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N Ireland should cut corporate tax to boost growth, says business lobby

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N Ireland should cut corporate tax to boost growth, says business lobby

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Northern Ireland should slash corporation tax in line with the Republic of Ireland to drive growth in the cash-strapped region, according a proposal from the region’s biggest business lobby group.

The gulf between the UK’s 25 per cent headline corporation tax rate and Ireland’s rate of 12.5 per cent for small firms and 15 per cent for large companies is making it impossible to compete for investment, said the Federation of Small Businesses.

The group has outlined its plan to the finance ministry at Stormont and UK officials ahead of detailed talks on the subject.

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Ireland’s rate of corporation tax, well below the EU average, has driven a budget surplus and the FSB says reviving mothballed plans for Northern Ireland to cut its rate could create jobs and boost the region’s economic fortunes.

“We are massively disadvantaged,” said Roger Pollen, FSB head of external affairs. “Aligning with the Republic of Ireland isn’t going to impact the UK but it would dramatically affect our local economy.”

The vast majority of Northern Ireland’s funding comes from an annual “block grant” payment of £15bn at present. The Stormont executive raises less than £1 in every £20 of the region’s tax revenue — some £1.5bn in 2023-24.

Northern Ireland contributed £1.2bn to the UK Treasury from corporation tax in 2021-22, the latest year for which data is available, according to the Office for National Statistics.

The UK passed legislation in 2015 to allow Northern Ireland to set its corporation tax rate. But the act was never implemented because of frequent political crises and the stipulation that the region would first have to demonstrate its finances were sustainable.

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Under an agreement dubbed “Safeguarding the Union” that helped restore Stormont in February after a two year hiatus, London promised to “swiftly progress” its corporation tax devolution commitments “supported by the necessary resource from within HM Treasury”.

Northern Ireland’s finance minister Caoimhe Archibald is discussing a new fiscal framework for the region with the UK government © Liam McBurney/PA

Under the FSB’s plan, sums raised would not be deducted from the block grant for several years under a kind of “overdraft facility” to give the scheme time to get established. The business body argues that a lower tax rate would attract more global manufacturing investment and thus boost receipts.

“We need to be imaginative about it,” Pollen said. “What do you do in a company if you don’t have the cash to buy a business? You borrow and pay it back from the increased value and revenues of the business.”

Despite the trade-boosting prospects offered by Northern Ireland’s unique post-Brexit access to both the EU’s single market for goods and Britain, the former linen and shipbuilding powerhouse is struggling financially.

Ministers have warned they cannot afford to continue to deliver even the current level of crumbling public services. Productivity is 11 per cent below the UK average and the region has the UK’s second highest number of people neither employed nor looking for work.

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The UK government wants Northern Ireland to raise revenue by introducing water rates and increasing other charges that are lower than in Britain. But Pollen said the answer was “revenue raising not by increasing corporation tax but by growing the corporation tax pie”.

Higher investment would also mean more jobs and thus more payroll and other tax revenue that would continue to flow to the UK Treasury, according to the FSB.

A low tax policy has paid dividends for the Republic of Ireland with corporate tax receipts more than doubling since 2019, to a record €24bn last year. However, Dublin has warned that the bonanza is already waning.

Column chart of Forecasts for Irish general government fiscal balance, (€bn) showing Corporation tax revenues have pushed Ireland’s fiscal position into a healthy surplus

Slashing corporation tax in a region that already enjoys better post-Brexit access to the EU than the rest of the UK would be a “hard sell” in Britain, said Lorraine Nelson, tax partner at consultancy BDO Northern Ireland.

Caoimhe Archibald, Northern Ireland’s finance minister, said she was discussing a new fiscal framework for the region with the UK government.

“It is my intention that this would also include how increased fiscal powers could be devolved to the executive,” she told the Financial Times. “l welcome any proposals or evidence that could inform this work and my officials and I are happy to engage with business leaders on this.”

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London, which has agreed £3.3bn in extra financing for Northern Ireland to ease current pressures, said it was working closely with Stormont on its Safeguarding the Union commitments.

“This includes further work on the devolution of the rate of corporation tax to Northern Ireland,” it said.

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Trump claims US stockpiles mean wars can be fought ‘forever’; Kristi Noem testifies before Congress – US politics live

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Trump claims US stockpiles mean wars can be fought ‘forever’; Kristi Noem testifies before Congress – US politics live

Trump says US stockpiles mean “wars can be fought ‘forever’”

In a late night post on Truth Social, Donald Trump said that the US munitions stockpiles “at the medium and upper medium grade, never been higher or better”.

He added that the US has a “virtually unlimited supply of these weapons”, meaning that “wars can be fought ‘forever’”.

This comes after Trump said that the US-Israel war on Iran could go beyond the four-five weeks that the administration initially predicted. The president also did not rule out the possibility of US boots on the ground in Iran during an interview with the New York Post on Monday.

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“I rebuilt the military in my first term, and continue to do so. The United States is stocked, and ready to WIN, BIG!!!,” he wrote.

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Key events

During his opening remarks, Senate judicicary committee chairman, Chuck Grassley, blamed Democrats for the ongoing shutdown Department of Homeland Security (DHS) but highlighted four agencies: the Secret Service, Federal Emergency Management Agency (FEMA), the Transportation Security Administration (TSA), and the Coast Guard.

