UK Government to set up commission looking into more devolved powers for Wales as Welsh Government asks for reform of funding arrangement.

Speaking at the National Assembly for Wales last June, the First Minister of Wales, Carwyn Jones, said "There is a consensus in this chamber, and I believe across Welsh civic society, that the devolved funding settlement for Wales is no longer fit for purpose."

The Welsh Government called on the UK Government to reform the Barnett Formula, the funding arrangement that determines how much money Wales receives back from the UK each year.

The First Minister also called for the devolution of borrowing powers and fiscal measures such as landfill tax, stamp duty, and air passenger duty.

In response to the calls for more devolved powers for Wales, the Prime Minister of the UK, David Cameron, said "We will be setting up a commission to look at how we can make sure we embed devolution and make sure we have the right level of powers in Wales. "