Tax raising powers offered to Wales
1 November 2013 Last updated at 14:17 GMT
Prime Minister David Cameron and Deputy PM prime minster, Nick Clegg, held a joint news conference on Friday morning at the Senedd to give the Welsh government greater financial powers.
It means that for the first time Wales will have the power to borrow, vary some taxes and in time it will have the ability to hold a referendum on whether it should have some control over income tax.
It has been described as an important day in the history of Wales.
Political editor Nick Servini reports.