By Vivienne Russell | 1 March 2012
Northern Ireland Finance Minister Sammy Wilson has warned that devolution of fiscal powers to the province could be economically dangerous.
Wilson was rejecting calls for greater fiscal autonomy from Paul Maskey, a Sinn Féin member of the Northern Ireland Assembly. Maskey said that having more powers would help local politicians tackle the economic crisis.
But Wilson said that if tax-varying powers only were devolved to Northern Ireland, it would mean that the block grant would need to be reduced in line with any fall in tax revenues.
Cutting taxes, such as fuel taxes, locally would lead to ‘huge reductions’ in the funding available for essential public services, he added.
‘We would also have to pay the cost of administering devolved taxes, and there could also be significant risks associated with the devolution of tax varying powers which could make public expenditure planning much more difficult,’ he said.
Northern Ireland Finance Minister Sammy Wilson has warned that devolution of fiscal powers to the province could be economically dangerous.
Wilson was rejecting calls for greater fiscal autonomy from Paul Maskey, a Sinn Féin member of the Northern Ireland Assembly. Maskey said that having more powers would help local politicians tackle the economic crisis.
But Wilson said that if tax-varying powers only were devolved to Northern Ireland, it would mean that the block grant would need to be reduced in line with any fall in tax revenues.
Cutting taxes, such as fuel taxes, locally would lead to ‘huge reductions’ in the funding available for essential public services, he added.
‘We would also have to pay the cost of administering devolved taxes, and there could also be significant risks associated with the devolution of tax varying powers which could make public expenditure planning much more difficult,’ he said.
