New financial powers welcomed

Welsh Labour’s Finance Minister, Jane Hutt has welcomed the UK Government’s full response to the first report by the Silk Commission – which confirms it will devolve new financial powers to Wales to help the Welsh Government boost the Welsh economy.

Following an initial announcement on November 1st, the UK Government has now published in full its response to all thirty-three of the Silk Commission’s recommendations on strengthening the financial accountability of the Welsh Government and National Assembly for Wales.

The response confirms a referendum will be held ahead of any income tax devolution – throughout this process, the Welsh Government’s priority has been to ensure that the people of Wales should have the final say.

The reforms mean that the Welsh Government will be able to borrow to invest in new infrastructure projects across Wales – which will create jobs and support the economy.  This includes early access to borrowing to help fund an enhancement of the M4, subject to the ongoing consultation.

Further reforms include:

• The devolution of Stamp Duty Land Tax and Landfill Tax: this will allow the Welsh Government to reform them to      become fairer, simpler and more efficient. The devolution of SDLT will allow the Welsh Government to further support the Welsh housing market;
• The full devolution of Non-Domestic Rates to Wales: this is an important economic lever that will now be under full      Welsh control. This will allow the Welsh Government to further support the Welsh economy;
• The power for the Assembly to legislate, with the agreement of the UK Government, to introduce new taxes and associated tax credits, opening a new avenue for policy development in the longer term.

The Minister confirmed that the Welsh Government will continue to put forward a strong case to devolve Long Haul Air Passenger Duty to Wales.