Britain may weaken its opposition to a European Commission plan for a common corporate tax base in the hope that it would stem the tide of multinationals moving their tax domicile to Ireland, according to Brussels -lobbyists.

Irish opponents of the Commission's European Union-wide tax project fear they will lose Britain's support as tax competition becomes a growing threat to UK revenues. The Treasury has repeatedly underlined its deep scepticism of the proposal, but it was unclear whether it would try to block other countries from adopting the plan.