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Tax powers promise for Wales from Cameron and Clegg | Tax powers promise for Wales from Cameron and Clegg |
(35 minutes later) | |
The Welsh government will get some control over income tax subject to a referendum, Prime Minister David Cameron has said. | |
He and deputy PM Nick Clegg announced on Friday new financial powers for the devolved administration. | |
They include control of the stamp duty paid by house buyers and powers to finance upgrades on the M4. | |
It follows the publication of a report last year which said the Welsh government should have new tax powers. | It follows the publication of a report last year which said the Welsh government should have new tax powers. |
At present Wales' devolved administration cannot vary taxes or borrow money, and gets its budget in a grant from the Treasury. | At present Wales' devolved administration cannot vary taxes or borrow money, and gets its budget in a grant from the Treasury. |
Last November the Silk Commission, set up by the Westminster coalition, said the Welsh government should be responsible for raising some of the money it spends. | Last November the Silk Commission, set up by the Westminster coalition, said the Welsh government should be responsible for raising some of the money it spends. |
It included a recommendation to devolve powers to vary a portion of income by 2020, following a referendum. | It included a recommendation to devolve powers to vary a portion of income by 2020, following a referendum. |
'Opportunity to decide' | 'Opportunity to decide' |
Mr Clegg said it was a "significant" moment for Wales and "further conversations" could be had in the future about more devolution powers. | |
First Minister Carwyn Jones accused the UK government of delaying its response to the Silk report, which was initially expected in the spring. | |
Writing jointly in the Western Mail, the prime minister and his deputy said "Wales will have the opportunity to decide whether some of their income tax should be devolved". | |
"This is hugely important - one of the best ways to raise living standards is to cut peoples' taxes." | |
They wrote that the UK government will "provide for a referendum to take place so that people in Wales can decide whether some of their income tax should be devolved, in the same way as it is in Scotland". | |
The Silk Commission reported that a referendum should only happen with the agreement of both the Welsh and UK governments, a two-thirds majority in the Welsh assembly and the agreement of both Houses of Parliament. | |
'Get this project started' | 'Get this project started' |
Referring to the M4, the coalition leaders say Wales "must have the tools to invest in the transport infrastructure it needs". | Referring to the M4, the coalition leaders say Wales "must have the tools to invest in the transport infrastructure it needs". |
The Welsh government has been calling for borrowing powers to pay for a £1bn upgrade to the M4, with the first minister saying it would be a "disaster" if the borrowing powers recommended by Silk were not devolved. | The Welsh government has been calling for borrowing powers to pay for a £1bn upgrade to the M4, with the first minister saying it would be a "disaster" if the borrowing powers recommended by Silk were not devolved. |
With a consultation under way on building a new stretch of motorway around Newport, the PM and deputy PM said there will be the "devolution of some finance raising powers... to get this project started". | |
Devolution of stamp duty - another Silk recommendation - will "bring in money that can be spent on big Welsh priorities like much needed affordable homes", they added. | |
Speaking to BBC Wales on Thursday, Mr Cameron said he agreed with the principle that "you get better government if the government is responsible for some of the money that it spends". | |
And he denied delaying the process, adding: "It takes time to get these things right." | |
He also announced that the next summit of Nato leaders in autumn 2014 will be held at the Celtic Manor resort in Newport, describing it as an opportunity to showcase the modern, successful Wales. | |
Lord Bourne, a former leader of the Conservatives in the Welsh assembly, was a member of the Silk Commission. | Lord Bourne, a former leader of the Conservatives in the Welsh assembly, was a member of the Silk Commission. |
He has welcomed the announcement by the coalition government. | |
He told BBC Wales: "It's certainly what I was expecting and hoping for. | He told BBC Wales: "It's certainly what I was expecting and hoping for. |
"I think now is the time to say this is really brilliant news for Wales and brilliant news for the United Kingdom. | "I think now is the time to say this is really brilliant news for Wales and brilliant news for the United Kingdom. |
"It's obviously what we worked hard on as a commission. We had a unanimous report, believing this is what would help Wales with limited borrowing powers, limited taxation powers and that is exactly what the prime minister has endorsed in Wales and I think that's excellent news." | "It's obviously what we worked hard on as a commission. We had a unanimous report, believing this is what would help Wales with limited borrowing powers, limited taxation powers and that is exactly what the prime minister has endorsed in Wales and I think that's excellent news." |
Kirsty Williams, leader of the Welsh Liberal Democrats, said: "For the very first time, the amount of money a Welsh government spends could be directly linked to success in promoting economic development." | |
"That should sharpen minds in Cardiff Bay and would also bring the same level of accountability to Wales that exists in almost all national parliaments." | "That should sharpen minds in Cardiff Bay and would also bring the same level of accountability to Wales that exists in almost all national parliaments." |