Responding to the Prime Minister’s comments about the devolution of corporation tax to Northern Ireland TUV leader Jim Allister said:
“The key issue when it comes to lowering the rate of corporation tax in Northern Ireland below the level in the rest of the UK is that under EU law this will require a corresponding cut to the block grant.
“According to figures produced by the Treasury this would amount to a cut of £110 million, £235 million, £265 million, £265 million and £270 million in each of the first five years in which there was a 1.5% reduction in the rate of corporation tax in Northern Ireland.
“Stormont’s Department of Finance and Personnel has estimated that the direct cost to the block grant could be in excess of £400 million by year five.
“A cut to corporation tax will therefore result in a dramatic reduction to the money Northern Ireland receives from Westminster which in turn will have serious consequences for public services in our Province.
“The Silk Commission into further devolution to Wales recommended in 2012 that corporation tax should not be devolved to Cardiff “as the costs would outweigh the benefits”.
“The Welsh government shared this analysis telling the Commission that while the “devolution of corporation tax could offer the Welsh Government a powerful tool to promote economic development, this is a volatile tax which is strongly linked to the economic cycle. There would therefore be significant budgetary risks to Wales”.
“Just how the joint First Minister can say only a few weeks ago that Stormont is “dysfunctional” and “not fit for purpose” and now go along with the transfer of significant fiscal powers to that same dysfunctional Assembly is not for me to explain.
“When it comes to Sinn Fein their desire to cut fiscal ties to London trumps any professed concern for public sector workers – who would be hit by cuts to the block grant.
“The desire of Unionists to see the powers come to Stormont merely highlights how fixated they are with devolution.
“The UK should retain its unified taxation system. That is the natural Unionist position and it also makes sound fiscal sense for Northern Ireland.”