In today’s Autumn Statement the Chancellor confirmed government was receptive to plans to devolve corporation tax (CT) to Northern Ireland, but said there would be no immediate action as the government wants assurances from the Northern Ireland executive about how they would handle the financial implications of such a move.
Chancellor George Osborne told MPs that ‘the government is well-disposed to this change, if the right conditions are met, in view of the cross-party support in Northern Ireland.’
However, he made clear that further consideration was needed of the practical considerations involved, stating current proposals could only be implemented ‘provided that the Northern Ireland executive is able to manage the financial implications’.
Osborne said the parties in the Northern Ireland executive are currently taking part in talks aimed at resolving a number of issues related to the CT decision. These include agreeing budgets for 2015-16 and putting the Northern Ireland executive’s finances on a sustainable footing for the future.
