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Yesterday, a delegation from the Institute met with Minister for Finance, John O’Dowd MLA to discuss barriers to the all-island labour market resulting from the substantial tax complexity facing frontier and cross-border workers. Earlier this year, the Institute wrote to Minister O’Dowd requesting this meeting to discuss solutions for those employers and workers affected by the byzantine tax compliance requirements. We had an engaging and productive discussion on the recommendations in our initial letter and we will be continuing to engage with Minister O’Dowd’s team as this important work progresses. We also recently met with officials in the Department of Finance in Dublin to discuss the matter as we had written a similar letter to Tánaiste Harris with his team noting the Tánaiste’s support for the work. We had a similarly engaging and productive meeting with the team in Dublin and we will be continuing to engage with them as they progress this work on their end. Readers may be aware of the joint statement from Prime Minister Sir Keir Starmer and An Taoiseach Micheál Martin following the UK-Ireland Summit in Cork earlier this year. In that statement, the leaders noted the following: “We welcome agreement to engage on reaching a decision in principle this year on a bilateral Ireland-UK approach to address concerns arising from hybrid cross-border working and to consider other aspects of the UK-Ireland Double Taxation Convention which may require updating.” When drafting our recommendations, we naturally had the possibility of a bilateral agreement as the potential silver bullet that could significantly reduce and even eradicate the substantial complexity currently faced by employers of hybrid cross-border workers. It is particularly encouraging that Westminster will be engaging directly with officials in Dublin on the matter. Naturally, this work will require the engagement and input from Ministers and officials in Stormont. As such, the overall work to address the long-standing complexities may also open opportunities for the leaders in Dublin, Belfast and London to consider measures to support the economic development of Northern Ireland even beyond the labour market.

Ireland entered 2026 on a strong fiscal footing, but the Government is warning that heightened geopolitical risks causing disruption to global energy supplies now pose a material risk to inflation, growth and the public finances, according to the Annual Progress Report (APR) 2026 published this week by Tánaiste and Minister for Finance Simon Harris and Minister for Public Expenditure Jack Chambers.   Inflation revised upwards  Headline inflation is forecast to average 3.3 per cent in 2026, around 1.4 percentage points higher than assumed in the Department’s autumn forecasts, reflecting the sharp rise in global energy prices following the conflict in the Middle East.  Under more adverse scenarios modelled in the APR, inflation could average 3.7 percent, rising to 4.6 percent in a severe scenario involving prolonged disruption to energy supplies.   Domestic growth remains positive   The Department of Finance is still forecasting growth in the domestic economy. Modified Domestic Demand (MDD), the key measure used to strip out multinational distortions, is projected to grow by just over 2 percent in 2026 and 3 percent in 2027 under the baseline scenario.   However, these represent downward revisions from earlier expectations and are explicitly dependent on the current energy shock being contained. Under more severe scenarios, domestic growth slows further.  Expenditure ceilings lifted, capital investment prioritised  On the fiscal side, the report confirms that the Government has increased the 2026 expenditure ceiling by €0.7 billion to €118.5 billion, with targeted supports for transport, farming and fisheries sectors facing higher energy costs, along with additional funding and staffing in education.   Looking further ahead, the (voted) expenditure ceiling is set at €125.5 billion in 2027, reflecting continued expansion in capital investment and public services. Ministers stressed the need for strong cost control across Departments to protect this investment profile in an increasingly uncertain environment.  Budget 2027  The APR sets the tone for fiscal policy ahead of Budget 2027, which will be shaped over the summer through the Summer Economic Statement. The combination of higher inflation, moderate domestic growth and renewed global uncertainty suggests tougher trade-offs ahead particularly around current spending growth and capital spending. The Institute is finalising its Pre-Budget 2027 submission following committee engagement and this will be published in the coming weeks.    

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 The Ulster Society is urging policymakers to take a long-term, strategic approach to economic growth, focused on delivery as well as policy. 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.” Over 200 Chartered Accountants in Northern Ireland took part in the survey.

