Northern Ireland manufacturing firms seeking stability over corporation tax cut, says trade body

Northern Ireland firms have long sought a change to the rate of corporation tax in order to better compete with the lighter burden placed on firms in the Republic of Ireland.

A cut in the UK corporation tax rate was one of a host of measures set out in the ill-fated 'mini budget' introduced by the recently-sacked Chancellor Kwasi Kwarteng - a move that had been welcomed by the Northern Ireland Chamber of Commerce and Industry.

But the tax cut has now been scrapped by the new Chancellor, Jeremy Hunt, as almost all the economic policies set out in last month's mini-budget were overturned in a bid to reassure international financial markets.

Speaking to the News Letter, Manufacturing NI chief executive Stephen Kelly said stability is more important in the short term.

"The thing about corporation tax is that you need to make profit before you pay tax," he said.

"Right now, every household and every business is tackling the cost-of-living and cost-of-doing-business crisis. The easiest tax bill to pay right now is corporation tax because you've got all these other costs to pay first.

Long term, it would absolutely be good to ensure the UK has a competitive tax base but in the midst of a crisis we're not jumping up and down and saying it's awful that the corporation tax rate is not going to be adjusted."