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| Businesses unhappy with tax cut | |
| (about 1 hour later) | |
| The government is considering whether to set up a commission to examine the case for cutting corporation tax in NI. | |
| Chancellor Gordon Brown announced a 2% reduction in the 30% rate in April 2008, which left many local firms disappointed as few pay the top rate. | |
| The vast majority of the 60,000 local companies pay a lower rate of 19% which is being increased to 22% in 2009. | |
| Business leaders want corporation tax in NI to be brought into line with the Irish Republic's 12.5% rate. | |
| The Irish Republic's low corporation tax has been a key factor in its economic success. | The Irish Republic's low corporation tax has been a key factor in its economic success. |
| A 2% cut still leaves at difference of 15.5% between Northern Ireland and the Republic - that's a yawning gap Sir George QuigleyIndustrial Task Force Brown cuts corporation tax Campaigners have long argued Northern Ireland's rate should be lowered to attract more foreign inward investment and to create thousands of jobs. | A 2% cut still leaves at difference of 15.5% between Northern Ireland and the Republic - that's a yawning gap Sir George QuigleyIndustrial Task Force Brown cuts corporation tax Campaigners have long argued Northern Ireland's rate should be lowered to attract more foreign inward investment and to create thousands of jobs. |
| The Industrial Task Force's Sir George Quigley said the 2% cut would "do very little to help us attract a fair share of quality jobs". | The Industrial Task Force's Sir George Quigley said the 2% cut would "do very little to help us attract a fair share of quality jobs". |
| "At last Gordon Brown has conceded we have to be more competitive in corporation tax but a 2% cut still leaves at difference of 15.5% between Northern Ireland and the Republic - that's a yawning gap," he said. | "At last Gordon Brown has conceded we have to be more competitive in corporation tax but a 2% cut still leaves at difference of 15.5% between Northern Ireland and the Republic - that's a yawning gap," he said. |
| And Frank Bryan of the Institute of Directors NI said it was only a small step which did nothing to address the disparity with the Irish Republic. | And Frank Bryan of the Institute of Directors NI said it was only a small step which did nothing to address the disparity with the Irish Republic. |
| He said he was concerned that the increase in corporation tax rates for small firms from 19% to 22% in 2009 would have a disproportionate effect on Northern Ireland's small-to-medium enterprise dominated economy. | He said he was concerned that the increase in corporation tax rates for small firms from 19% to 22% in 2009 would have a disproportionate effect on Northern Ireland's small-to-medium enterprise dominated economy. |
| Mr Brown could announce the commission to look at corporation tax when he meets the political parties at Downing Street on Thursday. | |
| In his budget speech, he announced a new Innovation Fund for jobs and industry will be made available for Northern Ireland if devolution is restored by 26 March. | |
| It is thought this fund will allow local universities and companies to access up to £20m for innovation and research. | |