Corporation Tax - an opportunity not to be missed

Secretary of State, Owen Paterson speaks to the FSB about Corporation Tax

In the coming weeks the decision by the Treasury on affording Northern Ireland special Corporation Tax setting powers will be made following a period of consultation.

Some 700 responses to this investigation were received and the FSB is adamant that a reduction in Corporation Tax will be a key ingredient in helping to encourage much needed new job creation into Northern Ireland that will, in turn, benefit the economy as a whole as it recovers from one of the longest and deepest periods of recession ever experienced.

Changes to the rate of Corporation Tax in Northern Ireland will have far-reaching and long term implications, not just for the larger firms but for their associated supply chains and the wider economy.

While this consultation has been primarily concerned with the issue of devolving corporation tax setting powers to Northern Ireland, the findings from it will be definitive instruments in shaping the legislation that will drive the economic recovery of Northern Ireland in the years to come.

Throughout the recession the Northern Ireland economy has consistently lagged behind that of its UK counterparts and while other regions have been experiencing green shoots of recovery the same cannot be said locally with unemployment continuing to rise while both economic output and house prices decline.

The FSB has made its case to the Treasury.

Our stance on the proposal to devolve Corporation Tax setting powers and cut the rate to help make Northern Ireland a more attractive proposition to prospective outside interests and indigenous firms has been well documented. We are confident that with the introduction of this legislation the benefits of a bigger, stronger private sector would flow out into all areas of the economy, benefitting us all.

The Secretary of State, Owen Paterson, has navigated uncharted waters that previous politicians had chosen to avoid.

Indeed, Mr Paterson came to the FSB offices in Belfast and directly addressed the issues that matter most to small businesses in relation to corporation tax. We captured this in a short interview which can be found above and it is invaluable in helping clear up the myths and misunderstandings surrounding this subject.

Furthermore, while we are emphasising the major importance of a reduction in the rate of corporation tax and the impact it will have on the health of the local economy, we are realistically aware that it is but one measure in an assortment of initiatives that will be required to rejuvenate it fully.

It will be a positive first step in the right direction and one which Northern Ireland cannot afford to miss.

Ken Redpath, FSB Belfast City Branch Chairman

Tracey Hall, Managing Director of Style Academy & FSB member

Links:

FSB gives evidence to the NI Affairs Committee - watch the video here

FSB written evidence to the NI Affairs Committee

FSB submission to the Corporation Tax consultation