Oral Answers to Questions
Debate between Chris Evans and Andrew Murrison(9 years, 11 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Chris Evans (Islwyn) (Lab/Co-op)
8. When the Government plan to publish an analysis of the potential effect of introducing a devolved rate of corporation tax in Northern Ireland.
The Parliamentary Under-Secretary of State for Northern Ireland (Dr Andrew Murrison)
The autumn statement set out that the Government are in favour of devolving corporation tax powers to the Northern Ireland Assembly. If the powers were devolved, the Executive would be responsible for setting the rate of corporation tax in Northern Ireland. The effect would therefore be dependent on the approach taken by the Executive.
Dr Murrison
It is estimated by the Executive that the devolution of corporation tax, and the implementation of the cuts it envisages, would result in 40,000 new jobs in Northern Ireland, which is substantial. It will certainly help to improve and enhance the level of foreign direct investment, which I have touched on already. That is impressive, but it has to be sustained. It is particularly interesting to note that in the Office for National Statistics figures announced today, one of the highest sub-regional centres in the UK, in terms of gross value added per capita, is Belfast. We need to grow the economy in Belfast. The devolution of corporation tax would play an important part in that.
Chris Evans
Will the Minister give a guarantee that the devolution of corporation tax will not have an adverse effect on the block grant to the Northern Ireland Executive?
Dr Murrison
No, I cannot, because the EU Azores rules mean that it has to be taken into account.