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Wales Bill: Tax devolution plans are folly - Peter Hain Wales Bill: Hain says tax devolution plans are folly
(about 1 hour later)
Plans to allow the devolution of income tax varying powers without a referendum have been criticised by a former secretary of state for Wales. Plans to allow the devolution of income tax varying powers without a referendum have been criticised by a former Welsh secretary.
Lord Peter Hain said Conservatives were going back on a promise made in their manifesto to hold a referendum. Lord Hain said the Conservatives were going back on a promise made in their manifesto to hold a referendum.
The proposals were included in the Wales Bill, to be debated in the House of Lords on Monday, but have been removed. The proposals had been included in the Wales Bill, to be debated in the House of Lords on Monday, but were removed.
The UK government has insisted the bill would secure "stronger" devolution. Current Welsh Secretary Alun Cairns said Lord Hain was an "isolated voice" on tax.
In November, the then Chancellor George Osborne said the power over some aspects of income tax should be devolved without a referendum.In November, the then Chancellor George Osborne said the power over some aspects of income tax should be devolved without a referendum.
Lord Hain said the current Secretary of State For Wales, Alun Cairns, had supported the referendum in the past and questioned why he had changed his mind. Lord Hain said Mr Cairns had supported the referendum in the past and questioned why he had changed his mind.
He said: "Could it be that he wishes to ram through income tax devolution without addressing irrefutable evidence that the Barnett formula has short-changed Wales in contrast to Scotland?He said: "Could it be that he wishes to ram through income tax devolution without addressing irrefutable evidence that the Barnett formula has short-changed Wales in contrast to Scotland?
"Without a new 'Barnett floor', as First Minister Carwyn Jones has insisted, it would be pure folly for Wales to have income tax devolved." "Without a new 'Barnett floor', as First Minister Carwyn Jones has insisted, it would be pure folly for Wales to have income tax devolved," Lord Hain added.
A spokesman for the Wales Office said the government had answered the call from Wales to provide a funding floor to guarantee a level of public spending. In response, Mr Cairns said: "During the passage of the Wales Bill, I have regularly engaged with the first minister.
He added that the deal was right for Wales and the UK and wanted to see the Welsh Government use its powers to deliver "improved productivity and greater growth". "The Labour Party in both Cardiff Bay and Westminster back the devolution of tax powers without a referendum.
"On that basis, Peter Hain represents an isolated voice with these remarks.
"It should be remembered that after decades of in-built disadvantage of the funding formula, it took a Conservative government to introduce a funding floor for Wales," Mr Cairns added, referring to a guaranteed minimum level of Treasury grants.
Meanwhile, ex-Wales Office Minister Baroness Jenny Randerson has said the Wales Bill was "not a big stride forward as we hoped but it is a shuffle forward".Meanwhile, ex-Wales Office Minister Baroness Jenny Randerson has said the Wales Bill was "not a big stride forward as we hoped but it is a shuffle forward".
Baroness Randerson, part of the UK coalition government that introduced the Wales Bill after the so-called "St David's Day agreement" said: "The Wales Bill was started during the pro-devolution coalition government in 2015 which I was part of. The Liberal Democrat peer said: "The Wales Bill was started during the pro-devolution coalition government in 2015 which I was part of.
"We now have a centralising Theresa May government and the long list of exceptions [powers that will not be devolved] will mean we still have a complex settlement.""We now have a centralising Theresa May government and the long list of exceptions [powers that will not be devolved] will mean we still have a complex settlement."
The Wales Bill was revised earlier this year amid concern it could dilute the power of AMs to make laws.The Wales Bill was revised earlier this year amid concern it could dilute the power of AMs to make laws.
Last week, a cross-party group of AMs said the bill remained over-complicated.Last week, a cross-party group of AMs said the bill remained over-complicated.
Welsh Conservative leader Andrew RT Davies defended the bill, saying it was a "landmark piece of legislation" offering "greater clarity and accountability than ever before in the devolved era".Welsh Conservative leader Andrew RT Davies defended the bill, saying it was a "landmark piece of legislation" offering "greater clarity and accountability than ever before in the devolved era".