Autumn delayed at Westminster, Christmas early in Wales


Perhaps it's climate change, but politics seems to be playing havoc with the weather.

Tomorrow, on December 5, Chancellor George Osborne unveils his autumn statement to MPs. One day later, members of the National Assembly for Wales rise for their Christmas recess. Christmas really has come early in Cardiff Bay.

What can we expect from the chancellor's statement? George Osborne told the cabinet this morning that most Whitehall departments would face deeper cuts in their day-to-day spending budgets during the next two years to generate extra spending on schools and other capital projects.

Mr Osborne has decided to protect the health and schools budget in England, which limits the impact of any cuts on Wales.

Details of the autumn statement have not been leaked as extensively as the budget last March, although in this age of austerity these events tend to follow a pattern.

There is a crackdown on tax avoidance, whether by individuals or companies, an admission by the chancellor that his plan to cut the deficit will take longer than expected, and the release of some extra cash for job-creating capital projects.

Last year, Mr Osborne announced extra spending on 35 road and rail schemes. He told MPs: "Devolved administrations in Scotland, Wales and Northern Ireland will get their Barnett [formula] share - and we're working with them to improve the links between our nations, such as the M4 in South Wales and the overnight rail service to north of the border."

Let me know if you think the M4 has improved since then; I suspect it's still a work in progress. Mr Osborne did announce an extra £216m for the Welsh government over three years although that is a fraction of its £15bn annual budget.

This year, the row over the amount of tax paid by some multi-national companies has risen up the political agenda.

The chancellor is also expected to target the rich as part of his drive to show "we're all in it together" but are there enough rich people out there?

Last month's Silk commission report revealed (page 164, table D3) the size of the tax base in Wales, a country with 1.341m income taxpayers (less than half the population) in 2010/11. Just 4,000 people paid the current 50 per cent top rate of tax on annual taxable incomes of more than £150,000.

A further 89,000 paid the higher rate of 40 per cent, on taxable income that year of £37,401.

Between them, those 93,000 - seven per cent of taxpayers - contributed one third of the income tax raised in Wales.

Swansea City's success since then may have increased the numbers paying the (soon-to-be-reduced) top rate but any raid on the wealthy won't raise significant amounts in Wales (unless the Swans sign David Beckham).

Mr Osborne has been looking at reducing the tax breaks on pensions for the richest (it used to be Lib Dem policy) and at freezing or limiting future increases in benefits (definitely not Lib Dem policy).

We'll find out what he plans tomorrow but what would be in your autumn statement? Let me know.

David Cornock Article written by David Cornock David Cornock Parliamentary correspondent, Wales

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  • rate this

    Comment number 13.

    ... #12, Boxer, I believe we are all stakeholders in society.

  • rate this

    Comment number 12.

    If a teacher finds a kid from four generations of AgLabs and she teaches him about computing, sparks an interest, and he goes on to form a private company that he eventually sells for £100M ......
    Who created the wealth ?? Him or her ?? The public sector or the private ??
    May I suggest, both !

  • rate this

    Comment number 11.

    Re 7


    So you don't want teachers providing an educated workforce, or health professionals ensuring a healthy workforce or a police service providing a safe environment for the workforce and everyone else?

    Private or public, it's the workforce that creates wealth. As someone almost said, once - it's the workers, stupid!

  • rate this

    Comment number 10.

    ... in the context that you put Atos Healthcare alf, you misrepresent the company.

    Operating as an arm of DWP, Atos is a Private Sector Company implementing government policy, if you have criticism it should be directed at government.

    By the way, Atos Healthcare professionals are bound by General Medical Council and Nursing and Midwifery Council codes of conduct.

    British standards !

  • rate this

    Comment number 9.


    Private Sector produces wealth for themselves. Utilities, Railways etc. When will they take over something that they actually improve effeciency and help Joe Public.

  • rate this

    Comment number 8.

    Private sector produces wealth. Of course it does and we know where the wealth goes, don't we. Certainly not in paying tax in this country.
    Isn't it a Private Sector Company that is making the most vulnerable people in the country even poorer. Atos a French Comany being given muti millions by the Government to take the most vulnerable of benefits by lying and get away with it. Wealth production?

  • rate this

    Comment number 7.

    Private sector produces wealth, public spends it. Is that too difficult for you to grasp? Even the fools in the Bay pretend to understand this.

  • rate this

    Comment number 6.


    We've witnessed the Private Sector in action e.g.the railways, banks and the promise of job creation in the Private Sector by the toffs.Really benefited

  • rate this

    Comment number 5.

    Dear old Boxer. To paraphrase the work from which you take your name, "public sector good, private bad"....................yawn

  • rate this

    Comment number 4.

    They're all at it from big business to our MPs who gain power, do nothing to close loop holes but to perpetuate them due to their rich friends bankrolling their parties who rely on their cooperation not to do anything adverse. And Wales is largely a pubic sector employed nation due to previous London Governments opting for the quick solution without foundation economy.

  • rate this

    Comment number 3.


    I agree with Boxer I know its a first but he is absolutely right.
    Unlike the Private Sector we can't tax dodge with company cars, expenses etc

  • rate this

    Comment number 2.

    This is because, when you work in the public sector, when your salary rises into that level, higher-rate tax is deducted at source.
    In the private sector, your accountant arranges it to be paid as a company car, expenses etc so you are no longer in that tax band.

  • rate this

    Comment number 1.

    "Between them, those 93,000 - seven per cent of taxpayers - contributed one third of the income tax raised in Wales."

    Do we know how many of these 93,000 work in the public, or fully taxpayer-funded, sectors? My guess is most of them!



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