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Welsh Government to gain powers

21 November 2013

Following the Silk Commission’s examination of the financial and constitutional arrangements of Wales, that recommended improvements to Wales’ financial accountability, the Government has published its full response a year later.

An impressive 30 of the 31 recommendations proposed by the Silk Commission have been accepted by the Government in full or in part. The one recommendation that the UK government did not agree with was to the devolution of Air Passenger Duty, citing that different rates between England and Wales would redistribute passengers between airports rather than increasing overall demand within the UK.

The new powers which will see the Welsh Government given control of almost £3bn of tax revenue including borrowing powers, the ability to create new taxes and control of business rates is no doubt a positive step forward for Wales. It will promote greater financial transparency, as well as allowing Wales to invest immediately in those projects it deems crucial for the country’s economic development.

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