Earlier this week, the Institute made a submission to the Public Consultation on Northern Ireland’s upcoming Budget 2026. Northern Ireland’s competitiveness depends on an economy that attracts investment, supports entrepreneurs, enables cross-border labour mobility, and expands workforce participation through affordable childcare. Chartered Accountants Ireland urged the Executive to prioritise:  Progress on entrepreneurial tax supports childcare investment, Removal of barriers to cross border working, The activation and use of devolved powers on corporation tax, and Childcare investment.  These actions would increase productivity, stimulate job creation, and strengthen long term fiscal sustainability. Better tax supports for entrepreneurs Entrepreneurs are the backbone of any economy, creating wealth and employment throughout the country.  Entrepreneurs need supports specifically designed for them. Urgent action is needed by the UK Government to rectify the divergence between Northern Ireland and Great Britain in the context of forthcoming changes to the UK’s Tax Advantaged Venture Capital Schemes. Tax supports for entrepreneurs should not be limited to high growth companies but should be expanded to other businesses with a growth mission. A wider review of how the UK tax system can better drive business growth and harness the entrepreneurial spirit of business owners is warranted. Cross-border and remote/hybrid working on the island of Ireland Embracing a more integrated approach to cross border working would offer the opportunity to drive growth, build a more stable future for the entire island, and improve outcomes for communities and citizens in both jurisdictions.  The current rules on cross-border and remote/hybrid working are negatively impacting the all-island labour market. We urged the Executive to work with Treasury and the Irish Government to minimise administrative responsibilities for both employers and employees when a frontier worker works from home a few days a week. The Institute also highlighted the disparity in tax treatment of pension contributions and retirement income. Reduction to the Corporate Tax rate A reduced corporate tax rate in Northern Ireland would attract investment, create well paid, secure jobs, and encourage innovation and entrepreneurialism. The Institute called on the Department of Finance and the Department for the Economy to fund an economic analysis to assess the various impacts of a reduced corporate tax rate in Northern Ireland.  We also called on the Executive to urgently invest in and reform Invest NI to enable the agency to establish critical relationships in major companies and to adequately sell Northern Ireland as a destination for investment. Affordable childcare Affordable and available childcare can boost labour market participation and increase economic productivity. In our most recent research 51% of respondents in Northern Ireland confirmed they had either reduced their working hours or requested to work flexible hours because of childcare pressures. We called on the Executive and the Assembly to prioritise childcare investment in the upcoming Budget.  We welcomed the publication of the draft Early Learning and Childcare Strategy and encourage the Executive to implement the measures in it subject to budgetary constraints. 

Last week the Institute responded to the HM Treasury ‘Call for Evidence: Tax Supports for Entrepreneurs’, which was launched on Autumn Budget Day last November. We thank members for their feedback on this important issue. In our submission, the Institute highlights how the draft Finance (No. 2) Bill clauses implementing the Autumn Budget 2025 changes to the various limits for several of the UK’s tax advantaged venture capital schemes would exclude specified Northern Ireland (NI) companies due to EU State Aid rules. The submission also highlights that there is a need for a wider review of how the UK tax system could better support all entrepreneurs, and not just those investing in high growth companies. A specified NI company is currently defined in the Finance (No. 2) Bill as a company that has its registered office in NI which carries on a trade involving a trade in goods, or the generation, transmission, distribution, supply, wholesale trade, or cross-border exchange of electricity. As a result, these NI companies will be unable to benefit from the increased scheme limits from April 2026. This divergence in UK tax policy means that companies in NI who are excluded are being disadvantaged when seeking external finance compared to their competitors across the remainder of the UK for no objective reason other than their location. To level the playing field, the Government needs to take the necessary steps to resolve this issue and enable the April 2026 changes to apply to all companies in NI via discussions through the existing UK-EU structures which underpin the Windsor Framework, followed by an application for State Aid approval.

