Northern Ireland will get an additional £11 million of funding in the UK’s latest budget which aims to support “business and hardworking people”, according to the North’s Secretary.
Theresa Villiers said measures in the UK’s Budget 2015 including increases in personal tax allowances and tax breaks which could boost the North’s growing creative industries sector, offered “clear evidence” of the UK government’s continuing commitment to the North.
Ms Villiers said: “The government is committed to supporting hardworking people through an increase in the personal allowance to £11,000 by 2017-18 – which will help ensure work continues to pay.
“This means that since 2010 the government will have lifted 103,000 people in Northern Ireland out of income tax altogether by 2017-18, and 698,000 people will see an average real terms gain of £561. It also continues to take measures to keep household costs down through the cancellation of the fuel duty increase.”
The government will give a bonus of up to £3,000 through the new Help to Buy Individual Savings Account to help towards the cost of a first home. Some 30,000 people in the North could qualify for this over the next five years, while 880,000 people who own cars and businesses will benefit from the fuel duty decision.
Local farmers are also likely to benefit from new tax return arrangements, while the industry group Pubs of Ulster has welcomed a 1p cut in beer duty.
The North’s Minister for Finance said while the budget would provide a “modest boost in public spending” it also “points to challenges ahead”.
Simon Hamilton said: “The chancellor’s oft-stated policy of using the proceeds of growth to pay down the deficit has continued in this budget and this is reflected in the levels of public spending. It is important that people realise that the Executive’s budget will continue to reduce until at least 2019-2020, meaning that tough choices and difficult decisions lie ahead.”
However, local business leaders are optimistic the chancellor George Osborne has produced a budget that will deliver for them. Ann McGregor, chief executive of Northern Ireland Chamber of Commerce and Industry, said: “Lower business taxes, allowances for investment, and targeted support for sectors and small companies all contribute to confidence, investment and job-creation.”
She said more generous tax breaks for the television and film industries and new support for the video games sector could also encourage both local and international film and TV companies to locate more productions in the North.
Nigel Smyth, director of CBI NI, said: “The increase in income tax thresholds and the recent announcement on the national minimum wage will also benefit those on lower pay . . . with business investment a crucial driver of growth, the chancellor has signalled his intention to continue the annual investment allowance. We want it to be made permanent in the autumn statement at £250,000 – this will encourage Northern Ireland’s small and medium-sized firms to invest and drive future growth.”
