Terms of Reference

Last modified 24 October 2011

An independent Commission will be established to review the present financial and constitutional arrangements in Wales.  It will carry out its work in two parts:

Part I: financial accountability

To review the case for the devolution of fiscal powers to the National Assembly for Wales and to recommend a package of powers that would improve the financial accountability of the Assembly, which are consistent with the United Kingdom’s fiscal objectives and are likely to have a wide degree of support.

Part II: powers of the National Assembly for Wales

To review the powers of the National Assembly for Wales in the light of experience and to recommend modifications to the present constitutional arrangements that would enable the United Kingdom Parliament and the National Assembly for Wales to better serve the people of Wales.

In undertaking Part I, the Commission should:

  • provide independent advice on the case for improving the financial accountability of the National Assembly for Wales consistent with the fiscal and constitutional framework of the United Kingdom;
  • consult widely on a package of fiscal powers which would improve the financial accountabilty of the National Assembly for Wales;
  • make recommendations on whether a package of fiscal powers could be devolved to the National Assembly for Wales which are likely to have a wide degree of support; and
  • consider and make recommendations on how best to resolve the legal and practical implementation issues from devolving a package of fiscal powers, including consistency within the United Kingdom.

Part I will be completed before work on Part II begins.

In undertaking Part II, the Commission should:

  • examine the powers of the National Assembly for Wales, and in particular:
    • the boundary between what is devolved and non-devolved;
    • whether modifications to the boundary should be made at this stage;  and
    • any cross-border implications of such modifications;
  • consult widely on any proposed modifications to the current boundary;
  • make recommendations on any modifications to the settlement likely to have a wide degree of support; and
  • consider and make recommendations on how best to resolve the legal and practical implementation issues from those modifications.

The Commission will not consider, in part I, the Holtham Commission’s proposals for funding reform in Wales, including Welsh Ministers’ existing borrowing powers, which are being dealt with through a separate bilateral process between the United Kingdom Government and the Welsh Government; and, in part II, the structure of the National Assembly for Wales, including issues relating to the election of Assembly Members.