The proposal to reduce the Northern Ireland corporation tax (CT) rate from the 21% that currently applies to the rest of the UK (dropping to 20% from April) to 12.5% could have a significant headline impact on the attractiveness of Scotland as a destination for multinational businesses.

Such a difference in a key headline tax rate could make Scotland look less competitive compared with its Northern Irish neighbour and is likely to prompt calls from the current Scottish government that the decision by the Smith Commission not to devolve corporation tax powers to Scotland needs to be reviewed.