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Wales to be offered income tax powers without referendum Wales to be offered income tax powers without referendum
(35 minutes later)
Control of some of the income tax levied in Wales can be devolved to the Welsh government without a referendum, Chancellor George Osborne has said.Control of some of the income tax levied in Wales can be devolved to the Welsh government without a referendum, Chancellor George Osborne has said.
It means Welsh ministers could control £3bn of tax a year by 2020. It means Welsh ministers could control £3bn of taxes a year by 2020.
Mr Osborne also promised that spending on devolved services in Wales would not fall below £115 for every £100 spent in England. Mr Osborne also promised spending on devolved services would not fall below £115 for every £100 spent in England.
The news came as he outlined details of his Spending Review to the House of Commons. But the Welsh government said it faced a real terms cut in budget as a result of his Spending Review announced in the House of Commons.
The chancellor said he would also "help fund" a "city deal" backing infrastructure projects for Cardiff and the surrounding areas, to which the Welsh government and local authorities have already pledged £580m.
A UK government source described the changes as a "landmark" settlement for Wales.
Plaid Cymru MP Jonathan Edwards welcomed the tax changes, saying: "A referendum would have been a complete waste of time and resources, and we are pleased that the UK government has finally seen sense on this matter."
Announcing details of his Spending Review, Mr Osborne said Britain had to tackle its national debt and put its economic and national security first, saying they provided "the foundations for everything we want to support".Announcing details of his Spending Review, Mr Osborne said Britain had to tackle its national debt and put its economic and national security first, saying they provided "the foundations for everything we want to support".
However, the chancellor said he had dropped plans to cut tax credits, paid to 238,000 families in Wales, after the House of Lords effectively blocked them.However, the chancellor said he had dropped plans to cut tax credits, paid to 238,000 families in Wales, after the House of Lords effectively blocked them.
He also ruled out any cuts to police budgets in England and Wales, after the Home Office had previously urged forces to prepare for cuts of 25% or 40%.He also ruled out any cuts to police budgets in England and Wales, after the Home Office had previously urged forces to prepare for cuts of 25% or 40%.
The chancellor was also due to confirm details of the Welsh government's budget, currently £15.3m, Mr Osborne confirmed that block grants to the Welsh government would rise to just under £15bn by 2019/20.
Labour Welsh Finance Minister Jane Hutt has said her government currently has £1.3bn less to spend on public services than it did in 2010. The Welsh government's total budget for 2015/16 is £15.3bn, including £14.4bn of block grants, plus around £950m from the proceeds of business rates.
Earlier in November, she wrote to Mr Osborne urging him to think again about further public spending cuts, saying investment was vital for a "balanced recovery". Labour Welsh Finance Minister Jane Hutt described it as "another smoke and mirrors" spending review.
"The reality looks like an overall real terms cut to our budget," she said via Twitter.
Ms Hutt added that there was "nothing to relieve the ongoing and significant pressures on public services in Wales".
Earlier in November, she wrote to Mr Osborne urging him to think again about further public spending cuts, saying the Welsh government had £1.3bn less to spend on public services than it did in 2010.
On Wednesday, the chancellor said he would also "help fund" a "city deal" backing infrastructure projects for Cardiff and the surrounding areas, to which the Welsh government and local authorities have already pledged £580m.
A UK government source described the changes as a "landmark" settlement for Wales.
Welsh Secretary Stephen Crabb confirmed via Twitter: "I will amend Wales Bill to remove referendum block on Welsh tax powers. Wales needs a more accountable & effective Assembly."
Plaid Cymru MP Jonathan Edwards welcomed the tax changes, saying: "A referendum would have been a complete waste of time and resources, and we are pleased that the UK government has finally seen sense on this matter."
Welsh Lib Dem leader Kirsty Williams also welcomed the dropping of the referendum requirement, saying: "Tax varying powers will bring much needed accountability to Wales' political system.
"For too long successive Welsh Governments have been able to spend money without having the responsibility for raising it."
However, UKIP Wales leader Nathan Gill said: "It's frankly outrageous that Osborne has opened the door to devolve tax raising powers to Wales without a referendum for the people."