Tuesday, 26 March 2013

NI Corporation Tax Is A Verdict Coming Soon?

Later today David Cameron will meet with Peter Robinson and Martin McGuinness. Amongst the things they will discuss will be devolving Corporation Tax to the North. In the United Kingdom Corporation Tax will be cut to 20% by 2015 according to George Osborne. However in the Irish Republic the Corporation Tax rate is only 12.5% allowing it to attract 35,000 new jobs in the last year alone through foreign direct investment. Of course if the North can get Corporation Tax devolved from Westminster how long will it be before Alex Salmond the First Minister of Scotland is asking for it as well. A cut in the block grant to the North would also have to happen so the Treasury in London could recover its money. Unemployment in the North is 8.5%. And more than 26% of the workforce are employed in the public sector. So on devolving NI Corporation Tax is a verdict coming soon? Update: the British Government have told the Press Association no decision will be made on Corporation Tax until the Autumn of 2014.

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