Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what comparative assessment he has made of the potential impact on the profitability of Northern Ireland based businesses in the first year of a corporation tax rate of 25 per cent compared to the Irish Republic's rate of 12.5 per cent.

Changes in Corporation Tax policy are factored into the Office for Budget Responsibility’s forecasts (OBR). Further detail is available in the OBR’s Economic and Fiscal Outlook which is published at fiscal events.

To reassure markets of the Government’s commitment to fiscal discipline the Corporation Tax rate increase from 19 to 25 per cent, will go ahead from April 2023. 25 per cent is still the lowest rate in the G7 meaning the UK’s rate will remain internationally competitive and supportive of growth.

The introduction of a small profits rate will keep the rate at 19 per cent for companies with profits of £50,000 or less. This means around 70 per cent of actively trading companies, including Northern Ireland based companies, will not see an increase in their rate.