Stormont ministers to learn of possible tax measures

Stormont's power-sharing ministers will learn today what tax measures they may be able to deploy to boost the North's economy.

A report will be published by David Varney, the chairman of the UK's Revenue and Customs, who was appointed in May by British Prime Minister Gordon Brown when he was Chancellor of the Exchequer to head up a review of the economy.

However it is unlikely to give Stormont ministers the one thing at the top of their Christmas wish list – a cut in corporation tax.

Unionists and nationalists in the North had, prior to the restoration of devolution, wanted the British government to cut the rate of corporation tax from 30% to 12.5% in line with the Republic's.

The parties argued this would help them compete on a level playing field for foreign investment.

Varney is not expected to back the proposal amid fears that if a special case is made for the North, it would draw companies away from other parts of the UK.

Scottish First Minister Alex Salmond and Welsh First Minister Rhodri Morgan would also be expected to demand a similar cut in corporation tax.

However his report may contain proposals for other tax incentives benefiting companies who invest in research and development and also skills training.