Welsh Government launches consultation on future of tax law-making

Daniel Bevan - Senior Journalist

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The Welsh Government has opened a public consultation on how changes to Wales’ devolved tax laws should be made in the future, seeking views on whether reforms are needed to make the system more efficient and responsive.

The review follows an assessment of how changes are currently introduced to Welsh tax legislation, which includes Land Transaction Tax and Landfill Disposals Tax, both key revenue streams for funding public services in Wales.

At present, some adjustments require full primary legislation, while others can be implemented through regulations. Ministers say they want to ensure the framework is robust enough to respond quickly to tax avoidance risks or changes to similar UK-wide taxes, while maintaining scrutiny by the Senedd.

Finance Secretary Mark Drakeford said: “Our Welsh taxes play a crucial role in funding the public services that matter to people across Wales. It’s important we have the right mechanisms in place to keep our tax system fair, effective and responsive to change. At the same time, we must ensure that the mechanism is appropriately scrutinised by the Senedd.

This consultation is about finding the best way forward for Wales, whether that’s through annual tax bills, different legislative processes, or improving our current system. I encourage anyone with an interest in how Wales manages its finances to have their say.”

The Government’s Green Paper on Making Changes to the Welsh Tax Acts outlines several possible reforms, including adopting an annual finance bill similar to the UK Parliament model, or introducing a bespoke legislative process designed specifically for Wales.

The consultation runs for 12 weeks, closing on 28 November 2025, with findings to be published in early 2026 to help shape future decisions on tax law-making.