A bill which would allow Belfast to set its own corporate tax rate has been published, with reports saying the British Government hopes to pass the legislation before May's general election.

If passed, the bill will give Belfast the power to change its corporate tax rate from April 2017.

The measure is part of the Stormont House Agreement which is aimed at breaking the political deadlock in Northern Ireland.

At the moment, businesses in Northern Ireland pay the same 21 percent corporate tax rate that is levied across all of the UK. If the power is devolved, it is likely that it will be reduced to match the Republic of Ireland's lower rate of 12.5 percent.

Since the Scottish Independence referendum, London has indicated that it will not allow Scotland to have similar powers. Northern Ireland is seen as a special case, as it faces the challenge of attracting businesses while sharing a land boarder with a state with a lower corporate tax rate.

Secretary of State for Northern Ireland Theresa Villiers welcomed the news: "There is strong support for this change across all five of the parties in the Northern Ireland Executive and the business community, who believe it would provide a major incentive for domestic businesses to invest further in Northern Ireland and significantly increase foreign direct investment."

She also said that 34,000 companies in Northern Ireland could benefit from a lower tax rate.

Irish Minister for Jobs, Enterprise and Innovation, Richard Bruton has previously said that he would not fear a drop in Northern Ireland's corporate tax rate - adding that Dublin is ready to “compete hard” to continue to attract investments.