Minister hosted a roundtable today to
update business bodies and NICVA on the wider budgetary context,
the Department's Strategic Review of Rates as well as the Cost of
Doing Business research.
In December, the Department of Finance commissioned Ulster
University Economic Policy Centre to conduct a sectoral cost
of doing business study.
Speaking after the meeting, the Minister said: “There are many
factors that make up the cost of doing business including the
cost of labour, energy, property and transport.
“However one of the main areas for concern highlighted by
employers in both the public and private sector has been the
impact of the changes in Employers' National Insurance
Contributions which came into effect last month.
“The publication of the report, by the Ulster University Economic
Policy Centre, is timely as it reaffirms decisions in Westminster
are having a detrimental impact on our business community
and voluntary sectors as well as impacting on our public
finances.
“I have impressed upon the Chief Secretary to the Treasury the
need for support or mitigations to ease the strain these changes
are having on employers and have provided him with a copy of the
report ahead of the forthcoming Spending Review.”
The Minister added: “Along with changes to National Insurance
Contributions, the disparity of VAT and the negative implications
for business, especially for hospitality businesses operating
near the border, was highlighted. I want to see a reduction in
VAT to enable our hospitality sector to compete on a level
playing field in the all-Ireland economy.”
The Minister concluded: “While we do not have the financial
capability to mitigate against decisions taken in Westminster,
the Executive is committed to supporting businesses and our
economy. The 2025/26 Budget provides investment in skills,
childcare, agriculture and capital funding to stimulate economic
growth.
“My Department recently extended the Small Business Rate Relief
Scheme which supports 30,000 businesses and is just one element
of the quarter of a billion pounds of support provided to
business ratepayers through the rating system.
“The publication of the research today will complement the work
already underway in my Department on the Strategic Review of
Rates and the policy reviews into the Small Business Rate Relief
and Non Domestic Vacant Rating, both priority areas requested by
business organisations.”
Notes to editors:
1. The Ulster University Economic Policy Centre report is
available at https://www.finance-ni.gov.uk/publications/uuepc-cost-doing-business-impact-report
