Wales Bill

Stephen Mosley Excerpts

Monday 31st March 2014 Commons Chamber

[Mr Jones]

No; I will make some progress.

The Bill also provides for a referendum to be held in Wales on the devolution of an element of income tax, should the Assembly decide to call one. The Silk commission recommended that income tax devolution should be subject to a referendum, as it was in Scotland in 1997, and the Government agree with that recommendation. As I have said in the House on several occasions, I should like the Assembly to call a referendum as soon as it is able to do so, and I personally would support a yes vote in such a referendum. It would make the Welsh Government, and the Assembly, significantly more accountable to the people who elect them.

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

Has my right hon. Friend been able to give any consideration to the impact that changing tax rates in Wales will have on cross-border regions, particularly the economic sub-region that covers Chester and north-east Wales? Has any assessment been made of what would happen if the rates on the two sides of the border were different?

[Mr Jones]

Indeed. As my hon. Friend will know, there was a separate consultation on that very issue. It is another element that will be taken into consideration during the debate on the referendum.

--- Later in debate ---

[Owen Smith]

As I will explain later, and as I am sure the hon. Gentleman knows from my speech yesterday, we propose to replicate in Wales what is suggested by my party for Scotland. Wales will have exactly the same powers under a Labour Government. We can trust a Labour Government not to want to cut the top rate of tax and increase the unfairness of our tax system—unlike Plaid Cymru, whose economic adviser, much like the Secretary of State for Wales and the Tory leader in Wales, would like to reduce the top rate of tax.

[Stephen Mosley]

Tax competition will, of course, have an impact on both sides of the border. That impact will depend on whether the Welsh Assembly Government increase or decrease taxes. Does the Welsh Labour party want higher or lower tax rates in Wales?

[Owen Smith]

We want fair and equitable tax rates across Britain. That is why we propose to amend the Bill so that, if a Tory Government in Westminster continue to increase the injustice and unfairness of our tax system by making further cuts to taxes on the wealthiest, Welsh values and Welsh beliefs about social justice can implement a decent and equitable rate of taxation.