IBEC: Irish Government must react to UK plan for lower corporate tax rate

IBEC has said the Government needs to respond to plans by the UK to reduce its corporate tax rate.

The British Chancellor George Osborne has announced he wants to boost the UK economy after Brexit by lowering the UK rate below 15%.

The move would cut more than 5% from the current rate and would see Britain close in on Ireland's 12.5% rate.

Economist with IBEC Fergal O' Brien (pictured) said the Government here must react.

"In many ways it's not surprising - we always thought that if the UK voted to exit the EU, we would see a reaction like this," he said.

"The key for Ireland is this is one of the variables we can control. This is one of the things we can influence in terms of our overall competitive position.

"We think our Government needs to react."

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