Lord Empey – 2015 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Lord Empey on 2015-11-20.

To ask Her Majesty’s Government by how much they estimate the budget of the Northern Ireland Executive will be reduced annually as a consequence of the decision to introduce a reduced rate of Corporation Tax in Northern Ireland in 2018–19.

Lord O’Neill of Gatley

The government is committed to devolving corporation tax powers as provided for by the Corporation Tax (Northern Ireland) Act 2015, if the Northern Ireland parties meet their commitments in the Stormont House Agreement. This includes the Northern Ireland Executive demonstrating that its finances are on a sustainable footing for the long term.

The government is working closely with the Executive to agree a fair adjustment to the block grant covering both the direct and behavioural effects of devolution. Ultimately, however, the impact on the Executive’s budget will depend on the rate set by the Northern Ireland Assembly.