I beg to move, That this House agrees with Lords amendment 1.

I beg to move, That this House agrees with Lords amendment 1.

Taken together, these amendments remove the so-called lockstep mechanism from the income tax provisions. By removing that mechanism so that the Bill reflects the Silk commission’s recommendation in its part I report, the National Assembly for Wales will be able to set separate Welsh rates of income tax for each...

Taken together, these amendments remove the so-called lockstep mechanism from the income tax provisions. By removing that mechanism so that the Bill reflects the Silk commission’s recommendation in its part I report, the National Assembly for Wales will be able to set separate Welsh rates of income tax for each...

The Secretary of State has outlined the advantages of the devolution of those additional powers. Does he accept that giving more tax-raising powers, and hence reducing other income from central Government, exposes the Welsh Government to greater fluctuations in revenue and makes the long-term planning of services much more difficult?

The Secretary of State has outlined the advantages of the devolution of those additional powers. Does he accept that giving more tax-raising powers, and hence reducing other income from central Government, exposes the Welsh Government to greater fluctuations in revenue and makes the long-term planning of services much more difficult?

Part of devolving any tax—income tax or any other fiscal power—is the creation of an incentive for the devolved Government. They get an extra tool and an incentive, which they never had before, to grow that portion of their own tax base.

Crucially, the devolution of income tax in Wales will...

Part of devolving any tax—income tax or any other fiscal power—is the creation of an incentive for the devolved Government. They get an extra tool and an incentive, which they never had before, to grow that portion of their own tax base.

Crucially, the devolution of income tax in Wales will...

My reading of the Office for Budget Responsibility figures, published last week, was that the Welsh devolved tax take is projected to increase by half a billion pounds over the next Parliament. If the powers are not fully adopted by the Welsh Government, what would be the increase in the...

My reading of the Office for Budget Responsibility figures, published last week, was that the Welsh devolved tax take is projected to increase by half a billion pounds over the next Parliament. If the powers are not fully adopted by the Welsh Government, what would be the increase in the...

I cannot provide a specific analysis in line with the question, but I agree with the general thrust of the hon. Gentleman’s point. There are distinct advantages, not only for the Welsh Government, but for businesses in Wales, which want the Welsh economy to grow through the devolution of these...

I cannot provide a specific analysis in line with the question, but I agree with the general thrust of the hon. Gentleman’s point. There are distinct advantages, not only for the Welsh Government, but for businesses in Wales, which want the Welsh economy to grow through the devolution of these...

Let me be the first to congratulate my right hon. Friend on his recognition overnight as the Welsh politician of the year.

Does this debate not highlight one of the difficulties with devolution? People only really want half of it—they want the powers, but do not want the responsibilities. There is...

Let me be the first to congratulate my right hon. Friend on his recognition overnight as the Welsh politician of the year.

Does this debate not highlight one of the difficulties with devolution? People only really want half of it—they want the powers, but do not want the responsibilities. There is...

My hon. Friend is exactly right and characteristically articulates his point better than anybody else in the House could. Devolution got stuck. The settlement meant that the Welsh Government were essentially a spending Department with no real responsibility for raising money—in fact, local authorities or parish councils probably had more...

My hon. Friend is exactly right and characteristically articulates his point better than anybody else in the House could. Devolution got stuck. The settlement meant that the Welsh Government were essentially a spending Department with no real responsibility for raising money—in fact, local authorities or parish councils probably had more...

The Secretary of State speaks of the incentives that these powers would give to the Welsh Government. Will he be clear, as his predecessor was, as to how they ought to deploy those incentives? His predecessor thought that they should cut taxes in Wales to lower rates than in England....

The Secretary of State speaks of the incentives that these powers would give to the Welsh Government. Will he be clear, as his predecessor was, as to how they ought to deploy those incentives? His predecessor thought that they should cut taxes in Wales to lower rates than in England....

It is entirely up to Welsh Ministers how they choose to use these tools. I am surprised by what the hon. Gentleman says, as I would expect him to be the last person to suggest that the Secretary of State should be directing how these powers are used. I am...

