Welsh Government: Tax-varying Powers

Lord Mawhinney Excerpts

Tuesday 27th November 2012 Lords Chamber

[Baroness Randerson]

The noble Lord will appreciate that, as the report was published only last week, it is very early to make decisions. I can make no firm comments about the outcome of the process that we are going through at the moment. However, on borrowing, it is important to recognise that in October a joint announcement by the Secretary of State at the Wales Office, the Welsh Government and the Chief Secretary to the Treasury acknowledged that in principle the Government agree to borrowing powers for the Welsh Assembly, and we anticipate the potential of the Welsh Assembly having the right to raise and levy taxes in order to offset those borrowing powers.

[Lord Mawhinney]

My Lords, in the event that the Government decided to make new powers available to Wales, would this constitute a legal precedent as far as the governance of Northern Ireland is concerned?

[Baroness Randerson]

It is important to bear in mind that the Government look at each of the devolved Assemblies and Parliaments and balances one against the other. They each have individual circumstances, individual rights and a different devolution settlement from the other devolved nations of the UK.