English: The committee acknowledges the unprecedented level of uncertainty regarding the UK Government's budgets and its spending reviews over the past few years as a result of factors such as Brexit, the UK general election and the COVID-19 pandemic. While we understand the difficulties of providing multi-year settlements under the current circumstances, we are concerned that the Welsh Government, for the past three years, has had to produce a draft budget on the basis of a funding allocation for a single year, which of course makes it difficult for the Welsh Government to make funding plans and decisions over the long term. This is an issue that we would have wished to raise with the Chief Secretary. However, we are pleased that the Minister has agreed to our recommendation to continue addressing the need for greater certainty through multi-year funding allocations and clarity on the timing of UK fiscal events with the UK Government. In 2019, the Public Accounts Committee of the UK Parliament recommended that the Treasury should address the lack of transparency over funding decisions, and the Treasury accepted that recommendation. However, we found that the arrangements for funding Wales are complex and that they lack transparency. We heard about the lack of engagement between the Welsh Government and the UK Government in the period leading up to the spending review. This lack of transparency also makes effective scrutiny more difficult, as it is hard to achieve a clear understanding of the funding available to the Welsh Government. We welcome the response by the Minister, who noted that the Welsh Government would fully support increased transparency over funding decisions and that the Government would go even further by suggesting that funding arrangements that are jointly agreed should replace the current system, thereby bringing to an end bilateral deals and agreements and bringing clarity to the fiscal arrangements within the UK. In addition to our concerns over how funding decisions are made, we are also concerned that the current process of challenging decisions via the Joint Ministerial Committee is inadequate. Essentially, the UK Government acts as judge and jury in this process, and we believe that there should be an independent adjudication process. The committee has made a number of recommendations relating to the funding flexibility of the Welsh Government in previous reports during budget cycles. We continue to support calls for flexibility around end-of-year reserves to allow the Welsh Government to be more strategic in its long-term planning. The current pandemic has made the case for this flexibility even more emphatically. The fiscal arrangements for Wales were not designed for a global pandemic, and it's vital that we consider how we can make swift changes to ensure appropriate responses, when this is needed, from devolved governments. Having said that, we are pleased, of course, that the Chief Secretary has agreed to the Welsh Government's request to carry some of its additional COVID funding forward into the next financial year. While awareness of fiscal devolution in Wales is increasing, we did hear that awareness of devolved taxes is low among businesses and professionals. Also, our digital engagement exercise showed that awareness of the fiscal powers devolved to Wales is low among the general public. And that is particularly concerning, the fact that most people weren't aware of the Welsh rates of income tax, even though most people will be paying them regularly. I reiterate the comments, therefore, that I've made previously in this Chamber, namely that the Welsh Government and the Senedd need to do more to raise awareness of these issues. And we're pleased that the Minister agrees that it's important to continue raising awareness of Welsh taxes and that she supports the important role that the Senedd has in educating, engaging and informing the Welsh public on fiscal devolution. I am pleased to hear from the