The Economic and Social Research Institute (ESRI) recently published its Spring 2026 Quarterly Economic Commentary, highlighting a higher inflation outlook, driven mainly by the potential effects of the conflict in the Middle East. The ERSI notes that the uncertainty the conflict has created has already weakened the global outlook and increased the risk of renewed, sustained inflationary pressures in Ireland and internationally. On a more positive note, the report outlines that the economy performed strongly in 2025, with exports rising by 9.6 percent, even though growth slowed as the year went on. Modified domestic demand grew by 4.9 percent over the year. Despite the inflationary pressures linked to the Iran crisis, the ESRI expects the domestic economy to continue expanding in 2026 and 2027, with forecasted MDD growth of 2.1 percent in 2026 and 2.8 percent in 2027. While recent international events are shaping short‑term economic considerations, the ESRI cautions that there are still important longer‑term risks to Ireland’s economic success. These include the highly concentrated nature of Ireland’s tax revenues, the imbalance in productivity and performance between foreign-owned and domestic firms, ongoing budgetary overruns and the continued challenge of addressing infrastructure deficits, especially regarding housing. Towards the end of 2025, labour‑market data suggested some softening, with one area of concern being an apparent rise in youth unemployment.

HMRC has recently published for technical consultation draft secondary legislation for the carbon border adjustment mechanism (CBAM). This includes some of the CBAM administrative requirements, including those on embodied emissions and the monitoring and verification of emissions data. The consultation is open for responses until 21 May 2026. By way of reminder, the UK CBAM is a new tax which aims to ensure that highly traded carbon intensive goods imported into the UK face a comparable carbon price to that paid by manufacturers producing the same goods in the UK. Currently, UK manufacturers are subject to carbon pricing for direct emissions under the UK Emissions Trading Scheme.  The UK’s CBAM is due to commence from 1 January 2027 and will apply to goods from the following industrial sectors: aluminium,  cement,  fertiliser,  hydrogen, and  iron and steel.  

  In this week’s bulletin read about the publication of the Critical Infrastructure Bill, a report identifying renewable energy as a hedge against fuel price volatility, the new ISO 140001 standard and investment in critical water infrastructure. Also covered are the publication of guidelines on the implementation of the Packaging and Packaging Waste Regulation (PPWR), resources on nature as a source of long-term value and to support assessment of nature-related financial risks, and the usual articles, resources and upcoming events. CHARTERED ACCOUNTANTS IRELAND Institute congratulates Gorm! Chartered Accountants Ireland congratulates Gorm for winning the ESG Company Award (SMEs) in the Business & Finance Media Group ESG Awards 2026, in partnership with Grant Thornton Ireland. Chartered Accountants Ireland was honoured to have been shortlisted in the category and congratulates all fellow nominees, and all winners, across the categories. IRELAND Minister Chambers publishes Critical Infrastructure Bill 2026 The Government’s Critical Infrastructure Bill 2026 has been published, and it aims to fast-track the approval processes for critical infrastructure projects in Ireland. The Bill will allow Government, with Dáil approval, to designate specific infrastructure projects or programmes that the Government considers to be critical, thereby requiring all State bodies involved in the approval process for the infrastructure in question to prioritise their consideration of it. It also requires all State bodies involved in the approval processes for this infrastructure to cooperate and coordinate with each other. In Chartered Accountants Ireland’s reaction to the publication of the Bill, Director of Members and Advocacy Cróna Clohisey described it as “a significant step in the Government’s approach to addressing Ireland’s infrastructure challenges.” Renewables an “important hedge against fuel price volatility” At a time of intense focus on energy prices, a new review paper from the Economic and Social Research Institute Ireland (ESRI) has found that while interventions such as energy credits have alleviated much of the burden for Irish consumers, Irish electricity prices have been among the most expensive in Europe during the 2018–2024 period of analysis. Read more here. New ISO 14001:2026 Standard now available The new edition of the leading International Standard for environmental management, ISO 14001 Environmental Management Systems, is now available. Adopted by more than 600,000 organisations worldwide, ISO 14001provides a framework to help organisations of all types and sizes manage their environmental responsibilities systematically and effectively. The new edition has improved guidance, navigation and alignment with environmental priorities such as climate change, biodiversity and resource efficiency. It also aims to integrate seamlessly with other ISO management systems standards. Investment in critical water infrastructure resilience Uisce Éireann is to invest over €500 million in 30 critical water supply projects over the next ten years, as part of its Water for Growth Programme. The projects are to build resilience by upgrading treatment plants, building new trunk mains, and installing new strategic water storage facilities. This is in addition to the investment in leak-reduction of €420 million over the next five years to prevent the loss of up to 250 million litres of water per day. Uisce Éireann’s Growth and Development Programme is the national programme of targeted investment to enable essential housing. The delivery of water and wastewater capacity is identified as vital to support economic growth locally and nationally.  