THE UK’S CHANCELLOR of the Exchequer George Osborne is expected this week to back the devolution of corporation tax powers to Northern Ireland’s Assembly.
The Financial Times reports Osborne will make comments about the proposal as part of his Autumn Statement tomorrow, mainly because he is desperately trying to find something good to announce.
This bold move would allow Northern Ireland to set its own corporation tax rate and better compete with the Republic for foreign direct investment.
The current tax rate paid by businesses there is 21% and the government has been pushing to lower it to match the 12.5% in the South.
Yesterday, DUP finance minister Simon Hamilton said parties in Stormont may have differing views on a range of issues but they are all in agreement on moving this power to the Assembly.
“The objective in securing the power to lower corporation tax is to grow and rebalance our economy, create high paid jobs and generate wealth for our citizens,” he said, according to News Letter.
“We want to build on our economic success so far by attracting inward investment and encouraging indigenous companies.”
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