Oral Answers to Questions Debate

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Department: Wales Office

Oral Answers to Questions

Lord Murphy of Torfaen Excerpts
Wednesday 11th May 2011

(13 years, 6 months ago)

Commons Chamber
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Lord Murphy of Torfaen Portrait Paul Murphy (Torfaen) (Lab)
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May I ask the Secretary of State to take great care when she deals with these issues? As she knows, there is really no appetite in Wales for tax-varying or tax-raising powers—the resource base is not there—and even if there were, we would have to have a referendum in Wales for such powers, as happened in Scotland.

Cheryl Gillan Portrait Mrs Gillan
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I am grateful to the right hon. Gentleman, because I always remember sitting and listening to him give evidence to, I believe, a House of Lords Committee looking at the Barnett formula. He said that there was no case for reviewing it because it had served well. The fact that the last Government repeatedly ruled out reforming the Barnett formula means that any reforms must be looked at carefully. He is quite right that giving tax-raising powers would involve another referendum, which is something that this Government would look at carefully, because I am not sure whether Wales has an appetite at the moment for another referendum.