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| Stamp duty tax question for Welsh and UK governments | Stamp duty tax question for Welsh and UK governments |
| (about 1 hour later) | |
| The UK government is due to announce that it is consulting businesses on whether the Welsh government should get control of stamp duty land tax. | |
| It is one of the key recommendations of the Silk Commission review of further devolved powers for Wales. | It is one of the key recommendations of the Silk Commission review of further devolved powers for Wales. |
| The tax is on properties worth over £125,000 - starting at a 1% rate and rising to 7% as the value increases. | The tax is on properties worth over £125,000 - starting at a 1% rate and rising to 7% as the value increases. |
| The Welsh government sees control of the tax as vital to boost the housing market and the construction industry. | |
| But UK ministers want to assess the impact the change before giving the go-ahead. | |
| The money would also give ministers in Cardiff an income stream - around £200m a year - against which they could exercise new borrowing powers. | |
| The Treasury Chief Secretary Danny Alexander is expected to confirm a short consultation with business that is likely to report in the autumn, when the UK government is now due to give its full response to the Silk report. | The Treasury Chief Secretary Danny Alexander is expected to confirm a short consultation with business that is likely to report in the autumn, when the UK government is now due to give its full response to the Silk report. |
| The UK government set up the commission to examine the future of the Welsh assembly's powers. | The UK government set up the commission to examine the future of the Welsh assembly's powers. |
| Chaired by former assembly clerk Paul Silk, it made its first report in November 2012, making 33 recommendations, including some tax-varying powers. | Chaired by former assembly clerk Paul Silk, it made its first report in November 2012, making 33 recommendations, including some tax-varying powers. |
| Arguments | Arguments |
| Ministers at Westminster want to assess the potential impact of differential rates on businesses either side of the Wales and England border. | Ministers at Westminster want to assess the potential impact of differential rates on businesses either side of the Wales and England border. |
| Although the tax is being devolved to Scotland, the situation in Wales is seen as different as the border with England is more heavily populated. | |
| Wednesday's announcement follows tensions between Liberal Democrat and Conservative ministers at Westminster. | Wednesday's announcement follows tensions between Liberal Democrat and Conservative ministers at Westminster. |
| Arguments over the devolution of stamp duty are said to be one reason why the UK government's response to the Silk commission missed its original deadline of the end of Spring. | Arguments over the devolution of stamp duty are said to be one reason why the UK government's response to the Silk commission missed its original deadline of the end of Spring. |
| MPs rise for their summer break on Thursday and will not return until September, when ministers are also expected to reveal plans to give English MPs more say over new laws that affect England alone. | MPs rise for their summer break on Thursday and will not return until September, when ministers are also expected to reveal plans to give English MPs more say over new laws that affect England alone. |
| Earlier this month, Deputy Prime Minister Nick Clegg told MPs that supporters of more devolution would be "pleasantly surprised" by the UK government's "forthcoming and forward-leaning approach". |