Assembly 'should have tax control'

Wales should have its own parliament with wide-ranging tax-raising powers, Plaid Cymru Assembly leader Ieuan Wyn Jones has said.

Mr Jones wants Wales to have the power to control income tax, vary corporation tax and raise environmental levies as well as having law-making powers.

But he said it was "unlikely" any party would use the new powers to raise income tax, and said Plaid Cymru would look at lowering corporation tax to boost business.

He said revising the Barnett formula - which dictates how much money comes to Wales from the Treasury - would raise more cash than a tax hike.

He also said he did not think such significant changes to the devolution settlement would require a new referendum.

First Minister Rhodri Morgan has said he feels any tax-raising powers for Wales - which he does not favour - would require a referendum.

Mr Jones, who will deliver a key speech in Cardiff on Monday setting out Plaid Cymru's position on further devolution, said it was crucial there was a debate across all parties on the issue.

The independent Richard Commission is due to report on whether the Welsh Assembly should have more powers at the end of March.

Mr Jones said: "When you look at the evidence given to the Richard Commission, it's obvious the majority of people believe we can't stay as we are.

"This place, the Assembly, isn't working. I think that's the view of the majority of the Welsh people. The argument has shifted in favour of change."

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