon cyllidol presennol a'r pwysau rŷn ni'n eu hwynebu ar draws gwasanaethau cyhoeddus.

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Thank you, Dirprwy Lywydd. Today, I would like to update Members on our considerations regarding the council tax system, an issue that matters to households, communities and public services in all parts of Wales. There is wide recognition that the basis for council tax bands is out of date and based on property valuations from 2003. In England and Scotland, it is based on 1991 valuations. Members will be aware that the Local Government Finance (Wales) Act 2024 established a schedule of council tax revaluation cycles, the first of which was to take place in 2028, and then every five years henceforth. Today, I can provide an update to Senedd Members on our approach to revaluation, and how we will explore ways to make council tax fairer. I realise that much work was done on this last term across Government, and as part of the co-operation agreement. Over the summer, as a new Welsh Government, we have undertaken further work to understand what proceeding with the revaluation would mean for households across Wales. That work has brought key issues and challenges into sharp focus that we all need to consider. I want to be clear that this Government’s commitment to a fairer council tax system has not changed. We acknowledge the arguments for updating the system, as we did last term. And we recognise the view that we need to explore how council tax can better reflect current economic conditions in Wales. However, as we know, any revaluation exercise inevitably creates change for households. This is evident from the last revaluation that happened in Wales in 2005. It's worth reminding ourselves that Wales is the only nation to have revalued properties since council tax was introduced, and as a result, we know that revaluations cannot be delivered fairly without supporting households that move up the banded system. Research estimates that around a quarter of households could see their council tax band increase, another quarter could see their band decrease, while half of households would see minimal change. If we were to implement a change of this scale responsibly, then I believe that we, as a Government, would have to provide financial support to mitigate the impacts for households that would move up council tax bands, as we did in 2005. We cannot risk introducing new unfairness into the system, particularly at a time when household budgets are already under significant pressures. Our preferred approach would be to phase in increases over time, which would help households to adjust to changes in their bills, similar to the way in which we support businesses through non-domestic rates revaluations. The support that we would want to provide households, alongside a revaluation of the tax system, would come at a substantial cost to Government. Our assessment is that providing the temporary relief this Government would want to put in place could cost up to £80 million in the first year following the revaluation. My Cabinet colleagues and I agree that this is extremely challenging to fund, given the current fiscal forecasts and the pressures that we are facing across public services.

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Our fiscal position requires us to consider carefully the prospect of continuing with the revaluation programme. It requires us to ask not simply whether revaluation is desirable in principle, but whether proceeding represents the best use of the resources available to us at this time. I have to look carefully at the resources available to the Welsh Government to deliver on key priorities for this Senedd term—bringing down waiting lists, supporting families with the cost of childcare, creating jobs and raising educational standards. I’m also mindful of the need to provide funding for the local government settlement, which will protect local taxpayers and the public services they rely on, and that revaluation could happen at a time when changes to the settlement formula are also being implemented. Every pound we spend has an opportunity cost. We are in Government at a time when our public services face significant pressures and when communities across Wales rightly expect us to focus our resources on the priorities that matter most to them. Local authorities, too, require us to consider the risks of implementing a number of big changes at once. Revaluation and funding formula changes at the same time is a lot to ask of our local government partners. For that reason, I believe the right approach is to pause the 2028 revaluation plans and bring forward legislation next month to defer it until the next Senedd term. A revaluation could not be guaranteed to seamlessly be delivered without significant transitional relief, and funding for such relief is not affordable in this difficult public finance climate. I'd like to be clear about what this decision does and does not mean. It is not an abandonment of council tax reform, it is not a retreat from our commitment to fairness, and it is not a suggestion that the current system cannot be improved. It is a pragmatic judgment about timing, affordability and priorities. Rather than committing substantial resources to the revaluation exercise, which requires adequate transitional protections for households, we will want to use this time to explore other ideas, practical targeted measures that can improve the system without requiring investment on the same scale. I remind the Senedd that Wales is the only nation to have added an extra council tax band, band I. One option could be to add further bands for the most expensive properties. I'll be exploring this idea and the legislation it would require over the coming months. I recognise that there will be people who disagree with a further delay. I am sure there are colleagues in the Senedd, partners in local government and organisations across Wales who are eager to see tangible changes to the council tax system at pace. I respect that view, and I understand why some may be disappointed by the prospect of a further deferral. Those same voices, I hope, will understand that this work is complex and important. I don't want to rush into one approach without considering a range of others. To help Members consider the potential impacts, I intend to provide independent analysis by the Institute for Fiscal Studies on the system I would have designed and the cost of the transition schemes I would have opted for. I considered a 12-band system with three additional bands, two at the top and one at the bottom. It will be for the Senedd to decide finally on postponing the revaluation. The Government will bring forward the regulations to postpone until 2032, but a Senedd majority will be needed to pass these regulations, otherwise revaluation will continue for 2028. We want to see progress on a fairer council tax. We want councils to have a stable and sustainable source of revenue, and we want to protect the public services on which people and communities depend—schools, social care, policing and hundreds of other local services that people rely on every day. That stability matters, and any reform must protect it. I will now be turning my attention to what this Government can achieve in this Senedd term. I'll look expediently into the pragmatic steps that can help make council tax fairer without requiring that very substantial financial commitment. Members across the Senedd will undoubtedly have important perspectives to contribute, as will local government and communities across Wales, and I am keen to hear those perspectives. For now, our intention is to defer the 2028 revaluation. We will explore targeted and affordable improvements to the current council tax system, and we will work with partners to identify what more can be achieved by the end of this Senedd term. I will keep Members updated on next steps.

