Assembly To Tackle 'Devolved' Corporation Tax

The Prime Minister, David Cameron is set to return to Belfast this week and to address the Stormont Assembly - with a bid to lower Northern Ireland's corporation tax high on the agenda.

The PM will arrive on Thursday and is due to meet First Minister Peter Robinson and Deputy First Minister Martin McGuinness at Stormont Castle as well as speaking in the main Stormont Chamber along with plans for him to hold talks with other members of the Northern Ireland Ministerial Executive.

Yesterday there were reports that public funding is expected to be high on the agenda following the reduction of the amount paid to the UK's devolved assemblies by almost 7%.

Since then the DUP Leader and First Minister, Peter Robinson and other members of the Executive have argued that the cuts were worse than expected.

The NI Executive has been debating getting the power to reduce corporation tax charged on businesses in an effort to revitalise private enterprise in Northern Ireland.

Scotland's First Minister Alex Salmond has also lobbied for his administration be given the powers to cut the business tax.

However, significant cuts in the block grant provided by Westminster to run the respective public services would result, but many favour the option anyway in NI.

It faces all-island competition from the Irish Republic, with its 12.5% corporation tax against the current rate in Northern Ireland is 26%.

Taxing Time

Meanwhile, the former Ulster Unionist and current Press 'baron', John Taylor [Lord Kilclooney] claimed last week that "95% of the population of Northern Ireland who are not company directors would be worse off" if the mooted reduction is implemented.

Mr Taylor told the House of Lords that a recent report by the Treasury said cutting corporation tax could mean a fall in the block grant of up to £300m a year in order to drop the current rate of 28% to one closer to the 12.5% in the Republic.

However, his dissent goes against the flow as the momentum continues.

In February there were high-level discussions on NI's economic situation with the NIO Secretary of State, Owen Paterson, and the Exchequer Secretary, David Gauke meeting local representatives on the UK Government's draft paper on rebalancing the economy.

The Stormont First and Deputy First Ministers, together with the Economy Minister Arlene Foster and Finance Minister, Sammy Wilson, met Mr Paterson and Mr Gauke with Martin McGuinness, the Sinn Fein Deputy First Minister commenting: "We are committed to creating economic growth for the benefit of all. We are hampered by the lack of powers to fully realise our economic potential.

"The ability to vary corporation tax is one of those powers that could have the potential to promote and deliver growth.

"We cannot deliver growth with one arm tied behind our backs. However there is a need to ensure that any reduction will deliver jobs and growth without undermining public finance. There is more work to be done," he said.

The DUP First Minister Peter Robinson added at the time: "This was a good first meeting. The possibility of devolving corporation tax is a huge opportunity for us to grow our economy in the future."

See: Corporation Tax 'Con' Highlighted

See: Ministers Meet To Clarify Taxation Draft

(BMcC/KMcA)