EUROPE Guidelines on the implementation of the Packaging and Packaging Waste Regulation (PPWR) publish The European Commission has published guidelines on the implementation of the Packaging and Packaging Waste Regulation (PPWR) to facilitate the uniform application of the new packaging rules across the EU and simplify compliance for economic actors and Member States. The guidance document presented by the Commission clarifies rules where the PPWR need further interpretation and areas where stakeholders have requested assistance. The law aims to contribute to a more sustainable and competitive packaging sector across the EU and to strengthening the Single Market for packaging through common rules. Several delegated and implementing acts are being prepared, including on harmonised registration and reporting formats for the extended producer responsibility, labelling for waste sorting by consumers, recycled content in plastic packaging, and recyclability criteria. These are being prepared in close cooperation with Member States, stakeholders and trading partners. TECHNICAL ROUNDUP (From our colleagues in Professional Accounting) The International Sustainability Standards Board (ISSB) has published its March 2026 ISSB update and podcast. The UK Endorsement Board is conducting research  to better understand company experiences in relation to the UK’s climate-related financial disclosures reporting regime. If you are a company reporting under these regulations and would like to take part, please contact the researchers at climatefinresearch@iffresearch.com to arrange a time to be interviewed. RESOURCES CAANZ, ACCA publish case study on sustainability assurance judgement Chartered Accountants Australia and New Zealand (CAANZ) and Association of Chartered Certified Accountants (ACCA) have issued a report to guide assurance practitioners on applying professional judgement to estimates and forward-looking information in sustainability engagements. Estimates, targets, transition roadmaps and projections are now a core part of sustainability disclosures and are increasingly influential for investors and other stakeholders. However, this type of information is by nature uncertain. It rests on assumptions, expert judgement and future developments that may be outside an organisation’s control. The report, A case study: Demystifying the assurance of estimates and forward-looking information in accordance with ISSA 5000, is presented as a practical case study to support practitioners in applying that judgement. It looks at how assurance providers can address the inherent uncertainty in estimates and forward-looking disclosures when conducting engagements under ISSA 5000. Nature as a source of long-term value In this blog, Natura’s Group Chief Financial Officer, Silvia Vilas Boas, shares how the organisation integrates financial, social and natural capital, how the finance team works alongside sustainability colleagues to guide everyday decisions, and how new financial instruments are being used to channel capital towards nature positive and socially inclusive outcomes. OECD publishes report on enhancing interoperability of policy‑mandated emission monitoring, reporting and verification systems The OECD has published a Technical summary report,  exploring practical avenues for establishing interoperable carbon intensity metrics by leveraging existing policy-mandated monitoring reporting and verification (MRV) systems and data governance frameworks. The report finds, among other things, that interoperability does not require full harmonisation of MRV systems. Instead, it can be enhanced by expanding coverage and increasing emissions data disaggregation and by establishing mutual recognition of emission estimation methods and reporting and verification frameworks. The report concludes by outlining practical actions to strengthen interoperability via policy-mandated MRV systems, including options to improve alignment, data transformability and mutual recognition across systems. New materials to support assessment of nature-related financial risks The Network for Greening the Financial System (NGFS) has released a package of materials to support the assessment of nature-related financial risks. The package provides practical tools for central banks and supervisors to integrate nature-related risks into their work to help strengthen the resilience of the financial system. Nature degradation, such as deteriorating water or soil quality, can have knock-on effects that can lead to economic and financial damage.    