Wrexham Assembly Member Lesley Griffiths has welcomed the announcement borrowing powers and some smaller taxes will be devolved to Wales, in response to the first report by the Silk Commission.
Established in 2011, the Silk Commission was required to review the present financial and constitutional arrangement in Wales and last November, the inquiry concluded the Welsh Government should be granted new taxing powers.
Granting access to borrowing powers is viewed as an important economic lever that will allow the Welsh Government to finance substantial infrastructure developments which previously would have been inherently difficult. The decision places Wales on a level playing field with other devolved administrations across the UK, all of which already have access to borrowing powers.
The announcement also stated Wales will have the authority to shape its own taxes which would unquestionably have a significant economic impact across the nation. Within a few years, Wales could be in the position to reform stamp duty tax, potentially boosting the Welsh construction sector and helping home buyers.
A future Assembly will also be able to call a referendum on the devolution of rate-varying powers for income tax. The Welsh Government supports the Silk Commission’s recommendation that any reform regarding income tax devolution should go ahead only when the Welsh and UK Governments have resolved the issue of fair funding.
AM for Wrexham Lesley Griffiths commented:
“Although there is still work to be done, it is undoubtedly a significant milestone in the Welsh devolution process and a positive development for people in Wales.”
“The additional fiscal responsibilities will enable the National Assembly and the Welsh Government greater opportunities to boost job creation and support the Welsh economy.”
