The Northern Ireland Executive announced an overview of the 2020-21 budget this week, and businesses and stakeholders have responded with their thoughts
Broad details of the 2020-21 budget for Northern Ireland have been announced, including a huge relief budget to combat the Covid-19 outbreak and a significant reduction in business rates. But what does the NI business and tech community think of the new budget? Is it enough to address the needs of Northern Ireland's businesses, or does it miss key areas of support?
PwC NI tax director Craig Harrison, NI Chamber Chief Executive Ann McGregor, and CBI Northern Ireland Director Angela McGowan share their thoughts on the 2020-21 budget for Northern Ireland:
Craig Harrison, PwC NI’s tax director:
"Although there is scope for more to be done, at a time of unprecedented challenge, Northern Ireland’s business community will welcome the measures announced today by the Finance Minister."
"Many businesses are looking at short-term measures to manage costs and take advantage of various government measures like the Coronavirus Jobs Retention Scheme (CJRS), Time to Pay and Business Interruption Loans. But we also expect some businesses will pivot during this time, as they look to the medium and long-term opportunities to change their position in the market, perhaps via combinations with other businesses."
"Under pressure from the retail and hospitality sectors, the contentious issue of significantly higher business rates has been dealt with with an effective cut of 18%, when Reval 2020 is included, to benefit all businesses. The renewal of the Small Business Rates Relief Scheme will also help many firms which are a core part of the sector, and support the recovery on the other side of the crisis."
"For those businesses which have followed government restrictions and temporarily closed, in hospitality and retail, the CJRS is catching much of the cost. With attrition in the supply chain as well as the reality of imposing social distancing, the pressure on sectors like manufacturing, construction, pharma and food retail is growing."
"Any who hoped to hear of an extension to the 3-month non-domestic rates holiday will be disappointed. It is important for Northern Ireland's future economic recovery that this is levelled up with the more generous 12-month break in other parts of the UK, acknowledging the reality of our low levels of growth prior to the crisis and the significant challenge on the road ahead."
"As the detail is worked out and a more thorough document produced in May, it will be important to see a range of stimulus going forward. We hope to see additional measures where the Executive can support businesses in areas like increasing infrastructure spend and incentives for innovation and skills development."
Ann McGregor, Chief Executive of Northern Ireland Chamber of Commerce and Industry:
"The Chancellor’s Budget statement contains a range of measures which will be essential for protecting jobs and businesses during what is set to be a turbulent period for the economy. He has been clear that coronavirus will have a significant, negative impact on the UK economy and measures announced today to help mitigate the effect are welcomed."
"Pragmatic support with statutory sick pay, providing access to loan schemes and deferring tax payments are all the right thing to do. Commitments to rates relief for small business are also welcomed – the Finance Minister for Northern Ireland must now ensure that the relief is extended to SMEs here. We must have access to the same relief measures as businesses in other parts of the UK for as long as this outbreak continues."
"However, the substance of the remainder of the budget statement will not deliver the stimulus that Northern Ireland’s economy and our unique circumstances need. No reference was made to recent calls for the suspension of Air Passenger Duty, which could prove vital for securing Northern Ireland’s connectivity with other major cities. And on Brexit, there was also no indication of measures to help businesses here prepare for the Northern Ireland protocol."
"It is now vital that local firms are supported in the forthcoming Northern Ireland budget."
Angela McGowan, CBI Northern Ireland Director:
"In these deeply challenging times, the Finance Minister’s budget statement has provided much needed clarity for the year ahead. The CBI has long campaigned for a reduction of business rates in Northern Ireland, so many companies will breathe a sigh of relief after this significant cut."
"A non-domestic rate that is more aligned with other parts of the UK will help NI firms compete in the UK market once we come through the COVID-19 crisis."
"CBI Northern Ireland had previously called for a temporary holiday for all non-domestic rate payers. We very much welcomed the Executive’s decision to introduce this measure for a three-month period as a minimum first step in the battle against business costs through this crisis. However, as events unfold, Northern Ireland business may need that rates holiday extended to 12 months, in line with non-domestic properties in England."
"The news of nearly £800 million additional COVID-19 funding for Stormont is extremely welcome. As a business community, NI firms are keen to see details published quickly on how all these funds will be spent on the ground. Business and government need to continue working together to save lives, protect communities and support businesses."
Source: Written based on press releases
