The Department of Finance has warned that the State's VAT returns could suffer due to Brexit.

Following the UK's decision to leave the European Union, the pound sterling plunged 12% to 1.3117 dollars its lowest value in 31 years.

It also fell to its weakest amount against the euro since 2013, hitting 1.1787 euro.

At this moment in time, €1 will buy 83 pence.

The Department of Finance has warned that consumers could be enticed to shop in Northern Ireland by the cheaper prices.

John Palmer, principal officer at the department, commented:

"There will be an impact. What's hard to tell is how much and that's something we'll be looking at in the context of the forecast for the Budget.

"We would expect, later on in the year, and again it depends on the strength of sterling, that we will probably see some linkage across to Northern Ireland in terms of Vat, and people [will] go and shop there."