Statement by TUV South Antrim Westminster candidate Richard Cairns:
“Yesterday the Institute for Fiscal Studies published a report looking on corporation tax which should give the Northern Ireland Executive pause for thought.
“The think tank raises serious questions about the received wisdom that a reduction in the corporation tax rate here will result in an influx of jobs. They state: “it is not clear that a separate corporate tax rate is the most appropriate policy lever to address concerns about the size of the private sector”.
“This is just the latest in a series of warnings about the danger of devolving corporation. The latest Treasury estimate is that the cost of devolving and cutting corporation tax is £325 million per year less for our schools, hospitals and other vital services.
“The Silk Commission in 2012 didn’t recommend that the power be devolved to Wales and noted that the Welsh government believed it was “a volatile tax which is strongly linked to the economic cycle. There would therefore be significant budgetary risks to Wales”.
“Even the major additional powers being devolved to Scotland do not include corporation tax because of the risks involved.
“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. When it comes to Unionists I suspect that having fiscal powers devolved to Stormont is part of the ego trip for their dysfunctional toy town executive.
“The comments of the Institute for Fiscal Studies are a timely reminder that the UK should retain its unified taxation system. That is the natural Unionist position and it also makes sound fiscal sense for Northern Ireland.”
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