RT HON OWEN PATERSON
MP FOR NORTH SHROPSHIRE
Owen Paterson hails Corporation Tax move.
Following the Autumn Statement and George Osborne’s commitment on Corporation Tax, Owen Paterson said:
“I am delighted that the Chancellor has announced today that Northern Ireland will be given the powers to set its own rate of Corporation Tax. This is something I began pushing for in Opposition. I was always clear that, soon after this move was refused by Gordon Brown on the grounds that the UK could not afford it, the answer was to deduct the foregone corporation tax of £200million (if it were reduced to 12.5%) from public sector spending which this year amounts to £23billion. This money would not be removed from NI but would be left in the hands of enterprising people who would grow wealth and jobs. Soon after I took over as Northern Ireland Secretary all the local political parties came together and we formed a very effective organisation in Grow NI.
I am pleased that Theresa Villiers continued the work I started, making the case to the Chancellor that this measure could have a profound and long reaching positive effect on the economy of Northern Ireland. Creating a stronger private sector will benefit all sectors of the economy and reduce the significant sums of public money spent in Northern Ireland by Whitehall.
Low rates of corporation tax attract overseas investment and the 12.5% rate in the Republic of Ireland has been hugely beneficial in attracting investment to the country.
Work done by Stormont's Economic Advisory Group (EAG) estimated that it would create an additional 4,500 jobs a year in the long term and mean that by 2030, the economy will be about 14% bigger than it would be if the tax is not cut.
There are huge benefits to getting the private sector going in Northern Ireland. It would transform society, bringing prosperity and jobs to the hardest hit areas where things have been really tough in recent decades.
By giving Stormont this tool, businesses can help grow the economy, grow tax revenues in Northern Ireland and reduce the dependency on the taxpayer.
I congratulate all those involved in getting this far. The political parties must now work together to deliver real prosperity to the people of Northern Ireland.”