Commission on Devolution in Wales

Elfyn Llwyd Excerpts

Monday 18th November 2013 Commons Chamber

[Mr Jones]

Indeed, all parties in the Assembly have welcomed the announcement. The only exceptions appear to be the hon. Ladies and hon. Gentlemen on the Opposition Benches. It is essential that all parties work together in order to get a referendum as quickly as possible, so that Wales can get the tax-raising powers it needs to give it a competitive edge.

[Mr Elfyn Llwyd (Dwyfor Meirionnydd) (PC)]

May I thank the right hon. Gentleman for advance sight of his statement? I also congratulate all the members of the Silk commission on the very hard and conscientious work they undertook in the past 12 months or so. I think today’s statement is something we can build on; with a little ambition, we can improve the lot of the people of Wales, rather than look for problems with it. I would like to ask one or two brief questions, however. When will the UK Government set out the clear detail on borrowing limits? Will there be separate borrowing powers from those set aside for funding the M4 relief road without the partial devolving of income tax, and will the borrowing deal to fund the M4 relief road contribute towards an overall borrowing limit?

[Mr Jones]

It is indeed contemplated that further borrowing powers will be conferred on the Assembly Government, although that will depend very much on the income stream that is available to fund that. Certainly, if there were a positive vote in the referendum on income tax, there would be that much more scope. As far as the M4 is concerned, negotiations between the Treasury and the Welsh Government are already well under way to work out the detail of how those powers will be applied.

--- Later in debate ---

[Kevin Brennan (Cardiff West) (Lab)]

One solution to the problem raised by Conservative Members from constituencies near the border is to extend the Welsh border eastwards. Ludlow used to be the administrative capital of Wales—[Interruption]—as was Oswestry.

[Mr Llwyd]

And Chester.

[Kevin Brennan]

There are plenty of suggestions. If that is not within the powers of the Secretary of State, perhaps he could consider once again a more flexible approach to the level of bands of income tax under his proposals.