NI Chamber President Caitroina McCusker has outlined why policymakers need to “get down to business on delivering for the economy.
In her New Year message, Ms McCucker addresses the need to address falling business confidence and boost Northern Ireland’s competitiveness, calling for an ambitious, long-term economic plan for the region.
Acknowledging some welcome progress in the past year the NI Chamber President comments: “For the first time in over a decade, in 2025, the Northern Ireland Executive will have a budget, a legislative programme and a Programme for Government.
“This year (2024) saw some progress, which was both welcome and overdue. NI Chamber was the voice of business that publicly supported Executive parties in calling for a new fiscal framework for Northern Ireland, which included an evidence-based fiscal floor. Early in the year, we published our recommendations for urgent reform of the region’s planning system, which received broad political buy-in. In the months since, the NI Audit Office has announced a strategic review of the role of the Planning Appeals Commission (PAC), whilst Minister John O’Dowd has made a bid to fund the appointment of independent commissioners to alleviate pressures on it.”
READ MORE: Investment Fund for Northern Ireland deploys almost £6M of equity investment
Commenting on business conditions going into 2025, Ms McCusker stated: “Business confidence in Northern Ireland is not where it should be, and we are concerned that it has dipped for consecutive quarters. Having kept a watching brief on it, we are certain that action should be taken immediately to curb the decline by picking up the pace of delivery on sustainable infrastructure including wastewater, planning and digital connectivity, as well as skills and childcare.
“From meeting housing needs to driving sustainable economic growth, 2025 must be a year that the Executive takes swift action, on wastewater infrastructure in particular, and our members are ready to work in partnership with the Executive on finding a financially stable and politically palatable landing zone.
“Undoubtedly, the Chancellor’s Autumn budget has left many members with difficult decisions. While they acknowledge the need to stabilise public finances and support investment in public services, the acceleration of the tax burden on business will concern many. In the absence of material growth, it could add to already high business costs. It is impacting confidence and likely to impact investment intentions.
“The overwhelming sentiment from NI Chamber members around the increase in the business tax burden remains one of apprehension. The UK government has stressed that its core mission is economic growth, which is what will ultimately bring long-term stability to our overall financial position. However, the decision to increase the tax burden on businesses in a fragile economy means there could be some difficult choices for employers this coming year.
“Many are struggling to ascertain where that money will come from, during a time when the need to invest in skills, automation, digitisation and decarbonisation cannot be ignored. For those trading in a globally competitive marketplace, who are already responding to lower demand, passing on the cost could be detrimental to their competitiveness.
READ MORE: Belfast Chamber welcomes new interim measure allowing taxis to travel in bus lanes
“Add these constraints to the existing cost pressures that businesses were already facing from energy, wages, raw materials and the cost of borrowing and you get a clearer picture of why so many members enter this new year with understandable concerns.”
Outlining the immediate and long-term interventions required, the NI Chamber President said: “After a difficult UK Budget, we hope the draft NI Budget will help deliver greater certainty for firms here. Whilst we recognise that tough choices need to be made, with more money available to Northern Ireland than ever before, in the next financial year we hope to see real progress in areas like wastewater, childcare and decarbonisation. The Chancellor announced a wide range of initiatives designed to incentivise economic growth across the UK in high-growth sectors such as defence, aerospace, life sciences and clean energy. We must ensure that Northern Ireland gets its fair share of this, too.
“In recent weeks, we have welcomed the opportunity to respond to the draft Programme for Government and, in broad terms, our members support the approach taken by the Executive. Amongst its nine priorities are many cross-cutting issues including affordable childcare, healthcare waiting times, housing and the transformation of public services, all of which have direct consequences for business and economic growth. What the Programme for Government needs now is a greater sense of ambition. With an additional £1.5 billion having since been made available, we urge the Executive to turn the relatively modest draft Programme into a more ambitious blueprint, particularly when it comes to developing the levers for long-term growth.
“In the past, Northern Ireland has been beset by short-termism and this is the year that must change. This region needs a long-term economic plan which not only recognises the stark realities facing businesses but determinedly tackles them head on, supporting them to invest, innovate, export and succeed.”
READ MORE: New coalition seeks to make Northern Ireland a Top three UK hub for diverse and scalable enterprises
Singling out the opportunities at hand Ms McCusker said: “This must be a year of ambitious thinking where business, policymakers and the third sector establish a truly renewed partnership and, through collaboration and co-design, work together to deliver on our untapped potential.
“This year, let us look at the opportunities presented by positioning Northern Ireland as a global leader in using Artificial Intelligence (AI) to transform the public sector and start working now to establish a dedicated workforce development agency that ensures we have the skills needed for a digital economy.
“It is also time to get back on track with our climate change targets; unlocking the door to that wall of green capital, as well as enabling young working parents to get on with their careers, unhindered by the burden of unaffordable childcare.
“With the Windsor Framework in place, some of Northern Ireland’s most innovative businesses have already taken advantage of the unique opportunity that barrier-free access to the EU single market and GB presents.
“And whilst there is a general sense of stability, and progress has been made in recent years, our evidence base shows that there are still too many businesses that continue to find the supply of goods from GB challenging under the arrangements as they stand today. Business wants to ensure that radically reducing red tape is at the centre of discussions in any reset of EU/UK wide relations. There is much more that can and should be done to both support growth and protect the consumer in a challenging economic environment.
“As we begin a new year, business is asking what kind of economy we want by 2035, what is it that will set us apart on the global stage, and what are the building blocks on that journey? This is a conversation we need to accelerate in 2025. With the right approach and a clearly articulated, specific long-term plan that is supported by the Executive as a whole, it just might deliver the injection of confidence that we all need to see.”
Read Sync NI's free online autumn magazine Celebrating a Decade of Big Data Belfast here.
Subscribe to the Sync NI newsletter for all the latest technology news, jobs and upcoming events in Northern Ireland.
