Last month, the Government issued its response to the May 2011 report of the Northern Ireland Affairs Committee's inquiry into corporation tax in this region. Chair of the Institute's Northern Ireland Tax Committee, Mr Eamonn Donaghy, was previously called to give evidence to the Committee in October 2010.

There are no great surprises in the Governments responses to the points raised by the Committee report and in fact the responses mirror the Governments December 2011 comments made in response to the 2011 consultation on Rebalancing the Northern Ireland Economy.

As followers of the campaign will no doubt be aware, the Government has established a joint ministerial working group, comprising of ministers of the UK Government, the Northern Ireland Office and the NIE, to consider issues raised by the consultation and it is hoped that this Group will conclude in summer 2012.

This Institute has long supported devolving corporation tax powers to affect a reduced rate of corporation tax in Northern Ireland.

The Committee's original report can be found at:-http://www.publications.parliament.uk/pa/cm201012/cmselect/cmniaf/558/55802.htm whilst the full text of the Government's response to the inquiry report is available at:- http://www.publications.parliament.uk/pa/cm201012/cmselect/cmniaf/1767/176705.htm.