Theresa Villiers: Stormont needs to be in 'best possible shape' for tax powers

Theresa Villiers is set to speak at an event in Birmingham

The Northern Ireland secretary of state will later say that Stormont needs to be in the best possible shape if it is to take on the devolution of corporation tax rates.

Theresa Villiers will also say it will be hard for the executive to fund a corporation tax cut whilst there is an impasse over welfare reform.
Northern Ireland faces penalties for not endorsing welfare reforms.
Ms Villiers is set to speak at an event organised by CHAMP in Birmingham.
During the event, she will say: "Stormont needs to be in the best possible shape if it is to take on such a significant fiscal devolution.
"That means sorting out the impasse on welfare reform and the budget, since it is hard to see how the executive could fund a corporation tax cut as well as meeting mounting bills to run a more expensive welfare system."
While the secretary of state is not issuing an ultimatum, she will tell the breakfast meeting that a decision will be taken soon on whether corporation tax powers should be devolved to Stormont.
'Complex' She will say much work is being done behind the scenes but will not detail how much the devolution of such powers could cost.
Under European law, Northern Ireland would have to meet the full costs of tax cuts and that would come from the block grant - the money Stormont receives from London.
Ms Villiers will also tell the audience in Birmingham that "the devolution of corporation tax rate setting powers would be a complex piece of devolution to deliver and various work streams are yet to be completed".
She will also confirm that many discussions have taken place between the Treasury in London and the Stormont Executive and add that the "UK government has had some informal discussions with the European Commission on state aid implications".
Earlier this month, the Stormont Finance Minister said a reduction in corporation tax rates could create thousands of highly paid and skilled jobs across Northern Ireland.