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Thank you for your contribution and for understanding the context in which this decision has been taken. The Government did look seriously at continuing with revaluation in 2028. We have had a very serious set of conversations about the context for 2028 and whether we could proceed with it. As I said in my statement, we very clearly see the merits of updating the valuation that underpins the council tax, but there were two, I'd say, primary issues that led to the decision to defer. You've certainly noted one of those, and that would have been the very significant piece of public funding that would have needed to be found to enable a seamless transition for those families and houses that would have been affected by seeing their council tax band increase through no changes of their own circumstances, merely through the revaluation process that's changed the valuation in the communities in which they happen to live, and those communities could be anywhere in Wales. Therefore, the assessment is that a transition process, even just in its first year, would have cost the public purse £80 million, and the financial pressures on us at this point for public services in Wales are such that that £80 million would have come at a very severe cost for another public service. So, that was the first reason. The other one is something I referred to in the statement. Of course, we are undertaking a piece of work also on the local government formula, the settlement formula, and that piece of work is likely to lead to proposals possibly for change, to also come into operation in April 2028. The coinciding of both these aspects of work would have been a major upheaval for local councils. The upheaval, though, for people who would have faced moving up a band—. We estimate that around 25 per cent of Welsh households would have been moving up a band and 25 per cent roughly would have been moving down, with around 50 per not affected significantly. The Institute for Fiscal Studies have done much of the modelling work for us around this, and in proposing the regulations later on in November that work will be published alongside, and much of that work does go into the detail you asked for on a council-by-council assessment as well. On the single-person discount, the Government has no plans to change the single-person discount. There is no change on that. And then we start to disagree on stuff. We disagree on the need for a referendum. We rehearsed that argument last week on increases to council tax. And then you also questioned the need to look at a higher banding for council tax. That is an issue that I am prepared to look at. We can discuss the detail of that when and if we are able to bring something forward. It is likely to need legislation, and therefore it will be very well scrutinised in this place if it becomes an aspect of work that we do want to introduce, because our commitment to ensuring that we create a fairer range of council tax and fairer range of bands for that purpose continues beyond today, and looking for how we can make council tax and other taxes fairer for people in Wales is something that this Government will continue to commit to developing over the period of this Government's term.

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Diolch am y cyfraniad.

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Thank you for that contribution.

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I, too, have words in front of me, and it is the written statement and the update on council tax reform by Rebecca Evans in 2024, when the anticipated 2025 revaluation was delayed by the Government of the time until 2028. I read that written statement and it says very much, closely to, the same as I've been saying in my oral statement today. And one of the main reasons for the delay in 2025 was the exact same reason that I gave in my statement as well, and it was in the context of the broader financial pressures on that Government and the need for an appropriate transition fund. Those were the reasons given by Rebecca Evans in 2024 for a delay from 2025 to 2028. Those financial pressures, I would say, are even more significant today on public services and on the Government.  And, as I said in my earlier answer, this Government did seriously consider how we could undertake a revaluation for 2028. We do see the value in that revaluation, in updating our council tax system, in making it a fairer system based on what we would have produced as a 12-band model. But the public finances of today, and of 2028, do not allow us to take those decisions. I don't know whether it's lucky enough to remember the revaluation of 2003-05. I remember the 30 per cent of people who found that they were suddenly facing higher council tax at that time. I remember the very significant letters, by the way, I was getting at the time, not e-mails in inboxes—I go back long enough to be an elected Member getting letters. And they are periods of significant upheaval for households who, for no change in their own circumstances, are facing an increase in council tax bills and council tax banding that is a permanent increase for them because they are permanently in those new bands. So, that £80 million of transition funding in order to help those individuals move over time to a fairer system is not £80 million that this Government can find at this point. We do continue to be a Government and a political party that wants to see council tax fairer for people. We believe that council tax in itself could be reformed beyond just the terms of the valuation, revaluation and the banding. But it will be, now, in this Senedd, for us to look at some of the marginal changes that we can do in the context of the public finances that we find ourselves in. I will genuinely look for new ideas and good ideas across this Chamber as to how we can make those marginal changes to make council tax fairer for people and to meet the needs that it needs to in terms of public service delivery. I recognise that there's a degree of role reversal in what we are conducting this afternoon. We recognise, as I've said, that this is an issue where many people will look to this decision today and criticise or feel regret that it hasn't been able to be pursued at this time by this Government. The moral case is there and it continues to be there, but the context, the financial pressures that we are under do not enable us to move at this time on this piece of work. But continuing to look at how we can make council tax fairer is something the Government is going to commit energy and commitment to.

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Thank you for your contribution, the words that you've said and the general approach you have taken to revaluation. You're an enthusiastic opponent of revaluation. I've come to this more reluctantly, and that explains, maybe, the pace of the decision. It wasn't an easy, straightforward decision for the Government to take, so we took some time over the modelling of that work and how we would look to consider whether we were in a position to fund the transition programme that was needed to ensure a more seamless introduction of revaluation in 2028. That explains the fact that, within a few months into this Government's time, we have come to this decision. But it ultimately is not our decision, it is the decision of this Senedd to decide on delaying and postponing the revaluation for 2028. So, those regulations will come forward and will come with the IFS analysis and the modelling around revaluation, so that everybody can take an informed position in terms of the vote that they will cast on the regulations. You asked a really important point, I think, about what lies in primary legislation that can't be changed by regulations, and that is the five-year pattern of revaluation and how credible that is now. I tend to think that in proposing for 2032, a revaluation could be considered by the next Government. It is possibly one of the Senedd events in each Senedd that a new Government will need to consider—whether it has the circumstances and the mandate to move on revaluation. So, in ensuring that there is adequate time for a new Government to take a decision for 2032—that explains the choice of that date. And it will be maybe for a legislative opportunity at some point later to consider the primary legislation itself. But, as I've said, this Government believes that a revaluation should actually happen at some point in order to enable us to get to a council tax system that could be fairer for people, and it is the circumstances around the public finances in particular that have made us reflect on that position and to take the decision to delay today.

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Yes. Thank you, and thank you for recognising the difficulties that local councils themselves face in their own running of public services, with the public finance settlement currently, and the pressures on their finances in running the services that they're responsible for, but also in terms of those people who—. If this had been progressed in the way that it could have been progressed, some people, obviously, would have benefited from being in lower bands, and others would not have. So, it would've been a churn, and some people would've found that their ability to pay, whichever band they ended up being in, would've been severely challenging in the cost-of-living situation that we're in, hence the need for a transition phase that would've required that significant investment that would've taken money from public services, and local government itself could have seen that happen as well. So, in terms of what we can do next, I mentioned in my statement that we need to look at introducing a higher band so that, for those people who are now in particularly expensive houses and are way beyond where band I starts, there is a case for a higher band to reap some additional revenue from there into the system that will, ultimately, circulate within the system to help others. So, that's something that we will look at. It's something that's currently been looked at both in England and Scotland, and they don't have as high a band as we have currently in band I. So, they have even more motive to introduce higher bands in England and Scotland. But I think that there is a case for us also to be looking at this, but it may well need—well, it will certainly need some form of legislation. It may need primary legislation, which we would need to find time for. But there are many changes, more marginal changes that we could make as well, to make council tax fairer, continuing to ensure that people know that there is a council tax reduction scheme out there, making sure that everybody is eligible and that those in need of that scheme know about it and access it, and that's something that we all, and Government especially, need to put even more effort into.

