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Wales offered income tax powers without referendum Wales 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 taxes a year by 2020.It means Welsh ministers could control £3bn of taxes a year by 2020.
Mr Osborne also promised that spending per head on devolved services in Wales would not fall below 115 percent of spending per head in England.Mr Osborne also promised that spending per head on devolved services in Wales would not fall below 115 percent of spending per head in England.
But the Welsh government said it faced a real terms cut in budget as a result of his Spending Review.But the Welsh government said it faced a real terms cut in budget as a result of his Spending Review.
Announcing plans for £20bn worth of cuts in the Commons on Wednesday, Mr Osborne told MPs Britain had to tackle its national debt but put its economic and national security first, saying they provided "the foundations for everything we want to support".Announcing plans for £20bn worth of cuts in the Commons on Wednesday, Mr Osborne told MPs Britain had to tackle its national debt but 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 reductions to police funding 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 reductions to police funding in England and Wales, after the Home Office had previously urged forces to prepare for cuts of 25% or 40%.
Dyfed-Powys police and crime commissioner Christopher Salmon said it was "encouraging news".Dyfed-Powys police and crime commissioner Christopher Salmon said it was "encouraging news".
'Smoke and mirrors''Smoke and mirrors'
Mr Osborne confirmed that block grants to the Welsh government would rise to just under £15bn by 2019/20.Mr Osborne confirmed that block grants to the Welsh government would rise to just under £15bn by 2019/20.
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.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.
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.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.
Labour Welsh Finance Minister Jane Hutt described it as "another smoke and mirrors" Spending Review.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, predicting it would fall by 3.6% between 2015/16 and 2019/20."The reality looks like an overall real terms cut to our budget," she said, predicting it would fall by 3.6% between 2015/16 and 2019/20.
Ms Hutt added that there was "nothing to relieve the ongoing and significant pressures on public services in Wales"'.Ms Hutt added that there was "nothing to relieve the ongoing and significant pressures on public services in Wales"'.
Welsh Secretary Stephen Crabb hailed it as a "landmark" settlement for Wales.Welsh Secretary Stephen Crabb hailed it as a "landmark" settlement for Wales.
"By removing the need for a referendum on income tax, the Welsh Assembly will finally take its place alongside other mature legislatures by being accountable to the people it serves," he said."By removing the need for a referendum on income tax, the Welsh Assembly will finally take its place alongside other mature legislatures by being accountable to the people it serves," he said.
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."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.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.""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."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."
Rachel Banner from True Wales, the group which campaigned against further devolution in the 2011 referendum, claimed that giving income tax powers to Wales without a referendum was "illegitimate and brings the devolution settlement into disrepute". Rachel Banner from True Wales, the group which campaigned against further devolution in the 2011 referendum, claimed that introducing income tax powers for Wales without a referendum was "illegitimate and brings the devolution settlement into disrepute".