Rebalancing the NI Economy and Corporation Tax
In this section you will find information on Rebalancing the NI Economy and Corporation Tax.
How will this affect Northern Ireland?
A reduction in the rate of Corporation Tax in Northern Ireland would provide a major stimulus to the local economy and is one of the key commitments in the Executive’s Programme for Government. Corporation Tax powers potentially offer the Executive a major opportunity to bring about a step change in our economic performance. Reducing Corporation Tax can help attract new inward investment and encourage local companies to invest and grow.
The UK Government and the Executive have a common objective to ‘rebalance the Northern Ireland economy’, to increase the size of the private sector and drive faster economic growth.
Consultation on Rebalancing the NI Economy
On 24 March 2011, HM Treasury published the consultation document “Rebalancing the Northern Ireland economy”. See attached link:
The consultation period ran from 24 March 2011 to 8 July 2011, during this period two consultation events were held in London (8 June) and in Belfast (8 July).
On 20 December 2011 the UK Government published, ‘Rebalancing the Northern Ireland Economy: a summary of consultation responses’. See attached link:
The First Minister and the deputy First Minister welcomed the publication of the Government’s response to the consultation on Rebalancing the Northern Ireland Economy on 20 December. Over 700 responses to the consultation were received and this revealed considerable support, particularly from the Northern Ireland business community, for lowering corporation tax. Responses showed strong support, with three quarters of respondents in favour.
Ministerial Working Group on Rebalancing the Economy
A Ministerial Working Group was set up by HM Treasury to seek to establish, with clarity, the costs, administrative changes and the potential legislative vehicle for transferring Corporation Tax powers to Northern Ireland. The aim of the Ministerial Working Group is to provide a forum for ongoing HM Treasury and Executive Ministerial engagement on the issue of Corporation Tax devolution, and wider issues relating to rebalancing the local economy, in line with our commitment to work in partnership. The Group is chaired by the Exchequer Secretary; other members include the First Minister, the deputy First Minister, Minister Wilson, Minister Foster, the Secretary of State for NI and the Minister of State.
Discussions are ongoing with the UK Government and the Ministerial Working Group have met twice, the first meeting of the Group took place on 15 December 2011 in Belfast, with the second meeting on 7 March 2012 in London. The group is expected to report in summer 2012, and a decision will be taken following this.