Survey shows public sector reform, competitiveness and effective delivery critical to unlocking growth – Chartered Accountants Ulster Society

Chartered Accountants in Northern Ireland have called for urgent public sector reform, a more competitive Corporation Tax regime, and stronger economic leadership as part of a credible industrial strategy to unlock growth, according to the latest Business Confidence Survey from Chartered Accountants Ulster Society.

The survey highlights an economy that has stabilised but remains stuck in low growth, with businesses continuing to face sustained cost pressures and limited confidence in the effectiveness of current policy delivery.

Only 6% of respondents view the outlook as positive, with the majority (56%) expecting “fair” conditions and 38% remaining pessimistic. Meanwhile, 58% report that financial distress among businesses is still increasing, underlining the persistent strain across the economy. 

Key findings

The survey paints a picture of a resilient but constrained economy. 76% of respondents describe current conditions as either stagnant (38%) or growing only slowly (38%), with just 7% reporting strong or moderate growth. 

Cost pressures remain a key challenge, with 95% citing the rising cost of doing business as a major negative factor, alongside taxation, energy costs and wider public finance pressures. 

A clear and consistent theme throughout the findings is the need for fundamental public sector reform. Half of respondents (51%) believe Northern Ireland’s current public funding model is no longer sustainable and requires significant change, while over 90% agree that improving efficiency and prioritising existing spending must come before raising taxes or cutting services. 

Respondents expressed strong concerns around governance and delivery, pointing to inefficiency, slow decision-making and a lack of strategic direction as key barriers to growth. Public sector performance is widely viewed as a constraint on economic progress, particularly in areas such as infrastructure, skills and service delivery. 

At the same time, there is strong support for measures to enhance competitiveness. 85% of respondents believe a more competitive Corporation Tax rate would strengthen Northern Ireland’s ability to attract and retain mobile investment. The survey also highlights the untapped potential of Northern Ireland’s dual market access under post-Brexit arrangements. While widely recognised as a unique economic advantage, over 70% of respondents do not believe this opportunity is currently being fully utilised. On technology, there is cautious optimism around Artificial Intelligence (AI). Almost half (49%) expect AI to have some impact on their role without fundamentally changing it, while a further 36% anticipate significant or positive transformation, signalling a shift towards evolution rather than disruption in the accountancy profession. 

Call for action

Key priorities include:

• Accelerating public sector reform, improving productivity, accountability and service delivery
• Enhancing competitiveness through Corporation Tax reform and a more attractive investment environment
• Maximising the benefits of dual market access to position Northern Ireland as a gateway for international trade and investment
• Supporting responsible adoption of AI and emerging technologies to drive innovation and efficiency
• Strengthening governance, with clearer strategic direction and more effective decision-making.

Mark Lawther, Chairman of Chartered Accountants Ulster Society, said: 

“Northern Ireland’s economy has stabilised, but momentum remains modest. Businesses continue to face elevated costs and financial pressures, and greater confidence will depend on clearer, faster policy delivery.

“There is a clear message from our members that reform must come before additional revenue-raising. Improving how public money is spent, alongside stronger governance and decision-making, is essential to restoring confidence.

“At the same time, there are real opportunities to transform our economic outlook. A more competitive Corporation Tax rate, combined with Northern Ireland’s unique dual market access, has the potential to attract significant investment – but only if supported by clear strategy and delivery.

“We also see growing potential in areas such as AI and innovation, which can support productivity and long-term growth. The challenge now is to turn opportunity into action.”