Budget 2014: What does it mean for Wales?

Chancellor George Osborne confirms the Wales Bill relating to tax and borrowing powers for the Welsh Government will be published tomorrow.

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How does the 2014 Budget affect families, pensioners and young couples in Wales?

One of the key measures that will help low-income families in Wales is the rise in the personal tax allowance. This additional increase means 14,000 people won't pay any income tax at all.

But for many who're already feeling the pinch, Mr Osborne's measures may have come too little too late.

Rob Shelley has been to a cafe in Mochdre, near Colwyn Bay, to see how it'll affect families, pensioners and young couples.

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Finance Minister: 'Another Budget of missed opportunities for Wales'

According to Finance Minister, Jane Hutt, the UK Government's Budget is another missed opportunity for Wales doing nothing to boost economic growth.

But the Minister did welcome confirmation that the Wales Bill will be published tomorrow and said that this was an important step forward for Wales.

Since 2010 we have seen record breaking cuts to the Welsh Budget. By 2015/2016 , it will be 10% lower than when the current UK Government came to office in 2010.

This Budget delivers some small increases but also brings significant additional burdens. It gives with one hand but takews away with the other.

The Chancellor has given Wales an additional £36m over the next two years. But at the same time we are being forced to find at least another £70m from our Budget over the same period to cover public sector pension costs

– Finance Minister, Jane Hutt
  1. Adrian Masters

Budget heralds powers change for Wales

Tucked away amongst the announcements made by the Chancellor in his budget today there was the news that he'll publish details of tax and borrowing powers for the Welsh Government tomorrow (Thursday.)

This will come when the Wales Bill is introduced to Parliament. It's been heavily discussed in its draft form and has sparked some rows between - and within - political parties.

Despite all those arguments, I wouldn't expect too much change from draft to published bill. Here's a reminder of what changes it would introduce:

  • Provide for a referendum on devolving partial control of income tax
  • If income tax is devolved, allow the Welsh Government to set rates
  • Devolve control of Stamp Duty Land Tax
  • Devolve control of Landfill Tax
  • Allow the Welsh Government to borrow money for major projects (specifically improving the M4)
  • Fix Assembly terms at 5 years instead of the current 4
  • Allow candidates to stand in constituency and regional list votes
  • End 'double jobbing' so that AMs can't also sit as MPs and vice versa

Budget to give Welsh Government £36m extra

The UK Government says there'll be an extra £36m over the next two years for the Welsh Government as a result of spending in England announced in the Budget. It won't alter what's available for public services in Wales: the Welsh Government's budget for next year alone is £15.3bn.

But according to the Wales Office it means that the Welsh Government has seen its funding increase by almost £800m since the Spending Review of 2010.

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Budget reforms to reduce energy costs for business

The Chancellor announced a package of reforms to "radically reduce" energy costs for businesses, especially manufacturing, pledging savings of up to £7 billion by 2018/19 for industry as well as households.

George Osborne said the move will particularly benefit the most energy intensive manufacturers, around 80% of which are based in the North of England, Scotland and Wales.

Measures will include capping the carbon price floor (CPF), which sets rising amounts for the carbon tax paid by electricity generators.

Chancellor announces help for energy-intensive industries

Budget 2014: Wales Bill to be published tomorrow

Chancellor George Osborne confirms the expected Wales Bill relating to tax and borrowing powers for the Welsh Government will be published tomorrow.

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