Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what assessment his Department has made of specific deduction methods when applied to the devolution of income tax powers to Wales.

The Autumn Statement announced that the Government will legislate to remove the need for a referendum to introduce Welsh Rates of Income Tax. This will happen through the Wales bill.

Fiscal devolution will empower the Welsh Government with further tools and levers to deliver more growth and be more accountable to the people of Wales by raising more of the money they spend.

We will continue to discuss the implementation of Welsh Rates of Income Tax – including the financial arrangements - with a range of interested stakeholders, including the Welsh Government.

The Silk Commission recommended the indexed deduction put forward in the Holtham Report, and the coalition government accepted this recommendation.