Rebalancing the Northern Ireland economy

The UK Government and the Northern Ireland Executive have a common objective to rebalance the Northern Ireland economy, to increase the size of the private sector and drive faster economic growth.

This consultation sets out options that could be taken to support rebalancing of the Northern Ireland economy, including  the issues involved in devolving the power to vary the corporation tax rate for profits in Northern Ireland.

The consultation paper does not make recommendations. The aim of this stage of consultation is to gain a fuller understanding of the benefits and costs that a separate rate would involve for Northern Ireland and for the rest of the UK.

This consultation paper also notes a number of reviews and strategies relating to non tax options including action being taken by the UK Government using UK wide powers and action by the Northern Ireland Executive using devolved policy powers to drive economic growth in Northern Ireland. 

The paper invites views on the most effective approach to rebalancing the Northern Ireland economy.

The Government welcomes responses from any interested organisations or individuals.  When responding please state whether you are responding as an individual or representing the views of an organisation.

If you are responding on behalf of an organisation, please make it clear who the organisation represents, and where applicable, how the views of members were assembled.

Update and announcement

A joint ministerial working group on rebalancing the Northern Ireland economy will be established, comprising ministers of HM Government and the Northern Ireland Executive, to consider issues raised by the consultation.

No decision has yet been made on whether or not to devolve corporation tax and a final decision is expected next year. This decision will be informed by the work developed by the joint ministerial working group.

Further details of the Government’s response to the consultation and a summary of responses received will be published later in the autumn.

Response to the consultation

Over 700 responses to the consultation were received, with most showing strong support for the rebalancing of the Northern Ireland economy.  There was a large amount of support for the devolution of corporation tax, with around three quarters of respondents in favour.  However, support has not been universal and a number of respondents pointed to the complex issues inherent in devolving these powers.

The Government has announced the establishment of a joint ministerial working group on rebalancing the Northern Ireland economy, comprising ministers of the UK Government and the Northern Ireland Executive, to consider issues raised by the consultation.  No decision has yet been made on whether to devolve corporation tax.  A decision will be taken following the conclusion of work developed by the joint ministerial working group, which is expected in summer.