POLITICAL AND business reaction to George Osborne’s budget was restrained in the North ahead of the announcement later today of consultation on the transfer of tax varying powers from Westminster to Stormont.
However, the business sector calmly welcomed the chancellor of the exchequer’s budget proposals which cut the levels of fuel duty; reduced corporation tax by 2 per cent; and reformed the tax and social insurance scheme.
He also announced more deregulation, reform of the planning system and the creation of enterprise zones in an effort to make his budget live up to his billing of it as a “budget for growth”.
Joanne Stuart, chairwoman of the Institute of Directors in Northern Ireland, welcomed the deregulation and simplification pledges along with the help on fuel costs.
“However, Treasury consultation paper on options for lower corporation tax in Northern Ireland is more important to our future,” she said.
Looking ahead to May’s Assembly elections she added: “We hope this paper will persuade the new Assembly and Executive to take the radical steps required to rebalance our economy.
“By taking the opportunity for greater fiscal responsibility and ensuring every decision supports the growth of the private sector, our devolved government can create jobs for our young people and build the growing tax revenue needed to provide quality public services.”
The Northern Ireland Independent Retail Trade Association described the budget as largely “positive for small businesses”.
Chief executive Glyn Roberts said: “The Chancellor had very little room to manoeuvre given the state of public finances, but this budget is largely positive for small businesses in Northern Ireland and I hope it will give them encouragement to expand and employ more staff.”
Stormont Finance Minister Sammy Wilson said he remained anxious to ensure “that the unique characteristics of our regional economy are recognised and addressed” by the British government.
The DUP criticised the budget for not doing enough on fuel costs in Northern Ireland or on the competitive advantage air passengers from the Republic had over their Northern equivalents, a point also made by the Ulster Unionists.
SDLP leader Margaret Ritchie greeted moves on reduction of fuel duty and other measures adding: “While welcoming these elements of the budget the downgrading of the growth forecast is of great concern and I will be raising this issue directly with the Chancellor.”
The Alliance party said the budget contained little that was new following last year’s Comprehensive Spending Review.
