Reversal of corporation tax hike ‘crucial’ for NI business

That is the view of the Northern Ireland Chamber of Commerce and Industry chief executive Ann McGregor, who gave her view on the so-called ‘mini budget’ announcement by Chancellor Kwasi Kwarteng on Friday.

Mr Kwarteng said a planned increase in the tax had been scrapped, and it would instead remain at 19%.

Responding, the Northern Ireland Chamber chief executive said: “Moves to target certain business costs, including reversing plans to increase corporation tax and national insurance are welcome interventions at a time of critical need.

“Reversing the planned increase in corporation tax will be crucial for local firms competing on the island of Ireland in particular.”

On the wider economic policy announcement by the chancellor, she said: “Businesses will welcome the chancellor’s pledge to focus on economic growth

“ Inevitably, the devil will be in the detail of these proposals, but they must strike the right balance between tackling immediate pressures, driving reform, and providing for a sustainable future.”

Retail NI chief executive Glyn Roberts, meanwhile, said: “We welcome that the Government is to reverse the National Insurance increase which will provide some relief to local independent retailers who are struggling with the cost of business crisis.

“Retail NI will engage with the Secretary of State for NI on how the Investment Zone proposals could apply to Northern Ireland, particularly in town and city centres that have high levels of dereliction and are in need of further support.

“We are disappointed that no funding assistance from treasury has been allocated to allow a business rates holiday to be introduced locally.

“If we are to stand any chance of saving local high street businesses and protecting jobs, it is vital that a rates holiday is urgently introduced.

“Lowering VAT rates should also have been included in this statement, rather than focusing on stamp duty and corporation tax.”

Londonderry Chamber of Commerce interim chief executive Anna Doherty meanwhile said: “It is disappointing that this week’s announcements of energy relief schemes for both businesses and households have not been built upon.”