My Lords, I thank noble Lords who have participated in the debate on the amendments in this group. Much of their contribution has been persuasive and helpful.
I thank those who have acknowledged the progress made in relation to the fiscal framework and the agreement. I stress that the agreement has been made between the UK Government, by the Treasury, and the Welsh Assembly Government, via the Finance Minister and the Welsh Ministers in the Welsh Government. To that extent, this is something that the Welsh Government have welcomed. The noble Lord, Lord Hain, in a very fair analysis, said I had welcomed this agreement for the long term, which indeed I have. More importantly, perhaps, it was welcomed for the long term by Mark Drakeford, who said he regards the agreement as ensuring there will be,
“fair funding for Wales for the long term by implementing the funding floor recommended by the Holtham Commission”.
Those are his words. He is yet to give a full analysis, to be fair, but that is the press statement that he put out and it is notable that that is the view of the Welsh Government. I also stress that the Welsh Assembly will of course be having a say on the legislation in general when it considers the LCM, so no doubt we will be giving a view on this important part of the legislation, as well as the rest of the legislation, when it delivers that view. That is something that we anticipate.
I turn to Amendment 143A in the names of the noble Lords, Lord Hain, Lord Kinnock and Lord Murphy, which all three noble Lords have spoken to very persuasively. As I have indicated, we have a requirement under existing legislation, which we will
take forward in relation to this new legislation, of an annual report that happens in November/December each year. We will seek to ensure that the impact assessment—the information that the noble Lords are seeking—is incorporated in that report. As I have indicated, it is partly the Treasury, partly the Wales Office and partly the Welsh Government; all three contribute separately to that report. I will seek to ensure that that information is there because noble Lords have made a very fair point. The Government have already published two such reports, so there is a template. Of course, I appreciate that the significance of the new income tax powers makes the next report somewhat different in nature.
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I turn to Amendment 74 on the apprenticeship levy, in the name of the noble Lord, Lord Wigley. I have also spoken to him separately about this issue. To fund the step change needed to achieve 3 million apprenticeship starts by 2020 and to improve their quality, the Government are introducing an apprenticeship levy so that, by 2019-20, spending on apprenticeships in England will be double the 2010-11 level in cash terms. As has been indicated during the debate and in the letter I sent to noble Lords, the population share of the levy funding for the Welsh Government which will apply in the first three years is up on the present spending, as the noble Lord, Lord Rowlands, indicated. In the first year it will be £128 million; in the second year, £133 million; and, in the third year, £138 million.
The development of this policy on apprenticeships is entirely a matter for the Welsh Government. In England, those who put in money will get it back. It is entirely a matter for the Welsh Government or the Welsh Assembly as to how it is rolled out in Wales. Persuasive arguments have been put as to how the money should be spent but it is a matter for them. This is not something that the Government here would want to second-guess nor, clearly, are they in a position to do so. In response to the noble Lord, Lord Rowlands, the Barnettisation of the funding will be taken forward via the training budget of the Department for Education.
Noble Lords have perhaps gained the impression that officials are not speaking to each other and that there is no discussion on this. This is not the case. Discussions are certainly going on, for example in relation to cross-border arrangements where there will be employees in Wales benefiting from apprenticeships in England and vice versa. Discussion is happening because there clearly needs to be some dovetailing of arrangements. I am sure that things could have been done better—that is nearly always the case—but I certainly do not want noble Lords to think that nothing is happening in a cross-governnment way, because it is.