Income tax 'needed' for Welsh government borrowing
The Treasury is refusing to grant major borrowing powers to Wales unless some income tax powers are devolved, says a senior Welsh government adviser.
Welsh ministers want to be able to borrow to fund infrastructure projects, such as roads, schools and hospitals.
At present they are seeking control of smaller taxes, such as air passenger duty and stamp duty land tax.
Adviser Gerry Holtham also said a separate deal was under discussion on funding an M4 relief road near Newport.
BBC Wales' Daniel Davies reports.