Government responsive on Corporation Tax issue.
The chancellor of the exchequer is still in the House of Commons defending his budget statement. One of the eye catching measures announced by George Osborne this afternoon is an additional 1% cut in corporation tax , aimed at stimulating growth, on top of the 1% which was already planned. In order to signal that Britain is ’open for business’ the rate will also fall in the succeeding three years, reaching 23% in 2014. Appropriately enough, just before the budget debate, Owen Paterson announced that the consultation paper on devolving corporation tax raising powers to Northern Ireland will be published tomorrow. It’s argued that we are peculiarly disadvantaged when it comes to attracting international investment, because our near neighbours in the Irish Republic enjoy a CT rate of just 12.5%. The Secretary of State has long championed the idea that the Stormont Assembly should be allowed to cut taxes in order to make Northern Ireland a more competitive destination...