Business Constituency Government Lurgan Politics Upper Bann Westminster

High Tax Economy Will Drive Investors Away – Lockhart

DUP Member of Parliament Carla Lockhart has said the commitment of Chancellor Jeremy Hunt to his planned hike in Corporation Tax will cause pain for local companies, and drive investment and employment into the arms of the Irish Republic. The Chancellor is set to hike corporation tax from 19% to 25% in the forthcoming budget, leaving Northern Ireland with a rate twice that of the Irish Republic.

Carla Lockhart said:

“In 2019 the Conservative Party stood on a manifesto which promised to lower the tax burden on business. Whilst it will come as no surprise to see another one of their taxation pledges cast aside, the proposed hike in corporation tax by the Chancellor Jeremy Hunt will deal another huge blow to our competitiveness when it comes to inward investment and job creation.

We have heard so much from the Government in recent days about the economic potential for Northern Ireland. So too have we heard about the competitiveness of Northern Ireland business against ROI competitors. Yet whilst the Prime Minister and others spin their way from Windsor to Westminster, the Chancellor is intent on delivering a devastating blow to our ability to attract investment, by hiking corporation tax. Already too high at 19%, the Government is determined to raise this to 25%.

A 25% rate will see Northern Ireland with double the corporation rate of the Irish Republic. For investors, that means paying twice the rate if setting up in Portadown, than setting up in Dundalk. This decision will drive investors away and is anti-business, and anti-jobs.

The Chancellor needs to scrap this plan now. We have already seen major names shift HQ and investment away from the UK to other lower tax economies. This will only be the start.Now is the time for the Conservative Party to re-establish their Conservative beliefs, and recalibrate towards lower taxes across personal taxation and taxation on business.” 


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