Murphy welcomes Fiscal Commission report

Date published: 19 May 2022

'More Fiscal Devolution for Northern Ireland?’ is the first government review of the Executive’s fiscal powers since the Good Friday Agreement.

Speaking at the launch of the report, Minister Murphy said: “This landmark report clearly identifies the potential benefits of greater local control over taxation. More fiscal powers would allow locally elected Ministers to set taxes in line with local needs and circumstances. It would give us more options to grow the economy, raise revenue for public services, and encourage the transition to zero carbon. Administering more taxes also presents practical challenges and the report makes useful recommendations in this regard."

The report recommends the partial devolution of Income Tax and the Apprenticeship Levy, as well as completing the devolution of Corporation Tax. The report also states there would be value in the full devolution of Stamp Duty Land Tax, Air Passenger Duty and Landfill Tax, with the establishment of a local revenue authority to administer these fully devolved taxes.

The Fiscal Commission report advocates the devolution of Excise Duties for Fuel, Alcohol and Tobacco in the longer term.

The Minister concluded, “This report provides a solid evidence base to start a public conversation on tax and will enable a future Executive to consider how fiscal matters could be best managed here. I thank Chair Paul Johnson and Commissioners Professor Cathy Gormley-Heenan, Professor Iain McLean and Dr Lisa Wilson for delivering such a comprehensive report.”