Plaid calls for devolution of Corporation Tax

The ability to control and levy corporation tax should be devolved to the Welsh Assembly Government Plaid Cymru’s Jonathan Edwards MP said today.

The Plaid MP’s call comes hot on the heels of the conclusions of the Northern Ireland Affairs Committee report on Corporation Tax in Northern Ireland published today.

Mr Edwards said that the report recognised the benefits of being able to set corporation tax on a regional basis and would help stimulate the economy of Northern Ireland. Mr Edwards urged the UK Government to pass the same responsibilities to Wales.

In Wales, corporation tax is about £1.5bn of total tax receipts, about 9%, according to the Holtham Commission.

Mr Edwards said:

“With the Scottish First Minister meeting the Chancellor in London this week, and this report on corporation tax in Northern Ireland today, it is clear that the battleground on financial powers is fast moving.

“Devolving corporation tax to the Northern Ireland Assembly has been recognised as a positive measure. It will help their economy and allow the Government to tune in to the specific needs of businesses in Northern Ireland.

“Wales should also be able to benefit in the same way. Even the Economic Commission of the Conservative Party in Wales supports me on this, so I hope that their bosses in London will listen.

“The UK Government has accepted the principle of regional tax variation through National Insurance holidays for new businesses outside of London, south-east and east England.

“Simply put, a one size fits all tax policy offers no support to poorer regions.

“A lower corporation tax rate would make Wales more attractive for inward investment and would help Welsh businesses by cutting some of their costs.

“It is a logical step to allow Wales to adapt to the needs of its businesses and I would hope that the Labour government in Cardiff Bay would support these calls.

“It is no good to Wales to have a First Minister who is ‘open-minded’ on how to improve the finances of Wales. We need vision and action.”

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