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That's probably slightly beyond what I expected to commit to this afternoon, so I won't go there, if you don't mind. But I think that's a perfectly reasonable question to be asking in the context of public finances as they are, in terms of how our public sector is configured at this time. We've heard people talk in this place about local health boards, local government. I know that when this Senedd has discussed local government reorganisation and mergers and the creation of bigger councils in the past, there was quite often quite a lot of local resistance to that. Communities quite like having small authorities, even though that might be, in itself, challenging for local authorities, because, obviously, the smaller local authorities, all local authorities, carry significant responsibilities now, and to ensure that they have all the staff that's required to enforce and develop policies properly is a challenge for local authorities, let alone the services that they deliver. So, I won't go there in providing an answer, 'yes' or 'no', to you on that question today. But I think, in the context of everything that we talk about here in terms of public finance, how and what we spend the public's money on, how we collect taxes in order to help fund public services in Wales, the configuration of our public bodies in Wales is an issue that needs to be part of that wider discussion.

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Okay, that's one for you. [Laughter.] I'm sure that Mike Hedges, and others, will want to be part of that debate, actually. It could be quite an interesting one. Just to respond to those points, I'll go back to the main point—the main thrust of why this decision has been taken in the way it has by this Government is that, in needing to make revaluation work as a seamless move towards a new system post 2028, then the need to ensure—as the previous Government actually thought needed to be part of that change—that there was transition funding in place, in the context of the public finances as they are, then that £80 million that we estimate that funding could be necessitated as is not available without significant consequence to this Government.

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The cost for the next financial year to continue the programme would have been around £2.4 million. That's just to progress the revaluation to implementation stage in 2028. On the Institute for Fiscal Studies, the work that they've done to model the changes and the council-by-council impact—that will be published in a time in advance of the regulations and in a time where all Members here will be able to look at it and to consider their views in advance of voting on the regulations.

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Mae'r Gweinidog Cabinet dros Lywodraeth Leol, Tai a Chynllunio yn bwrw ymlaen â'r adolygiad o fformiwla ariannu llywodraeth leol mewn partneriaeth â llywodraeth leol. Mae hyn yn cynnwys gwaith technegol ar y cyd gyda llywodraeth leol ac ymchwil annibynnol drwy Ganolfan Polisi Cyhoeddus Cymru. Mae disgwyl adroddiad yn ystod haf 2027 ar y gwaith yma.

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The Cabinet Minister for Local Government, Housing and Planning is proceeding with the local government funding formula review in partnership with local authorities. This includes joint technical work with local government and independent research through the Wales Centre for Public Policy. We're expecting a report during the summer of 2027 on this work.

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Diolch am y cwestiwn pellach yna, ac a gaf i gytuno gyda'r Aelod fod cynghorau sir yng Nghymru yn chwarae rhan allweddol o ran delifro gwasanaethau cyhoeddus ac yn chwarae rôl hanfodol o ran sut bydd y Llywodraeth yma'n gwireddu ein rhaglen lywodraethu ni, ac yn chwarae rhan allweddol, wrth gwrs, yn darparu a chynrychioli'r bobl yn lleol? Ac felly mae ariannu llywodraeth leol, i'w galluogi nhw i fedru cyflawni yn y modd yma, yn bwysig yn hynny o beth. Cwestiwn ynglŷn â'r drafodaeth dwi wedi ei chael gyda'r Gweinidog llywodraeth leol o ran ariannu priodol ar gyfer awdurdodau lleol—ie, yn sicr, mae hynny'n digwydd fel rhan o'r drafodaeth ynglŷn â pharatoi ar gyfer cyllideb flynyddol Cymru. Ac, wythnos ddiwethaf dwi'n meddwl oedd hi, fe wnes i gwrdd, ar y cyd â'r Gweinidog llywodraeth leol, gydag awdurdodau lleol yn finance sub-group yr WLGA wrth i ni drafod y gyllideb flynyddol, ie, a newidiadau a'r drafodaeth ynglŷn â'r fformiwla cyllido hefyd. Felly, mae'r berthynas a'r drafodaeth barhaus yna gyda llywodraeth leol yn bwysig iawn i'r Llywodraeth yma er mwyn cyflawni'r holl waith mae'n cynghorau sir ni yn gyfrifol am ei wneud.

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Thank you for that supplementary question, and may I agree with the Member that county councils in Wales play a crucial role in delivering public services and play a crucial role in terms of how this Government will deliver its programme for government, and they play a key role, of course, in providing for and representing people at a local level? So, the funding of local government to allow them to deliver in that way is important in that regard. Now, there was a question on the discussions that I've been having with the Minister for local government in terms of appropriate funding for local authorities—yes, certainly, that is happening as part of the discussions around the preparation of the annual budget for Wales. Last week, I believe, I met, along with the Minister for local government, with local authorities in the WLGA finance sub-group as we discussed the annual budget, and changes and the discussion around the funding formula too. So, that ongoing relationship and discussion with local government is very important to this Government in order to deliver all of the work that our county councils are responsible for doing.

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Well, the promotion of Wales overseas is an important aspect of the work that this Government wants to accomplish on behalf of businesses and communities in Wales. The First Minister was drinking a cup of coffee in a corridor as I passed him on the way down to the Chamber earlier, gallivanting nowhere at that point, hot coffee in his hand. Can I just say that, as I answered Rebeca earlier, local authorities provide a really key role in being able to deliver services—education, social services—in all our communities in Wales? They face tough, challenging budgetary situations, as we do as a national Government as well. Taking these decisions at a local level is important. We believe in the decentralisation of decision making in Wales, not setting arbitrary caps on local authorities in terms of the money that they have the ability to spend, as you will want to propose later on this afternoon. They have to take difficult decisions. I represent a constituency west of yours, also rural in nature. I've seen local schools at times have to be closed; I've seen campaigns to save local schools, and those local schools remain open today. These are complex decisions that local communities and their representatives have to take, and should not be trivialised in this place; they need to follow the processes, listen to the voices of those people involved, and take the right decisions. It's not for us to dictate the decisions that should be taken locally.

