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Press Release

     "The economic climate is changing, public finances are coming under extreme pressure and Northern Ireland's substantial level of financial support from the UK Treasury is certain to be reduced in the years ahead. The challenge facing the region, to place the economy at the heart of government and to make a step change in economic performance has become both more significant and more crucial. The Economic Reform Group was formed in late 2009 to carry out independent research and to look at creative ways that might effectively 'make the change'. Reduced Corporation tax is the fastest way we know to revitalise the NI economy. We estimate that more than 90,000 extra jobs could be created over 20 years and that the subvention could be cut at a relatively small cost to public expenditure" - Feb 2010, Economic Reform Group

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Press Release (PDF - 52KB)

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Northern Ireland Economic Reform Group

The Northern Ireland Economic Reform Group is an independent group consisting of economists, accountants and businessmen based in Northern Ireland who wish to see a more successful and competitive NI economy, less dependent on a public sector subvention from taxpayers in GB. The group believe that the current range of grant incentives to stimulate investment are by themselves insufficient to promote a narrowing of the wide gap in productivity between NI and both GB and other small EU countries in Western Europe. Constraints set by EU state aid rules are about to make this task even more difficult, and the group take the view that reduced corporation tax is the best way to ensure a rapid acceleration in investment and productivity.


The Case for a Reduced Rate of Corporation Tax in Northern Ireland

report

Summary

This report examines the costs and benefits of a reduction in the existing corporation tax rates of 28% (for large firms) and 21% (for small firms) down to 12.5%. The choice of 12.5% has the merit of being the same as in the Republic of Ireland, and hence potentially less objectionable to the European Commission which generally opposes regional reductions in corporation tax. We are not however wedded to any particular rate as long as it is sufficiently low to provide a powerful incentive for high value-added multi-national firms to seek to locate in NI.

The report is built upon an earlier study undertaken in 2009 by Corin Taylor then Research Director of the Taxpayers Alliance. We are grateful to the Taxpayers Alliance for making their material available. The current report updates the earlier one and adds substantial new sections on the legal and administrative framework for reduced corporation tax, on the impact of tax reductions on FDI and on the impact of accelerated investment on the wider NI economy. The views expressed in this report are the sole responsibility of those named above.

The Report was originally issued in February 2010 and has been revised in May 2010 to correct some small text errors and to introduce an assumption for job losses in the public sector to reflect reductions in corporation tax revenues once tax rates are reduced in NI.

Download the full report here:

The Case for a Reduced Rate of Corporation Tax in Northern Ireland (PDF - 832KB)


The members of the Group are: