Are the Silk threads unraveling?
Published on IWA blog on 11th November 2013 The Prime Minister and his deputy got the headlines they were after: Wales offered tax-raising powers by UK government . David Cameron was able to show the modern Conservative Party is pro-devolution and financially responsible, and Nick Clegg was keen to stress his party’s historic role in delivering ‘Home Rule all around’. But just a week after the two men stood side by side in front of Richard Rodgers’ undulating wood celling, and the veneer is already beginning to peel away. The UK Government have promised AMs the power to borrow money, and have given them the option to vary the rate of income tax and keep the proceeds. But there’s a catch. The Chancellor may still get to decide what the borrowed money is spent on, and the tax powers are limited, and can only be used if there’s a fresh referendum within a time-limited period. Taken together, I think the conditions Cameron and Clegg have insisted upon make it unlikely that t