I am pleased to announce that the Welsh Government and UK Government have reached agreement that a joint consultation will take place on the devolution of powers to introduce a Vacant Land Tax to the Senedd.

The timing of the consultation is in the hands of HM Treasury, but this marks an important step forward in our long-held ambition to introduce such a tax in Wales.

The Welsh Government will continue to press for swift progression to the next stage of the process.

It is the Welsh Government's ambition that a Vacant Land Tax will act as a positive incentive for timely development of land. This will ensure that land that is earmarked for development will be developed, unlocking a significant number of additional homes across Wales.

A Vacant Land Tax, as proposed, will be a targeted behavioural tax, serving as an additional policy tool to contribute to the improvements that have already been delivered through our reforms to planning.

HM Treasury's agreement to this consultation is the result of many years of engagement and work to build understanding within the UK Government of the Welsh Government's ambition. I am grateful to the Exchequer Secretary to the Treasury, Daniel Tomlinson MP, for the progress that we have made.