First Minister Carwyn Jones has categorically ruled out holding a referendum on Welsh income tax powers "unless and until the the long term funding of Wales has been addressed satisfactorily". In a letter to Welsh Secretary Stephen Crabb, he says the St David's Day agreement on more powers for the Assembly does not meet that test.
Mr Crabb wrote to the First Minister yesterday, saying that the momentum for more devolution may now be lost without "strong and positive engagement" from the Welsh Government. In his reply, Carwyn Jones adds to his initial response that the cross-party agreement had been "rushed and unsatisfactory".
I make no apologies for not supporting an announcement that falls far short of Wales' needs. I have no intention of seeking a referendum on partial devolution of income tax to Wales unless and until the long term funding of Wales has been addressed satisfactorily. You will recognise that neither the announcement by the Prime Minister, nor the Command Paper published by the UK Government, provides any such assurance. I am bound to say that the whole process leading to your announcement and Command Paper was deeply disappointing and frustrating. It was slow to start, ad hoc and poorly prepared. The first hint of financial proposals was given to me by the Prime Minister -not you- in a phone call a mere three days before your announcement. I was very clear to the Prime Minister that the proposals he described were unacceptable.
Carwyn Jones will be questioned in the Senedd on his attitude to the Saint David's Day agreement, after he makes a statement to AMs later this afternoon.
David Cameron and Nick Clegg have unveiled proposals for a range of new powers for the Welsh Government and National Assembly.
The UK Government is to announce a range of new powers for the Welsh Assembly in what it calls a 'landmark moment' in devolution