Corporation tax proposals for North to be outlined today

Proposals to overhaul corporation tax in the North will be announced later today.

Giving the Assembly the power to vary the rate levied on businesses is among measures expected in the British Treasury consultation document.

Treasury officials and senior figures from the Northern Ireland Executive are expected to attend today's launch near Lisburn.

British Chancellor George Osborne yesterday told the House of Commons the paper considers the case for the North having a lower rate of corporation tax than the rest of the UK.

Companies in the North have to compete with those in the Republic, where the lower rate of 12.5% has attracted increased foreign direct investment.

Mr Osborne said the paper would explore how the British government can help the North's private sector to grow.

"To deal with the unique issues posed by the Irish Republic's business tax regime, it considers the case for Northern Ireland having an even lower rate of corporation tax than the rest of the UK," he said.

"I look forward to engaging with all parties there on the way forward."

One option in the consultation document was expected to be handing the Assembly the power to set its own rate of corporation tax.

Campaigners argued that bringing the tax in line with the Republic could help invigorate the North's economy. However, there are Stormont concerns any reduction would be paid for in a cut in the block grant from Westminster.

The Irish Government is under pressure to raise its level of corporation tax following talks on changing the terms of its European bailout.