MORE powers for the Welsh Assembly have been announced today by the Prime Minister in the St David’s Day Agreement.

The devolution package, described as a “landmark settlement” by Welsh Secretary Stephen Crabb, says the Welsh Assembly should be able to lower the voting age to 16 for Assembly elections, set its own speed limits and have control over fracking, sewerage, ports and taxi and bus regulation.

Prime Minister David Cameron and Deputy Prime Minister Nick Clegg visited the Millennium Stadium in Cardiff today for the announcement.

They said the funding measures involve introducing a “funding floor” or limit to the Barnett formula, which is used to work out how much funding the Welsh Government gets. The Prime Minister says this will ensure fairer funding for Wales. It also calls for a referendum on income tax devolution so that the Welsh Government is not just a “spending department” but can also raise its own funds.

The agreement also said that the Welsh Assembly should be able to change its name and be recognised as a permanent institution.

Mr Cameron said: “The St David’s Day agreement we have reached today represents one of the biggest transfers of power in the history of Welsh devolution. “This is about finding lasting settlements across the country to make our United Kingdom stronger and fairer.

“It means more responsibility for the Welsh Assembly. It means more decisions taken here in Wales and more opportunity for the Welsh people to hold their politicians to account.

“And it means those who spend taxpayers’ money must also be more responsible for raising it.”

“This is devolution with a purpose. An enduring settlement for Wales which works for Wales, today, tomorrow and for generations to come.”

Mr Clegg said the deal will take the country another “step towards Home Rule in Wales and a fairer, stronger Britain.”

He added: “The St David’s Agreement, which accepts the majority of the recommendations of the second Silk Report, increases the devolved powers at Wales’ disposal in important areas such as energy, transport and the environment. It paves the way for a stronger, more autonomous Assembly – giving Wales more control over its own affairs. And it starts the process of delivering fair funding for Wales.”

The framework, called Powers for a Purpose, also recommends that energy projects up to 350megawatts should be decided by Welsh Ministers, that the Assembly should have powers over the development of ports and that all powers relating to the Assembly and local government elections should be devolved including deciding its own electoral system, the number of constituencies, their boundaries and the timing of elections.

Responding to the announcement, First Minister Carwyn Jones said that Wales is still “not being treated with the same respect as Scotland”.

He said: “I note what has been said by the Prime Minister and the Deputy Prime Minister this morning, and there is some welcome progress on certain areas.

“Credit is due to those, from all parties, who have worked to get something tangible out of this rushed and unsatisfactory process. However, Wales is still not being treated with the same respect as that being afforded to Scotland and this continuing imbalanced approach is damaging to the UK.

“The proposals only go some of the way to matching Labour’s devolution offer already set out by Ed Miliband, but they fall short in crucial areas - such as on policing.

“The move towards a funding floor is an important step forward and we have been pushing for this for some time. But we cannot be confident that funding for Wales has been put on a fair and sustainable footing until the detail is agreed at the next Spending Review.

“This is disappointing and should also be seen in the context of an unprecedented £1.5bn cut to the Welsh budget in this term.”

Plaid Cymru also responded with disappointment to the announcement, agreeing with the First Minister that Welsh devolution is “languishing behind Scotland and Northern Ireland”.

Leader Leanne Wood said: “Throughout Wales’ devolution journey, Plaid Cymru has consistently sought the best possible deal for people here. We’ve sought to achieve as much empowerment for people as is possible so that our communities have the tools to create a vibrant economy, a just society and strong public services.

“Whilst some inclusions, such as the devolution of powers over fracking, are to be welcomed, this command paper falls well short of the powers that can help us strengthen our communities. And it goes nowhere near getting the funding settlement that Wales is owed after decades of disadvantage.”