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Finance and Taxation

Priorities:

Priority A - Consider Replacing the Barnett Formula

Whilst there is consideration being given to replacing the Barnett Formula, there should be no decline in funding for Wales throughout that process.

Priority B - Any Replacement to the Barnett Formula should be Needs Based

The Barnett Formula has the merit of being simple, but if it is agreed that it should be replaced based on needs, then there should be no decline of relative funding in Wales.

Priority C - A New Longer Term Planning Approach to Allow Unused Funds to be Rolled Over for Five Years

There should be more flexibility in funding for public bodies with free access allowed to funds accumulated in previous years. This will allow there to be better long term planning.

Priority D - New Enterprise Departments to Raise Funds for Public Bodies but No Tax raising Powers for Wales.

We see no particular benefit in having powers to raise taxes outside of Westminster. The power to do so would not mean that this would ever be exercised, just as the tax raising powers Scotland has at present have never been exercised. Public bodies should however be allowed to raise funds independent of the Treasury by operating 'enterprise' departments where possible.

Christian Context

Matthew 22: 17-21

17 Tell us then, what do you think? Is it right to pay taxes to Caesar or not?"
18 But Jesus realised their evil intentions and said, "Hypocrites! Why are you testing me?
19 Show me the coin used for the tax." So they brought him a denarius.
20 Jesus said to them, "Whose image is this, and whose inscription?"
21 They replied, "Caesar's." He said to them, "Then give to Caesar the things that are Caesar's, and to God the things that are God's."

Romans 13:6, 7

6 For this reason you also pay taxes, for the authorities are God's servants devoted to governing.
7 Pay everyone what is owed: taxes to whom taxes are due, revenue to whom revenue is due, respect to whom respect is due, honour to whom honour is due.

Galatians 2

V10 We should continue to remember the poor

So: 

  1. It is right for governments to levy and for the people to pay taxes
  2. At all times the poor must be provided for.

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