Chancellor follows through on pledges to make business tax regime more competitive (23 March 2011)

Chartered Accountants Ireland has reacted to today’s business driven Budget announcements and also to the confirmation by both the Chancellor and the Secretary of State that the long-awaited Government consultation paper considering measures to rebalance the Northern Ireland economy will be launched tomorrow.

Chair of the organisation's Northern Ireland Taxation Committee Mr Eamonn Donaghy said:

“The Government paper to examine mechanisms to rebalance the economy has been on the cards for a while.  We are pleased to see that the Chancellor appears to be following through on his promise of last June to consider tax elements as a key influencer to grow the Northern Ireland economy. We await detail of the consultation paper tomorrow which will be of immediate and critical interest both to Northern Ireland business and to potential investors in the province.” 

“Today’s Budget was touted as a Budget for business and the announcements made should certainly help make the UK a more competitive place to do business. The announcement of a further 1% reduction in the main rate of corporation tax to 26% from 1 April, coupled with the forthcoming reduction in the small company rate to 20%  and the announcement today of proposals to introduce enterprise zones in various parts of the UK, including Northern Ireland, are all positive measures. We are optimistic that the proposed enhancements to the Enterprise Investment Scheme and Enterpreneur’s relief will encourage investment.”

Ulster Society Chairman Richard Gardiner further commented:

“We note that the Government has responded to our call for commercially aligned tax measures as an important strand of this region’s developing strategy.  If devolution of Corporation Tax rates is to be granted, the implementation of this power will be best achieved after closely examining both the potential of the proposal and the realistic costs involved, as well as outlining creative ideas on the management of the policy.  The Ulster Society of Chartered Accountants Ireland has long participated in the process of developing an economic strategy for Northern Ireland.”

“The other UK wide initiatives should help the SME sector in Northern Ireland. Taken together the overall package can help in addressing the long held public/private sector imbalance in this region.  We hope that, when combined with other measures, this Budget will act as a catalyst for growth of the private sector in Northern Ireland."