Wales will take on income tax powers for the first time from April 2019 as part of a devolution deal with Westminster.
The Welsh government already has control over its landfill sites and stamp duty, which is set to be replaced by the land transaction tax in April 2018.
Additional provisions in the agreement include:
- the amount of capital spending available to the Welsh government will double to £1 billion
- a single Wales reserve will be created to enable the Welsh government to manage its budget, including new tax revenues
- role for independent bodies, where required will provide input on matters relating to the arrangement.
Mark Drakeford, the Welsh government’s cabinet secretary for finance and local government, said:
“This package paves the way for partial income tax devolution in Wales. But crucially it protects our budget from the range of undue risks that could arise following the devolution of tax powers from 2018 and provides additional flexibility to manage our resources.”
David Gauke, chief secretary to the Treasury, added:
“We are delivering on our commitments and the Welsh government can now decide how to use their greater powers and responsibilities to grow and support the Welsh economy.”
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