Northern Ireland is to compete with the Republic for international investment and jobs as it is to cut its corporation tax rate to 12.5%.

A deal on corporation tax was agreed as part of the Stormont House Agreement, which yesterday brought to an end the months long talks over a broad range of issues.

The Irish Independent reports, the deal allows for a full devolution of corporate tax power by 2018, which will see the current rate of 20% dropped to match the Republic’s 12.5% rate.

Critics have said the move will drastically reduce the North’s tax intake to the point that it will negatively impact on public spending.