A NEW inquiry which will examine the benefits of bringing the rate of corporation tax in the North into line with that of the Republic will be launched by a UK parliamentary committee.
The Northern Ireland Affairs Committee intends to carry out a wide-ranging inquiry into corporation tax in a move which will fuel debate about the different corporation tax rates North and South.
The UK chancellor plans to reduce corporation tax in the UK from 28 per cent to 24 per cent over the next four years. The Republic has a 12.5 per cent rate.
George Osborne has also said he will publish a White Paper on rebalancing the North’s economy which will also investigate changing corporation tax in Northern Ireland.
The chancellor’s willingness to even consider a different corporation tax rate in the North marks a major departure from previous UK governments’ stances.
The Northern Ireland Economic Reform Group believes reducing corporation tax is the fastest way to revitalise the local economy. It estimates a change could facilitate the creation of up to 90,000 jobs over 20 years.
The committee is inviting submissions on the subject at northircom@parliament.uk
