NORTHERN IRELAND TAX DEVOLUTION MEASURES - ACCA COMMENTS

　　Chas Roy-Chowdhury, head of tax for ACCA, comments on the Autumn Statement announcement that Northern Ireland has the potential to set its own corporation tax:
　　
　　'This is a welcome move, and one that has been a long time in the making. The Chancellor was clear that if the Northern Ireland Executive can demonstrate they can work together during the current political talks, legislation to devolve corporation tax will be brought forward in this Parliament.. There are clear and fundamental economic reasons behind this decision and Northern Ireland needs to consider matching the Irish rate of Corporation Tax of 12.5% so that the economy can thrive and prosper. Devolvement of the same powers to Scotland would have to be reviewed and assessed on a different basis.
　　
　　'Northern Ireland has suffered negative earnings growth in the year to April 2014 and employment increase has been one of the lowest in the UK in that same period so there is clearly a need to readjust and rethink.
　　
　　'However, it is worth noting that the final push for a potential outcome is being linked by some to a hung Parliament and a deal between Northern Ireland’s DUP MPs and the Tories.
　　
　　'Changing the tax regime cannot be done in isolation however – what is needed is a co-ordinated support strategy put in place to maximise the new powers. This will cost.
　　
　　We would want to see three things:
　　
　　The further development of education, training and a talented and skilled workforce, specifically across growth sectors.
　　
　　A support strategy that can help to grow targeted industry sectors in line with the introduction of powers – such as ICT, agri-food, engineering, manufacturing and creative.
　　
　　The challenge for the Northern Ireland Executive at a time when its budget is being consistently cut and public funding is significantly reduced, it still needs to fund capital investment that will directly support the initiative. This would include investment rail and road network investment, similar to that which has been announced in GB over recent days, support of the 24 / 7 economy, culture and leisure – all the things that will help attract global business in terms of a talented workforce and the lifestyle that will keep them here. The brain drain is still a net outflow for Northern Ireland.'
　　
　　- ENDS -