Entitled “Making the most of devolution”, it calls for “Enterprise Zone status and tax-varying powers to make the region more attractive to overseas investors."
It builds on the report earlier this year by the Independent Review of Economic Policy (IREP), which also recommended differential rates of corporation tax in Northern Ireland, a move which is being considered by George Osborne.
What is relevant to Wales is the call, by PwC chief economist Dr Esmond Birnie, for Northern Ireland “to work with their Scottish and Welsh counterparts to exploit every advantage to make devolution real”.
This follows a similar call by Gerry Holtham and his recent review that:
“The Assembly Government should seek discussions with the UK Government and the other devolved administrations about the feasibility of devolving corporation tax. Any specific proposal will need evaluation to ensure its compatibility with European law, notably the question of whether any UK-wide agreement on limits to rate changes would be permissible.”
Given that the current state of indirect business support seems to be in a complete mess, the question is whether WAG has started any discussion, with either the other devolved regions or the UK Government itself, about improving the environment for direct support to businesses in Wales via lower business taxes.
In my opinion, that discussion cannot start soon enough.
