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Welsh Lib Dems: Danny Alexander signals tax powers offer Welsh Lib Dems: Danny Alexander signals tax powers offer
(about 3 hours later)
The chief secretary to the Treasury has given his strongest signal yet that Wales will be offered major tax and borrowing powers.The chief secretary to the Treasury has given his strongest signal yet that Wales will be offered major tax and borrowing powers.
Danny Alexander said there was now a consensus in Wales on the issue and he would "work tirelessly" to make it happen.Danny Alexander said there was now a consensus in Wales on the issue and he would "work tirelessly" to make it happen.
He was speaking at the Welsh Liberal Democrats conference.He was speaking at the Welsh Liberal Democrats conference.
The Silk Commission wants a referendum on whether Wales should have income tax rate varying powers.The Silk Commission wants a referendum on whether Wales should have income tax rate varying powers.
Under the plans, the Welsh and UK governments would share the yield from income taxes by 2020, in advance of a referendum.Under the plans, the Welsh and UK governments would share the yield from income taxes by 2020, in advance of a referendum.
The commission was set up to examine the case for more tax raising powers.The commission was set up to examine the case for more tax raising powers.
When it reported back, it also recommended responsibility for a series of smaller taxes be devolved to Cardiff, together with significant borrowing powers.When it reported back, it also recommended responsibility for a series of smaller taxes be devolved to Cardiff, together with significant borrowing powers.
"We need a new model of devolution for Wales - a model in which additional responsibility for raising revenues strengthens responsibility too," he told the conference."We need a new model of devolution for Wales - a model in which additional responsibility for raising revenues strengthens responsibility too," he told the conference.
"A model in which significant income tax powers unlock commensurate borrowing powers for Wales too."A model in which significant income tax powers unlock commensurate borrowing powers for Wales too.
"We are still working through our response to the Silk Commission with the Welsh government, but I will not allow a response to Silk that doesn't meet those aspirations. "We are still working through our response to the Silk Commission with the Welsh government but I will not allow a response to Silk that doesn't meet those aspirations.
"I said when I came to Wales in 2010 to speak to the (assembly) finance committee that there was a strong case for tax and borrowing powers, if there was a consensus in Wales."I said when I came to Wales in 2010 to speak to the (assembly) finance committee that there was a strong case for tax and borrowing powers, if there was a consensus in Wales.
"Now that we have such a consensus, I will work tirelessly to make this happen," Mr Alexander added."Now that we have such a consensus, I will work tirelessly to make this happen," Mr Alexander added.
Mr Alexander said a "properly functioning (Welsh) parliament with additional responsibilities" would create "a stronger economy in a fairer society for Wales".Mr Alexander said a "properly functioning (Welsh) parliament with additional responsibilities" would create "a stronger economy in a fairer society for Wales".
UK ministers' response to this first phase of the Silk Commission's work, which considered taxes and borrowing, is due to be published soon.UK ministers' response to this first phase of the Silk Commission's work, which considered taxes and borrowing, is due to be published soon.
In its second phase, the commission is now considering whether powers over more policy areas should be devolved to Wales.In its second phase, the commission is now considering whether powers over more policy areas should be devolved to Wales.
The UK government's submission to this part of the enquiry said there was no need for "radical" changes to the current arrangements.The UK government's submission to this part of the enquiry said there was no need for "radical" changes to the current arrangements.