Silk: Prix fixe or a la carte?

 

It's @TobyMasonBBC here, keeping the blog warm for a few weeks until a new political editor is appointed.

I'm sure Betsan would have very much liked to have signed off as political editor by bringing you news about which taxes Wales will get control over in future, following last year's landmark report from the Silk Commission, paving the way for a major shift in the way Welsh politics and policy operates.

But despite variations on a theme of "in the Spring" "soon" "shortly" "before the summer" "very soon" and even "imminently" from the UK Government since its publication in late November last year - her move to pastures new came before we found out how many of the Silk proposals will be made into reality.

Paul Silk Paul Silk

You can recap on the details here. The question is how a report from a cross party Commission that was set up by the UK Government and welcomed by all sides, which produced a report which was unanimously supported by all Commission members, and then unanimously backed by all four parties in the Assembly, is still in limbo.

The answer may well be that while Cardiff Bay sees Paul Silk's recommendations as a kind of prix fixe menu, the UK Government has been treating it as much more of an a la carte - hence - possibly - the delay.

The Commission chairman is certainly more of a table d'hote diner on this. Here's what Mr Silk told my colleague Carl Roberts on yesterday's Sunday Politics programme: "When we look at what the response is, I hope, because we produced our report as a package, we would like it all to be accepted as a package.

"It may be that there are one or two elements of it where there are good reasons why the UK Government might not want to go along with them - and if they explain those reasons well I don't think I will be so disappointed."

"We don't necessarily recommend that everything we recommend to be taken hook, line and sinker. But we came up with a package that we thought hung together very well and we would clearly like to see the whole of that package accepted."

He added that if many of the recommendations were not implemented, then this would be a "disappointment" to the Commission.

Disappointment will be a mild word to described the response from Welsh Ministers if, when the UK Government finally publishes its report, they get the crumbs from the table rather than the full three courses.

Carwyn Jones' line throughout the Silk process has never wavered. He will only accept new financial powers if they are clearly in Wales' interest.

What's wrong with that, you might ask?

Well it's might be popular with the Welsh public, but equally it's going to ring some alarm bells in Whitehall - never keen on giving power away at the best of times, the impression of a devolved administration effectively pulling a fast one to cream off "useful" taxes and nabbing borrowing powers while shunning unpopular ones has surely introduced yet another layer of caution into their decisions.

And that's what goes to the nub of all this. A case can be made, as Silk and his fellow commissioners did, for devolving some individual taxes on the grounds of economic benefit, accountability, policy development, or even more effective administration.

But does there come a point at which devolving policy levers in the form of specific tax powers instead turns into handing one part of the UK what could be seen as an unfair competitive advantage over another?

This is why the suggestions - and they're only suggestions - coming out of Westminster is that Air Passenger Duty on long haul flights won't be transferred to Cardiff. Stamp duty is one that's in the balance also apparently. Both transport and housing are devolved, and on issues like building regulations and buying Cardiff Airport, for example, the Welsh Government's carving out a very different approach from England.

So you can see why Bristol Airport, and others near the Welsh border, haven't been exactly enthusiastic about Cardiff getting another potential advantage via the devolution of APD and have probably made that very clear to both the Treasury, the Department for Transport and the Wales Office.

We'll have to wait and see what the final outcome is. When might it come? Speaking earlier today, Secretary of State David Jones said the response would come "in the very near future" adding he was "not able to give you a precise date but it is very close indeed now."

Watch this very well-watched space.

 
Betsan Powys Article written by Betsan Powys Betsan Powys Former political editor, Wales

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  • rate this
    +1

    Comment number 27.

    ... there's a UKIP tendency here in Caerphilly Boxer, at least for the regional vote, just to keep the "spend, spend, spend brigade" on their toes.

    Elsewhere in Wales there is a tendency to disbelieve the antics at the Assembly, who would deliberately cause conflict when there are three million people needing good governance ?
    .

  • rate this
    0

    Comment number 26.

    Why, John, from the UKIP tendency in England. That has always been the problem with the DevoMax brigade. They have thought that they can start breaking up the Union, promoting the centrifugal tendency, then just stop the process when it suits them. Much like those that start wars with a clear objective. I doubt the Kaiser had a German republic as a war aim.

  • rate this
    +1

    Comment number 25.

    ... "Pressure for independence" Boxer ?

    From who, the English or Welsh, for sure the pressure won't be from the little people in Wales.

    .

  • rate this
    0

    Comment number 24.

    The other problem facing Carwyn & Co is that if tax devolution were to be madly successful, say a lowered business rate, and firms doing business mainly in England started to queue to register in Cardiff, there would be a mighty backlash. Pressure for independence rather than DevoMax would increase. Then the question that some of us have asked "Can Wales afford independence?" becomes crucial.

  • rate this
    0

    Comment number 23.

