Lord Empey – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Lord Empey on 2016-05-19.

To ask Her Majesty’s Government whether they have agreed the reduction to the Block Grant for the Northern Ireland Executive as a result of the decision to introduce a lower rate of Corporation Tax in Northern Ireland from April 2018, and if so, what is the new Block Grant figure.

Lord O’Neill of Gatley

In 2015 the government legislated to make a lower Northern Ireland Corporation Tax rate possible. The Northern Ireland Executive are committed to introducing a rate of 12.5%, to be introduced in 2018.

Now Northern Ireland’s own political leaders must press on with the reforms necessary to put the Executive’s finances on the sustainable footing required to complete Corporation Tax devolution.

As set out in the Stormont House Agreement, the Executive would then meet the direct and behavioural costs of any reduction in corporation tax in Northern Ireland, and we are continuing to work with the Executive on the funding arrangements which would deliver this outcome.