“There’s one problem and one problem alone with Newton’s argument – it’s not going to happen. The UK simply doesn’t do differential tax rates and it’s not going to start now – if NI gets it, so does Scotland, Wales, Cornwall, Northumbria, the East End, Brixton…”

Perhaps IJP, but there’s a variable you might have overlooked, and it’s this.

We have a Secretary of State who is talking openly about NI’s future being in an all-island economy. We have the remarkable vista of the DUP calling for the harmonisation of the two corporation tax regimes in Ireland. Might it be possible that the British government might see a potential opportunity here?

This debate over tax might present the British government with the chance to reduce it’s inconscionable financial burden here, and more importantly, to formalise Northern Ireland’s position as a semi-detached member of the UK.

Then when people in Scotland, Wales, Cornwall, the northeast or wherever start arguing that they too should be given local tax-varying powers, the British government could respond by arguing that Northern Ireland isn’t a real part of the UK, that it’s position within the union is fundamentally different from that of the various regions of Britain.

Who could deny it?

Good point about perception. Corporation tax in itself won’t do it though it would help. It would take a more comprehensive approach and a radical change of attitude and a sense of common purpose. NI needs some clever strategic planning. I won’t be as negative as you, it could change and often change when it happens comes with surprising speed. Two major problems our pathetic political class, pigmies, and the appalling slow speed of the PSNI in its campaign against organised crime. (what crime isn’t organised, but the term is symptomatic of the problem, waffle and spin over substance).

Coporate tax rates may have done a lot to boost our economy down here, but let’s be realistic – NI has an entirely different set of problems altogether.

GrassyNoel

IJP

What is now does not have to be what is tomorrow. I agree highly unlikely but I wouldn’t say impossible. I think a good case could be put that would not set a precedent. The irony is if the economy were stronger we could tell No11 to get stuffed, but because we are weak we cannot introduce the sort of measures necessary to address the problem. We are trapped condemned to servitude.

The UK simply doesn’t do differential tax rates and it’s not going to start now – if NI gets it, so does Scotland, Wales, Cornwall, Northumbria, the East End, Brixton…

Unionists should be honest about the nature of the Union. It’s not ‘a la carte’! Part of being in the Union is we get tax rates set for the South East of England, supposedly evened up by the ‘Barnett Formula’.

That’s the deal folks, get used to it.

Are you in business? I am and I think getting the balance between tax and support fairly important. I wouldn’t turn my nose up at 12.5%. Recently I have decided to start to diversify out of here, some of the reasons are;
* Constantly increasing costs, in particular rocketing rate bills and energy costs.
* The attitude of government bodies which is consistently complacent or negative.
* Inefficient government departments.
* A fairly stagnant market. Compared to say the South East of England there is simply less money in circulation.
* Political instability and lack of common purpose coupled with local politicians and their juvenile activities.
* Rotten climate.

Unfortunately costs are cheaper elsewhere and the prospect for capital growth greater. Money goes further elsewhere.

This place has little to offer and much to repel. I agree attitudes need to change but anything that helps make NI a better location to do business should be supported and I don’t mean bodies like LEDU but real direct support using tax structures that encourage more people to set up their own businesses. Being self employer should potentially be a better option for more than safer employment such as the civil service. Also need to lift the cap on University places and perhaps have a look at the type of course on offer.

Rory

It is interesting nevertheless to see where the concerns of this of the Unionist parties, the one with the greatest mass support among the working (and unemployed) classes, really lie: “closer co-operation between government, educationalists and business entrepreneurs…..would have a dramatic effect”.

No mention of any input by the governed, those being educated or the workers that would create the wealth to provide the profits. Now that would be dramatic, but that “ain’t gonna happen” either. Is it?

ROI corporates are getting a free ride at the expense of other tax payers. For instance I dont see the northerners calling for lower Corporate Tax rates also asking for the ROI Higher Income, VAT & Stamp Duty rates that those south of the border pay.

Tax regulations are notoriously complex and difficult to compare. Nonetheless, I think you are wrong here. The actual rates of income tax (and stealth income taxes like NI or PRSI) are comparable between the two jurisdictions, and may actually be lower in the south. While an individuals personal allowance is higher in the north, so is the rate of National Insurance contribution. An average earner (£20K/€30K) will thus lose about £4700 in the north, and about €6800 in the south. Given the exchange rates, this is about the same amount.

Additionally there are benefits available in NI and not the ROI such as R&D tax credits which many companies who could take advantage of are not.

Reducing corporation tax sends out the message that NI is a low cost economy – is this the way we want to go ? Also where does it stop – do we match the Isle of Man’s 0% (which they managed to do without unification with the ROI BTW) ?

To those who rubbish contact centres I would encourage you to have a look at the whole sector. Yes there are low level jobs – same as in any industry, but there are also every type of job above this – many requiring a high degree of technical and/or commercial skill. They are also pulling a lot of inward investment and lots of ‘proper’ R&D jobs in behind them.

These are the jobs that are replacing the mill jobs and manufacturing jobs – are you really saying that being a machine operator in a struggling manufacturer is a better job ?

At the same time I think ROI Rates are too low and as a result ROI corporates are getting a free ride at the expense of other tax payers. For instance I dont see the northerners calling for lower Corporate Tax rates also asking for the ROI Higher Income, VAT & Stamp Duty rates that those south of the border pay.

Governments have to raise Revenue from somewhere.
As usual northerners want UK standard of Education, Health and other social services but want somebody else to pay for it.

The question of course would be would a lower Corporate Tax Rate lead to greater economic stimulus in NI and the loss in Tax Revenue be far outweighed by other economic benefits and hence increased government revenues ?
As we are currently running at near full employment in NI then I assume what they mean is finding alternative employment for the bloated public sector ?

This is possibly true but to be honest I think the influx of large multi national companies in search of tax breaks is a dangerous game to play anyway – in today’s global environment when the likes of Poland with 70% lower labour costs start to lower their corporate taxes as well then an ill wind could blow across the Republic.

In addition to exploiting our tourism and leisure industries what NI really needs is the encouragement of home grown entrepreneurs developing niche products.
The Fiscal environment to do this is already highly attractive.
If an entrepreneur in the UK builds a business from scratch and sells it after 2 years under Business Property Relief he will only pay 10% Capital Gains Tax on the Gain – this is as good as it gets.
Such people live here and although they are likley to move manufacturing facilities etc elsewhere they will have their routes here.

If you lower the Corporate Tax levels in NI’s family owned Corporate environment the extra post tax profits wont go in investment but will be sucked out by shareholders for holiday homes abroad, new plasmas and X5s etc.

It is easy to join in the “lets pay lower tax” chorus without fully appreciating either the consequences or the alternatives.

The recent Westminster Hall debate on the economy instigated by the DUP was a lacklustre affair with the same highlights of cut taxes and remember the Titanic. Their policies are almost as realistic as those of SF. Depressing or what?

It’s been done. Didn’t work.