Corporation tax: Arlene Foster says April 2017 target 'still possible'

Arlene Foster told the BBC that the April 2017 is still "possible", but only if Stormont can reach agreement on welfare reform in the coming months

Finance Minister Arlene Foster has said it is still possible that a corporation tax rate cut could be introduced in Northern Ireland in April 2017.

On Monday, she told the assembly it was "probably not going to be the case" that the 2017 target would be achieved.

She told the BBC that 2017 is still "possible", but only if there is a deal on welfare reform in the coming months.

This power will not be devolved until the Treasury assesses that Stormont's finances are on a sustainable footing.

That assessment of what is sustainable includes the implementation of welfare reforms.

A so-called "rate and date" for corporation tax would need to be agreed by the end of this year, to give Invest Northern Ireland time to attract investment projects.

Foreign direct investment deals typically take 18 months to come to fruition.

The business community is increasingly concerned that the lack of "a date and a rate" will cause foreign companies to defer investment.

Corporation tax is the tax that companies pay on their profits. The current UK rate is 20%, whereas in the Republic of Ireland firms pay 12.5%.

The Northern Ireland Executive wants to be able to match the tax rate in the Republic of Ireland