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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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U.S. to exit 66 international organizations in further retreat from global cooperation

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U.S. to exit 66 international organizations in further retreat from global cooperation

The symbol of the United Nations is displayed outside the Secretariat Building on Feb. 28, 2022, at United Nations Headquarters.

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WASHINGTON — The Trump administration will withdraw from dozens of international organizations, including the U.N.’s population agency and the U.N. treaty that establishes international climate negotiations, as the U.S. further retreats from global cooperation.

President Trump on Wednesday signed an executive order suspending U.S. support for 66 organizations, agencies, and commissions, following his administration’s review of participation in and funding for all international organizations, including those affiliated with the United Nations, according to a White House release.

Most of the targets are U.N.-related agencies, commissions and advisory panels that focus on climate, labor, migration and other issues the Trump administration has categorized as catering to diversity and “woke” initiatives. Other non-U.N. organizations on the list include the Partnership for Atlantic Cooperation, the International Institute for Democracy and Electoral Assistance and Global Counterterrorism Forum.

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“The Trump Administration has found these institutions to be redundant in their scope, mismanaged, unnecessary, wasteful, poorly run, captured by the interests of actors advancing their own agendas contrary to our own, or a threat to our nation’s sovereignty, freedoms, and general prosperity,” Secretary of State Marco Rubio said in a statement.

Trump’s decision to withdraw from organizations that foster cooperation among nations to address global challenges comes as his administration has launched military efforts or issued threats that have rattled allies and adversaries alike, including capturing autocratic Venezuelan leader Nicolás Maduro and indicating an intention to take over Greenland.

U.S. builds on pattern of exiting global agencies

The administration previously suspended support from agencies like the World Health Organization, the U.N. agency for Palestinian refugees known as UNRWA, the U.N. Human Rights Council and the U.N. cultural agency UNESCO. It has taken a larger, a-la-carte approach to paying its dues to the world body, picking which operations and agencies it believes align with Trump’s agenda and those that no longer serve U.S. interests.

“I think what we’re seeing is the crystallization of the U.S. approach to multilateralism, which is ‘my way or the highway,’” said Daniel Forti, head of U.N. affairs at the International Crisis Group. “It’s a very clear vision of wanting international cooperation on Washington’s own terms.”

It has marked a major shift from how previous administrations — both Republican and Democratic — have dealt with the U.N., and it has forced the world body, already undergoing its own internal reckoning, to respond with a series of staffing and program cuts.

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Many independent nongovernmental agencies — some that work with the United Nations — have cited many project closures because of the U.S. administration’s decision last year to slash foreign assistance through the U.S. Agency for International Development, or USAID.

Despite the massive shift, the U.S. officials, including Trump himself, say they have seen the potential of the U.N. and want to instead focus taxpayer money on expanding American influence in many of the standard-setting U.N. initiatives where there is competition with China, like the International Telecommunications Union, the International Maritime Organization and the International Labor Organization.

The latest global organizations the U.S. is departing

The withdrawal from the U.N. Framework Convention on Climate Change, or UNFCCC, is the latest effort by Trump and his allies to distance the U.S. from international organizations focused on climate and addressing climate change.

UNFCC, the 1992 agreement between 198 countries to financially support climate change activities in developing countries, is the underlying treaty for the landmark Paris climate agreement. Trump — who calls climate change a hoax — withdrew from that agreement soon after reclaiming the White House.

Gina McCarthy, former White House National Climate Adviser, said being the only country in the world not part of the treaty is “shortsighted, embarrassing, and a foolish decision.”

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“This Administration is forfeiting our country’s ability to influence trillions of dollars in investments, policies, and decisions that would have advanced our economy and protected us from costly disasters wreaking havoc on our country,” McCarthy, who co-chairs America Is All In, a coalition of climate-concerned U.S. states and cities, said in a statement.

Mainstream scientists say climate change is behind increasing instances of deadly and costly extreme weather, including flooding, droughts, wildfires, intense rainfall events and dangerous heat.

The U.S. withdrawal could hinder global efforts to curb greenhouse gases because it “gives other nations the excuse to delay their own actions and commitments,” said Stanford University climate scientist Rob Jackson, who chairs the Global Carbon Project, a group of scientists that tracks countries’ carbon dioxide emissions.

It will also be difficult to achieve meaningful progress on climate change without cooperation from the U.S., one of the world’s largest emitters and economies, experts said.

