Oral Answers to Questions Debate

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Department: Cabinet Office

Oral Answers to Questions

Lord Hain Excerpts
Wednesday 9th July 2014

(10 years, 3 months ago)

Commons Chamber
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David Jones Portrait Mr Jones
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I certainly agree with that, and I also believe that it is essential, once the competence is in place, for the Welsh Government to call an early referendum on tax-varying powers to maximise the benefit we are creating through the measures in the Bill.

Lord Hain Portrait Mr Peter Hain (Neath) (Lab)
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Is it not the case that people in Wales would be buying a pig in a poke if income tax were devolved without a proper floor being put underneath the Barnett formula? The failure to address that issue has resulted in Wales being short-changed, so if income tax were devolved without the Barnett formula being addressed, it would be a bad outcome for Wales.

David Jones Portrait Mr Jones
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I fear that the right hon. Gentleman has overlooked the arrangements that we put in place with the Welsh Government in October 2012, which ensure that if there is any danger of convergence, then the issue will be resolved. I believe that we should all be ambitious for Wales, and we should indeed be looking for a lower rate of income tax in Wales to give Wales the competitive advantage that it needs.