David Cameron wants to introduce new tax-raising powers for Wales

By in

UK Prime Minister David Cameron has insisted that the Welsh Assembly call a referendum on introducing new tax-raising powers for Wales, according to the command paper these could bring the government an extra £2bn per year.
UK Prime Minister David Cameron has insisted that the Welsh Assembly call a referendum on introducing new tax-raising powers for Wales, according to the command paper these could bring the government an extra £2bn per year.

Various proposals were discussed at the talk in Cardiff. All in the hope of a “Lasting Devolution Settlement” for Wales, which would include a guarantee of minimum funding for Wales, and designed to be introduced to replace the current scheme. Mr Cameron challenged the Assembly to go ahead with an early referendum on income tax soon after the election, saying that the UK government has now committed to protect the relative level of funding for Wales.

The Assembly has responsibility for 10% of all taxes collected in Wales as per the Wales Act 2014, with stamp duty, business rates and landfill tax already decentralised.

However, introducing these new Welsh Rates of Income Tax requires a referendum, for which a two-third majority of Assembly members have to vote in favour. Cameron stated a referendum would deliver an Assembly that’s not just a spending body but is also responsible for raising an increased amount of revenue too. However, the proposals have been questioned by the Labour first minister in the Welsh Assembly, Carwyn Jones.