Statement by TUV leader Jim Allister:-
“If the Chancellor means what he says corporation tax devolution should be off the table for the foreseeable future as Stormont has patently failed to manage its financial affairs. Scrambling together a deal for the optics hardly meets that test. In truth, however, I suspect that corporation tax will come to Stormont if Unionists roll over in the current talks. But corporation tax is a poisoned carrot about which we should be wary.
“Firstly, under EU law any cut in corporation tax will mean a corresponding cut to the block grant. Estimates of the cost vary but it will be hundreds of millions of pounds annually. In return the best that can be expressed is an opaque hope of extra investment, rather than the corporations pocketing the windfall tax savings.
“This will have a seriously detrimental effect on core public services which are already under huge pressure.
“Secondly, devolving corporation tax breaks the important and unifying principle that throughout the United Kingdom all pay the same taxes and receive the same benefits. From a Unionist perspective this is bad news. 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.
“Republicans have already made it clear that they want to see corporation tax devolved because they want full fiscal powers removed from London.
“Thirdly, given the mess that Stormont has made of the powers it already has who in their right mind would welcome them getting additional powers over anything, particularly taxation powers. The warnings in recent days from managing director of insurance company Allstate, Bro McFerran, that local politicians have not displayed the understanding, nuance and sophistication necessary to be trusted with these powers has resonated with many people in Northern Ireland.
“The last thing any sensible person in Northern Ireland would do is give this profligate Stormont the right to help themselves from any taxpayer’s pocket.”