Chartered Accountants Ireland has reacted to today’s Spring Forecast by urging the UK Government to address the tax barriers that are hampering business growth. The Institute is highlighting the urgent need for UK business tax policy to be revamped so that economic growth is stimulated, the tax system is simplified, and the burden of tax on entrepreneurial investments is reduced.  These recommendations formed the basis of the Institute’s response to HM Treasury’s Call for Evidence on Tax Supports for Entrepreneurs which closed last week. Chartered Accountants Ireland is the largest professional body on the island of Ireland and represents over 5,500 members in Northern Ireland.  UK Tax Manager with Chartered Accountants Ireland, Leontia Doran said   “As expected, today’s Spring Forecast contained no tax policy changes, however the Government cannot stand still in harnessing the talents and skills of the entrepreneurs and small businesses that are the heartbeat of the UK economy.  “In recent years, entrepreneurs have seen the value of their business eroded with higher taxes and employment costs. This leaves less money available to invest back into those businesses for their growth mission. For those selling their business, higher exit taxes means that there is less in their pocket for them to reinvest in other businesses. This will be further compounded by tax rises due to take effect from next month, including the reduced benefit of key Inheritance Tax reliefs.  “The Government recently consulted on how it can better support those investing in high growth companies. We urge the Government to launch a wider review of how the UK tax system can truly deliver a strategic long-term plan for entrepreneurial growth and investment.”    Northern Ireland businesses excluded from improved finance options from April 2026  In the 2025 Autumn Budget, the UK Government announced a series of increases to take effect from April 2026 to several of the UK’s venture capital schemes that provide smaller companies with access to finance and which provide a range of beneficial tax reliefs to the equity investor making these riskier investments.  However, the draft legislation for these changes means that certain Northern Ireland companies will not be able to take advantage of the increased thresholds for these finance schemes.  Doran noted  “We are concerned that the regional impact of UK tax policy has been ignored when it comes to Northern Ireland. For EU State Aid reasons, the Finance Bill specifically excludes Northern Ireland companies who trade in goods or electricity from benefiting from the increased limits which will be available when seeking external finance.  “This divergence in UK tax policy places these companies at a competitive disadvantage compared to similar businesses across the rest of the UK for no reason other than their location. This further hampers their growth and ultimately that of the wider economy.  “The Government needs to begin discussions on this issue as soon as possible via the existing UK-EU structures that underpin the Windsor Framework. This will likely require an application for State Aid approval.”   Northern Ireland Corporation Tax rate reduction  Specific policy measures are still needed to unlock Northern Ireland’s economic potential and its dual market access. As part of this, in 2026 the Institute has continued its campaign for a reduced rate of corporation tax more closely aligned with that across the rest of the island.   Cróna Clohisey, Director of Members and Advocacy, Chartered Accountants Ireland said  "The Chancellor spoke today about economic growth for all parts of the UK. Reducing the corporation tax rate for NI would grow the NI economy and ultimately increase the overall tax take from businesses and employees by attracting higher value FDI, which would support the creation of better jobs and opportunities for all businesses and citizens. Ireland’s successful industrial strategy was not the result of a single policy decision and certainly did not start with a big leap. That vision persisted and grew over the long term. We believe that Northern Ireland now needs that same clarity of purpose — and we call on the UK Government to share and support that vision.   “In the longer term, the gains for Northern Ireland would set a real benchmark for what can be achieved with ambitious tax policies. This is something that we know our members want and which we continue to advocate for in 2026.”   

Minister Jack Chambers has announced that a new Regulatory Simplification Unit has been set up to support faster delivery of critical infrastructure projects. It comes after the Accelerating Infrastructure Taskforce found that the pre-planning stage for major infrastructure projects is taking too long.  As part of a roundtable event on the NDP, that the Institute held with members last year, the issue of bottlenecks in the planning of infrastructure projects was discussed. It is encouraging to see items from the Accelerating Infrastructure Action Plan implemented in the first quarter of 2026 – this prioritisation reflects urgency, which is extremely welcome.   The new Regulatory Simplification Unit will: Conduct a risk-based review of the current regulatory landscape. This will involve analysing and mapping existing processes and conducting workshops with the bodies involved in consenting, permitting and licensing to identify and remove bottlenecks.  Identify opportunities to enhance cooperation and streamline processes for more effective delivery of the National Development Plan; and  Focus on simplifying and improving the complex consenting, permitting and licensing systems across critical infrastructure sectors that support housing delivery – energy, transport and water infrastructure.  The establishment of the Unit marks the commencement of Action 9 of the Accelerating Infrastructure Action Plan, which aims to support the simplification of overlapping and unduly complex regulatory frameworks.    

