CHANCELLOR George Osborne has “opened the door” to devolving corporation tax powers for Northern Ireland.
In today’s Autumn Statement, Osborne revealed that the conclusion of political talks in Northern Ireland meant additional spending power for the Executive to support the full implementation of the Stormont House Agreement.
“That opens the door to the devolution of corporation tax – which the parties have now confirmed they wish to set at the rate of 12.5%,” Osborne told the House of Commons.
“That’s a huge prize for business in Northern Ireland and the onus is now on the Northern Ireland Executive to play their part and deliver sustainable budgets to allow us to move forward.”
Kevin Hindley, a managing director at Alvarez & Marsal, said it will be a “challenge” for Northern Ireland to meet the commitment of being on a sustainable financial footing. “It should be remembered that it took the Republic of Ireland several years to implement their own 12.5% rate”.