Commenting on the Welsh Budget, Lloyd Powell, head of ACCA Cymru/Wales, said: “The Welsh budget has been passed against an extremely difficult background of high inflation, especially rising energy costs, an economy facing a recession and business sector still working hard to recover from the significant impact of Covid-19.”
Commenting on the debate on the 2023-24 final Welsh Budget (published last week), Lloyd Powell, head of the accountancy body ACCA in Wales, said: “The budget is yet another reminder of the challenging outlook for public spending at a time of high inflation and while difficult decisions on spending had to be made, the reduction in the final allocation for supporting the economy is a concern in this time of continued pressure on business costs as well as on the spending power of consumers. We recognise the difficult decisions that the government has had to make in extremely challenging times and applaud the focus on protecting vital services.
“A debate will also take place in the Senedd to set the Welsh Rates of Income Tax (WRIT). The Welsh Government announced it does not intend to change Welsh rates of income tax for 2023-24. This means taxpayers living in both Wales and England will continue to pay the same amount of income tax. Many businesses will welcome the fact that Welsh rates of income tax remain unchanged, keeping income tax rates in line with those in England, although it does limit the Welsh Government’s ability to provide more support to individuals and business.
“A decrease in spending on education is also a concern, given the importance of investing in future skills to develop the Welsh economy in the short, medium and long term.
“An increase in spending on climate change is welcomed – supporting businesses, especially smaller businesses who need support and guidance to help them on their journey to net zero.”