My hon. Friend confirms my very worst fears. Instead of having needs-based funding, the average cut per household in a Tory area will be in the region £68 by the end of the Parliament, whereas in Labour council areas it will be more than £340. My fear is that the block grant will be cut and we will be told to make up the rest through income tax hikes in Wales. As Members are well aware, there has been no full assessment of the impact on Wales of different rates of tax on the different sides of a very porous border, so we really have no idea what will happen.
4.30 pm
I will not repeat our many previous arguments about the importance of keeping the UK together and of having an income tax base right across the UK. All of us in the many regions of the UK contribute to the wealth that is generated in London through the companies that people work for in Wales and other parts of the UK. London therefore has an enormous tax take compared with other areas and is the only place that consistently provides a surplus, whereas other areas have to take from the pool. That is why we should not go down the route of complete separatism, as suggested by Plaid Cymru. Any tampering with income tax must be done with the consent of both Houses here and the Assembly to ensure proper negotiation and a proper agreement about funding for Wales, so that we are not left short of money.