The World Bank now estimates that as much as half of the world’s GDP relies on biodiversity, nature capital and ecosystem services. In his opening remarks at a panel discussion on “Incorporating nature into supervisory practices” Frank Elderson stated that in the euro area, nearly 75% of banks’ corporate lending goes to firms that are highly dependent on at least one ecosystem service.” A Member of the Executive Board of the European Central Bank and Vice-Chair of the Supervisory Board of the ECB, Elderson warned that in the face of multiple challenges, the very urgent often overtakes the vitally important: “Put bluntly: if we keep destroying nature, we keep destroying economic activity. And this leads to risks surging, prices rising and instability spreading to every part of society and across borders.”  ARTICLES “ESG considerations are now central to capital allocation” – CEO Q&A with Keith Butler, Group CEO of Acorn Life Group (Business and Finance) ‘Greenhushing’ flagged as growing risk in Irish finance (Business Post) AI laws overlook environmental damage – here’s what needs to change (The Conversation) How this aerospace company built resilience through sustainability (ICAEW Insights) US EV Fast-Charging Network Grows Amid High Gas Prices (Bloomberg) UK Car Sales Rise to Highest Since 2019 in Resilient Showing (Bloomberg Green) EU climate chief warns there is ‘no workaround’ for high energy prices (Financial Times) EVENTS IBEC, Briefing: Voluntary Sustainability Reporting for SMEs - VSME At this briefing Lorraine McCann, Managing Director, Sustainability Reporting Lead, KPMG will provide an overview of the voluntary sustainability reporting standard (VSME), the key reporting requirements and how it can assist SMEs in responding to requests for information from companies in their value chain. The briefing is for any SME that wishes to become more informed on the voluntary sustainability reporting standard (VSME) and the potential benefit to their business, as well as senior leaders, owners, compliance managers, risk managers, sustainability managers, environmental and EHS professionals, accountants, operations managers, employees with sustainability reporting as part of their role Virtual |Monday 27 April | 3.00pm – 3.45pm |  Free, booking required UN Global Compact, Climate Ambition Accelerator — 2026 Applications Now Open The UN Global Compact's Climate Ambition Accelerator is now accepting applications for 2026. This six-month programme equips companies with the knowledge and tools to accelerate progress toward setting science-based emissions reduction targets aligned with the 1.5°C pathway — putting them on track for net-zero by 2050. Application Deadline: 30 April 2026 | Programme: May–November 2026 IBEC, Packaging and Packaging Waste Regulations - Guidance on new requirements A free 1-hour briefing on the EU Packaging and Packaging Waste Regulations (PPWR) and the implications for business.  Virtual, Friday 1 May, 12.00 noon - 1.00pm Enterprise Ireland, Sustainability Kickstarter Workshops A half‑day workshop series designed to support business leaders in recognising the strategic importance of sustainability and decarbonisation. The sessions provide practical skills to integrate core sustainability principles, identify competitive opportunities, and build actionable plans to meet rising customer expectations for sustainable products and services. Friday, 8 May 2026 | Half‑day workshop ICAEW, Sustainability for business 2026 This in-person event brings together business leaders – especially from SMEs – to explore how sustainability is shaping the UK business landscape and influencing resilience, competitiveness, and access to capital. Through a mix of interactive sessions, expert discussions and real-work examples, the event will help businesses understand the practicalities of sustainability such as related risks and opportunities, how peers are responding, and what this means for long-term planning and decision-making. In person, Chartered Accountants' Hall, Moorgate Place, London EC2R 6EA, 11 May, 2026, 08:00 - 12:00       ICAEW, What determines the price of energy - factors, forecasts and future This webinar will explore the latest trends in energy prices, examining why volatility persists and what this means for businesses planning for the short and long term. Equip your organisation with the insight and tools needed to navigate today’s fast‑changing energy landscape effectively by gaining a clear overview of the UK’s current energy mix and how it is expected to evolve over the coming years, driven by policy, market forces and the transition to net zero. Also considered will be the practical implications of these changes for organisations, helping you better understand the risks, opportunities and strategic considerations shaping the future energy environment. Virtual, 20 May 2026, 13:00 - 14:00 UN Global Compact Network Canada, Annual Sustainability Reporting Peer Review Group (ASPiRe) — Now Open for Registration This structured peer review programme offers an exceptional opportunity for sustainability and communications teams to strengthen the quality and credibility of their sustainability disclosures — including Communications on Progress (CoPs). Registration Deadline: 5 June 2026 | Programme: July–October 2026 Sustainability Centre You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.