Press release

Moves to ensure flexibility in income tax powers for Wales

Government amendments to the Wales Bill have been published to remove the “lockstep”.

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

Wales Office sign

The amendments, published today (7 October), will be debated in the House of Lords next week and if approved would enable the Welsh Assembly to set different Welsh rates of income tax for each tax band, subject to a referendum.

Stephen Crabb, Secretary of State for Wales, said:

The new income tax powers are a tool to help the Welsh economy become more dynamic and make Welsh Government more accountable.

Used correctly, they can boost economic growth meaning more people in Wales in jobs enjoying a better standard of living.

But I have always believed these tax powers need to be flexible, which is why we are now removing the lockstep restriction on how the powers are used. This is devolution with a purpose.

Background information:

Read the amendments to the Wales Bill here

Published 7 October 2014