No deal on Northern Ireland corporation tax powers
Category: Northern Ireland
Published: 25th Jun 2012 18:27:22
A meeting to hammer out a deal on devolving corporation tax powers to Northern Ireland has broken up without agreement.
The ministerial working group that includes the Treasury, the Stormont Executive and the Northern Ireland Office were meeting for what was meant to be the last time.
A decision was due from the government this summer.
But Treasury Minister David Gauke says "significant differences" remain.
Stormont and Westminster have not been able to agree how this tax could be devolved and how much it would cost.
Any cut in corporation tax in Northern Ireland would have to be paid for by a corresponding cut in the amount Northern Ireland receives from central government.
These are, Mr Gauke has said in a statement, "crucial areas".
Secretary of State Owen Paterson said "big questions" remain around the potential costs.
The main rate of corporation tax in the UK is 24% while corporation tax in the Irish Republic is 12.5%.
Business leaders and politicians have argued that this puts Northern Ireland at a disadvantage.
They have argued that by putting the tax in line with the Republic, the Northern Ireland economy would be stimulated and inward investment would increase.
Another meeting will be held in September with more work by officials in the meantime.
But with so little movement on either an agreed formula or agreed amount, the prospect of devolving corporation tax to Northern Ireland, and lowering the rate to a more competitive level, is no closer.
At 13:01:57 in SportLeague Two side Bury have signed Huddersfield Town midfielder Duane Holmes on loan until January.
At 12:58:32 in EnglandA £300,000 specialist play facility for young heart patients has been officially opened at a North East hospital.
At 12:58:12 in SportOlympic champions Helen Glover and Heather Stanning broke a 12-year-old world record as they clinched their first world title as a combination.
At 12:44:53 in SportCharlton have signed left-sided midfielder Frederic Bulot on a season-long loan from Standard Liege.
At 12:39:20 in SportRyder Cup veteran Paul Lawrie feels fellow Scot Stephen Gallacher "deserves" a place in the European team at next month's tournament.
At 12:35:40 in SportLiverpool defender Daniel Agger has returned to his native Denmark, after agreeing terms with Brondby.
At 12:31:15 in EnglandA park in Manchester has reopened after a £5.5m project to return it to its original Victorian glory.
At 12:21:16 in WalesA woman has been ordered to pay £860 for dumping a bag of rubbish at a recycling bank in Llanelli.
At 12:19:02 in EnglandThe victim of a suspected homophobic attack has marched in the Leicester Pride event.
At 12:16:09 in EnglandA dedicated burial site for the Gurkha Nepalese community is to be created in west London.
Harvard CitationBBC News, 2012. No deal on Northern Ireland corporation tax powers [Online] (Updated 25th Jun 2012)
Available at: http://www.ukwirednews.com/news/1436794/No-deal-on-Northern-Ireland-corporation-tax-powers [Accessed 30th Aug 2014]
News In Other Categories
George Galloway has left hospital after being treated for injuries he suffered in a street attack in west London.
A woman has been ordered to pay £860 for dumping a bag of rubbish at a recycling bank in Llanelli.
The only clinical trial data on the experimental Ebola drug ZMapp shows it is 100% effective in monkey studies, even in later stages of the infection.
A £300,000 specialist play facility for young heart patients has been officially opened at a North East hospital.
Cheer/groan (delete according to mindset): The X Factor is back. Author Jeremy Clay tells the story of the show's Victorian forebear, where the hopefuls had to sing while carrying a pig.
Members of the troubled Co-operative Group are due to meet for a final vote on reforming how the business is run.