The UUP have issued a remarkable press release which perhaps bears out Mick Fealty’s claim that its Northern Ireland’s unionists who are making the running in demanding more fiscal autonomy from Westminster.
UK DEBATE NEEDED ON REGIONAL VARIATIONS IN CORPORATION TAX – BEGGS
Ulster Unionist Party Enterprise, Trade and Investment Spokesperson, Roy Beggs Jnr MLA, has called for a UK-wide debate on regional variations in corporation tax after the SNP announced their support for a Scottish corporation tax rate of 20%. The UK-wide rate is presently 30%.
Mr Beggs said:
"The UUP has consistently called on the Chancellor to lower corporation tax rates in Northern Ireland, not least in view of the impact of the Republic’s substantially lower rates. That another party in another region of the United Kingdom has echoed this call indicates a growing concern that the present levels of corporation tax are undermining the competitiveness of the UK’s regional economies. (UUP press release)
Although the UUP stresses that it’s proposal is aimed at strengthening the union, (unlike the SNP’s), I can’t see it working out that way.
Lower corporation tax in Northern Ireland or Scotland will be politically untenable in England, unless it goes along with cuts to Westminster’s subvention to public spending in both countries. That would add up to a major weakening of the union.
The suggestion that lower corporation tax is desirable is therefore a very significant admission for a unionist party to make.
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