Details of new powers for Welsh Government set out

The Welsh Secretary and the Chief Secretary to the Treasury have jointly introduced the Wales Bill into parliament. This is the legislation which would transfer new financial powers to the Welsh Government.

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Tax powers will sharpen minds in Wales - Lib Dems

Welsh Liberal Democrat leader, Kirsty Williams, has welcomed the introduction of the Wales Bill which would transfer tax and borrowing powers to the Welsh Government for the first time since devolution.

This is a proud day to be a Welsh Liberal Democrat. We have consistently supported greater financial powers for the National Assembly and today is a big step towards that goal.

I have been pushing for the Wales Bill to be published before the Queen’s Speech to ensure that it would pass before the next General Election. I am pleased this will now happen.

Tax varying powers will bring much needed accountability to Wales’ political system. It will sharpen minds in Cardiff Bay and bring the same level of accountability to Wales that exists in almost all other national parliaments. For too long the Welsh Government has been able to simply spend money without having the responsibility to raise it.

Stamp duty devolved to Wales could help lower the cost of buying a house and promote growth in the construction sector. If used effectively, devolving and reforming stamp duty could be a tool for growth and stimulating house building in Wales.

Wales must have a proper functioning parliament with additional fiscal responsibilities to help create a stronger economy and a fairer society.

– Kirsty Williams AM, Welsh Liberal Democrats

First Welsh taxes by 2018 says minister

Finance Minister Jane Hutt says business rates will be fully devolved to Wales from April next year with Stamp Duty and Landfill Tax following by 2018. Welcoming the UK Government's Wales Bill she said the two governments had agreed an 'ambitious' timetable for tax devolution.

In recent months I have been leading constructive discussions with the UK Treasury on our new financial settlement. I am glad that that we have secured agreement to set ambitious target dates for tax devolution, starting with non-domestic rates, which will be fully devolved in Wales from April 2015. This move will bring Wales into line with Scotland and will ensure that we benefit from the growth in this tax base over time. It will also make it easier to set business rate policy in a way that meets the needs of Welsh citizens and firms.

Full devolution of stamp duty and landfill tax will take longer, since these require passage of the Wales Bill by the UK Parliament. The Assembly will also have to legislate to introduce replacement Welsh taxes, which will come into effect when the UK taxes are ‘turned off’ in Wales. An April 2018 date for introducing the new Welsh taxes is ambitious but achievable. I will continue to develop my plans to ensure that those taxes are simpler and fairer, while supporting jobs and growth.

– Jane Hutt AM, Finance Minister


Plaid urge Labour to join forces on income tax change

Plaid Cymru will try to change the UK Government's plans to give Welsh Ministers some control over income tax. The Wales Bill, introduced into Parliament today, would give the Welsh Government power to vary income tax after a referendum, but only if all three rates are changed simultaneously.

This is what's known as 'lockstep' and it's been criticised by politicians in all parties. Plaid MP Hywel Williams says the party will table amendments which could give a future Welsh Government more flexibility to vary individual rates and also to devolve Air Passenger Duty. Hywel Williams said:

We welcome the publication of the Wales Bill that will seek to implement some of the recommendations of the cross-party Commission on Devolution chaired by Paul Silk.

However, our goal from the start has been to preserve the integrity of the Commission's original recommendations and it is disappointing to see that they have been cherry-picked in this way.

We will aim to put this right by tabling amendments to the Wales Bill with a view to scrapping the lockstep - a roadblock that would limit the Welsh Government's income tax-varying powers and was not part of the original recommendations. We will also seek to amend the Bill so that Air Passenger Duty is devolved to Wales as per the Silk Commission report.

– Hywel Williams MP, Plaid Cymru

He went on to challenge Labour MPs to support Plaid's amendments:

Having labelled the lockstep a "Tory trap" and having bought Cardiff airport, it would be a huge embarrassment for the First Minister of Wales - as the most powerful member of the Labour Party in the UK - if he fails to convince Labour MPs in Westminster to support these amendments which are so crucial to boosting the Welsh economy.

