Northern Ireland’s hopes of persuading the government to stimulate the local economy with a special low rate of corporation tax will be dashed on Monday when the Varney report into regional tax policy is published.

Sir David Varney, a former head of the Revenue & Customs appointed by the government to consider possible changes in tax policy for the province, will on Monday rule out a cut in corporation tax and instead propose various measures to exploit the province’s lower operating costs and better telecommunications infrastructure.