Commission on Devolution in Wales

Stephen Mosley Excerpts

Monday 18th November 2013 Commons Chamber

[Stephen Mosley (City of Chester) (Con)]

My right hon. Friend will be aware that in the Chester area the Anglo-Welsh border goes through the middle of housing estates—it goes through an urban area—and on one side of the road people are in England and on the other side people are in Wales. Significant differences in tax rates either side of the border could lead to significant strains on the local economy. What consideration has the Department given to trying to ameliorate those strains?

[Mr Jones]

I am well aware of the points my hon. Friend raises. It was for the very reason he mentions that further consultation was undertaken on the proposed devolution of stamp duty land tax; it was ultimately felt that, as a capital tax, a balance would naturally be struck. There is no doubt that were income tax to be devolved, there might be some impact overall, but in terms of the local economy I would imagine that the same people would live very close to one another, albeit on different sides of the border.