Research carried out by Amárach research on behalf of the Department of Enterprise, Tourism and Employment has found that more than four in five businesses (85 percent) say sustainability is important to the day-to-day running of their business. The findings of the second phase of SME Sustainability Research – Wave 2 were announced by the Minister for Enterprise, Tourism and Employment Peter Burke TD and are in line with the previous year’s findings. Read more. The survey of 344 SMEs shows that two in five had taken steps such as insulating their buildings or changing their windows in the past two years to improve their energy efficiency. Other findings were that ‘making a positive difference’ (35 percent) and saving money (34 percent) were the top motivations for businesses in becoming sustainable. Just over a quarter of business say that climate change is currently affecting their operations, rising significantly among larger firms and those operating for more than 20 years. Among affected businesses, adverse weather is now the dominant impact, reflecting the growing reality of extreme weather events. Most sustainability action is concentrated in practical, cost-effective areas: waste reduction (49%), energy efficiency (44%), and renewable energy adoption (33%) remain the most common measures adopted by businesses. The main barrier for organisations to act more sustainably remained upfront investment costs (22%), although at a lower rate compared to 2024. Commenting Minister Burke said by doing so these businesses would also be cutting their energy costs and would become more competitive, and urged SMEs to avail of the Local Enterprise Offices’ Energy Efficiency Grant (EEG) and the SEAI’s Building Energy Upgrade Scheme (BEUS) to buy energy efficient equipment and to retrofit their buildings. In 2025, 681 small business were approved for the EEG at estimated value of €5.7 million, while 186 BEUS grants with an estimated value of €3.36 million were approved. Minister Burke also advised businesses to use the Government’s free toolkit - ClimateToolkit4Business.gov.ie – to measure their carbon emissions, as by estimating their environmental impact, SMEs can start to tackle it. The ClimateToolkit4Business.gov.ie is a government initiative designed to help business cut carbon emissions and energy costs. It is a joint initiative of the Department of Enterprise, Tourism and Employment and the Department of Climate, Energy and the Environment (DCEE). This year’s survey also included questions on the potential of the circular economy to Irish businesses, with Minister of State for Employment, Small Business and Retail and Circular Economy Alan Dillon TD pointing to the value businesses are seeing in re-using, recycling and minimising waste. The Government of Ireland has this week launched Ireland’s Circular Economy Strategy 2026-2028, setting out the national plan to accelerate Ireland’s transition from a linear ‘take make waste’ model to a circular, sustainable economy. Commenting Susan Rossney, Sustainability Advocacy Manager with Chartered Accountants Ireland said: “We welcome the findings of this research that sustainability is important to 85% of the businesses surveyed. SMEs are the backbone of Ireland’s economy, accounting for over 99% of all businesses and employing a significant portion of the workforce. With their size and agility, they are uniquely positioned to innovate and implement sustainable practices quickly. But they face challenges in what can be a complex and potentially resource-intensive transition. Without coordinated support, many SMEs risk being left behind. Considering their prominence in the business landscape of the region, this in turn undermines regional efforts to meet climate and biodiversity targets.”  

In this week’s Sustainability/ESG Bulletin, read about the research showing that Irish SMEs consider sustainability important, Ireland’s new Circular Economy Strategy 2026–2028, a major review of regulations to address delays in infrastructure delivery, developments in transport, and a call for greater focus on resilience across SMEs and communities. Final UK Sustainability Reporting Standards have published, along with CBAM consultations in Northern Ireland, while the EU has adopted amendments to CSRD and CSDDD. This, plus the latest articles, technical content, resources and upcoming events. IRELAND Vast majority of Irish SMEs say sustainability is important Research carried out by Amárach research on behalf of the Department of Enterprise, Tourism and Employment has found that more than four in five businesses (85 percent) say sustainability is important to the day-to-day running of their business. The findings of the second phase of SME Sustainability Research – Wave 2 were announced by the Minister for Enterprise, Tourism and Employment Peter Burke TD and are in line with the previous year’s findings. Read more Ireland’s Circular Economy Strategy 2026-2028 The Government of Ireland has launched Ireland’s Circular Economy Strategy 2026-2028, setting out the national plan to accelerate Ireland’s transition from a linear ‘take make waste’ model to a circular, sustainable economy.  