IBEC and other commentators have warned that George Osborne’s decision to further cut UK corporation tax to 18 percent by 2020 will bring further competitive pressures for inward investment here where our rate is 12.5 percent.

It should also make it easier for the introduction of a comparable 12.5 percent rate in Northern Ireland within the next two years.

Irish business body Ibec called the measures a "wake up call" for the Irish Government. Ibec economist and head of policy Fergal O'Brien said, "Britain is fast becoming a more attractive European investment location, to Ireland's potential detriment."

"A cut to the UK corporate tax rate, along with recent innovation tax incentives, mean the UK now has one of the most attractive tax offerings in Europe," he continued.

The cut will be funded by forcing companies with profits of more than £20m per year to pay their tax four months earlier than they currently do.

Shares in many of Britain’s retailers such as Mark & Sparks fell yesterday after the Chancellor’s announcement that a new national living wage for over 25 year-olds of £7.20 per hour will be introduced next year rising to £9 per hour by 2020.

The current minimum hourly rate in Britain is £6.50 and retailers and operators in the hospitality sector fear their annual wage bill will rise by up to £4bn under the new regulations.

The special bank levy paid by banks in Britain will be cut in half over the life time of this parliament but the banks will be hit with an additional 8 percent tax on annual profits on their British operations in addition to regular corporation tax.