It is entirely up to Welsh Ministers how they choose to use these tools. I am surprised by what the hon. Gentleman says, as I would expect him to be the last person to suggest that the Secretary of State should be directing how these powers are used. I am...

Does the Secretary of State accept, though, that unless we have the correct formula for deciding what are national impacts and what are local impacts on the tax revenue raised, there is a great danger that Wales could suffer as a result of the fact that fluctuations in income over...

Does the Secretary of State accept, though, that unless we have the correct formula for deciding what are national impacts and what are local impacts on the tax revenue raised, there is a great danger that Wales could suffer as a result of the fact that fluctuations in income over...

I do not dismiss the risk that the hon. Gentleman has outlined, but I think he exaggerates its impact on Wales. Alongside any perception of risk in relation to such fluctuations, there is a powerful opportunity for Wales to take greater control over wealth creation inside the nation of Wales....

I do not dismiss the risk that the hon. Gentleman has outlined, but I think he exaggerates its impact on Wales. Alongside any perception of risk in relation to such fluctuations, there is a powerful opportunity for Wales to take greater control over wealth creation inside the nation of Wales....

May I be the second Member of this House to congratulate the Secretary of State on becoming Welsh politician of the year? I think the whole House would agree that anybody who can move from describing devolution as “constitutional vandalism” to being its most ardent supporter on the Government Benches...

May I be the second Member of this House to congratulate the Secretary of State on becoming Welsh politician of the year? I think the whole House would agree that anybody who can move from describing devolution as “constitutional vandalism” to being its most ardent supporter on the Government Benches...

For clarification, the shadow Secretary of State has accurately reported a quote of mine that appeared in an article in 2007, but he should do full justice to the article by adding that in it I set out exactly the same case for fiscal devolution that I have set out...

For clarification, the shadow Secretary of State has accurately reported a quote of mine that appeared in an article in 2007, but he should do full justice to the article by adding that in it I set out exactly the same case for fiscal devolution that I have set out...

I am happy to agree that that is how the article went on, but it did indeed describe devolution as “constitutional vandalism”. I shall not forget that, and nor should the country of Wales, for which the right hon. Gentleman is now Secretary of State.

The Government have undertaken a U-turn...

I am happy to agree that that is how the article went on, but it did indeed describe devolution as “constitutional vandalism”. I shall not forget that, and nor should the country of Wales, for which the right hon. Gentleman is now Secretary of State.

The Government have undertaken a U-turn...

Labour’s policy is to have a constitutional convention. Is the hon. Gentleman saying that, in the event that we have a Labour UK Government, there will be a constitutional convention, and if so, would it halt the Smith process and the proposed Bill for Scotland?

Labour’s policy is to have a constitutional convention. Is the hon. Gentleman saying that, in the event that we have a Labour UK Government, there will be a constitutional convention, and if so, would it halt the Smith process and the proposed Bill for Scotland?

No. I am saying that if there were a Labour Government, we would have a constitutional convention to look at the whole of the UK. Therefore, wherever we were in the Smith commission proposals, which will continue on their course, that would need to be fed into the convention. A...

No. I am saying that if there were a Labour Government, we would have a constitutional convention to look at the whole of the UK. Therefore, wherever we were in the Smith commission proposals, which will continue on their course, that would need to be fed into the convention. A...

The phrase “begging bowl”, as used in this context, originated with former First Minister Rhodri Morgan. Does the shadow Secretary of State completely dissociate himself from that?

The phrase “begging bowl”, as used in this context, originated with former First Minister Rhodri Morgan. Does the shadow Secretary of State completely dissociate himself from that?

It was deployed in an entirely different context. The implication of the Secretary of State’s pejorative use of the phrase was—I am paraphrasing, but this was broadly what he said in the rest of his speech —that the Welsh Government have not been responsible or accountable, but that they would...

It was deployed in an entirely different context. The implication of the Secretary of State’s pejorative use of the phrase was—I am paraphrasing, but this was broadly what he said in the rest of his speech —that the Welsh Government have not been responsible or accountable, but that they would...