The strategy aims to enhance Ireland’s ability to keep materials and products in use for longer, reduce waste and enable circular innovation across every sector of society. This, it states, will build resilience in supply chains, lower emissions, and strengthen Ireland's competitiveness as part of its broader climate and green enterprise agenda. The Strategy builds on the policy foundations including the Circular Economy Act 2022, the Waste Action Plan for a Circular Economy (2020), the Green Public Procurement Strategy and Action Plan 2024-2027, the Climate Action Plan, and the National Waste Management Plan for a Circular Economy 2024-2030. Major review of regulations to tackle barriers to infrastructure delivery to commence The Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation, Jack Chambers TD has established a new Infrastructure Regulatory Simplification Unit in his Department to support the speedier delivery of critical infrastructure projects. The establishment of the Unit marks the commencement of Action 9 of the Accelerating Infrastructure Action Plan, which aims to support the simplification of overlapping and unduly complex regulatory frameworks – the complexity of which is leading to delays in the delivery of critical infrastructure. Minister Chambers will direct officials to issue a circular to all Departments and Regulatory Bodies setting out Principles for Better Regulation in the coming weeks. Funding announced under new Regional Airports Programme 2026-2030 Minister for Transport Darragh O’Brien has announced the publication of the new Regional Airports Programme 2026-2030. The Sectoral Investment Plan for Transport under the recent NDP Review will provide almost €45 million capital investment under the Regional Airports Programme 2026-2030, with €9 million in capital supports available for allocation in 2026. Separately, a November 2025 European Environment Agency (EEA) briefing, updated on 20 February, has revealed that air pollution from shipping and aviation is rising, with consequences on health and on Europe’s economy due to increased healthcare costs, reduced life expectancy, and lost working days across sectors. It also damages vegetation and ecosystems, water and soil quality, and local ecosystems, with consequent economic and financial impacts. Report finds that resilience of SMEs, households, communities needs focus A new report from the National Economic and Social Council (NESC) has found that resilience of households, communities and SMEs needs more focus from Government. The report, Accelerating the Transition to a Sustainable Energy System, the fourth in a series on the topic of energy policy to be published in 2025, examines the energy sector in Ireland using ‘systems thinking tools’ to identify approaches to accelerate the transition to a sustainable energy system. The report calls on Ireland to “urgently reduce GHG emissions” by substantially reducing overall fossil fuel use, deploying low-emission energy sources, switching to alternative energy carriers, and engaging in energy efficiency and conservation (as recommend by the IPCC in 2022), p28). Despite many plans and strategies in place, Ireland is not on track to meet its climate and energy targets. NORTHERN IRELAND/UK Final UK Sustainability Reporting Standards publish The UK government has published the final UK Sustainability Reporting Standards (UK SRS) for voluntary use in the UK. The standards are based on IFRS S1 and IFRS S2. ‘UK SRS S1’ and ‘UK SRS S2’ set out a framework for corporate disclosures. UK SRS S1 includes the general framework for applying UK SRS, as well as requirements on general sustainability-related risks and opportunities. UK SRS S2 sets out requirements on climate-related risks and opportunities. UK CBAM: consultation, guidance and workshops HMRC is seeking to gather feedback from stakeholders on the Carbon Border Adjustment Mechanism (CBAM) and the drafting of the draft secondary legislation to ensure that it delivers the policy correctly and effectively for the tax to operate as intended and provide for administrative matters. CBAM will place a carbon price on specified goods imported to the UK from sectors that are at risk of carbon leakage. It takes effect from 1 January 2027. This technical consultation sets out the draft secondary legislation that will come into effect on 1 January 2027 alongside Carbon Border Adjustment Mechanism (CBAM) being introduced. Any responses to or queries about this consultation should be sent by email to cbampolicyteam@hmrc.gov.uk by 11:59pm on 24 March 2026, using the subject line ‘CBAM technical consultation response’ and clearly referencing the relevant parts of the legislation. Separately, Invest NI has produced business guidance which explains the EU and UK CBAM rules. The EU Carbon Border Adjustment Mechanism (CBAM) was introduced in 2023 and is fully in place from 2026. It outlines what information you need to collect, who you need to share it with, and the key dates to plan for, and provides a practical toolkit, including checklists, carbon calculators, and templates, to help you prepare and manage the process more easily. Invest NI is also running workshops to provide Northern Ireland businesses with a clear overview of CBAM and who it applies to, guidance on data, documentation and reporting and practical next steps to support clients and internal teams. EUROPE CSRD and CSDDD amendments published in Official Journal The amendments to the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) have been officially published in the Official Journal of the EU, exactly one year from when the Commission presented its proposal on 26 February 2025. This marks the formal legal step following the Council’s vote, and starts the timeline toward entry into force and national transposition. There are now 20 days before it becomes effective and can be transposed into national laws. Member States have 12 months to transpose the CSRD-related amendments into national law. CSDDD changes must be implemented by July 26, 2028.   