    ... Come what may from the silk(en) purse, very soon WAG will be forced to explain to the electorate why tax varying powers have forced it to either cut services or raise taxes, the peanut taxes of Lyn will be a wake up call of what would be in store if nationalism walked Wales over the independence cliff, the abyss.

    Silk might be a friend of the Union after all is said and done .....
    .

  • rate this
    +4

    Comment number 22.

    oh dear oh dear. Time foir another lesson. Listen carefully. George has huge debts but has huge tax revenue and a good credit rating (at the moment) and so the markets lend George pocket money. Carwyn has a very greedy public sector to feed, has a tiny potetntial tax base, no credit rating and zero chance of borrowing much at all. Simples surely? Not sure Silk gets it though.

  • rate this
    +3

    Comment number 21.

    7 woodsey - it appears that you are wrong in just about every statement you make. I am not a staunch unionist. However unlike you I am not blind to the failings that devolution has brought to Wales.

    My point about AM,s salaries/expenses remains. They are excessive compared to those of an MP. I regret that you have taken "hook line and sinker" Silks report. Fish and idiots?

  • rate this
    +3

    Comment number 20.

    #19 Taxation might not be complex enough for you now, John, but see what devolved powers may bring. Mainly a bonanza for lawyers as crooks exploit anomalies. Businesses will set up both sides of the border, and ensure profits and costs appear wherever most favourable HMRC will challenge occasionally. Wales as the Channel Islands for Amazon.

  • rate this
    +4

    Comment number 19.

    ... I've never found taxation complex Lyn, although the amount and frequency is a burden.

    If Westminster does not reduce the block grant by an amount that equates to a devolved tax, allowing WAG to set and collect the devolved tax, it becomes unfair upon the remainder of taxpayers living elsewhere.
    .

  • rate this
    +3

    Comment number 18.

    16.wooodsey
    Why do you keep looking over the wall rather than the mess in our own backyard. Your arguments are always based on, well they did it first rather than a rational argument on why. Just throwing stones doesn't make an argument it just makes you look like a belligerent child. If I stamp my feet and cry loud enough I will get my own way. What's needed is tough love on WAG..

  • rate this
    -2

    Comment number 17.

    John - its a bit complex, the proposals on varying taxes is that Wales would get the tax take on peanut taxes - which are very small - to support servicing the borrowing requirement. With Income Tax, they would get a proportion of income tax and be able to vary it up or down by a percentage.
    The smallest community council has tax powers why not the National Assembly?

  • rate this
    -1

    Comment number 16.

    12
    I've always fancied being in government myself
    With the English Councils asking for more devolved powers e.g. Greater Manchester, are you suggesting we in Wales still look to London while the rest of England doesn't. ?

  • rate this
    -2

    Comment number 15.

    8.

    Dim problem.

  • rate this
    -2

    Comment number 14.

    8.

    Thought you bring up the language So predictable

  • rate this
    +3

    Comment number 13.

    ... considering tax varying powers, will it be "block grant" neutral ?

    e.g. calculate a figure representing the value of "stamp duty", deduct this from the block grant and hey ho no-one is the loser; except when tax variance creates a regional advantage.

    On balance tax varying powers can only increase the funds available to WAG if tax rates are increased in Wales.

    .. alluring !

    .

  • rate this
    +3

    Comment number 12.

    Camulos.

    Are you actually suggesting that irrespective of electoral results, Plaid should be in coalition with whoever is in Government at the Senedd, just because they call themselves Welsh? They actually represent very few Welsh people.

    I've always fancied being in government myself.

    I think I'll start a new Welsh party myself. Maybe Yr Lwni Parti Cymru. Does that sound Welsh enough?

  • rate this
    -2

    Comment number 11.

    I am of a mind that if Democracy was actually in play in the Senedd, then they should allow Plaid Cymru the only Welsh party in the Senedd to be in the Coalition with what ever British party was in Power to have parity with the odds so stacked against them ever coming to be in government, by new Labour and the other British parties in their controlling of voting systems and boundaries!

  • rate this
    -2

    Comment number 10.

    Attending the Silk commission on changes to the way we receive conferred devolved powers at the present. We were asked if we preferred the Scottish model, the difference being that you get every thing Scotland has excluding Defense, I could live with that for now. British politics in the Senedd are holding us back, because the British parties in Wales are loyal to Westminster, not Wales!

  • rate this
    +2

    Comment number 9.

    1.MabionGlyndwr
    God help us if we were granted all the powers for our politicans can't deal with what they have at present. Once again I say we have failing failing health, education and social services. And our politicans just bury their heads in the sand and hope it just goes away. I am proud to be Welsh however I am so ashamed of our political circus. Lets get our house in order please!!!

  • rate this
    +1

    Comment number 8.

    #5 "Not forgetting BBC 26 million pay out to its management."
    Easily affordable if TV is devolved. How about Wales gets free BBC (E) pictures, but pays for transmission towers etc, BBC Wales, Welsh News and S4C out of licence fees collected in Wales ??

 

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