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Wales income tax power logical next step, Jones to say Wales income tax power logical next step, Jones says
(about 1 hour later)
Handing control of income tax to the Welsh government is a "logical next step", as long as a deal can be reached on the size of the national budget, the first minister is expected to say. Handing control of income tax to the Welsh government is a "logical next step", as long as a deal can be reached on the size of the national budget, the first minister has said.
UK ministers want Carwyn Jones to hold a referendum on devolving control over 10p in the pound of income tax.UK ministers want Carwyn Jones to hold a referendum on devolving control over 10p in the pound of income tax.
He appears to have dropped his insistence that a referendum is needed. But he appears to have dropped his insistence that a referendum is needed.
Similar demands for a vote would not be put to Scotland and Northern Ireland, Mr Jones said.Similar demands for a vote would not be put to Scotland and Northern Ireland, Mr Jones said.
However, he maintained his insistence that income tax powers should not be devolved until a new funding deal is struck with Westminster.However, he maintained his insistence that income tax powers should not be devolved until a new funding deal is struck with Westminster.
In a speech in London he is expected to say he will "always consider proposals providing they are fair to Wales". In a speech in London on Friday he said he will "always consider proposals providing they are fair to Wales".
'Flexibility''Flexibility'
He is expected to say: "I am instinctively pro-devolution and I can see the merits, in principle, in different parts of our Union being able to decide on the balance between levels of taxation, including those on personal incomes, and the level of resources for public services. "I am instinctively pro-devolution and I can see the merits, in principle, in different parts of our Union being able to decide on the balance between levels of taxation, including those on personal incomes, and the level of resources for public services.
"But I have been absolutely clear that until we have a fair funding settlement it is not in the best interests of Wales to have income tax devolved.""But I have been absolutely clear that until we have a fair funding settlement it is not in the best interests of Wales to have income tax devolved."
He is due to add: "Having the flexibility to set taxes to respond to the needs of Wales and the preferences of Welsh citizens within a fair funding model is a logical next step." The first minister added: "Having the flexibility to set taxes to respond to the needs of Wales and the preferences of Welsh citizens within a fair funding model is a logical next step."
He has previously said that a referendum must be held before powers over income tax are given to the Welsh government. Mr Jones has previously said that a referendum must be held before powers over income tax are given to the Welsh government.
But ahead of his speech he told BBC Wales: "It's beginning to look increasingly strange of course that Scotland is getting a raft of powers - way beyond what Wales would get - without a referendum. But before the speech he told BBC Wales: "It's beginning to look increasingly strange of course that Scotland is getting a raft of powers - way beyond what Wales would get - without a referendum.
"I've no doubt in Northern Ireland if income tax-varying powers were offered to Northern Ireland there wouldn't be a referendum there, but in Wales we have to have a referendum." "I've no doubt ... if income tax-varying powers were offered to Northern Ireland there wouldn't be a referendum there, but in Wales we have to have a referendum."
Referendums should be reserved for "major constitutional issues and not for a bit of power here and there", he added.Referendums should be reserved for "major constitutional issues and not for a bit of power here and there", he added.
Asked if Welsh voters should expect a referendum soon, he said: "We are not at that stage. We know the first thing to do is to consider a financial settlement that's fair to Wales and then consider what happens next."Asked if Welsh voters should expect a referendum soon, he said: "We are not at that stage. We know the first thing to do is to consider a financial settlement that's fair to Wales and then consider what happens next."
Plaid Cymru welcomed "any late conversion" of Mr Jones to its position against the need for a referendum on income tax devolution.
Party leader Leanne Wood said: "It's a shame that previously both Labour and the Conservatives together have insisted on putting obstacles in the way of progress on Welsh income tax."
Public spending per head is higher in Wales than in England, but Welsh politicians claim the so-called Barnett formula used by the UK Treasury to allocate resources is too generous to Scotland and Northern Ireland, and underfunds Wales by as much as £300m a year.Public spending per head is higher in Wales than in England, but Welsh politicians claim the so-called Barnett formula used by the UK Treasury to allocate resources is too generous to Scotland and Northern Ireland, and underfunds Wales by as much as £300m a year.
The UK government is planning a guaranteed minimum level for the Welsh government's annual grant - expected to be between 13% and 16% higher than English public spending levels.The UK government is planning a guaranteed minimum level for the Welsh government's annual grant - expected to be between 13% and 16% higher than English public spending levels.