Welsh fiscal devolution moves forward with bond plans

21 Oct 14
Plans to allow the Welsh government to issue bonds have taken a step further as part of a move towards greater fiscal devolution for Wales.

By Marino Donati | 21 October 2014

Plans to allow the Welsh government to issue bonds have taken a step further as part of a move towards greater fiscal devolution for Wales.

Treasury ministers Danny Alexander and David Gauke, Welsh Secretary Stephen Crabb and Welsh finance minister Jane Hutt, met to discuss whether Wales should be able to issue bonds as part of the new package of tax and borrowing powers being devolved through the Wales Bill.

The details of the arrangement were formally agreed yesterday at the first meeting of the Joint Exchequer Committee in Cardiff.

Alexander said: ‘We’ve made important progress towards agreeing the mechanism by which Welsh ministers would be able to issue Welsh bonds, in order to further increase their range of borrowing options.’

Crabb said the meeting underlined the UK government’s commitment to deliver and strengthen devolution.

‘I will continue to work with the Treasury and the Welsh government to secure the best deal for Wales to boost jobs, raise living standards and attract investment,’ he said.

Hutt said that a wide range of financial matters were discussed including full devolution of business rates from April next year.

‘As devolution moves forward, with new fiscal powers coming to Wales, it is important that our two governments work closely together to make sure the system works well – for the benefit of people in Wales and across the UK,’ she said. 

The Wales Bill has just completed committee stage in the Lords.

The UK and Welsh governments have also agreed to revisit the arrangements for considering relative funding in light of the powers contained in the Wales Bill.

 

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