Politicians in Northern Ireland have been discussing proposals to alter the business tax rate in Stormont.
All the main political parties in Northern Ireland and the business community have championed reducing the rate from 26% to closer to the 12.5% rate amid claims that it would generate 4,500 new jobs a year.
While a cut in business tax may stimulate investment and create jobs, it would be accompanied by a proportionate reduction in funding from the Treasury for Northern Ireland public services worth an estimated £385m a year.
While businesses largely supported the change, unions opposed the move, claiming it would take money from frontline services to line the pockets of big businesses.
The Exchequer Secretary David Gauke said tonight that the private sector must be strengthened through economic stability in the north.
Mr Gauke said that there had been a lot of interest in treasury proposals which include devolving power to set the business tax to Stormont to help compete with the south for investment.
First Minister Peter Robinson said around 58,000 new jobs could be created by 2030 if Northern Ireland ministers had the power to set corporation tax levels.
He said 'there is a need for meaningful intervention if we are to significantly improve our performance and achieve economic convergence with the rest of the UK.'
Peter Robinson said 'having the ability to set our own corporation tax rates would provide us with new opportunities.'
Deputy First Minister Martin McGuinness has said it was an opportunity to grow the local economy and boost indigenous business and foreign direct investment levels.
Martin McGuinness has said that this will lead to a stronger private sector, thus reducing the burden on the public sector.'
