Tuesday, 30 October 2012

Support for Devolution of Tax Powers to Wales

According to a new survey, there is an extraordinary level of support for the devolution of tax and borrowing powers to Wales with approximately 81% of the local people in favour of a referendum on the matter.
2,000 Welsh adults took part in an ICM survey which was carried out on behalf of the Commission on Devolution in Wales and it has been revealed that nearly two in three believe that the Welsh government should be able to differ major UK-wide taxes.
The highest level backing (coming in at 64%) was for the devolution of income tax controls. 72% were in favour of the ostensible "nudge taxes", like the levy on carrier bags, ultimately intended to change behaviour. 80% wish to see the government able to borrow to develop infrastructure and two in three hopes to see the total amount of borrowing allowable to be conjointly decided upon by the Welsh and UK governments.
Two thirds of the people interviewed believed that the Welsh economy would propagate in strength and that the conveyance of public services would be improved if tax and borrowing powers were transferred. 56% thought that having responsibility for tax would make the Welsh government more answerable.
Following the results of the survey, Chair Paul Silk said "our remit is very clear - we must come up with a package of recommendations likely to command a wide degree of support". He also went on to say that "this has been integral to our work from day one and is why we commissioned ICM to look in depth at attitudes to devolving tax and borrowing powers. This is the most comprehensive survey on this subject to date in Wales".
Commenting on the matter further, Silk stated "over the last five months, we have held public events in every local authority area in Wales and asked members of the public to get involved through our questionnaire and online debates to engage with as many people as possible. We have heard a diverse range of views. This wide-ranging report by ICM is yet another important piece of evidence for our review. We note that the survey results broadly correlate with polls conducted earlier this year, including our own for St David's Day".
The survey's conclusions arrive as the shift towards devolution of tax powers intensifies in the UK. Last year, the Westminster government consulted on policies to authorise the Northern Ireland government to charge and alter the rate of corporate taxation. Progress has been delayed recently, with the latest gathering of the Ministerial Working Group on Rebalancing the Northern Ireland Economy unsuccessful in reaching a definite settlement. The Group is scheduled to reconvene in September, however members have said that opinion remain significantly different.



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