The government has published its full response to the first report of the Commission on Devolution in Wales (the Silk Commission), which recommended a package of tax and borrowing powers for the Welsh Assembly and Welsh Government. Of the Commission’s 33 recommendations, 31 were for the UK government to consider and 30 have been accepted in full or in part. As a result:
landfill tax, stamp duty land tax and business rates in Wales will be fully devolved
the Assembly will be able to hold a referendum so that the people of Wales can decide whether some of their income tax should be devolved
the Welsh government will be able to create new taxes with the UK government’s agreement
new tools will be provided to the Welsh government to manage these new tax powers, including a cash reserve and limited current borrowing powers
Prior to the new tax raising powers being implemented, the Welsh government will be given early access to existing limited borrowing powers to use for M4 improvements.