The U.N. Population Fund, the agency providing sexual and reproductive health worldwide, has long been a lightning rod for Republican opposition, and Trump cut funding for it during his first term. He and other GOP officials have accused the agency of participating in “coercive abortion practices” in countries like China.

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When President Biden took office in January 2021, he restored funding for the agency. A State Department review conducted the following year found no evidence to support GOP claims.

Other organizations and agencies that the U.S. will quit include the Carbon Free Energy Compact, the United Nations University, the International Cotton Advisory Committee, the International Tropical Timber Organization, the Partnership for Atlantic Cooperation, the Pan-American Institute for Geography and History, the International Federation of Arts Councils and Culture Agencies and the International Lead and Zinc Study Group.

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GOP gearing up to face tough midterms. And, Pentagon reviews women in ground combat

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GOP gearing up to face tough midterms. And, Pentagon reviews women in ground combat

Good morning. You’re reading the Up First newsletter. Subscribe here to get it delivered to your inbox, and listen to the Up First podcast for all the news you need to start your day.

Today’s top stories

President Trump continues to suggest that the U.S. will have a lengthy and active role in Venezuela after capturing the ousted president Nicolás Maduro. Trump has proposed several plans for Venezuela’s future government and economy. In those proposals, U.S. companies are expected to play a key role.

President Trump dances as he departs after speaking during a House Republican retreat at The John F. Kennedy Center for the Performing Arts on Jan. 6, 2026, in Washington, DC. House Republicans will discuss their 2026 legislative agenda at the meeting.

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  • 🎧 Trump and his aides are unclear about the future of Venezuela, NPR’s Franco Ordoñez tells Up First. When the president says the U.S. will run the country, many eyes are on Stephen Miller, Trump’s deputy chief of staff for policy. Miller, known for his stringent immigration policies, is one of the U.S. officials overseeing Venezuela. Ordoñez also says Miller has more recently described ruling over the hemisphere by force.
  • ➡️ Last night, Trump posted on social media that Venezuela will turn over between 30 million and 50 million barrels of sanctioned oil to the U.S. While seizing current oil production is one thing, overhauling Venezuela’s oil industry requires a far greater effort. Here’s why.

While meeting with House Republicans yesterday, Trump attempted to offer his party a roadmap to victory in this year’s midterm elections. The president acknowledged the possibility of his party losing the majority in the House this year. Trump said in his speech that the president’s party often loses the midterms.

  • 🎧 NPR’s Domenico Montanaro says that while it’s true the midterms are hard on the president’s party, it is even worse when a president’s approval rating is below 50%. Trump is facing his lowest second-term approval ratings, largely due to the rising cost of living. During yesterday’s speech, the president didn’t offer much on the topic. When he did discuss the economy, it was about how the stock market is at historic highs. He also touted his tariffs, which have actively raised prices on many things. People have informed pollsters for months that they believe the president’s policies have harmed the economy. Montanaro says one area where Trump and Republicans could take action is legislation on health care.

The Pentagon is preparing a six-month review to evaluate what it calls the military “effectiveness” of women serving in ground combat roles. Undersecretary Anthony Tata requested that the Army and Marine Corps submit data on the readiness, training, performance, casualties and command climate of ground combat units and personnel by Jan. 15. The effort aims to determine how gender integration has influenced operational success over the last decade.

Special series

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Trump has tried to bury the truth of what happened on Jan. 6, 2021. NPR built a visual archive of the attack on the Capitol, showing exactly what happened through the lenses of the people who were there. “Chapter 3: Assault on the Capitol,” lays out the timeline of key moments throughout the day as the riot unfolded.

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On the morning of Jan. 6, 2021, Trump held a “Save America” rally at the Ellipse, a site near the White House and U.S. Capitol. Multiple speakers promoted voter fraud myths and urged Vice President Mike Pence to overturn the election. Meanwhile, a group of 200 Proud Boys marched toward the Capitol. Before Trump’s speech ended, violence erupted on Capitol grounds. The Jan. 6 attack on the Capitol “was the most videotaped crime in American history, if not world history,” according to Greg Rosen, a former federal prosecutor who led the Justice Department unit that investigated the riot. But conspiracy theories still falsely label the assault a “normal tourist visit.” NPR’s review of thousands of court videos shows rioters assaulting officers with weapons, calling for executions and looting the building. These videos show the exact timing of events as they occurred. Corresponding maps show the locations where the conflict took place.

To learn more, explore NPR’s database of federal criminal cases from Jan. 6. You can also see more of NPR’s reporting on the topic.

