Cost of devolving tax powers to NI still not known

It is still not known how much it would cost the UK Treasury if Northern Ireland was to reduce it's rate of corporation tax, if and when tax powers are devolved to Stormont.

The campaign to devolve corporation tax powers to Northern Ireland has been going on for some time now, with many business owners and politicians believing that the rate of tax needs to be reduced to rival that of the Republic of Ireland. It has always been known that devolution of corporation tax powers would come at a cost to Northern Ireland, in particular a reduction in the Westminster block grant received each year. While the loss has been estimated at around £400million annually, there is still no final quantification of the cost according to an economic update produced by the Northern Ireland Executive and the Westminster government.

The update does say that progress has been made on other details relating to a devolution of tax powers. The previous deadline of autumn 2014 has been restated for a decision to be made, with the necessary legislation possibly being introduced before the 2015 general election.