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Budget Resolutions and Economic Situation

I do not believe that that is the right way for us to go at this stage. There is an ongoing discussion about the issue in Northern Ireland, but we have not yet reached the stage of devolving taxation. We are talking about the issue, but we will have to see where we get to. The central part of my speech is about how we can build on the UK Government's business-friendly approach, and about the way in which the Welsh Government and the Government here can work together to build on it. We can do so in several ways and in a close, constructive partnership. First, this Budget introduces capital allowances in enterprise zones, work on which has already taken place in Wales, and one area where the measure will be introduced is Deeside, where the Welsh Government have already suggested it might lead to 5,000 new jobs. We want to see that happen and to build on it in other parts of Wales, and by working together we can do so. Secondly, there is the commitment to pursue railway electrification. Electrification to Cardiff has already been confirmed, and the crucial next step is electrification of the valleys lines, but only if the Welsh Government and the Government here work together on that objective will we reach that target. It is absolutely vital that we do so. Thirdly, there is broadband and the super-connectivity of Cardiff. Cardiff, the capital of Wales, is a hugely vibrant city, and when I was there last weekend, as Wales defeated France and won the Grand Slam, I found the sheer vibrancy of the city something to behold. We need to recognise that we have a wonderful capital city in Cardiff, and we can build on that, but we can do so only by the two Governments working together and building on the business-friendly climate that the Government here have put in place. Last of all in this part of my speech, on the enterprise loans to small and medium-sized enterprises which are being promoted, the Welsh Government have Finance Wales, and it has many characteristics of a bank. If we combine Finance Wales and the various initiatives being taken at Westminster, we can make a dramatic difference in the development of small and medium-sized enterprises in Wales. Finally, there is an issue with age-related pensions, and inevitably, if we raise the personal income tax threshold at the massively accelerated rate that we are doing, the two taxes will eventually merge. It is a difficult issue, which we have all had to think about, but the Government have been right to take that step.