Senedd Commission that raising awareness is a part of the communications and engagement strategy of the Commission and that it will continue to work with stakeholders on this issue. The evidence that we received suggested that there should be a review of both council tax and non-domestic rates, and that now is the opportunity for Wales to put in place tax arrangements that are more progressive. The committee welcomes the work undertaken by the current Welsh Government to explore the feasibility of replacing council tax and NDR with a local land value tax, and its commitment to examining how the revaluation and reform of council tax in Wales would affect the tax base and household incomes in order to make council tax fairer and more progressive. The 2014 Act provided the Welsh Government with the ability to seek competence to introduce new taxes, and the Welsh Government asked the UK Government for competence over vacant land tax back in 2018, but by the time of the last Plenary meeting of the fifth Senedd today, this competence still has not been devolved. In fact, we heard that the Welsh Government's experience to date in seeking competence over additional tax powers has not been easy or straightforward. While we recognise the first attempt at seeking competence for a new tax is likely to take longer because of the steps that need to be taken to iron out the process, this is not a particularly controversial tax, and I'm sure none of us here expected the process to take so long. We did ask the Secretary of State whether the process for devolving competence to introduce new Welsh taxes is fit for purpose, and we appreciate the fact that he is willing to take this matter up with the Treasury, but, in closing, we must emphasise again this is exactly why we were eager to speak directly to the Chief Secretary himself, which is an invitation that he has rejected. Thank you.
Welsh: Mae'r pwyllgor yn cydnabod y lefel ddigynsail o ansicrwydd ynghylch cyllidebau Llywodraeth y Deyrnas Unedig a'i hadolygiad o wariant yn ystod y blynyddoedd diwethaf o ganlyniad i ffactorau fel Brexit, etholiad cyffredinol y Deyrnas Unedig, wrth gwrs, a'r pandemig COVID-19. Er ein bod ni'n deall yr anawsterau wrth ddarparu setliadau aml-flwyddyn o dan yr amgylchiadau presennol, rŷn ni'n pryderu bod Llywodraeth Cymru, yn ystod y tair blynedd diwethaf, wedi gorfod llunio cyllideb ddrafft ar sail dyraniad cyllidol o un flwyddyn yn unig, sydd wrth gwrs yn ei gwneud hi'n anodd i Lywodraeth Cymru wneud cynlluniau a phenderfyniadau cyllidol hirdymor. Mae hwn yn fater yr hoffem ni fod wedi ei drafod â'r Prif Ysgrifennydd. Fodd bynnag, rŷn ni yn falch bod y Gweinidog wedi cytuno â'n hargymhelliad ni i barhau i fynd i'r afael â'r angen am fwy o sicrwydd drwy ddyraniadau cyllid aml-flwyddyn ac eglurder ynghylch amseriad digwyddiadau cyllidol y Deyrnas Unedig gan Lywodraeth y Deyrnas Unedig. Yn 2019, fe argymhellodd Pwyllgor Cyfrifon Cyhoeddus Senedd y Deyrnas Unedig y dylai'r Trysorlys fynd i'r afael â'r diffyg tryloywder ynghylch penderfyniadau cyllido, ac fe dderbyniodd y Trysorlys yr argymhelliad hwnnw. Fodd bynnag, fe wnaethon ni ganfod bod y trefniadau ar gyfer cyllido Cymru yn gymhleth a bod diffyg tryloywder yn eu cylch. Fe glywon ni am ddiffyg ymgysylltu rhwng Llywodraeth Cymru a Llywodraeth y Deyrnas Unedig yn y cyfnod cyn yr adolygiad o wariant hefyd. Mae'r diffyg tryloywder hwn yn gwneud gwaith craffu effeithiol yn anoddach, gan ei bod yn anodd cael dealltwriaeth glir o'r cyllid sydd ar gael i Lywodraeth Cymru. Rŷn ni'n croesawu ymateb y Gweinidog a oedd yn nodi y byddai Llywodraeth Cymru'n cefnogi'n frwd camau i wella tryloywder y penderfyniadau cyllido ac y byddai'r Llywodraeth yn mynd hyd yn oed yn bellach drwy awgrymu y dylai trefniadau cyllido a gytunwyd ar y cyd gymryd lle'r system bresennol, gan ddod â bargeinion a chytundebau dwyochrog i ben er mwyn dod â chysondeb ac eglurder i drefniadau cyllidol yn y Deyrnas Unedig. Yn ogystal â'n pryderon ynghylch y ffordd