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Thank you. You outline the challenges, of course, with the creation of a funding formula that works for all communities and all local authorities across Wales, as diverse as they are for us in Wales. The review that is now being undertaken, part of it in direct partnership and in collaboration with local government, the technical review, part of that is updating and recalibrating the formula while retaining its established needs-based methodology, and initial work that's currently ongoing is focused on some of the areas you've identified, and they are the main areas of local government delivery, and they are on education and personal social services. As I said in my initial answer, then, this work is ongoing and it is in partnership with local authorities. The final report on this work will be next summer, and that will then decide how we move forward on these issues. I suspect we'll have many conversations around these issues both here, but, importantly, between ourselves as a Government and local government, which are the essential deliverers of so many aspects of our public services and need to be funded according to the need that they need to deliver in a variety of different circumstances.

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Dwi wedi ysgrifennu at y Canghellor ac Ysgrifennydd Ariannol y Trysorlys i ofyn am esemptiad treth ar gyfer Cynnal. Dwi hefyd wedi codi'r mater mewn cyfarfod â Phrif Ysgrifennydd y Trysorlys. Mewn trafodaethau gyda'r Gweinidog Gwladol ar gyfer yr Adran Gwaith a Phensiynau, mae'r Dirprwy Brif Weinidog hefyd wedi gwneud cais i'r taliad gael ei ddiystyru at ddibenion cyfrifo budd-daliadau. Dwi'n croesawu hefyd, yn hyn o beth, sylwadau cadarnhaol Prif Weinidog newydd y Deyrnas Gyfunol o ran edrych ymhellach ar y materion yma.

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I have written to the Chancellor and Financial Secretary to the Treasury to request a tax exemption for Cynnal. I've also raised the issue in a meeting with the Chief Secretary to the Treasury. In discussions with the Minister of State in the Department for Work and Pensions, the Deputy First Minister has also requested that the payment be disregarded for benefits calculation purposes. I also welcome the Prime Minister's positive comments to explore these matters further.

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Thank you. You outline in your question the real, debilitating impact of poverty on children in our communities, and that's why this Government is seeking to introduce a child poverty payment, direct payment, in the form of our Cynnal scheme. It will be very difficult for us as a Government to introduce that pilot if we are not given those exemptions to benefits by the UK Government, so we are pursuing vigorously a decision by the UK Government to exempt the Cynnal payment from any impact on benefits or taxes. So, we will be pursuing those. And I'm hoping, even in my letter to the UK Government, that this could be something the UK Government provides clarity on in the budget in April. And just to say, in terms of the full devolution of welfare—or progress on the devolution of welfare—then that is certainly something that the First Minister is pursuing as part of the need to see greater devolution. We've seen how the part devolution of welfare for Scotland has enabled a child poverty payment to be made in Scotland, and we are prevented from doing so at this point by some of the restrictions around our devolution settlement. So, we need to change that in order to help us with the work that we want to tackle in terms of child poverty.

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The Cynnal payment is no longer just a manifesto commitment, it is a pledge of the Government elected by the people of Wales in May. We've moved on from a manifesto, so keep up. The programme for government, of course, wants to implement and, across our work as a Government, tackle child poverty, for the clear reasons outlined by Becca in her earlier question. So, we need to be progressing this. We think that there are very straightforward measures that the UK Government could take to enable us to introduce this payment. Designing the Cynnal payment pilot, as it will be, continues as part of the work of this Government now, and, as I've already outlined, we'll be continuing discussions with the UK Government to enable us to bring it into action.

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I'm not aware of anything that those companies that have regrettably announced job losses have said that it is in any way as a result of the 30 per cent reduction in the business rates available to the leisure and hospitality industries in Wales. They are large companies and they will want to see a workforce that works for them in Wales, that are living in vibrant communities, vibrant city centres here in Cardiff. As part of providing for ensuring that we have the ability for smaller businesses to continue trading in our city centres and in our high streets, then this Government took the decision to reduce those business rates on the hospitality and leisure sectors. So, I hope that you will be supporting that, and any information that you believe I need to provide in order to facilitate your support for the reduction of business rates for our pubs and clubs, then I'd be happy to supply that for you.

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This is most definitely not groundhog day for the Menai bridge. I would have said that last week was very much a first day of a big announcement by this Government on the future of a third Menai crossing. In Government, in this Senedd, when you have been here a longer time, you will know that large infrastructure projects take a long time to deliver. Therefore, if you don't start today and start the planning and fund the planning, as this Government is doing for the Menai bridge, then you will not get to that day when there is a third Menai bridge. So, you have to start and then you continue that work. This Government has started the process of designing the work that's needed to improve the resilience of the two bridges in place today and tackle the need for a third Menai crossing. We're committed to doing that work, to funding that work in its development phases, and, hopefully, both you and I will be here long enough to see that third Menai bridge built.

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When you've been here 27 years and you've only managed to vote wrong twice, then maybe I can come back to you and see what your record will be like in 27 years. Look, you can trivialise these spokespeople questions if you want to. There are really important questions that could be asked at this point, and you've asked whether it's Dafydd Trystan or myself that turned up to a meeting with you. I am the Minister for finance. There are others in this Government who will also be negotiating with people across this Senedd, both on funding and on legislation. We do not work as a silo in this Government; we work as a team. I don't know how you work within Reform—I'd love an insight into that. But, as a Government, we are committed to working with you and with all parties here to secure Senedd support for a budget that enables public services to be delivered in Wales. It is easy to sit on a Reform bench, or even a Tory bench, and always vote 'no'. The difficult bit of this work, you will find, is to find—[Interruption.] I apologise for dragging another political party into this. I shouldn't have done that, and I was trivialising at that point. You will find, in the work of forging co-operation and ensuring the need to pass budgets and pass legislation in this place—because ultimately that is why we are voted to this place by the people of Wales—that you need to talk across political parties and within political parties, and that's what I'll continue to do.

