“There is a convincing case for reducing the corporation tax rate in Northern Ireland…”

So has concluded the Northern Ireland Affairs Committee in a report published today:

The committee supports the principle of devolving to the Northern Ireland Executive the decision over whether or not to amend the rate of corporation tax, and believes this would assist the indigenous private sector to expand, innovate and employ more staff.

However:

This means the decision to vary the rate must be devolved to Northern Ireland, the receipts for corporation tax raised in Northern Ireland would be kept in Northern Ireland, but at the same time the block grant would be reduced by the same amount as the initial corporation tax receipts

A connected initiative, Grow NI, has been set up today:

Secretary of State and NI Conservatives help launch Corporation Tax campaign

The Secretary of State, Owen Paterson MP, addressed an audience of business leaders, Northern Ireland Conservatives and other stakeholders at the launch of the Grow NI initiative at Belfast’s Lyric Theatre this morning.  The umbrella group spans the business community, which has formed a united front, calling for the power to set Corporation Tax to be devolved to the Northern Ireland Assembly.

Owen urged businesses, employers and the general public alike to respond in numbers to the Treasury’s consultation paper on rabalancing the economy, before the closing date of 24 June; “send emails and letters, overwhelm the Treasury and let it know, loud and clear, exactly where the business community in Northern Ireland stands on this issue”.