Devolution of certain tax powers to Welsh Assembly

Powers have been implemented that pave the way for the introduction of Welsh Rates of Income Tax, enable the Welsh Government to invest more in infrastructure and allow the National Assembly to decide what to call itself.

These important powers put more decisions into the hands of the Assembly and the Welsh Government and give them important new levers to grow the Welsh economy and to deliver better public services across Wales.

The provisions which come into force today:

  • Remove the requirement for a referendum before the Welsh Rates of Income Tax are introduced
  • Increase the amount that Welsh Ministers can borrow to fund capital expenditure from £500m to £1bn
  • Reaffirm the Assembly and Welsh Government as a permanent part of the UK’s constitutional arrangements
  • Enshrine the convention that Parliament will not normally legislate on devolved matters without the consent of the Assembly
  • Allow the Welsh Government and UK Government to agree a protocol for managing water resources that flow between the two nations

The changes also mark the end of the Secretary of State for Wales’ annual address to the Senedd on the Queen’s Speech and his entitlement to take part in Assembly proceedings.