Plaid Cymru leader Leanne Wood AM said:

"The Conservatives have shown once again how out of touch they are - the timing of this announcement couldn't be worse.

“Only days after the Tories succeed in losing the UK’s AAA credit rating, leaving their economic and financial credibility in ruin, they are now talking about cutting taxes for our highest earners.

“This move makes no sense while their "austerity drive" already inflicts devastating cuts to jobs and services – even though only 26% of their planned revenue spending cuts have been implemented to date. In April they will be cutting the top rate of tax from 50% to 45% for the most wealthy. It makes a joke of the phrase: “we’re all in this together”.

“Today’s announcement is irresponsible politics and shows why, as demonstrated by last week’s poll, people in Wales do not trust the Conservatives. We are somewhere between three and seven years away from getting powers over taxation transferred to Wales. It is impossible to accurately predict what the Welsh economy will look like at that time. Like the Chancellor’s plans for growth, this statement from the Tories and its timing can't be taken seriously.

“If they want to encourage entrepreneurship, why aren’t they taking immediate action to help Welsh businesses? Why aren’t they changing the business rates regime so that some of our small and medium sized private sector employers can be helped to protect or create jobs? And why won’t they make capital gains tax fairer? That’s what would make a difference to Welsh entrepreneurs, does the leader of the Conservative group in the Assembly understand that? It seems he doesn't.

"If the Conservatives want to help Welsh businesses, then this announcement is mistargeted. Their proposal would principally help people who are already in well-established, well-paid jobs in both the public and private sector. It would do nothing to support business start-ups and early stage companies - the people we should be supporting to create good quality, long-term jobs.

“Now more than ever, Wales needs a competent and responsible government which will put jobs, the health of the Welsh economy as well as the needs of the most vulnerable in society at the top if our agenda. That is what a Plaid Cymru government will do.

“The decisions my party will take on taxation will be taken in line with the economic realities we face at the time when we know when these powers are due to be transferred. The Party of Wales will earn the right to govern our country by presenting a responsible and competent case and plan for boosting the Welsh economy, and not by attempting to fill column inches of newspapers with reckless promises.”