The Welsh draft Budget for 2024-25 was published on 19 December 2023. The Budget sets out the Welsh government’s revenue and capital spending proposals, including detailed portfolio spending plans.
There have been no changes announced to the Welsh rates of Income Tax (WRIT) which will continue to be set at 10p for 2024-25. This means that the rates of Income Tax paid by Welsh taxpayers will continue to be the same as those paid by English and Northern Irish taxpayers in the new tax year.
This draft Budget does not include any proposed changes to the current Land Transaction Tax (LTT) rates. Two consultations on the future of LTT will, however, be launched at a later date. The Welsh government has also confirmed that the Landfill Disposals Tax (LDT) rates will continue to mirror the UK landfill tax rates in 2024-25.
The Welsh Government confirmed that they will cap the increase to the Non-Domestic Rates (NDR) multiplier in Wales to 5% for 2024-25. This is lower than the 6.7% increase which would otherwise apply from the default inflation of the multiplier in line with CPI. Retail, leisure and hospitality ratepayers (RLHRR) in Wales will receive a 40% non-domestic rates relief for the duration of 2024-5. The RLHRR scheme will continue to be capped at £110,000 per business across Wales.
The plans outlined in the Draft Welsh Budget will be debated in Senedd Cymru, the Welsh Parliament. Following scrutiny of these plans by Senedd Cymru. The Welsh Government will publish the Final Budget 2024-25 on 27 February 2024.
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