Finance Bill — House of Commons, 2017-10-11
Topic: Macroeconomics
Emma Little Pengelly (Democratic Unionist Party, Right): I want to raise one additional point. My hon. Friend the Member for East Antrim (Sammy Wilson) has set out very well a number of our concerns about the proposed new clause. We have looked at this issue in the Northern Ireland Assembly, and I had the privilege of being the Chairperson of the Finance Committee when we considered the detail of it. We listened to concerns from small business and to those outlined by the Opposition spokesperson, but the key objective is to attract new business and jobs to the UK. We do not necessarily want movement from the rest of the UK to Northern Ireland. This is about foreign direct investment, trying to create new jobs and contributing positively to the economy of Northern Ireland and of the UK In Northern Ireland, we have looked at this issue for many years. It has been scrutinised by committees. We have had a range of consultants and others look at the detail of the proposal because we want it to work. As my hon. Friend the Member for East Antrim said, we do not want it to be simply an exercise in brass-plating or anything like that. We want jobs, employment and further investment in Northern Ireland One of the big issues in terms of the movement and type of jobs we want is certainty. Certainty is essential if we are to get commitment from companies—hopefully, big companies—to move into the UK for the first time and to invest in plant and staff recruitment. The proposal in new clause 2 to have a review after 12 months will create uncertainty. What international business would look at the UK and invest in plant, employees and recruitment when one of the big incentives to moving—the lower corporation tax rate—could be removed following a review after just 12 months? It is essential that we remain positive about the measure and have certainty about it. I reiterate: we want new jobs for the UK, and we want them in Northern Ireland Question put and agreed to. Clause 25 accordingly ordered to stand part of the Bill. New Clause 2 Review of changes to chargeability of trading profits to corporation tax at Northern Ireland rate ‘(1) CTA 2010 is amended as follows (2) After section 357WH (Allocation of Northern Ireland profits etc of firm to company), insert— "357WI  Review of changes to chargeability of trading profits to corporation tax at Northern Ireland rate (1) As soon as practicable after the completion of the first financial year in respect of which the Northern Ireland rate is set by the Northern Ireland Assembly in accordance with the provisions of section 357IA, the Commissioners for Her Majesty’s Revenue and Customs shall complete a review of the effects of the changes to chargeability of trading profits to corporation tax at the Northern Ireland rate made in Schedule 7 to the Finance (No. 2) Act 2017 (2) A review under this section shall consider in particular the effect of those changes on the extent to which companies are based in— (a) Northern Ireland, and (b) Great Britain (3) A review under this section shall also consider the effect of those changes on the extent to which the profits or losses of companies and firms are Northern Ireland profits or losses (4) A review under this section shall also consider the effect on employment in— (a) Northern Ireland, and (b) Great Britain (5) A report of the review under this section shall be laid before the House of Commons within one calendar month of its completion."" —(Jonathan Reynolds.) This new clause requires HMRC to carry out a review after the first year of operation of the Northern Ireland rate of the effect of the changes in Schedule 7 on the location of companies in Northern Ireland and in Great Britain, the extent to which trading profits and losses are treated as subject to the Northern Ireland rate and on employment in Northern Ireland and in Great Britain. Brought up, and read the First time. Question put, That the clause be read a Second time.