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Shwmae. Shwmae i'r Siambr gyfan y prynhawn yma. Mi oedd yn bwysig ein bod ni'n dod i gytundeb a bod yna fwyafrif, gobeithio, yn mynd i fod yn y Siambr yma nawr i ganiatáu'r gwariant ar gyfer anghenion dysgu ychwanegol, sydd angen y £60 miliwn yna a fydd yn cael ei bleidleisio arno yn yr wythnosau nesaf yma, fel bod yr arian pwysig yna yn cyrraedd ein hysgolion ni a'n colegau ni er mwyn sicrhau bod y pwysau y mae ein hysgolion ni oddi tano nawr yn cael ei leddfu rhyw gymaint. Dwi'n gwybod eich bod chi'n credu bod angen mwy o arian yn hynny o beth, a dilyniant i'r arian hynny, ac mae hwnna'n rhywbeth bydd y Siambr yma yn ei chyfanrwydd angen ei drafod wrth inni gyflwyno'r gyllideb ar gyfer y flwyddyn nesaf.

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Shwmae. Shwmae to the whole Chamber this afternoon. It was important that we came to an agreement and that there will, hopefully, now be a majority in this Chamber to allow that expenditure on additional learning needs, which needs that £60 million that will be voted on in the next few weeks, so that that important funding reaches our schools and colleges in order to ensure that the pressure our schools are currently under is alleviated somewhat. I know that you believe that more funding is required, and some follow-up to that funding in future, and that's something that this Chamber as a whole will need to discuss as we bring forward the budget for next year.

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In reference to the particular challenges within the NHS and in financial control within the NHS, this is an issue that I am continuing to have conversations on with the health department and the health Minister. We do need to ensure that we get to a situation where we are confident at the start of a financial year that the NHS is able to live within the means of the budget that it's been allocated for that year. There is considerable inflation within the NHS—in public services in general, but particularly in the NHS—and that is once again because it's in the wider economy and that is a challenge to our NHS budget management. These are issues that we continue to need to grapple with and they have very real life consequences for people out there who receive services from the NHS.

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On the current position, in terms of the NHS position within the financial year, I'm happy to write to you further on the exact position as we are in month 6 or 7 of the financial year. It is our commitment as a Government to ensure that there is fair pay for fair work and we are looking to embed that across our work as a Government, whether that is in the wages available to people who undertake contracts for the Welsh public sector, but also in terms of the question that you pose in particular there, the grants available to businesses. So, I'll need to take that particular part of the question away and write to you to confirm on that one what the intention of the economy Minister is on that particular aspect of the question.

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Interesting for me, this analysis of who works with who, because if we think about the supplementary budget and if we think of how that supplementary budget will progress its way through the Senedd, then it may well be that it's supported by one or two political parties here. It may be that it's allowed through by another political party, but it may be voted against by another cosy consensus between Reform and the Tories here. Alliances work in different ways in this place. I'm always keen to look to see how we create new alliances. I'm always keen to work with political parties across this Chamber. You know, I love it when the whole Chamber works together as one, but that doesn't seem to be the pattern of the day these days. So, this Government has a programme for government for the next four years. It is a programme of change. A budget will be announced in the next few weeks that will enable that programme to move up a gear. We are a Government of change. That programme is the first programme for government that is not a Labour programme for government. That is change in itself and it will do different things.

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Well, that supplementary budget is, of course, much more than just the £60 million of additional funding for additional learning needs. That in itself is important and is an addition to the budget that was discussed here in the summer, and that's an important contribution that will now go directly to schools and colleges in Wales. It won't go as a result of you voting against the supplementary budget, or Reform possibly voting against the supplementary budget. It'll go because Plaid Cymru will vote for that supplementary budget, and Labour will allow that supplementary budget to pass. It is because of our actions that it will go, not your actions. So, that is a contribution that will make a difference to young people in Wales, and just continually voting against delivers nothing.

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Mae'r dreth trafodiadau tir wedi gwneud cyfraniad sylweddol i gyllideb Cymru ers ei chyflwyno yn 2018. Mae wedi sicrhau cyllid gwerth dros £2.5 biliwn ar gyfer gwasanaethau cyhoeddus a seilwaith hanfodol yng Nghymru.

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Land transaction tax has made a significant contribution to the Welsh budget since its introduction in 2018. It's provided over £2.5 billion for vital public services and infrastructure in Wales.

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The important piece of this jigsaw that you didn't mention there was that the land transaction tax in Wales has a much higher starting threshold than in England. So, the starting threshold in Wales is £225,000. There are around 55 per cent and more of transactions below the £225,000 threshold in Wales, and they pay no land tax at all—55 per cent of all transactions pay no land transaction tax on a primary residence. The starting threshold in England is £125,000. Every house that is worth more than £125,000, and between £125,000 and £225,000, pays land transaction tax or stamp duty in England. They don't in Wales. In Scotland, it's £145,000. So, in telling the story of land transaction tax, tell it all and then the full picture provides the balanced approach that this Government believes can continue. Although, I am willing to consider whether there is a need to think about first-time buyer relief.  It's something that I'm interested, possibly, in looking at in this context, but very much the majority of first-time buyers are in that context of being under the threshold of £225,000. In fact, that £225,000 threshold is higher than the average house price in Wales of £215,000.

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Thank you for that point. As you know, the Government is interested in being able to bring more empty properties back into active use, especially into residential use. And on the point that you made there about the difficulties that some property developers may be finding in renovating and bringing vacant residential properties back into use because they are caught in the land transaction tax matter, and whether there is a way of providing land transaction relief or refund to incentivise property developers bringing properties back, it's an interesting area that I'm perfectly willing to look at as we look at how we use the land transaction tax to enable bringing empty properties back. I certainly wouldn't want it to be an active disincentive, so I will certainly look at how we can see whether there are ways of doing it in a way that enables bringing empty properties back into use.

