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Wales Bill: Hain says tax devolution plans are folly | Wales Bill: Hain says tax devolution plans are folly |
(about 2 hours later) | |
Plans to allow the devolution of income tax varying powers without a referendum have been criticised by a former Welsh secretary. | Plans to allow the devolution of income tax varying powers without a referendum have been criticised by a former Welsh secretary. |
Lord Hain said the Conservatives were going back on a manifesto promise to hold a poll on the issue. | |
The Wales Bill - to be debated in the House of Lords on Monday - would remove the need for a referendum before the power was devolved. | |
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, currently required under the 2014 Wales Act. | |
Lord Hain said Mr Cairns had supported the idea of a 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," Lord Hain added. | "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. |
In response, Mr Cairns said: "During the passage of the Wales Bill, I have regularly engaged with the first minister. | In response, Mr Cairns said: "During the passage of the Wales Bill, I have regularly engaged with the first minister. |
"The Labour Party in both Cardiff Bay and Westminster back the devolution of tax powers without a referendum. | "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. | "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. | "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". |
The Liberal Democrat peer 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 is a new law, currently passing through Parliament, that promises a simpler framework for how the assembly is run and more powers for AMs and ministers. | |
But it was revised earlier this year from its previous draft 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". |