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How does Wales get money?

In addition to the block grant, part of the budget is funded from money raised from devolved taxes. The Welsh Government can also access limited amounts of borrowing.



The Welsh Government receives its funding from three primary sources: the UK Government’s "block grant," devolved taxes, and borrowing. The largest portion of the budget comes from the UK Treasury via the "block grant," the size of which is determined by the Barnett Formula, which ensures that Wales receives a proportional share of public spending changes in England. In addition to this grant, Wales has its own tax-raising powers through the Welsh Revenue Authority (WRA). This includes the Land Transaction Tax (which replaced Stamp Duty) and the Landfill Disposals Tax. Furthermore, the Welsh Government receives a portion of the Income Tax paid by Welsh residents, with the power to vary the rates. Other local revenue is generated through Council Tax collected by local authorities and non-domestic (business) rates. Finally, the Welsh Government has limited authority to borrow money for capital investment projects, such as infrastructure development.

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