The Wales Bill will therefore be a test of Labour's priorities.

– Hywel Williams MP, Plaid Cymru

Income tax power will unlock borrowing says Welsh Secretary

Welsh Secretary David Jones has dismissed criticism of the form of income tax devolution set out in the Wales Bill. Under the proposed changes, a future Welsh Government would be able to vary income tax levels but only by altering all three rates simultaneously.

Critics say that would mean the power would never be used because changing all three rates would be too expensive. But David Jones says it would still lead to a significant change in financial flexibility for the Welsh Government.

Wales Bill 'important' but needs to change says Labour

Shadow Welsh Secretary Owen Smith has confirmed that Labour will try to alter the financial powers being transferred from Westminster to the Welsh Government by seeking to amend the Wales Bill which has begun its parliamentary journey today.

This is an important Bill giving vital borrowing powers to the Welsh Government, and paving the way for Welsh control of business rates, Stamp Duty and, if voted for at a referendum, over income tax too. It’s also the first piece of Welsh-specific legislation the Tory-led Government has produced in four years.

Wales needs additional powers and resources to mitigate the effects of Tory cuts to the Welsh Budget, which will be 10% lower over the course of this parliament, and to the Capital Budget, which will be nearly a third lower.

As the party of devolution, Labour will address the Bill positively, and look to make improvements to it, in the interests of the Welsh people. We look forward to debating the merits of the Bill at the earliest possible opportunity.

– Owen Smith MP, Shadow Welsh Secretary

Powers for a stronger fairer Wales - Alexander

Chief Secretary to the Treasury, Danny Alexander, says the financial powers being transferred to Wales will 'significantly strengthen' the Welsh Government.

The package of financial powers in this Bill will provide powerful new tools for Wales to exercise greater control over its future. The Bill also significantly strengthens the Welsh Government’s financial accountability and transparency. The Powers in this Bill will help future Welsh Governments to deliver a stronger economy and a fairer society in Wales.

– Danny Alexander MP, Chief Secretary to the Treasury


'A major milestone in devolution' says Welsh Secretary

Today's publication of the Wales Bill has been hailed as 'a major milestone in Welsh devolution' by the Welsh Secretary David Jones.

The package of tax and borrowing powers it devolves to Wales should be used by the Welsh Government to grow the Welsh economy, give Wales a competitive edge and help the people of Wales feel more secure about having a better future.

Just as important, it will make the Assembly and the Welsh Government more accountable to the people who elect them. For the first time, they will be responsible not only for the money they spend but for raising some of that money as well.

– David Jones MP, Secretary of State for Wales

The Bill will also make Assembly elections fairer and more equitable.

The swiftness by which we have introduced this Bill is testament to this Government’s desire to see the Bill passed before the end of this Parliament and provides the opportunity for devolved governance in Wales to be fairer, more accountable and, crucially, more able to support economic growth.

– David Jones MP, Secretary of State for Wales

Wales Bill introduced to Parliament

The Welsh Secretary and the Chief Secretary to the Treasury have jointly introduced the Wales Bill into parliament. This is the legislation which would transfer new financial powers to the Welsh Government.

  • 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)

The Bill also introduces some changes to the way the Assembly is run:

  • 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

Wales Bill to be published later

Details of new tax and borrowing powers for the Welsh Government will be confirmed when the UK Government publishes its Wales Bill. The bill is expected to devolve stamp duty landfill tax and landfill tax and to provide for a referendum on transferring partial control over income tax.

It's also thought there'll be provision for borrowing powers and a new power for the Assembly to be able to make its own arrangements for setting its budget. There are also due to be some relatively minor changes to Assembly electoral arrangements.

The UK Government says it wants to see the Bill passed before the UK Election next year.

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