y caiff penderfyniadau cyllido eu gwneud, rŷn ni hefyd yn pryderu bod y broses bresennol o herio penderfyniadau drwy'r Cydbwyllgor Gweinidogol yn annigonol. Yn y bôn, Llywodraeth y Deyrnas Unedig yw'r rheithgor a'r barnwr yn y broses hon. Rŷn ni'n credu y dylid cael proses ddyfarnu annibynnol. Mae'r pwyllgor wedi gwneud nifer o argymhellion ynghylch hyblygrwydd cyllidol Llywodraeth Cymru mewn adroddiadau blaenorol ar gylchoedd y gyllideb. Rŷn ni'n parhau i gefnogi galwadau am hyblygrwydd ar gyfer cronfeydd wrth gefn ar ddiwedd y flwyddyn er mwyn galluogi Llywodraeth Cymru i fod yn fwy strategol yn ei chynlluniau hirdymor. Mae'r pandemig presennol wedi pwysleisio'r achos o blaid hyblygrwydd fel hyn hyd yn oed yn fwy. Doedd trefniadau cyllidol Cymru ddim wedi'u dylunio ar gyfer pandemig byd-eang, ac mae'n hanfodol ein bod ni'n ystyried sut y gellir gwneud newidiadau yn sydyn, pan fydd angen gwneud hynny, i sicrhau ymatebion priodol gan lywodraethau datganoledig. Ar ôl dweud hynny, rydyn ni'n falch bod y Prif Ysgrifennydd wedi cytuno i gais Llywodraeth Cymru i gario ychydig o'i chyllid ychwanegol ar gyfer COVID ymlaen at y flwyddyn ariannol nesaf. Er bod ymwybyddiaeth o ddatganoli cyllidol yng Nghymru yn cynyddu, fe glywon ni fod ymwybyddiaeth o drethi datganoledig yn isel ymhlith busnesau a gweithwyr proffesiynol. Hefyd, fe ddangosodd ein hymarfer ymgysylltu digidol fod ymwybyddiaeth o'r pwerau cyllidol sydd wedi'u datganoli i Gymru yn isel ymhlith y cyhoedd. Ac roedd hynny'n destun pryder penodol, y ffaith nad oedd y rhan fwyaf o bobl yn ymwybodol o gyfraddau treth incwm Cymru, er wrth gwrs bod y rhan fwyaf ohonyn nhw yn eu talu nhw'n rheolaidd. Dwi'n ailadrodd y sylwadau, felly, dwi wedi eu gwneud o'r blaen yn y Siambr yma, sef bod angen i'r Llywodraeth a'r Senedd wneud mwy i godi ymwybyddiaeth ynglŷn â'r materion yma. Rŷn ni'n falch bod y Gweinidog yn cytuno ei bod hi'n bwysig parhau i godi ymwybyddiaeth o drethi Cymru a'i bod yn cefnogi'r rôl bwysig sydd gan y Senedd o ran addysgu, ymgysylltu a hysbysu'r cyhoedd yng Nghymru ynghylch datganoli cyllidol. Rwy'n falch o glywed hefyd gan Gomisiwn y Senedd fod codi ymwybyddiaeth yn rhan o strategaeth cyfathrebu ac ymgysylltu'r Comisiwn ac y bydd yn parhau i weithio gyda rhanddeiliaid ar y mater hwn. Roedd tystiolaeth a ddaeth i law yn awgrymu y dylid adolygu'r dreth gyngor ac ardrethi annomestig, ac mai nawr yw'r amser i Gymru roi ar waith trefniadau trethu mwy blaengar. Mae'r pwyllgor yn croesawu gwaith Llywodraeth bresennol Cymru i ymchwilio i ddichonolrwydd disodli'r dreth gyngor ac ardrethi annomestig a rhoi treth gwerth tir lleol yn eu lle, yn ogystal â'i hymrwymiad i archwilio sut y byddai ailbrisio a diwygio'r dreth gyngor yng Nghymru yn effeithio ar y sylfaen drethu ac incwm aelwydydd er mwyn gwneud y dreth gyngor yn decach ac yn fwy blaengar. Fe roddodd Deddf 2014 yr hawl i Lywodraeth Cymru ofyn am y cymhwysedd i gyflwyno trethi newydd ac fe ofynnodd Llywodraeth Cymru i Lywodraeth y Deyrnas Unedig am gymhwysedd dros dreth ar dir gwag nôl yn 2018, ond erbyn Cyfarfod Llawn olaf y bumed Senedd yma heddiw, dyw'r cymhwysedd hwnnw'n dal ddim wedi'i ddatganoli. Yn wir, fe glywon ni nad yw profiad Llywodraeth Cymru hyd yma o geisio cymhwysedd dros bwerau trethu ychwanegol wedi bod yn rhwydd nac yn syml. Er ein bod ni'n cydnabod y gallai'r dreth newydd gymryd yn hirach oherwydd y camau sy'n rhaid eu cymryd i sicrhau bod y broses yn un esmwyth, dyw'r dreth hon ddim yn un hynod ddadleuol, ac rwy'n siŵr nad oedd yr un ohonom ni'n disgwyl i'r broses gymryd cyhyd. Fe ofynnon ni i'r Ysgrifennydd Gwladol a yw'r broses ar gyfer datganoli'r cymhwysedd dros gyflwyno trethi newydd yng Nghymru yn addas i'r diben, ac rŷn ni'n gwerthfawrogi'r ffaith ei fod e yn fodlon trafod y mater yma â'r Trysorlys, ond, wrth gloi, mae'n rhaid pwysleisio unwaith eto mai dyna'n union pam yr oeddem ni'n awyddus i siarad â'r Prif Ysgrifennydd ei hun yn uniongyrchol, gwahoddiad, wrth gwrs, y mae e wedi'i wrthod. Diolch.