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.
Stormont Executive's economic plan in tatters. All eggs in corporation tax-cut basket. https://t.co/Wfke9YqMq2
— Patrick Corrigan (@PatrickCorrigan) July 3, 2016
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."
If UK corporation tax really is cut to below 15% then Stormont's 'tax, talent, technology' FDI strategy has one leg cut off.
— JPCampbellBiz (@JP_Biz) July 3, 2016
Corporation tax to be cut to less than 15% - has Osborne just stiffed Stormont. Let's see Arlene spin that one.
— Martin Mac (@martymac25) July 4, 2016
@martymac25 Yep, no point now in Stormont reducing Corporation Tax, no incentive at all to invest here in the North compared to England/ROI
— Ryan (@Irish_Ryan17) July 4, 2016