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Fel rhan o broses y gyllideb, dwi’n cynnal trafodaethau rheolaidd â holl Weinidogion y Cabinet. Mae penderfyniadau ar gyllid addysg bellach, fel pob penderfyniad cyllidebol, yn cael eu hystyried yn ystod trafodaethau ehangach y Cabinet ar flaenoriaethau.

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As part of the budget process, I have regular discussions with all Cabinet Ministers. Decisions on further education funding, like all budget decisions, are considered within wider Cabinet discussions on priorities.

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I certainly recognise that additional learning needs is a challenge in terms of funding and provision for colleges, post-16 education, as well as our schools. A lot of the focus of the discussion seems to be on schools, but it is a very real challenge for post-16 education as well. That's why I am pleased that, as part of that deal to secure progress on the supplementary budget, and the £60 million allocation for additional learning needs, £2.5 million of that is to go directly to colleges. But another important aspect of that agreement of the £60 million package is that there is an allocation of funding also for the planning for a long-term sustainable model of funding for education and additional needs, so that, over time, we can get to a place where our local authorities, schools and colleges can plan provision to meet the need and the ability to provide education comprehensively for all. We need to get to a better place than we are currently, and that's why we're committed to working with partners across this Chamber on how we can develop and place this on a sustainable footing into the future.

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Mae’r Llywodraeth hon wedi ymrwymo i fynd i’r afael ag anghydraddoldeb o ran rhywedd a sicrhau bod cydraddoldeb yn cael ei ystyried yn drylwyr ym mhob cam o’r broses o wneud penderfyniadau ar y gyllideb. Ein prif ffocws fel Llywodraeth yw'r canlyniadau rŷn ni’n eu cyflawni, a rhaid inni ystyried yn ofalus ba adnoddau a mecanweithiau sy’n ein helpu ni i wneud gwahaniaeth go iawn i fywydau pobl.

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This Government is committed to tackling gender inequality and ensuring that equality is properly considered at every stage of budget decision making. Our primary focus as a Government is on the outcomes we achieve, and we must carefully consider which tools and mechanisms help us to make a real difference in people’s lives.

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I'm not sure if I'd pass the cook test, but I'll try and pass the budget test. There's a range of tools and approaches that can help us understand the impacts of spending decisions before we take them, and gender budgeting is certainly one of those tools. But there are constraints in terms of our capacity to embed this approach, especially in the context of this year's first budget. The previous Government undertook gender budgeting pilots that you'll know about, I'm sure, and they provided useful learning. In particular, they highlighted the importance of considering gender early in policy development, rather than adding it later. So, I want to take that learning and consider where it can help us to make better decisions and deliver better outcomes. And if we think of that particularly in the context of where we are developing new programmes—we've spoken of Cynnal, free school swimming and our childcare offer—so that we are using gender budgeting in the context of new policy initiatives, as was highlighted by the gender budgeting pilots—. And, obviously, you've done previous work on gender budgeting, and I'd be happy to discuss this further with you in detail in how we move to embed that across Government as we move through our budgeting processes.

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Mae trethi yn ariannu gwasanaethau cyhoeddus sydd o fudd i bawb. Bydd polisïau treth teg a chymesur yn cefnogi pobl a busnesau yn sir Gaerfyrddin. Bydd ein newidiadau i ailgydbwyso trethi busnes o fudd i gymunedau drwy gefnogi'r stryd fawr a chanol trefi ffyniannus. Mae cynllun gostyngiadau'r dreth gyngor yn cefnogi dros 15,000 o aelwydydd yn sir Gaerfyrddin yn uniongyrchol.

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Taxes fund public services that benefit everyone. Fair and proportionate tax policies will support people and businesses in Carmarthenshire. Our changes to rebalance non-domestic rates will benefit communities by supporting vibrant high streets and town centres. The council tax reduction scheme directly supports over 15,000 households in Carmarthenshire.

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This is a spoiler alert, but we will be voting against your motion later on. We don't agree that capping local authorities' council tax is a way of enabling local authorities to take the decisions they need to take locally as elected members. The main determinant of council tax is probably still the financial settlement that this Government and this Senedd will pass in February of next year to local authorities. So, us deciding across the Senedd what the scope of that settlement for local authorities will be will be part of the work that we undertake over the next few months. I already know, and I'm already planning at this point, that our settlement as a Welsh Government will be 0.7 per cent down in real terms for next year. It is a very challenging settlement, unless there are changes from the UK Chancellor at the end of October in his budget. So, that is the crucial determinant of council tax: what is the size of the public sector funding available to local authorities. I'm hoping, hearing what you say, that you want to see good local settlements for local authorities, and that you will work constructively with us to enable that to happen, just as Plaid Cymru enabled a good settlement to pass by working with the previous Welsh Government so that local government and the NHS were provided the best possible settlement as part of the budget deal of the last Senedd.

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Mae gwydnwch rhag newid hinsawdd yn elfen bwysig o waith y Llywodraeth yma i amddiffyn cymunedau a gwella canlyniadau. Mi fydd y gyllideb ddrafft ar gyfer 2027-28 yn cefnogi blaenoriaethau’r rhaglen lywodraethu sydd yn ymwneud â'r hinsawdd a natur. Mae hyn yn cynnwys Cymru Sero Net, ochr yn ochr â mesurau ehangach y Llywodraeth i helpu Cymru i addasu i hinsawdd sy'n newid.

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Climate resilience is an important element of this Government’s work to protect communities and improve outcomes. The draft budget for 2027-28 will support programme for government priorities on climate and nature, including Net Zero Wales, alongside wider Government measures to help Wales adapt to a changing climate.

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Your question highlights probably the very real concerns that we all as elected Members in the Senedd have as to how we face the extreme weather challenges that will face us this winter, as have faced us in the summer past. You know that this Government takes its response and its planning for future events of this nature seriously. The First Minister has convened a summit on climate resilience to happen next week, I think, to bring stakeholders together to continue the discussion on how we prepare and make ourselves more resilient for extreme weather scenarios, because happen they will. On the issue around how we budget for that, in my initial answer I told you of how we are looking to embed climate change mitigation measures across our budget. You've asked for a specific identification of an extreme weather resilience fund, if I've understood you correctly, across and in each budget allocation and portfolio. That is something that I will certainly think further on and discuss with you and with others in this Chamber. These are ever-changing but very present issues that we need to address as a Government, but also as a Senedd, in how we plan our budgets into the future and how we plan our work.

