Northern Ireland party seeks corporation tax concession in post-election talks

Labour Party leader Jeremy Corbyn called for the UK Parliament to be informed of the terms of a deal providing for Northern Ireland’s Democratic Unionist Party (DUP) to back a Conservative and Unionist Party-led government, as it emerged that the DUP asked for the conditions attached to new corporation tax rate-setting powers to be relaxed.

Talks began after the UK’s general election produced a hung Parliament. The parties were reported on June 14 to be finalising the terms and conditions of an agreement, but the formal announcement of a deal was considered inappropriate while the UK was absorbing news of a fatal fire in west London, where a 24-story residential tower block was destroyed …

According to a report in The Guardian that cited DUP sources, the DUP asked the Conservatives to agree to “erase” a proposed reduction in HM Treasury’s block grant for Northern Ireland …

Read more: My news story for Tax Analysts, June 15 (paywall)