Cameron considers business tax cut in North

BRITAIN’S Prime Minister David Cameron has said he his willing to consider a corporation tax cut in the North but warned the days of solving every economic problem by asking the Treasury for more money are over.

He insisted that the local economy would benefit from nationwide stimulus measures already introduced by his government, including a cross-British drop in business tax rates, but acknowledged there was a need to take further recovery steps.

Stormont’s political leaders want the powers to set their own business tax rate and believe a more substantial reduction in the current British rate of 26% would give their flagging economy a kick-start and enable it to compete more with the Republic.

First Minister Peter Robinson insisted that Stormont wanted to be less reliant on the Treasury. “We are not seeking to have a begging bowl,” he said.

“The whole idea of having the devolution of corporation tax so we can set our own levels, is so that we can grow our economy, increase jobs and we don’t need to be as reliant or reliant at all on the Exchequer.”

Sinn Féin Deputy First Minister Martin McGuinness stressed the importance of corporation tax. “Our view, and it is a collective view which all of the parties in government have signed up to, is that (a tax cut) can dramatically change for the better the employment prospects, particularly for our young people, not just through foreign direct investment but also for support for our own indigenous businesses,” he said.

The British government has made it clear that any rate cut would see the region’s allocation of Treasury central funds reduced in proportion.