Wales to vote on more control over taxes in referendum

Prime Minister and his Deputy will offer Wales more control over income tax

The people of Wales will be offered some control of powers over income tax in a referendum, the Prime Minister has announced.

The Prime Minister and his Deputy Nick Clegg said Wales would have the ability to borrow and take control over stamp duty revenues as part of a framework giving more responsibility to Cardiff Bay.

Decisions about Wales' future had been taken by Whitehall bureaucrats for too long and Wales had suffered as a result, they added.

Speaking at Cardiff Bay, Mr Cameron and Mr Clegg said change would give more responsibility to the Welsh Assembly, to create “a strong Wales inside a strong United Kingdom”.

“Today we are announcing new powers for the Welsh people and the Welsh government,” Mr Cameron told a packed press conference at the Senedd in Cardiff Bay.

“Power that is about building this country up. Power that's about ensuring what I want and what I know the Deputy Prime Minister wants and the First Minister wants, which is a strong Wales inside a strong United Kingdom.”

A referendum will allow the Welsh to decide on whether to take up some powers over income tax, as Scotland has under the new measures.

Under the Scottish system, due to come into force in April 2016, the UK Treasury will deduct 10p from income tax and give MSPs the power to decide how to raise the shortfall, creating the possibility of lower or higher rates in different parts of the UK.

The PM and his Deputy, who met Welsh First Minister Carwyn Jones to discuss the new devolution settlement, said borrowing powers would help the Welsh government finance improvements to the M4.

“This is like a foot on the windpipe of the Welsh Assembly,” Mr Cameron said. “We want to encourage the Welsh Assembly government to take action as soon as possible.”

The new package builds upon recommendations made by the Silk Commission, which suggested a series of tax and spending powers should be devolved.

Promising the “devolution of some finance raising powers” the coalition Government leaders said it would allow Mr Jones' administration to begin work on upgrading the M4 - replacing a “road network from a bygone age”.

Wales will be given some control over stamp duty “bringing in money that can be spent on big Welsh priorities like much needed affordable homes”.

Mr Clegg added: “This is a milestone in the devolution of power to Wales and a big step forward.

“This package puts the Welsh people in the driving seat on jobs, transport, infrastructure and housing as well.

“The referendum on power in income tax is entirely a matter for the Welsh people.

“I am an advocate on further devolution with what I think has been a very centralised tax system in the UK as well.”

The Prime Minister said certain parts of the Silk Commission, such as handing air passenger duty to Wales, would not be implemented.

Mr Cameron and Mr Clegg also announced that the Nato summit will be held in Wales in 2014.

Responding to the announcement, the Party of Wales leader Leanne Wood said:"Plaid Cymru broadly welcomes the announcements made this morning on financial powers for the National Assembly for Wales, albeit we would have preferred them to have gone further.

“The Party of Wales has pushed for the implementation of the Silk recommendations from the very beginning, and it is good to see that the UK Government has finally made some progress, even though they have fallen short of the full implementation."

Additional reporting by Press Association

Start your day with The Independent, sign up for daily news emails
Have you tried new the Independent Digital Edition apps?
ebooks
ebooksA celebration of British elections
  • Get to the point
2015 General Election
May2015

Poll of Polls

Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

SThree: Trainee Recruitment Consultant - Dublin (based in London)

£20000 - £25000 per annum + commission: SThree: Real Staffing's Pharmaceutical...

SThree: Trainee Recruitment Consultant

£18000 - £25000 per annum + Commission: SThree: Are you great at building rela...

SThree: Trainee Recruitment Consultant - Swiss Banking and Finance

£20000 - £25000 per annum + Uncapped commission: SThree: Can you speak German,...

Ashdown Group: Marketing Executive - 6 month FTC - Central London

£25000 - £30000 per annum + benefits: Ashdown Group: An exciting opportunity f...

Day In a Page

Fishing for votes with Nigel Farage: The Ukip leader shows how he can work an audience as he casts his line to the disaffected of Grimsby

Fishing is on Nigel Farage's mind

Ukip leader casts a line to the disaffected
Who is bombing whom in the Middle East? It's amazing they don't all hit each other

Who is bombing whom in the Middle East?

Robert Fisk untangles the countries and factions
China's influence on fashion: At the top of the game both creatively and commercially

China's influence on fashion

At the top of the game both creatively and commercially
Lord O’Donnell: Former cabinet secretary on the election and life away from the levers of power

The man known as GOD has a reputation for getting the job done

Lord O'Donnell's three principles of rule
Rainbow shades: It's all bright on the night

Rainbow shades

It's all bright on the night
'It was first time I had ever tasted chocolate. I kept a piece, and when Amsterdam was liberated, I gave it to the first Allied soldier I saw'

Bread from heaven

Dutch survivors thank RAF for World War II drop that saved millions
Britain will be 'run for the wealthy and powerful' if Tories retain power - Labour

How 'the Axe' helped Labour

UK will be 'run for the wealthy and powerful' if Tories retain power
Rare and exclusive video shows the horrific price paid by activists for challenging the rule of jihadist extremists in Syria

The price to be paid for challenging the rule of extremists

A revolution now 'consuming its own children'
Welcome to the world of Megagames

Welcome to the world of Megagames

300 players take part in Watch the Skies! board game in London
'Nymphomaniac' actress reveals what it was really like to star in one of the most explicit films ever

Charlotte Gainsbourg on 'Nymphomaniac'

Starring in one of the most explicit films ever
Robert Fisk in Abu Dhabi: The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers

Robert Fisk in Abu Dhabi

The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers
Vince Cable interview: Charging fees for employment tribunals was 'a very bad move'

Vince Cable exclusive interview

Charging fees for employment tribunals was 'a very bad move'
Iwan Rheon interview: Game of Thrones star returns to his Welsh roots to record debut album

Iwan Rheon is returning to his Welsh roots

Rheon is best known for his role as the Bastard of Bolton. It's gruelling playing a sadistic torturer, he tells Craig McLean, but it hasn't stopped him recording an album of Welsh psychedelia
Morne Hardenberg interview: Cameraman for BBC's upcoming show Shark on filming the ocean's most dangerous predator

It's time for my close-up

Meet the man who films great whites for a living
Increasing numbers of homeless people in America keep their mobile phones on the streets

Homeless people keep mobile phones

A homeless person with a smartphone is a common sight in the US. And that's creating a network where the 'hobo' community can share information - and fight stigma - like never before