8 July 2015

  |  CBI Northern Ireland

News

CBI Northern Ireland responds to Budget (8 July 2015)

The reduction in Corporation Tax will be welcomed, and will reduce the costs to the Northern Ireland Executive by several tens of millions...read more

CBI Northern Ireland responds to Budget (8 July 2015)

In response to today’s budget CBI Northern Ireland Director, Nigel Smyth, commented:

“The business community recognises the importance of sustainable public finances and the need to address the UK’s budget deficit, the context for today’s budget.

From a Northern Ireland perspective the commitment to the making the Annual Investment Allowance permanent at £200,000 is particularly welcomed and will be of benefit to our Medium Sized Companies and to smaller companies, something the CBI has been calling for.

The reduction in Corporation Tax will be welcomed, and will reduce the costs to the Northern Ireland Executive by several tens of millions, of introducing a 12.5% rate in Northern Ireland, which will help to create tens of thousands of jobs.

However the introduction of a National Living Wage of £7.20 next April, some 7% higher than the NMW will be in October, will be a concern to many businesses, and will impact on job creation. Northern Ireland will be disproportionately impacted.

The CBI supports a higher skilled, higher value, and higher wage economy, but legislating for a living wage does not reflect businesses’ ability to pay. This is taking a big gamble that the labour market can absorb year-on-year increases of an average of 6%.”

For further information, please call 028 9010 1100 or email ni.mail@cbi.org.uk