Translate the text from English to Welsh.



 
In March 2020, I wrote to the Financial Secretary to the Treasury, the Rt Hon Jesse Norman MP, to formally request devolution to Senedd Cymru of further tax competence relating to a ‘vacant land tax’. This formal request was in keeping with the process agreed between UK and Welsh Ministers for the devolution of new tax powers to Wales as provided by the Wales Act 2014, and followed a constructive meeting between myself and the Financial Secretary to the Treasury at the end of February.  


Our formal request for tax competence is the first time we have tested the mechanism and the request follows over two years of work by Welsh Government to ensure HM Treasury had sufficient information to assess Welsh Government proposals. The experience of moving through the process has been protracted and challenging, with HM Treasury continually requesting detail related to the specific operation of the proposed tax – a matter for Wales \- rather than information related to devolving competence for legislation in a new area of taxation. On the 19 August 2020, the Financial Secretary to the Treasury responded by stating that yet more detail would be required before our formal request could be taken forward.


It has become clear the agreed process for devolution of further tax competence to Wales is not fit for purpose, and in practice bears a striking similarity to the previous process of Legislative Competence Orders. This is compounded by the fact HM Treasury are able to move the goalposts as to what information is required at any point. Given the challenges encountered taking this particular, very narrow area of legislative competence through the mechanism, it is difficult to envision a scenario whereby, with the current UK Government approach, the Welsh Government could successfully make the case for further tax competence. The failure of this mechanism significantly impacts the ability of this government and future governments to use tax as a lever to influence behaviour or support public spending to meet the needs of the people of Wales.


I hope this response is not indicative of the UK Government’s wider attitude towards devolution. We firmly believe that devolution must be respected and strengthened to secure the future of the Union. I have written to the Financial Secretary to the Treasury to express my disappointment given Welsh Government has already provided as much detail as it is able at this stage of the process. As I have outlined to the UK Government on numerous occasions, consideration of the specific operation of the tax will occur after the competence has been devolved to Wales, and will be by means of an appropriately rigorous public process, in line with our tax principles.


I will keep Members updated as this situation develops.


This statement is being issued during recess in order to keep members informed. Should members wish me to make a further statement or to answer questions on this when the Senedd returns I would be happy to do so.







Translation:


 
Fis Mawrth 2020, ysgrifennais at Ysgrifennydd Ariannol y Trysorlys, y Gwir Anrhydeddus Jesse Norman Aelod o Senedd y DU, i wneud cais ffurfiol i ddatganoli cymhwysedd trethu pellach i Senedd Cymru mewn perthynas â ‘threth ar dir gwag’. Roedd y cais ffurfiol hwn yn cyd\-fynd â’r broses y cytunwyd arni rhwng Gweinidogion y DU a Gweinidogion Cymru ar gyfer datganoli pwerau trethu newydd i Gymru fel y darperir gan Ddeddf Cymru 2014\. Hefyd, gwnaed y cais ar ôl cyfarfod adeiladol rhyngof i ac Ysgrifennydd Ariannol y Trysorlys ddiwedd mis Chwefror.


Ein cais ffurfiol ar gyfer cymhwysedd trethu yw’r tro cyntaf inni brofi’r system a daw’r cais ar ôl dwy flynedd o waith gan Lywodraeth Cymru i sicrhau bod gan Drysorlys Ei Mawrhydi wybodaeth ddigonol i asesu cynigion Llywodraeth Cymru. Mae’r profiad o symud drwy’r broses wedi bod yn hirfaith ac yn heriol, gyda Thrysorlys Ei Mawrhydi yn gofyn yn barhaus am fanylion ynglŷn â gweithrediad penodol y dreth arfaethedig – mater i Gymru – yn hytrach na gwybodaeth ynglŷn â datganoli cymhwysedd ar gyfer deddfwriaeth mewn maes trethu newydd. Ar 19 Awst 2020, ymatebodd Ysgrifennydd Ariannol y Trysorlys drwy ddweud y byddai angen mwy fyth o fanylion cyn y gellid bwrw ymlaen â’n cais ffurfiol.


Mae hi wedi dod i’r amlwg nad yw’r broses y cytunwyd arni ar gyfer datganoli cymhwysedd trethu pellach i Gymru yn addas i’r diben, ac o safbwynt ymarferol mae’n nodedig o debyg i broses flaenorol y Gorchmynion Cymhwysedd Deddfwriaethol. Gwaethygir y sefyllfa gan y ffaith y gall Trysorlys Ei Mawrhydi symud y pyst o ran pa wybodaeth sydd ei hangen ar unrhyw adeg. O ystyried yr heriau yr ydym wedi’u hwynebu wrth hebrwng y maes penodol a chul iawn hwn o gymhwysedd deddfwriaethol drwy’r system, mae’n anodd rhag\-weld sefyllfa lle gallai Llywodraeth Cymru lwyddo i ddadlau’r achos dros gymhwysedd trethu pellach, os bydd dull gweithredu Llywodraeth y DU yn parhau. Bydd methiant y system hon yn cael effaith sylweddol ar allu’r llywodraeth hon a llywodraethau’r dyfodol i ddefnyddio treth fel ffordd o ddylanwadu ar ymddygiad neu gefnogi gwariant cyhoeddus i ddiwallu anghenion pobl Cymru.


Rwy’n gobeithio nad yw’r ymateb hwn yn adlewyrchu agwedd ehangach Llywodraeth y DU tuag at ddatganoli. Rydym yn credu’n gryf fod rhaid parchu a chryfhau datganoli er mwyn sicrhau dyfodol y Deyrnas Unedig. Rwyf wedi ysgrifennu at Ysgrifennydd Ariannol y Trysorlys i fynegi fy siom o ystyried bod Llywodraeth Cymru eisoes wedi darparu cymaint o fanylion ag sy’n bosibl yn y cam hwn o’r broses. Fel yr wyf wedi’i grybwyll wrth Lywodraeth y DU sawl gwaith, bydd y gwaith o ystyried gweithrediad penodol y dreth yn cael ei wneud ar ôl datganoli’r cymhwysedd i Gymru, gan ddilyn proses gyhoeddus drwyadl briodol, yn unol â’n hegwyddorion o ran trethi.


Byddaf yn parhau i roi’r wybodaeth ddiweddaraf i’r Aelodau wrth i’r sefyllfa hon ddatblygu.


Mae’r datganiad hwn yn cael ei gyhoeddi yn ystod y toriad er mwyn rhoi’r wybodaeth ddiweddaraf i’r Aelodau. Os bydd yr Aelodau eisiau imi wneud datganiad pellach neu ateb cwestiynau ynglŷn â hyn pan fydd y Senedd yn dychwelyd, byddwn yn hapus i wneud hynny.