Silk Commission set to review Wales' tax powers

The Welsh government must take more responsibility for raising funds for its own budget, rather than relying on the Treasury's annual £15bn hand-out.

That's the message delivered by a cross-party inquiry - the Silk Commission - set up by the UK government to look at the future of devolution.

It would mean Welsh MPs would have new powers to raise some of their own taxes from 2020.

Paul Silk, who chairs the cross-party commission, is set to publish a 200-page report, a year after it was set up.

The Welsh government wants to set its own stamp duty and air passenger duty taxes - but wants the fate of income tax to be determined by a referendum.

First minister Carwyn Jones recently admitted that full control of income tax was "some way off", and instead suggested a suitable alternative in the short term, would be a form of income tax "assignment".

It is expected that Cardiff will introduce a form of income tax "assignment" that would form part of the Welsh government's resources from Welsh income tax, without having the powers to vary income tax rates.

An agreement has already been brokered between the Treasury and the Welsh government over giving it limited borrowing powers. However, the deal is conditional on the Welsh government establishing a new source of income from taxes.

A recent opinion poll for the commission found 64% in favour of income tax-raising powers being devolved to the Welsh government.

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