Lots of talk in the run up to the Budget will focus on the prospect of cuts in tax rates. And most will, of course, relate to income tax rates. But one rate which is sure to fall is the standard corporation tax rate of 36 per cent. This has been reduced by two percentage points in each of the last two budgets and another cut of at least this amount is on the cards in the 1998 package.

And a larger reduction cannot be ruled out, as the Government is under pressure from Brussels to move towards a single rate of corporation tax as quickly as possible.

In a move to please the small business lobby, Mr McCreevy may also further reduce the 28 per cent rate which applies to the first £50,000 of profits.