How low can you go? The news that the UK plans to shave another two percentage points off its corporate tax rate by 2020 means the gap between the UK rate and the Irish rate – assuming its does not change – will be 5.5 per cent.

It is still a significant difference and should serve to bolster the attraction of the Republic to mobile investment looking for a European base.

The uncertainty around Britain's long-term relationship with the European Union, which is set to escalate over the next few years, should further add to Ireland's allure. In truth, Ireland's rate is near unassailable.

The shift in the burden of taxation from business owners to employees that would be required to bring the UK rate down to 12.5 per cent would be politically unacceptable, even for the first Tory government in 18 years. The Irish taxpayer, on the other hand, will not miss what they never had.

The headline tax rate, however, is only part of the story and many countries can offer much lower effective tax rates through various schemes and loopholes. However growing public dissatisfaction over tax avoidance by large corporations has resulted in considerable pressure on governments not to offer such concessions and and on companies – particularly consumer brands – not to avail of them.

The most obvious manifestation of this is the OECD-led Beps project which is intended to bind its members to a common set of rules aimed at reducing beggar thy neighbour tax competition. It is too early to say whether it will amount to anything substantial. If it does, then headline corporation tax rates assume great importance.

Mr Osborne may be tempted to squeeze his taxpayers a little more.