FOR WALES SEE...

At the moment Scottish and UK government ministers are busy discussing proposed new financial powers for Scotland. Treasury Minister David Gauke and Scottish Finance Secretary John Swinney have been taking part in the first meeting of the joint exchequer committee.

The Committee will look at the financial implications of the Scotland Bill, which is currently going through the Westminster parliament. The SNP have understandably said that answers are still needed over the planned tax changes.

The Scotland Bill will devolve £12 billion pounds of new tax and borrowing powers under plans which will see Scotland control a third of its budget. At the heart of this important piece of legislation is a recommendation that Scotland should take charge of half the standard income tax rate - 10p (with a corresponding cut in the block grant Scotland gets from the Treasury).

UK Con Dem ministers have said that the powers within the bill mean Scotland, with its annual £30bn budget, will have more accountability for the money it spends. The Scottish government, however, wants to cut the headline rate of corporation tax, paid through company profits, from 23% to 20% would create an extra 27,000 jobs over 20 years. UK ministers have said that any case to devolve corporation tax to Scotland would need to be strong. So the debate goes on...

Meanwhile in Wales...Carwyn‘s formerly New Labour lot have asked for nothing. Now if its offered, whatever it is (Corporation Tax variation, a better fairer financial settlement, control of criminal justice, etc) then they will take it, especially if it's offered to Northern Ireland and Scotland, but they won't ask for it?

Now I don’t believe for a moment that this stance is down to pride, its merely a lack of any real belief in the devolution project in Wales or any belief in Wales for that matter save for political expediency. They (Labour) may actually believe or at least pay lip service to the idea that Labour in power in Westminster will actually deliver for Wales.

Yet oddly enough they didn't manage to deliver when in power last time (between 1997 and 2010) nor have they previously so why should they in the future? So much for standing up for Wales...perhaps not?

FAIR FUNDING (NOT)

So much for fair funding for Wales, Danny Alexander (during Treasury Questions at Westminster yesterday) admitted that the UK Government is refusing to consider Barnett reform before any wider changes to the way the Welsh Government is funded. This is an interesting decision, especially as the UK Government is literally throwing money at the Scottish Government following the SNP electoral landslide last week, one that will hold Wales back.

Plaid has argued that pursuing a Welsh ‘Calman-style’ Commission prior to any reform of the current funding system would be a case of ‘cart before horse’ and has called for the Labour Government in Cardiff to sit up and pay attention to the gravity of the situation. The reform of the Barnett formula has been recommended by four seperate reports, including the independent Holtham Commission, before any changes are made to the financial autonomy of the Welsh Government, yet nothing has been done.

Jonathan Edwards MP

Jonathan Edwards MP (Plaid’s Treasury spokesperson) said:

“At a time when the UK Government is literally throwing money at the Scottish Government following the SNP landslide last week, I am dismayed that the Chief Secretary confirmed that changes to the way Wales is funded will not take place before their so-called Welsh Calman-style process.

“The UK Government know they are now dealing with an administration in Cardiff Bay intent on holding Wales back and have no need to offer any sort of concessions. The message is clear – vote Labour, get nothing.“Such is the arrogance and ineptitude of potential Labour Welsh Ministers, the significance of the Chief Secretary's answer and its dire consequence for Wales will probably go unnoticed.

"The independent Holtham Commission set out a route-map for how financial reform should take place in Wales - that there should be a Barnett floor to prevent the underfunding of Wales getting worse, then the introduction of a needs-based formula and only then should other financial reforms take place.

“The UK Government should be in no doubt that it will not have the support of Plaid Cymru for any changes to the way the Welsh Government is funded unless Barnett is reformed first.

“The ConDems cannot be allowed to get away with skipping steps one and two by a toothless Labour administration in Cardiff."

SOVEREIGNTY AND THE SCOTTISH PEOPLE

The SNP's 69 MSPs

David Cameron, in the immediate aftermath of the landslide SNP election victory, was quick to say that he would personally campaign in Scotland for a NO vote in any independence referendum. Wiser heads appear now to have prevailed and Westminster is now saying that it would not oppose any successful referendum in favour of independence.

This is a fairly fundamental issue - the SNP (like Plaid in Wales) believes that Sovereignty resides with the people of Scotland - so if the Scottish Tories or the Scottish Labour Party or what's left of the Scottish Liberal Democrats want to campaign against independence then fair enough, but, it's not really the business of anyone from south of the border including Mr Cameron.

Whatever happens over the medium term, the Scotland Bill is currently being considered after the Calman Commission which examined the progress of devolution. Under the Bill, the Scottish Parliament will take charge of more of the income tax raised in Scotland. The proposed new powers would be combined with a cut in the block grant, currently about £31 billion, which Scotland receives from the UK government, the SNP wants to strengthen the bill to give it more economic teeth.