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Lower NI corporation tax proposed

Belfast - Proposal on helping economy
Belfast - Proposal on helping economy

A lower rate of corporation tax is the only change which would quickly turn the Northern Ireland economy around, a group of economists has claimed.

The Northern Ireland Economic Reform Group argues that without this the Northern Ireland economy faces a difficult future.

'12 years after the Good Friday Agreement, Northern Ireland remains the UK's poorest region,' the economists say.

It currently depends on a €9bn a year subsidy from the British government.

The report says the 'fast track' way to increase prosperity and jobs is to attract foreign direct investment. It says one of the main ways to do this is to offer a lower rate of corporation tax.

The report estimates that a corporation tax cut to roughly the same level as the Republic's 12.5% could lead to 90,000 extra jobs over 20 years.