By Vivienne Russell | 1 November 2013
Wales is to receive a suite of new tax and borrowing powers after UK ministers today announced they had agreed to the Silk Commission’s key recommendations on devolution.
Under the changes, Wales will be passed control of stamp duty and landfill tax as well as borrowing powers to allow the Welsh Government to invest in major capital projects, such as the upgrade to the M4 in south Wales.
A referendum will also be run on whether some income tax should be devolved as it has been in Scotland.
Prime Minister David Cameron said that the people of Wales needed to share in the rewards of the recovery.
‘Wales needs more businesses creating jobs, a decent road network to make it easier to compete in the tough global race and lower taxes so hardworking people have more money in their pocket at the end of the week,’ he said.
Deputy Prime Minister Nick Clegg called the transfer of powers ‘unprecedented’.
He said: ‘This is a huge moment for Wales – the next milestone in Welsh devolution and the next step forward in Britain’s economic recovery. I’ve always believed that the only way to let different parts of the UK make progress in their own way is to truly devolve powers.’
Welsh Finance Minister Jane Hutt said the announcement was ‘excellent news’ for Wales and a ‘significant milestone in our story of devolution’.
She added: ‘These changes mean that, in the next few years, Wales will be in a position to tackle the improvements required for the M4, and to shape its own taxes, including the much-needed reform of stamp duty land tax.’
She paid tribute to all the parties of the Welsh Assembly and the business community, which had all pressed the case for reform.
‘I know that the Chief Secretary to the Treasury Danny Alexander has worked tirelessly to deliver these reforms, and I am very grateful to him for his commitment to Wales. Today’s announcement is a clear indication of how much can be achieved by devolution within the union,’ said Hutt.
For his part, Alexander said he was ‘delighted’ that his work with Hutt had resulted in greater devolution for Wales. ‘For the first time ever a Welsh Government will have the power to borrow and spend money on projects of its choice, ad also the ability to pay for it all using new revenue-raising powers.’
A full response to the 33 recommendations of the Commission of Devolution in Wales will be published later in the year.
