AQW 3806/22-27

Ms Claire Sugden
Independent
East Londonderry

Tabled Date: 29/09/2022
Answered On Date: 12/10/2022
Priority Written: No

Question:
To ask the Minister of Finance for his assessment of how availing of the power to set corporation tax level could improve Northern Ireland's economic forecast.

Answer:

The Independent Fiscal Commission’s report published in May 2022 indicated that, in its view, there is value in completing the devolution of Corporation Tax, but that there are a range of issues that would first need to be agreed between a restored Executive and the British Government if this were to be pursued.

This would need to include an updating of previous estimates of both the potential costs and benefits of a devolved Corporation Tax policy for the North given that these are now extremely dated. And where the economic, political and global landscape has also changed greatly in recent years. Significant analysis would be required in this regard before any assessment of the economic impact could be made.

It will be for an incoming Finance Minister to bring recommendations on the Commission’s report to a restored Executive for its considerations on the full suite of devolved tax proposals, including Corporation Tax. These considerations will also be informed by the evidence gathered from the recent consultation I launched on the 4th October (www.finance-ni.gov.uk/consultations/devolution-fiscal-powers) on the devolution of fiscal powers.