Ulster Unionist Economy spokesperson, Adrian Cochrane-Watson MLA, has welcomed the surprise announcement by the Chancellor of the Exchequer that the UK rate of Corporation Tax (CT) is to drop to 18%.
Mr Cochrane-Watson said:
“This announcement is doubly good news. It will be good for the economy of the UK and it will also make the cost of lowering the rate of Corporation Tax in Northern Ireland to 12.5% much more affordable.
“The Ulster Unionist Party identified Corporation Tax as the single most important policy lever to rebalancing the Northern Ireland economy by creating the environment where tens of thousands of new jobs could be generated. We support moving to 12.5% as soon as possible to make Northern Ireland competitive with the Republic of Ireland in seeking Foreign Direct Investment.
“Unfortunately, the inability of the DUP and Sinn Féin to agree on the implementation of the Stormont House Agreement means it is no longer practical to lower our CT rate on 1st April 2017 and those seeking quality new jobs will have to suffer at least another year on benefits as a result.
“The Chancellor’s announcement that CT will be cut to 18% in 2020 means there will be less of a hit on the Block Grant if we adopt a 12.5% rate. The prize is 35,000 to 40,000 new jobs, which would be transformational for those individuals, their families and our society.”