By Darren McCaffrey, Sky News Reporter
The Welsh government will for the first time have some control over income tax and borrowing, if it is approved by a referendum, the Prime Minister has announced.
David Cameron and Nick Clegg set out details of how the next stage of devolution will work, with landfill tax and stamp duty also being transferred to Cardiff, bringing in £200m in revenue for the Assembly.
The announcement was in response to the Silk Commission on devolution which recommended giving Wales powers on tax and borrowing, published last year.
"Today we are announcing new powers for the Welsh people and the Welsh government," Mr Cameron told a press conference at the Senedd in Cardiff Bay.
"Power that is about building this country up. Power that's about ensuring what I want and what I know the Deputy Prime Minister wants and the First Minister wants, which is a strong Wales inside a strong United Kingdom."
Mr Cameron said borrowing powers would help the Welsh government finance improvements to the M4.
The Prime Minister also revealed the 2014 Nato summit, which the UK is hosting, will be held in Wales at Newport's Celtic Manor.
Sixty heads of state and government would attend the summit, which the UK last hosted in 1990.
"It'll be good for jobs, it'll be good for investment, it'll be good for business. It'll be a great advertisement for the success that Wales and the Welsh economy is," he said.
Wales First Minister Carwyn Jones welcomed the announcement, saying: Today is an important day for Wales. We are now being treated like equals in the UK."
Westminster will now provide for a referendum to ask people whether tax should be devolved in the same way it is in Scotland.
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