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Cynnig yn ffurfiol.

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Formally moved.

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Lywydd, dwi'n croesawu'r cyfle i gyfrannu at y ddadl yma ar y cynnig i gyflwyno trefniadau refferenda treth gyngor fel sydd i'w gweld yn Lloegr. Nid yw Llywodraeth Cymru yn credu y dylid gosod targedau cenedlaethol penodedig a mympwyol ar godiadau yn y dreth gyngor, sy'n anwybyddu amgylchiadau lleol a chyd-destunau economaidd amrywiol. Dylai penderfyniadau blynyddol am drethi lleol gael eu gwneud gan gynghorwyr a etholwyd yn lleol sy'n atebol i'r cymunedau y maen nhw yn eu gwasanaethu. Wrth gwrs, dylai'r penderfyniadau lleol hynny ystyried y pwysau costau byw sy'n wynebu aelwydydd, yn union fel y bydd ein penderfyniadau ni ar lefel genedlaethol yn blaenoriaethu camau i leihau'r pwysau ariannol sy'n wynebu teuluoedd. Ond mae'r dreth gyngor yn helpu i ariannu ysgolion, gwasanaethau gofal cymdeithasol, tai, plismona a'r holl wasanaethau lleol y mae ein cymunedau'n dibynnu arnyn nhw bob dydd. Mae yna lot o gymariaethau wedi'u gwneud yn ystod y ddadl yma, a lot ohonyn nhw gyda Lloegr, ond mae yna un gymhariaeth sydd heb ei gwneud. Er y polisi refferendwm yn Lloegr, mae treth gyngor band D cyfartalog cynghorau Cymru £109 yn is na Lloegr. Felly, mae trethdalwyr Cymru ar gyfartaledd yn talu llai o dreth gyngor na threthdalwyr treth gyngor yn Lloegr o hyd, hyd yn oed gyda'r polisi sydd yn weithredol yn Lloegr. Fe fyddai refferenda lleol o dan y cynnig yma yn golygu costau a biwrocratiaeth sylweddol, a hynny'n hollol ddiangen ar adeg pan fyddai'n well cyfeirio adnoddau tuag at ddiogelu gwasanaethau rheng flaen. Dim ond un refferendwm lleol sydd wedi'i gynnal o dan y polisi yma yn Lloegr, yn Bedfordshire, gyda'r comisiynydd heddlu, ac amcangyfrifwyd i hwnnw gostio tua £600,000 i'r trethdalwr.

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Llywydd, I welcome this opportunity to contribute to this debate on the proposal for a regime of council tax referenda similar to those seen in England. Plaid Cymru does not believe that the Welsh Government should impose arbitrary and fixed national targets on council tax rises, which disregard local circumstances and volatile and diverse economic contexts. Annual decisions about local taxes should be made by locally elected councillors who are accountable to the communities that they serve. Of course, local decisions need to consider the cost-of-living pressures facing households, just as our national decisions will prioritise actions to reduce the financial pressures facing families. But council tax helps to fund schools, social care services, housing services, policing and all of the local services that our communities rely on every day. There are many comparisons that have been made during this debate, many of them with England, but there is one comparison that hasn't been made. Despite the referendum policy in England, average band D council tax in Welsh councils is £109 less than in England. So, taxpayers in Wales pay less council tax than council tax payers in England, and they continue to do so even though they have that policy in place in England. Local referenda under this motion would come with significant costs and bureaucracy needlessly, at a time when resources are better directed at protecting front-line services. Only one local referendum has ever been called under this policy in England, in Bedfordshire, with the police and crime commissioner, and it was estimated that that referendum cost around £600,000 to taxpayers.

