Today’s Budget includes a number of measures which will further help Northern Ireland businesses to invest and export. Increases in the Annual Investment Allowance for all businesses and Enhanced Capital Allowances for a pilot Enterprise Zone near Coleraine will allow businesses to claim deductions in tax more quickly supporting them to invest and expand.
The government also continues to support aspiration and provide help with the cost of living. Working families will gain from the further increase in the personal allowance and savers will benefit from a cut in the starting rate of tax on savings and increases in ISA limits.
The Northern Ireland Executive also will benefit from Barnett consequentials bringing the total amount of additional spending power granted to the Executive since the 2010 Spending Review to over £1 billion.
Secretary of State for Northern Ireland, Rt Hon Theresa Villiers MP, said:
In Northern Ireland businesses have been increasingly positive about their prospects and today’s announcements by the Chancellor will help them to invest to secure a stronger economy for the future.
There are measures to incentivise banks to lend to small and medium size business, support for investment, and the opportunity for Northern Ireland’s airports to bid for aid for new routes.
The announcement of a new pilot Enterprise Zone near Coleraine is particularly welcome. This meets another commitment made in the economic pact and with increased capital allowances available until 2020 this will help make longer term investment easier.
We also continue to support hard working families through a further increase in personal allowances to £10,500. As a result of this Government’s measures 89,000 people in Northern Ireland have been lifted out of income tax altogether and 685,000 have benefited from changes to personal allowances since 2010.
This is all further evidence of the Government’s commitment to support the people and businesses of Northern Ireland.
The Government is determined to build a more resilient economy so that we secure a better future for the whole of the UK.
Sticking to our long term plan to reduce the deficit and deal with our debts has delivered economic stability and low mortgage rates for hardworking families, and it has laid the foundations for economic recovery.
Notes: Key measures
- 100 per cent ‘enhanced’ capital allowances (ECAs) for plant and machinery investment will be made available until March 2020 at the pilot Enterprise Zone near Coleraine. This meets a commitment from both the Executive and the Government made in Building a Prosperous and United Community.
- The Annual Investment Allowance is being doubled to £500,000 until the end of 2015 increasing the amount of up front relief on qualifying investment expenditure.
- Start-up aid will be added to the scope of the regional air connectivity fund and will encourage airlines to start flying new routes from regional airports. Belfast international, George Best Belfast City, and City of Derry could benefit.
- The income tax personal allowance will be increased by £500 to £10,500 from April 2015.
- The starting rate of savings income tax will be cut to zero and the band to which this rate applies extended to £5,000. This could benefit up to 31,000 savers in Northern Ireland.
- The Government will set the overall and cash ISA limits at £15,000 benefitting up to 106,000 of the ISA holders in Northern Ireland.