Picture show

The tin soldier, a marionette puppet made by Nicolas Coppola and the main character in "The Steadfast Tin Soldier" show at Puppetworks.

The tin soldier, a marionette puppet made by Nicolas Coppola and the main character in “The Steadfast Tin Soldier” show at Puppetworks.

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Anh Nguyen for NPR

For more than 30 years, Puppetworks has staged classics like The Tortoise and the Hare, Pinocchio, Aladdin and more in Brooklyn’s Park Slope neighborhood. Every weekend, children gather on foam mats and colored blocks to watch wooden renditions of the shows. The company’s founder and artistic director, 90-year-old Nicolas Coppola, has been a professional puppeteer since 1954. The theater has puppets of all types, including marionettes, swing, hand, and rod. They transport attendees back to the 1980s, when most of these puppets were made. Over the years, Coppola has updated the show’s repertoire to better meet the cultural moment. Step inside his world with these images.

3 things to know before you go

An overhead view of Ascot Hills Park in Los Angeles, CA. A 10,000 square foot patch of green stands out against a dirt path and brown weeds.

This tiny forest in Los Angeles, CA is one of many micro-forests around the world offering green space and contributing to local biodiversity.

Demian Willette/Loyola Marymount University

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  1. Scientists are establishing micro-forests in big cities to boost biodiversity and rejuvenate compromised land. Short Wave producer Rachel Carlson visited California’s largest micro-forest. Tune in to hear her account of the experience.
  2. The Hungarian arthouse director Béla Tarr has died at 70. He’s best known for his bleak, existential, and challenging films, including Sátántangó.
  3. While we often associate serendipity with luck or happy accidents, its origin suggests it’s more than just happenstance. This week, NPR’s Word of the Week explores the historical impact of serendipity and offers tips on how to cultivate it.

This newsletter was edited by Suzanne Nuyen.

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Amazon accused of listing products from independent shops without permission

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Amazon accused of listing products from independent shops without permission

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Amazon has been accused of listing products from independent retailers without their consent, even as the ecommerce giant sues start-up Perplexity over its AI software shopping without permission.

The $2.5tn online retailer has listed some independent shops’ full inventory on its platform without seeking permission, four business owners told the Financial Times, enabling customers to shop through Amazon rather than buy directly.

Two independent retailers told the FT that they had also received orders for products that were either out of stock or were mispriced and mislabelled by Amazon leading to customer complaints.

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“Nobody opted into this,” said Angie Chua, owner of Bobo Design Studio, a stationery store based in Los Angeles.

Tech companies are experimenting with artificial intelligence “agents” that can perform tasks like shopping autonomously based on user instructions.

Amazon has blocked agents from Anthropic, Google, OpenAI and a host of other AI start-ups from its website.

It filed a lawsuit in November against Perplexity, whose Comet browser was making purchases on Amazon on behalf of users, alleging that the company’s actions risked undermining user privacy and violated its terms of service.

In its complaint, Amazon said Perplexity had taken steps “without prior notice to Amazon and without authorisation” and that it degraded a customer shopping experience it had invested in over several decades.

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Perplexity in a statement at the time said that the lawsuit was a “bully tactic” aimed at scaring “disruptive companies like Perplexity” from improving customers’ experience.

The recent complaints against Amazon relate to its “Buy for Me” function, launched last April, which lets some customers purchase items that are not listed with Amazon but on other retailers’ sites.

Retailers said Amazon did not seek their permission before sending them orders that were placed on the ecommerce site. They do not receive the user’s email address or other information that might be helpful for generating future sales, several sellers told the FT.

“We consciously avoid Amazon because our business is rooted in community and building a relationship with customers,” Chua said. “I don’t know who these customers are.”

Several of the independent retailers said Amazon’s move had led to poor experiences for customers, or hurt their business.

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Sarah Hitchcock Burzio, the owner of Hitchcock Paper Co. in Virginia, said that Amazon had mislabelled items leading to a surge in orders as customers believed they were receiving more expensive versions of a product at a much lower price.

“There were no guardrails set up so when there were issues there was nobody I could go to,” she said.

Product returns and complaints for the “Buy for Me” function are handled by sellers rather than Amazon, even when errors are produced by the Seattle-based group.

Amazon enables sellers to opt out of the service by contacting the company on a specific email address.

Amazon said: “Shop Direct and Buy for Me are programmes we’re testing that help customers discover brands and products not currently sold in Amazon’s store, while helping businesses reach new customers and drive incremental sales.

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“We have received positive feedback on these programmes. Businesses can opt out at any time.”

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