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Wrth gwrs, dros y blynyddoedd diwethaf, mae sawl awdurdod lleol yn Lloegr wedi cael caniatâd gan Whitehall i godi trethi ar lefel sydd y tu hwnt i'r terfynau refferendwm o 5 y cant. Mae yna sawl cyfeiriad at hyn wedi bod eisoes. Er enghraifft, un o'r eithriadau i'r caniatâd hynny gafodd ei roi oedd ym mis Chwefror eleni i Gyngor Sir Caerwrangon, cyngor o dan arweiniad Reform, lle cawson nhw'r caniatâd i godi'r dreth gyngor 9 y cant, sydd yn uwch nag unrhyw gynnydd a welwyd yng Nghymru eleni. Y cynnydd cyfartalog yng Nghymru eleni ar lefel cynghorau oedd 4.8 y cant, sef y cynnydd cyfartalog isaf ers 2022. Roedd y cynnydd a ddewiswyd gan y gwahanol gynghorau mor isel â 3.6 y cant yn ambell un, sy'n dangos atebolrwydd am eu penderfyniadau ar lefel leol. Gan weithio gyda'r Llywodraeth flaenorol, wrth basio'r gyllideb derfynol eleni, fe helpodd Plaid Cymru sicrhau setliad cryfach ar gyfer y gyllideb llywodraeth leol, gan ddarparu cynnydd o £282 miliwn yn y setliad terfynol, a sicrhau bod pob cyngor yn derbyn cynnydd o fwy na 4 y cant, drwy gefnogi'r funding floor. Fe helpodd y buddsoddiad ychwanegol hwnnw i leddfu pwysau uniongyrchol ar gynghorau a chyfraniad gynnig llai yn y dreth gyngor ar hyd Cymru. Lywydd, fel yr ydw i wedi sôn nifer o weithiau yn y Siambr yma, mae Llywodraeth Cymru yn wynebu sefyllfa gyllidebol anhygoel o anodd yn y flwyddyn ariannol nesaf, lle bydd gostyngiad mewn termau real yn ein cyllidebau adnoddau a chyfalaf. Ac mae'r awdurdodau lleol hefyd yn wynebu pwysau cynyddol ar wariant ar draws y gwasanaethau y maen nhw'n gyfrifol amdanyn nhw. Dyna pam y bydd ein cyllideb ddrafft ni fis nesaf eisiau gweld blaenoriaethu gwasanaethau cyhoeddus rheng flaen. Rwy'n gobeithio y byddwn ni'n gallu gweithio ar draws pleidiau yn y Siambr yma i sicrhau setliad digonol ar gyfer llywodraeth leol. Oherwydd nid cap mympwyol sydd angen, wedi ei orfodi ar awdurdodau lleol gan Weinidog cyllid yn eistedd ym Mharc Cathays, nid hynny fydd yn diogelu trethdalwyr lleol a'r gwasanaethau y maen nhw'n dibynnu arnyn nhw. Cyllid digonol ar gyfer gwasanaethau cyhoeddus sydd ei angen, i setliad Llywodraeth Cymru gan Drysorlys y Deyrnas Gyfunol yn y lle cyntaf, ac yna yn y setliad i awdurdodau lleol wedi'i basio gan y Senedd yma. Y ddau setliad ariannol yma fydd y dylanwad mwyaf ar lefel y dreth gyngor y flwyddyn nesaf yn ein cynghorau sir ni. Lywydd, mae'r ddadl yma hefyd wedi tynnu sylw at egwyddor ehangach. Rydyn ni yn y Llywodraeth yma'n credu mewn ymreolaeth ac atebolrwydd, boed hynny i awdurdodau lleol neu i'r Senedd yma a Llywodraeth Cymru. Dyna pam mae Plaid Cymru wedi dadlau ers tro bod angen mwy o bwerau cyllidol ar Gymru, gan gynnwys mewn perthynas â threthiant. Gyda setliadau cyllideb cryfach a phwerau hyblyg i godi refeniw, fe fyddwn ni mewn sefyllfa well i lunio ein cyllidebau, cryfhau gwasanaethau cyhoeddus a darparu cyllid mwy cynaliadwy ar gyfer llywodraeth leol dros y tymor hir. Yn union fel rydyn ni'n gwrthwynebu'r terfynau cyllidol mympwyol a orfodwyd arnon ni gan San Steffan, rydyn ni hefyd yn gwrthwynebu gosod cyfyngiadau mympwyol ar awdurdodau lleol pan fyddan nhw'n gosod eu cyllidebau eu hunain a'u lefelau treth gyngor eu hunain. Dylai Aelodau wrthod y cynnig hwn er mwyn diogelu atebolrwydd democrataidd awdurdodau lleol, a gweithio gyda ni i ddarparu'r gwasanaethau ansawdd uchel y mae pobl ledled Cymru yn eu haeddu. Mae unrhyw un sy'n credu mewn datganoli grym o'r canol i'r lleol yn mynd i wrthwynebu rhwymo dwylo'r rhai sy'n penderfynu ar lefel leol, y rheini sydd wedi eu hethol yn ddemocrataidd yn lleol. Rwy'n annog Canghellor y Deyrnas Unedig unwaith eto i ddefnyddio cyllideb yr hydref hwn i ddiogelu gwasanaethau cyhoeddus rhag chwyddiant uwch i'n galluogi ni i ddarparu'r cyllid ychwanegol sydd ei angen ar wasanaethau lleol. Yna, ein cyfrifoldeb ni oll yn y Siambr hon fydd gweithio gyda'n gilydd i sicrhau cytundeb ar setliad sy'n rhoi'r adnoddau a'r sicrwydd sydd eu hangen ar awdurdodau lleol i ddarparu'r gwasanaethau hanfodol hynny y maen nhw'n gyfrifol amdanyn nhw.

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Official English translation

Of course, over the past few years, several local authorities in England have been granted permission by Whitehall to exceed referendum limits, that limit of 5 per cent. There are several references already made to this. For example, one of the exceptions granted was in February of this year for Reform-led Worcestershire County Council, and they received permission to increase council tax by 9 per cent, which is higher than any increase seen across Wales this year. The average increase in Wales this year at council level was 4.8 per cent, which is the lowest average increase since 2022. The increase chosen by councils was as low as 3.6 per cent in some cases, demonstrating accountability for their own choices on that local level. Working with the previous Government in passing the final budget for this year, Plaid Cymru helped to secure a stronger budget settlement for local government, delivering an increase of £282 million in the final settlement, ensuring that every council receives an increase of more than 4 per cent, by supporting the funding floor. This additional investment helped to ease immediate pressures on councils and contributed to lower council tax increases the length and breadth of Wales. Llywydd, as I have mentioned several times in this Siambr, the Welsh Government faces an incredibly difficult budgetary position in the next financial year, with a real-terms decrease in both our resource and capital budgets. And local authorities, too, face increasing spending pressures across the services that they are responsible for. That's why our draft budget next month will prioritise front-line public services, and I hope that we can work across parties in this Senedd to deliver an adequate settlement for local government. Because it's not an arbitrary cap that we need, dictated to local authorities by a finance Minister sitting in Cathays Park. That's not what will protect local taxpayers and the services that they rely upon. It's sufficient funding for public services that we need, for the Welsh Government settlement from the UK Treasury in the first instance, and then in that settlement to local authorities passed on by this Senedd. Both settlements will be the greatest influence on the level of council tax levied next year by our county councils. Llywydd, this debate also highlights a wider principle. We believe, as a Government, in autonomy and accountability, be it for local authorities or for us as a Senedd and for us as a Welsh Government. That's why Plaid Cymru has long argued that Wales needs greater fiscal powers, including in relation to taxation. With stronger budget settlements and flexible revenue-raising powers, we would be better placed to shape our budgets, strengthen public services and provide more sustainable funding for local government over the longer term. Just as we oppose the arbitrary fiscal limits imposed on us by Westminster, we also oppose placing arbitrary restrictions on local authorities when they set their own budgets and their own council tax levels. Members should reject this motion to preserve the democratic accountability of local authorities and work with us to deliver the high-quality services that people across Wales deserve. Anyone who believes in devolution of power from the centre to the local level is going to oppose tying the hands of those who decide on that local level, those who are elected democratically on that local level. I urge the UK Chancellor once again to use this upcoming autumn budget to protect public services from higher inflation, enabling us to provide the additional funding that local services need. It will then be the responsibility of all of us in this Chamber to work together constructively to agree a settlement that gives local government the resources and certainty it needs to continue delivering the vital services that it is responsible for.

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