Northern Ireland

George Osborne corporation tax move leaves Stormont plan 'in tatters'

George Osborne is set to slash Britain's corporation tax in a move that will alarm the Stormont Executive as a cut in the rate here was expected to attract investment
George Osborne is set to slash Britain's corporation tax in a move that will alarm the Stormont Executive as a cut in the rate here was expected to attract investment George Osborne is set to slash Britain's corporation tax in a move that will alarm the Stormont Executive as a cut in the rate here was expected to attract investment

George Osborne is planning to cut corporation tax in Britain to less than 15% - just as Northen Ireland prepares to cut its own rate.

The move by the British chancellor - aimed at attracting investment deterred by the Brexit vote - is expected to seriously hinder the north's chances of attracting investment after the rate here falls.

Mr Osborne is believed to be considering a cut close to the Republic's 12.5% corporation tax rate which has helped attract major companies including Apple and Google.

The Stormont Executive has advanced plans to slash the tax in the north to match the Republic’s rate in 2018.

The move is a critical part of the Fresh Start deal and was sold as a key instrument in building the private sector employment here.

Announcing the move, Mr Osborne said Britain must show it is "still open for business" following the decision to leave the EU.

Salshing more than 5% off the current rate would make the country one of the most competitive global economies.

Mr Osborne told the Financial Times: "We must focus on the horizon and the journey ahead and make the most of the hand we've been dealt."