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Written Statement - Welsh Government's position on the UK Government's response to the first report by the Silk Commission

Jane Hutt, Minister for Finance

On 18 November, the UK Government issued its full response to the recommendations for financial reform contained in the first report by the Commission on Devolution in Wales (the 'Silk Commission').

I am publishing today the Welsh Government's position on the UK Government's announcement, which reflects the fact that the Welsh Government has consistently argued in favour of full implementation of the first Silk report.

In particular, the Welsh Government has welcomed the UK Government's agreement to:

  • devolve Stamp Duty Land Tax;
  • devolve Landfill Tax;
  • devolve borrowing powers, including early access to borrowing to fund an enhancement of the M4 (subject to the outcome of the current consultation);
  • enable the National Assembly to call a referendum on the devolution of rate varying powers for income tax.

The Welsh Government is disappointed by the UK Government's decision:

  • not to devolve direct long-haul Air Passenger Duty;
  • not to allow Wales the opportunity to vary income tax rates independently.

A link to the Welsh Government's position paper is attached.

The Silk Commission's first report 'Empowerment and responsibility: financial powers to strengthen Wales' is available on the Commission's website at:

http://commissionondevolutioninwales.independent.gov.uk/

The UK Government's full response to the first Silk report 'Empowerment and responsibility: devolving financial powers to Wales' is available on the UK Government's website at:
https://www.gov.uk/government/publications/empowerment-and-responsibility-devolving-financial-powers-to-wales