British budget boost for BoI, cross-border shoppers

BANK of Ireland, cross-border shoppers and the IDA were the winners in yesterday’s pre-election British budget.

In a budget that analysts said hit the better off, the British government made no changes to the 17.5% VAT rate, keeping prices in the North well below those in the Republic, where the VAT rate is 21%. There had been speculation that the government in Britain would announce a hike in VAT to 20% yesterday.

The government also failed to lower the British corporation tax rate of 21%. This will be a welcome relief to the IDA, which uses Ireland’s 12.5% as a major selling point in attracting companies to Ireland.