Democrats are demanding tighter guardrails for federal immigration enforcement, but a sweeping tax bill signed into law last year conferred $75bn for Immigration and Customs Enforcement (ICE), which means the agency is still functional amid the wider department shuttering.

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Supreme Court blocks redrawing of New York congressional map, dealing a win for GOP

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Supreme Court blocks redrawing of New York congressional map, dealing a win for GOP

The Supreme Court

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The Supreme Court on Monday intervened in New York’s redistricting process, blocking a lower court decision that would likely have flipped a Republican congressional district into a Democratic district.    
  
At issue is the midterm redrawing of New York’s 11th congressional district, including Staten Island and a small part of Brooklyn. The district is currently held by a Republican, but on Jan. 21, a state Supreme Court judge ruled that the current district dilutes the power of Black and Latino voters in violation of the state constitution.  
  
GOP Rep. Nicole Malliotakis, who represents the district, and the Republican co-chair of the state Board of Elections promptly appealed to the U.S. Supreme Court, asking the justices to block the redrawing as an unconstitutional “racial gerrymander.” New York’s congressional election cycle was set to officially begin Feb. 24, the opening day for candidates to seek placement on the ballot.  
  
As in this year’s prior mid-decade redistricting fights — in Texas and California — the Trump administration backed the Republicans.   
 
Voters and the State of New York contended it’s too soon for the Supreme Court to wade into this dispute. New York’s highest state court has not issued a final judgment, so the voters asserted that if the Supreme Court grants relief now “future stay applicants will see little purpose in waiting for state court rulings before coming to this Court” and “be rewarded for such gamesmanship.” The state argues this is an issue for “New York courts, not federal courts” to resolve, and there is sufficient time for the dispute to be resolved on the merits. 
  
The court majority explained the decision to intervene in 101 words, which the three dissenting liberal justices  summarized as “Rules for thee, but not for me.” 
 
The unsigned majority order does not explain the Court’s rationale. It says only how long the stay will last, until the case moves through the New York State appeals courts. If, however, the losing party petitions and the court agrees to hear the challenge, the stay extends until the final opinion is announced. 
 
Dissenting from the decision were Justices Sonia Sotomayor, Elena Kagan, and Ketanji Brown Jackson. Writing for the three, Sotomayor  said that  if nonfinal decisions of a state trial court can be brought to highest court, “then every decision from any court is now fair game.” More immediately, she noted, “By granting these applications, the Court thrusts itself into the middle of every election-law dispute around the country, even as many States redraw their congressional maps ahead of the 2026 election.” 

Monday’s Supreme Court action deviates from the court’s hands-off pattern in these mid-term redistricting fights this year. In two previous cases — from Texas and California — the court refused to intervene, allowing newly drawn maps to stay in effect.  
  
Requests for Supreme Court intervention on redistricting issues has been a recurring theme this term, a trend that is likely to grow.  Earlier last month  the high court allowed California to use a voter-approved, Democratic-friendly map.  California’s redistricting came in response to a GOP-friendly redistricting plan in Texas that the Supreme Court also permitted to move forward. These redistricting efforts are expected to offset one another.     
   
But the high court itself has yet to rule on a challenge to Louisiana’s voting map, which was drawn by the state legislature after the decennial census in order to create a second majority-Black district.  Since the drawing of that second majority-black district, the state has backed away from that map, hoping to return to a plan that provides for only one majority-minority district.    
     
The Supreme Court’s consideration of the Louisiana case has stretched across two terms. The justices failed to resolve the case last term and chose to order a second round of arguments this term adding a new question: Does the state’s intentional creation of a second majority-minority district violate the constitution’s Fourteenth and Fifteenth Amendments’ guarantee of the right to vote and the authority of Congress to enforce that mandate?    
Following the addition of the new question, the state of Louisiana flipped positions to oppose the map it had just drawn and defended in court. Whether the Supreme Court follows suit remains to be seen. But the tone of the October argument suggested that the court’s conservative supermajority is likely to continue undercutting the 1965 Voting Rights Act.   

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Map: Earthquake Shakes Central California

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Map: Earthquake Shakes Central California

Note: Map shows the area with a shake intensity of 3 or greater, which U.S.G.S. defines as “weak,” though the earthquake may be felt outside the areas shown.  All times on the map are Pacific time. The New York Times

A minor earthquake with a preliminary magnitude of 3.5 struck in Central California on Monday, according to the United States Geological Survey.

The temblor happened at 7:17 a.m. Pacific time about 6 miles northwest of Pinnacles, Calif., data from the agency shows.

As seismologists review available data, they may revise the earthquake’s reported magnitude. Additional information collected about the earthquake may also prompt U.S.G.S. scientists to update the shake-severity map.

Source: United States Geological Survey | Notes: Shaking categories are based on the Modified Mercalli Intensity scale. When aftershock data is available, the corresponding maps and charts include earthquakes within 100 miles and seven days of the initial quake. All times above are Pacific time. Shake data is as of Monday, March 2 at 10:20 a.m. Eastern. Aftershocks data is as of Monday, March 2 at 11:18 a.m. Eastern.

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