The Northern Ireland Executive will receive an additional £210 million (€240 million) to spend thanks to the UK’s latest budget but there was no special treatment for the North this time, much to the disappointment of business leaders.
Ann McGregor, chief executive of the Northern Ireland Chamber of Commerce and Industry, said although the budget contained a range of measures to protect jobs and businesses in the UK it failed to deliver “the stimulus” that the North’s economy urgently needs.
“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,” Ms McGregor said.
There was also no firm indication on whether businesses in the North will be able to benefit from a decision by the British chancellor, Rishi Sunak, to suspend rates for businesses in the UK who operate in the hospitality sector.
Financial pressure
The Northern Ireland Minister of Finance, Conor Murphy, said overall the budget fell short of what was needed.
According to the Department of Finance, the latest allocations will result in £77 million of resource funding and £138 million of capital for the Executive to spend.
Mr Murphy said: “Our public services are already under enormous financial pressure. Before this Budget was announced the gap between inescapable pressures identified by departments and the budget available to us was nearly £600 million.
“We are also dealing with the emerging challenges of coronavirus which will have a profound impact on people and the economy. With finite resources and infinite demands, myself and ministerial colleagues will take a collective approach to prioritisation, making the best possible use of the available resources. We will now move forward and put in place a budget by the end of March.”
‘Mixed bag’
Ian Gourley, chairman of Chartered Accountants Ireland’s NI Tax Committee, believes many businesses in the North will simply view the budget as a “mixed bag”.
“There’s just under nine months now until the EU transition period is due to end on 31 December 2020. The business community cannot effectively plan for post 31 December trading arrangements with the EU because they simply do not know what these are.
“The Chancellor did extend the availability of postponed accounting for import VAT to post transition period trading arrangements, in whatever form these may take. This is a positive move and one that Chartered Accountants Ireland has been calling for.”
Colin Neill, chief executive of the industry body Hospitality Ulster, said firms in the North would also welcome the “significant package”of support from the British chancellor to help cope with the impact of coronavirus.
