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08/06/2011
Number 10 Talks 'Precede Tax Devolution'
Peter Robinson, the DUP Stormont First Minister and the Deputy First Minister, Sinn Fein's Martin McGuinness are due to meet the Prime Minister for talks in London later.
The talks at 10 Downing Street are due to centre on budgetary issues with the PM, David Cameron also set to come to NI tomorrow.
Peter Robinson and Martin McGuinness claim changes to Westminster Treasury rules on the surplus money Stormont departments can use at the end of the financial year is costing £300m and are in negotiations to have that changed.
As reported on 4ni.co.uk yesterday, Mr Cameron is also expected at Stormont during a visit to Northern Ireland on Thursday and is due to meet Mr Robinson and Mr McGuinness again - at Stormont Castle this time - and to also address the nearby Assembly.
As well as moves on the Treasury surplus - that was clawed back last year - the indications are now that a package is due for announcement and will be made on Thursday to include the devolution of corporation tax to the NI Executive.
However, this will mean a substantial reduction in the NI allocation in the block grant - a move that is anticipated to offset the drop in revenue to the Exchequer.
Many Stormont politicians feel that the region should be able to lower its corporation tax and therefore attract more inward investment from abroad as the current rate in Northern Ireland is 26% compared to 12.5% in the neighbouring Irish Republic.
The Treasury has been undertaking the consultation on giving the Executive the power to lower the corporation tax rate, but under European rules on State aid to regions within nations, any cut in corporation tax would come with a price tag.
The compensating cost to the NI block grant could be £215m per year.
The NI Enterprise Minister has already said she is hopeful that Northern Ireland will win the right to lower its corporation tax, despite concerns from the Treasury.
The DUP's Arlene Foster said a lower corporation tax would create jobs and attract investment and said this would make up for a potential multi-million pound cut in funding from Westminster.
See: PM's Visit To Tackle Corporation Tax
(BMcC/KMcA)
The talks at 10 Downing Street are due to centre on budgetary issues with the PM, David Cameron also set to come to NI tomorrow.
Peter Robinson and Martin McGuinness claim changes to Westminster Treasury rules on the surplus money Stormont departments can use at the end of the financial year is costing £300m and are in negotiations to have that changed.
As reported on 4ni.co.uk yesterday, Mr Cameron is also expected at Stormont during a visit to Northern Ireland on Thursday and is due to meet Mr Robinson and Mr McGuinness again - at Stormont Castle this time - and to also address the nearby Assembly.
As well as moves on the Treasury surplus - that was clawed back last year - the indications are now that a package is due for announcement and will be made on Thursday to include the devolution of corporation tax to the NI Executive.
However, this will mean a substantial reduction in the NI allocation in the block grant - a move that is anticipated to offset the drop in revenue to the Exchequer.
Many Stormont politicians feel that the region should be able to lower its corporation tax and therefore attract more inward investment from abroad as the current rate in Northern Ireland is 26% compared to 12.5% in the neighbouring Irish Republic.
The Treasury has been undertaking the consultation on giving the Executive the power to lower the corporation tax rate, but under European rules on State aid to regions within nations, any cut in corporation tax would come with a price tag.
The compensating cost to the NI block grant could be £215m per year.
The NI Enterprise Minister has already said she is hopeful that Northern Ireland will win the right to lower its corporation tax, despite concerns from the Treasury.
The DUP's Arlene Foster said a lower corporation tax would create jobs and attract investment and said this would make up for a potential multi-million pound cut in funding from Westminster.
See: PM's Visit To Tackle Corporation Tax
(BMcC/KMcA)
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