Corporation tax: Treasury will not waive cut cost, says Villiers

Theresa Villiers said devolving corporation the tax must be funded through the Northern Ireland Executive

The Treasury will not cut the cost of Northern Ireland reducing its rate of corporation tax, Theresa Villiers has said.

On Monday, First Minister Arlene Foster said she would ask whether the UK's EU withdrawal changed the financial consequences of devolving the tax.

Northern Ireland had been expecting to take a cut of several hundred million pounds to comply with an EU ruling on state aid to business.

Arlene Foster said a lower cost of cutting corporation tax could be a benefit of Brexit

But the Northern Ireland secretary said the Treasury would not waive the cost.

She added that the circumstances for devolving corporation tax had been agreed and they would not change as a result of the Brexit vote.

She said devolving the tax must be funded through the Northern Ireland Executive.

Ms Villiers also said on Wednesday that Northern Ireland cannot maintain any kind of special status within the EU after the UK withdraws from the union.