Members of the business community in Northern Ireland are awaiting the results of the government's Varney review into taxation.

Stormont ministers are hoping for a cut in corporation tax to promote investment.

The rate of corporation tax is 12.5% in the Republic of Ireland, compared to NI's 30% top rate however this is being reduced to 28% in April.

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The Irish Republic's low corporation tax has been a key factor in its economic success. The parties have argued the tax cut would help them compete on a level playing field for foreign investment.

However Varney is not expected to back the proposal amid fears that if a special case is made for Northern Ireland it would draw companies away from other parts of the United Kingdom and lead the Scottish First Minister Alex Salmond and Welsh First Minister Rhodri Morgan to expect similar cuts.

The report is expected to contain proposals for other tax incentives benefiting companies particularly for those who invest in research and development and also skills training.

(GK/SP)