Oral Answers to Questions

Debate between Ian Murray and Theresa Villiers

Wednesday 10th July 2013 Commons Chamber

[The Secretary of State for Northern Ireland (Mrs Theresa Villiers)]

We recognise the potential benefits of devolving corporation tax in Northern Ireland. We are continuing to consider the technical and financial implications of such a change, and will make a decision no later than the 2014 autumn statement on whether to devolve rate-setting powers.

[Ian Murray]

There remains significant concern in Northern Ireland about the reduction in the block grant should the rate of corporation tax be equalised with the south. What discussions has the Secretary of State had with the Chancellor and the Northern Ireland Finance Minister about the consequences for the block grant, and by how much would it reduce if corporation tax were equalised with the south?

[Mrs Villiers]

I have had extensive discussions on that matter on a number of occasions with the Northern Ireland Finance Minister and Treasury Ministers, including the Chancellor, and that issue is one reason why we must consider carefully before deciding whether to go ahead with the change. We must ensure that the numbers are correct and that we have thought through all the consequences before a decision is made on whether the devolution should take place.