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Welsh Secretary Stephen Crabb said he will make major changes to his blueprint for the next phase of devolution.

Mr Crabb made the announcement in Cardiff Bay after widespread concerns were expressed about the draft Wales Bill.

The changes:

He has removed the so-called “necessity test”, which critics said would create further bureaucratic wrangling between the Welsh Government and Westminster over whether the Assembly had the power to pass a specific law. He has instructed officials to slim down the number of policy areas in which powers are reserved to the UK Government. Mr Crabb has also agreed to examine circumstances where the UK Government retains powers in areas which have already been devolved - like teachers’ pay, for example.

It comes after a cross-party committee of MPs called on Mr Crabb to pause the process and take time to reflect on the controversy.

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Reaction

The head of the Silk Commission into devolution welcomed the announcement

Academic Richard Wyn Jones agreed with the pause

No backdown on creating a separate legal jurisdiction for Wales

The Secretary of State insisted, however, that he would not go back on his opposition to a separate legal jurisdiction for Wales.

Mr Crabb said will set up a working group comprising representatives of the Ministry of Justice, the Lord Chief Justice’s office and the Welsh Government to discuss new arrangements which take account of the growing body of Welsh law.

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No tax referendum

Mr Crabb confirmed that Income Tax varying powers would be devolved to Wales without a referendum and offered assurances that the powers would be devolved in a way that would not disadvantage Wales.

Last week the Wales Governance Centre at Cardiff University published a report which warned Wales could lose hundreds of millions of pounds over an Assembly term of the powers were not devolved fairly.

The Welsh Secretary said he believed the changes would deliver a lasting devolution settlement.

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More detail

The Wales Office released the following explanation of Mr Crabb's decisions.

Necessity

On the so-called “necessity test” as it applies to the general principles of the law, the Secretary of State said that he had considered representations to replace it with a different test but concluded that the best way to proceed is to remove the restriction all together.

Given that a key aim is to reduce complexity, removing the “necessity test” will cut the constitutional red tape which risks fettering the ability of the Assembly to modify the law to enforce its legislation for which it is responsible.

Consents

When the Welsh Government wants the Assembly to legislate on matters that affect a reserved body (a body for which the UK Government is responsible) they seek the consent of the UK Government to do so.

Consent is currently also needed for the Assembly to legislate about Minister of the Crown functions in devolved areas as a result of a general restriction on so called “pre-commencement functions”.

The Secretary of State today announced that he will remove that restriction and look at each of these functions with a view to devolving as many as possible.

Legal jurisdiction

The Secretary of State has also considered calls for a “distinct jurisdiction” or a “separate jurisdiction”.

With the Assembly being given full law-making powers in 2011, there is now a growing body of distinct Welsh law.

At present, this makes up a tiny fraction of the overall body of law for England and Wales which has developed over 500 years of legal history.

The Secretary of State today made clear that there is not a case at present for dividing the single jurisdiction of England and Wales which has worked well for the people of this country and continues to do so.

However, he announced today that there is a clear need to look at the delivery of justice in Wales to take account of the distinct and growing body of Welsh law.

The Secretary of State will therefore establish a working group with the Ministry of Justice, the Lord Chief Justice’s office, and the Welsh Government, to consider what distinct arrangements are required to recognise Wales’s needs within the England and Wales jurisdiction when the reserved powers model is implemented.

Reservations

The Secretary of State has instructed officials in the Wales Office to work through the list of reservations with Cabinet colleagues, to see where the number of reservations can be reduced and the list simplified.

What they said

Stephen Crabb

“Last year I set out my vision for a Welsh devolution settlement that will stand the test of time by delivering a reserved powers model for Wales and giving further powers to both the Assembly and the Welsh Government.

“This pre-legislative scrutiny process has led to a vigorous debate on the detail and I am grateful to the Welsh Affairs Committee and the Assembly’s Constitutional and Legislative Affairs Committee, as well as those that gave evidence from civic society, who have helped guide the decisions I have made.

“Today’s announcement helps deliver on the commitments I made one year ago to introduce a historic funding floor, to devolve more powers and remove constitutional and legal red tape to create a stronger, clearer devolution for Wales.

“I am optimistic that we can now deliver a better Bill, and a better settlement, as a result.”

Carwyn Jones

"Let's be clear, this is an avoidable delay to clear up an avoidable mess.

"The UK Government need to get into the habit of treating Wales and the National Assembly for Wales with proper respect.

"We now have the opportunity, if the will is truly there, to repair the damage done by a flawed process and produce a genuinely meaningful piece of legislation."

Leanne Wood

(Image: Keith Morris)

“Plaid Cymru welcomes the removal of the necessity test, as well as the confirmation that the list of powers which are reserved to Westminster will be shortened.

"It is disappointing that the Secretary of State still refuses to acknowledge the need for Wales to have its own legal jurisdiction - a move supported by a growing body of legal experts, academics and politicians.

“The Wales Bill is the ideal vehicle to transfer meaningful powers from Westminster to the National Assembly that would help develop the Welsh economy and ensure the maturing of our democracy.

“It is regrettable that inaction and lack of ambition by governments at both ends of the M4 have resulted in a flawed piece of legislation."

Kirsty Williams

“A pause in this process is the right decision.

"The Wales Bill has the opportunity to finally put right mistakes of the past with regards to Wales’ devolution settlement.

"However, the draft bill was seriously flawed and not in any fit state to move forward.

“The Welsh Liberal Democrats welcome the removal of the 'necessity test' and a promise that the list of powers reserved to Westminster will be significantly cut down.

“For such a major and complicated issue, it is understandable that the UK Government wants to establish a working group to look potential changes to the legal jurisdiction. However, it is quite frankly absurd that the Secretary of State believes this issue would require a referendum."