Mark Drakeford MS, Cabinet Secretary for Finance and Welsh Language
HMRC has published annual outturn statistics for the Welsh rates of income tax for 2023-24. The outturn statistics show that the Welsh rates of income tax in 2023-24 raised £2,968m, up by £350m or 13% on 2022-23.
A link to the statistics can be found at:
Scottish and Welsh Income Tax Outturn Statistics - GOV.UK (www.gov.uk)
The income tax outturn statistics provide both the Welsh rates of income tax revenues and the equivalent income tax revenues for England and Northern Ireland. The outturn figures are used to calculate a final block grant adjustment for 2023-24.
The difference between the outturn and the forecasts used in the 2023-24 Budget will be applied to the block grant for 2026-27 as a reconciliation adjustment. Whilst the reconciliation amount will be finalised following the publication of revised population estimates for 2023 at the end of July, the net reconciliation will have a positive impact on the Welsh Government’s funding for 2026-27.
Once the reconciliation is finalised, the Welsh Government and UK Government will publish a jointly agreed statement setting out the detail. This is intended to ensure full transparency in, and to help improve wider understanding of the Fiscal Framework.