During his US visit, Stormont Economy Minister Conor Murphy advocated for showcasing Northern Ireland’s unique dual market access to attract investment, steering clear of a corporation tax cut competition. In related news, Chancellor Jeremy Hunt and Sir James Dyson clash over UK government’s economic policies.
In a recent development, Conor Murphy, the Stormont Economy Minister, has voiced a strong preference for focusing on dual market access rather than lowering corporation tax rates to attract US investors to Northern Ireland. During a visit to the US, Murphy engaged with companies about potential investments and found that the unique position of Northern Ireland, offering access to both UK and EU markets post-Brexit, was a more significant point of interest than corporation tax levels.
Murphy articulated his stance against engaging in competitive tax reductions, often referred to as a “race to the bottom,” to vie with Ireland for investments. This outlook comes amidst considerations by previous Northern Ireland ministers of reducing corporation tax to stimulate investment. However, Murphy underscored that such a move is not currently viable due to potential funding consequences from the Treasury. Instead, he aims to maximize investment by emphasizing the skilled workforce in the region and the advantageous dual market access afforded by the Windsor Framework.
In a separate event, Chancellor Jeremy Hunt and Sir James Dyson, the billionaire inventor, had a notably contentious meeting focused on tax relief and the government’s policies on research and development. The exchange, described by sources as “fiery” and “awful,” comes after Dyson publicly critiqued the government’s stance on entrepreneurship, advocating for more supportive economic policies. Dyson has previously expressed his approval of tax-cutting measures introduced by former Prime Minister Liz Truss and ex-Chancellor Kwasi Kwarteng. The argument between Hunt and Dyson underscores existing tensions between the UK government and business leaders, particularly regarding economic strategies and support for innovation. Neither party provided an official comment on the details of their discussion.