NI leaders to press Cameron on tax powers

David Cameron will address the North's Assembly today as the region’s political leaders continue to lobby him for tax varying powers.

The British prime minister will speak to the chamber during a special sitting at Stormont’s Parliament Buildings in Belfast this afternoon.

Ahead of his speech to MLAs he will hold talks with Democratic Unionist First Minister Peter Robinson and Sinn Féin Deputy First Minister Martin McGuinness at nearby Stormont Castle.

The agenda is set to be dominated by economic issues, in particular corporation tax and the Stormont Executive’s desire to set its own levy.

The ongoing threat posed by dissident republican terrorists opposed to the devolved powersharing arrangements should also factor in discussions.

Mr Robinson and Mr McGuinness believe a reduction in the current UK-wide business tax rate of 26% would give the North's flagging economy a kickstart and enable it to compete more with the Republic of Ireland, where the rate is 12.5%.

Ahead of the visit business representatives urged Stormont’s leaders to press the case with Mr Cameron.

Eamonn Donaghy, from campaign group Grow NI, said: “Our local politicians must leave the Prime Minister in no doubt that delivering the power to reduce corporation tax is vital for the future of the Northern Ireland economy.

“The business community has come together as one to support that call, and a united political voice is important too.”

However, it is not a straightforward matter for the Assembly, as a tax cut would have to be accompanied by a proportionate reduction in central government funding to Northern Ireland through the block grant.

In a paper on potential ways to stimulate growth in the region, the UK's Treasury identified a cut in corporation tax as a possible option.

Though the issue is now out for public consultation it is unclear whether the UK Government will approve the move, mindful that other regions may accuse it of treating the North favourably.

Scotland in particular has signalled a desire for the powers as well.

Stormont leaders insist theirs is a special case because the region shares a land border with the Republic of Ireland and has a long legacy of under investment as a result of the Troubles.

There is also a debate within the Assembly as to what the rate should be, with some parties suggesting a level even lower than that of the Republic of Ireland.

Union bosses are opposing the cut, claiming it will take much-needed public funding and put it in the pockets of big businesses.

After addressing the Assembly, Mr Cameron will hold private meetings with the leaders of main parties represented in the Assembly.