UK: Cameron urged to grant tax powers
28 March 2013
Posted by: SAIT Technical
By Irish Independent
CBI has urged British Prime Minister David Cameron to grant Northern
Ireland ministers powers to lower corporation tax in an open letter.
Some lobbyists want to reduce the Northern Ireland rate to 12.5% in line
with the rate in the Republic of Ireland.
The Confederation of British Industry (CBI) has urged the Prime Minister
to grant Northern Ireland ministers powers to lower corporation tax in
an open letter.
The business organisation warned David Cameron he risked missing an opportunity for transformational change.
lobbyists want to reduce the tax rate to 12.5% in line with that in the
Republic of Ireland to help attract businesses. But there are concerns
other parts of the UK including Scotland could demand concessions and
the takings lost would have to be made up by the Executive.
The Prime Minister has been considering the issue for some time.
Coulter, CBI Northern Ireland chairman, said: "There is no doubt that
without urgent action on the devolution of corporation tax powers the
opportunity for transformational change will also be lost."
pointed to new foreign direct investment jobs created south of the
border, linking over 35,000 posts created in the Republic to global
companies during the last 30 months.
"Northern Ireland boasts many
innovative businesses that are growing and flourishing, despite the
challenges, and a skilled and dedicated workforce. But many more
businesses and individuals are in dire straits and a generation of
talented young people is being lost," he told the Prime Minister.
added: "We urge you to now put these words into action for Northern
Ireland and give it the economic lever most likely to rebalance the
Northern Ireland economy. It is your decision: just say yes."
the Executive would probably lose funding equivalent to the amount lost
in corporation tax to the Treasury, businessmen hope the extra
investment and incentive for new jobs would more than compensate for
There is also the possibility companies could simply
relocate from higher tax regions like the south east of England if a
lower rate was available in Northern Ireland.