Welsh rates of income tax: removal of referendum requirement

Wales Bill – in the House of Commons at 5:15 pm on 5th July 2016.

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Amendment proposed: 11, page 14, leave out lines 30 and 31 and insert—

“(a) for subsection (1) substitute—

(1) Before the commencement of sections 8 and 9, the Secretary of State must lay a statement (“a fiscal framework”) before each House of Parliament setting out the arrangements for calculating and making payments into the Welsh Consolidated Fund under section 118 of the Government of Wales Act 2006 following the commencement of those sections.

(1A) The Secretary of State must send a copy of the fiscal framework to the First Minister for Wales and the First Minister must lay it before the Assembly.”

(b) after subsection (2) insert—

“(2A) But an order may not be made under subsection (2) until a fiscal framework laid under this section has been approved by resolution of both Houses of Parliament and of the Assembly.”

(c) for the heading substitute “Fiscal framework and commencement of income tax provisions.””—(Paul Flynn.)

Clause 16(3)(a) omits subsection 14(1) of the Wales Act 2014, which applies the power of the Treasury to commence the income tax provisions of that Act by order where the majority of the voters in a referendum in Wales vote in favour of the income tax provisions coming into force. This amendment omits the provision but replaces it with provision for a fiscal framework to be prepared by the Secretary of State, which must be approved by the Assembly and each House of Parliament before the income tax provisions may be commenced by order made by the Treasury.

Question put, That the amendment be made.

The House divided:

Ayes 181, Noes 285.

Division number 34

See full list of votes (From The Public Whip)

Aye

No

Question accordingly negatived.

Question put, That the clause stand part of the Bill.

The House divided:

Ayes 285, Noes 7.

Division number 35

See full list of votes (From The Public Whip)

Aye

No

Question accordingly agreed to.

Clause 16 ordered to stand part of the Bill.

Clauses 17 to 19 ordered to stand part of the Bill.

Schedule 3 agreed to.

Clauses 20 and 21 ordered to stand part of the Bill.

To report progress and ask leave to sit again.—(Charlie Elphicke.)

The Deputy Speaker resumed the Chair.

Progress reported; Committee to sit again tomorrow.