Cameron brings cabinet to Wales

Prime minister chaired his cabinet's first meeting in Wales on Tuesday.

The Westminster coalition government has promised a commission into how Wales's devolved administration is funded.

The Welsh Government wants powers to borrow money and reform of the formula that sets its budgets.

First Minister Carwyn Jones has also proposed devolving control of some taxes.

But his Welsh Labour administration, which receives an annual grant from the Treasury of roughly £15bn, does not want powers over income tax. It is braced for a real-terms cut in its capital budget of 40% over the next four years.

Mr Cameron and Deputy Prime Minister Nick Clegg met Mr Jones in Cardiff Bay on Tuesday morning.

The Welsh Government used the meeting to call for a clear timetable on setting up the commission. Both sides accepted the need to move forward.

Mr Cameron also announced that Wales is set to receive £56.9 million share of the Government’s £530 million broadband investment fund to help take superfast broadband to 90 per cent of homes and businesses.

The announcement builds on the work of the rural pilots earlier in the year and is part of the Government’s ambition to have the best superfast broadband network in Europe by 2015.

Praising the Welsh Government and its creation of the UK’s first Older People’s Commissioner to raise the profile of elderly and end age discrimination, the Prime Minister reiterated the need for reform and modernisation of public services.

Let me put it another way: devolution of power from Westminster to Cardiff is not enough. We need real devolution, where power is passed from here in Cardiff……to patients and parents, doctors, nurses and teachers, charities and social enterprises. Collectively, they have the ideas and the energy and the commitment to improve our schools, build a fantastic NHS and make Wales a better place to live for everyone.

Ahead of the Cabinet meeting and speech, Mr Cameron met staff at the Royal Mint and toured the premises. Other members of the Cabinet visited a number of locations in the surrounding areas - the Secretary of State for Justice Kenneth Clarke paid a visit to HMP Cardiff whilst the Minister of State for Government Policy Oliver Letwin visited G24 Innovations.