‘Fresh Start’ corporation tax cut welcomed

‘Fresh Start’ corporation tax cut welcomed

The body representing Northern Irish retailers has welcomed Stormont’s ‘Fresh Start’ deal, which contains an agreed new rate and date to slash corporation tax for the region.

Attempts to have the UK’s 20 per cent rate cut to 12.5 per cent for NI were thought dashed after Stormont approached collapse over its failure to implement the Conservative Government’s cuts to welfare payments, and paramilitary shootings that suggested the Provisional IRA is still operating.

Sinn Fein and the DUP had been locked in crunch talks for some 10 weeks to save the devolved assembly, and announced the deal, dubbed ‘Fresh Start’ on Tuesday evening.

Its raft of measures include £584 million over four years to ease transition to the new welfare regime, and extra money for police and security.

Corporation tax will also be reduced to match the Republic of Ireland’s rate of 12.5 per cent by April 2018; a year later than previously agreed.

Welcoming the move, chief executive of the Northern Ireland Independent Retail Trade Association (NIIRTA), Glyn Roberts, said: “Political stability is the bottom line for sustainable economic development and so we welcome this agreement as a roadmap in moving forward both the institutions and our economy.

“At long last we have the date and rate for Corporation Tax of April 2018. It is crucial that this timetable is maintained.”

The agreement also contains the resurrection of major infrastructure projects, also thought bound for the political chopping board.

Some £75 million is to be contributed by the Irish Government for the building of the A5, linking Dublin to the north west of Northern Ireland, with the funds expected to be matched by Stormont.

Welcoming that decision, Mr Roberts said: “A commencement date for the A5 and progress on the North-West Gateway are welcome boosts for the infrastructure of our towns west of the Bann.”

The SDLP, UUP and the Alliance party have said they will be scrutinising the 60 page agreement over the coming days before signing up to the deal.

Meanwhile, despite welcoming extra money to ease welfare reforms, the Green Party said cutting taxes for corporations was “abhorrent” while NI’s public sector faced tightening budgets.

Green Party Leader and MLA for North Down, Steven Agnew, said: “The Green Party does not support the moves to cut the rate of corporation tax, and points out yet again that a reduction to 12.5 per cent will cost us an estimated £300m per year,” he said. “At a time when our health service is crumbling this proposal is abhorrent.”