Northern Ireland business organisations react to latest Budget
Last week’s Autumn Budget has only risked piling further pressure on retailers, jobs and household prices, it has been claimed.
Following Chancellor John Healey’s first budget, business owners and organisations have been reacting to the detail, with initial concerns focusing on the lack of breathing space being given to retailers.
The Northern Ireland Retail Consortium (NIRC) stated its disappointment in the budget, particularly for retailers and said the Chancellor has only added to their financial burdens rather than easing them.
“Retailers want to invest, create jobs and keep prices affordable for customers, but every additional cost makes those things more difficult,” said Neil Johnston, NIRC Director.
“That is particularly concerning at a time when households remain under pressure from the cost of living. The decisions at Westminster make it even more important that our own Executive does not add unnecessarily to the cost of doing business in Northern Ireland.”
Mr Johnston added that NI retailers should not find themselves at a competitive disadvantage because businesses elsewhere in the UK benefit from reforms which aren’t replicated here.
“We need an approach which recognises the importance of retail to employment, investment and communities across Northern Ireland,” he said.
“Executive Ministers cannot control every cost facing our members, but they can control the decisions they take at Stormont. The NI Budget is therefore an opportunity to demonstrate that this Executive understands the pressures on businesses and is serious about supporting economic growth.”
Meanwhile, the Director of CBI NI, Angela McGowan said the Budget was a stark reminder that the Executive needs to make the hard choices when it comes to tax and spending at the local level.
“Fiscal discipline matters and the Chancellor is undoubtedly charting a path through difficult circumstances,” she said.
“At a time of exceptional geopolitical pressures, using some fiscal headroom to absorb the genuine short-term shocks is preferable to loading additional permanent costs onto business and weakening investment.
“Firms will be disappointed that the Chancellor did not reduce the cost of hiring by increasing the employer NICs threshold – this would have given firms more space to create entry-level and boost employment.
“Relief for business rates for retail, hospitality and leisure firms will be welcomed ad hopefully the Barnett consequential will be applied in Northern Ireland. However, CBI will continue to press for wholesale reform to the rating system that we desperately need.”
Reacting to the Budget, Finance Minister John O’Dowd said significant financial pressures remain and said the financial package on the table from Westminster leaves a significant gap.
“There is a duty on the Westminster Government to fairly fund us. It is crucial they urgently get back round the table and work with us to agree a fair financial package that protects essential public services, supports transformation and places our finances on a sustainable footing,” he said.
