The Prime Minister and Deputy Prime Minister are in Cardiff today and this morning announced new financial powers for the Welsh Government. This is partly in response to the publication on the Silk Commission’s work on financial powers to strengthen devolution in Wales and also negotiations with the Welsh Government. There are three main components to the announcement, which are • Borrowing powers to invest in upgrading the M4 • Control over Stamp Duty paid by house buyers and landfill tax • Provisions for a referendum on devolving certain income tax powers by 2020 (the Silk Commission made a range of recommendations beginning form the baseline of devolving power to vary 10p in the UK income tax rates) Please see the Prime Minister David Cameron’s speech below: We will be sending you the response of the Welsh Government, along with the other political parties shortly. Today were coming to Wales with a simple message - as the economy turns a corner, we must make sure that people here share in the rewards. This goes well beyond the political debate of today - its been an issue for decades. Governments of all colours have come and gone, but even when the British economy has been doing well, living standards here in Wales have been lower, unemployment has been higher and child poverty has been greater. Were determined to tackle this head on. We want this to be the Government that finally sorts this out. There is nothing inevitable about a countrys fate and certainly not somewhere with as proud a history as Wales. If the right decisions are made now - and if we have the courage to see them through - then this vital member of our family of nations can and will succeed in the century ahead. So what does Wales need to prosper? It needs more businesses coming here and creating jobs. It needs taxes that reward hard work. It needs better infrastructure: roads, homes, rail and broadband. All of these things are the building blocks of a stronger economy and fairer society - its how together we build a recovery that everyone can share in. But for too long decisions about Wales future have been directed by bureaucrats hundreds of miles away in Westminster - and it has suffered as a result. Wales could benefit hugely if the Government at Cardiff Bay was responsible for raising more of the money it spends. So were delighted to tell Western Mail readers that the Coalition Government is going to cross the next milestone in Welsh devolution. Weve already taken important steps forward - granting a referendum on giving the Welsh Assembly law making powers. But we are going to go even further as we take forward the key recommendations of a Commission on devolution led by Paul Silk. First of all, Wales must have the tools to invest in the transport infrastructure it needs. The Welsh Assembly has said it wants to prioritise upgrading the M4. They dont want Wales to have to compete in a tough global race with a road network from a bygone age. Now, through the devolution of some finance raising powers, the Welsh Government will have the money to get this project started. Second, Wales will have control over its stamp duty, bringing in money that can be spent on big Welsh priorities like much needed affordable homes. And, third, 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. People work hard for their money and we want them to keep more of it. Thats why, in the last Budget, the Coalition raised the personal allowance once again. From next April, you wont pay any income tax on the first £10,000 you earn. This is a tax cut for over 1.1 million people in Wales and the typical taxpayer will be £705 better off as a result. This is real practical assistance to help people make ends meet. But Wales shouldnt depend on London for these decisions. So the Silk Commission proposed that there should be a referendum on devolving certain income tax powers. And thats whats going to happen. Well 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. Were meeting with the First Minister Carwyn Jones this morning to discus the nuts and bolts. This is a government that believes in devolution and is determined to deliver on devolution. If you get the balance right between the UK Parliament and a devolved institution then you can get the best of both worlds - and thats true whether you live in Wales, Scotland or Northern Ireland. Although theres a long way still to go, there are a number of reasons to be cautiously optimistic in Britain today. The economy is growing. The deficit is falling. And in the past three years, more than a million people have got back into work. The challenge now is to make sure that all parts of the country share in the recovery, and no more so than Wales. We want young people growing up here today to know that theres a future for them - that they dont have to move to London or go abroad to get on in life and achieve their dreams. This is our mission for Wales - and thats what todays announcement on devolution is about. Weve got a plan, its working and now weve got to finish the job we started. bbc.co.uk/news/uk-wales-politics-24763988
Posted on: Fri, 01 Nov 2013 10:00:14 +0000
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