Industrial transformation and decarbonisation developments in Europe A new briefing from the European Environment Agency (EEA) 'Zero pollution, decarbonisation and circular economy in energy-intensive industries' has found that energy-intensive industries account for around 27 percent of EU industrial greenhouse gas emissions and a large share of key air pollutants, including sulphur oxides (SOx) and nitrogen oxides (NOx). The analysis focuses on key energy-intensive sectors: iron and steel, cement and lime, aluminium, pulp and paper, glass and clay, and chemicals and analyses long-term trends in greenhouse gas and air pollutant emissions. It also projects air pollutant emission reductions and outlines pathways that could support further progress. Separately, European Movement Ireland has produced a ‘Just the Facts’ overview on the Industrial Accelerator Act. Formerly known as the Industrial Decarbonisation Accelerator Act, the Industrial Accelerator Act (IAA), aims to help energy-intensive industries (EIIs) in Europe continue to decarbonise while maintaining their competitiveness internationally. The factsheet provides the IAA’s core objectives and measures, as well as key challenges to implementation – notably reported divisions over “Made in EU” criteria and tensions between the competitiveness and sustainability agendas.  WORLD New analysis on the state-of-play for air pollution reporting A deep-dive study on the pollution disclosure practices of publicly listed companies around the world finds that measurable emissions data and information on individual pollutants are uneven or lacking. The air pollution reporting gap: Evidence from 1,000 organizations across high-emitting sectors, produced by GRI with support from the Clean Air Fund, examines 2023-2024 sustainability reports spanning eight sectors. Key insights include that companies talk about air pollution more than they measure it, most businesses do not disclose pollutants known to impact health and the environment, higher quality reporting is provided by organisations that use global standards and reporting practices vary sector by sector. The analysis also highlights signs of progress, with some companies expanding the range of pollutants they track over time. RESOURCES Accountancy Europe Sustainability Update Accountancy Europe has released its February 2026 sustainability update. Key highlights:  European Central Bank issues opinion on revised ESRS European Commission updates its request to CEAOB for technical advice on limited assurance standard Council to greenlight agreement on Omnibus Directive Accounting for Sustainability  The latest issue of Accounting for Sustainability (A4S)’s newsletter has published. Key highlights: 100% adoption of sustainability principles across the UK Bulk Annuity market Tackling scope 3 emissions: a step-by-step case study with Vodafone How transition planning can shape Japan’s corporate strategy: six insights for 2026 Global benchmarks highlight finance leadership in action In case you missed it: a Q&A with DHL Group's Corporate Sustainability CFO demonstrates how finance is at the centre of transition planning ARTICLES Irish Examiner: Gender balance still a priority but many businesses cutting DEI budgets  Irish Times: Demand for electricity to increase by nearly one-fifth over next 10 years ICAEW Insights: Government publishes UK Sustainability Reporting Standards  EVENTS Chartered Accountants Ireland Ulster Society, Legal Webinar: Green Loans and Reporting Requirements This webinar with Hannah McDaid and Katie Britton from A&L Goodbody will provide an update on the fast-evolving landscape of green loans, highlighting key legal developments and the principles driving the loan market. A&L Goodbody will provide an overview of the reporting requirements for borrowers, external verification options for green projects, the distinction between green and sustainability-linked loans and the significance of qualitative vs quantitative indicators. Speakers will explore operational impacts on borrowers and include an overview of the regulatory and risk landscape. Virtual, via Zoom | Tuesday 3 March, 1pm - 2pm |Free, but registration required Chartered Accountants Ireland, ICAS, Carbon Border Adjustment Mechanism: What you need to know Join us at a webinar on Thursday 12 March on Carbon Border Adjustment Mechanism: What you need to know.  Learn how CBAM currently operates and what its implementation is revealing in practice. Virtual, 12 March, 11am-12pm. UN Global Compact Network UK Webinar Series, The Business Role in Systems Change, Feb/Mar 2026 Businesses are facing escalating risks as the world approaches critical tipping points. Corporate resilience now depends on the transformation of markets, supply chains, and business models needed to steer the system towards stability. There is also potential for positive tipping points - moments when small, well-directed actions accelerate large-scale transitions towards sustainability. Businesses hold a unique capacity to create and amplify these dynamics of change. In these webinars, leading scholars and experts will discuss tipping points, climate risk, and systems change, how to respond to emerging climate realities and apply breakthrough frameworks such as the Positive Tipping Points Toolkit and Doughnut Economics to unlock change at multiple scales.   Webinar sessions: Understanding Tipping Points Risks, Feb 26  | 14:00 Systems Thinking in Business and Climate, Mar 5  | 14:00 Triggering Positive Tipping Points, Mar 12 | 14:00 Shift, EU Omnibus Webinar - Briefing for business on the revised CSDDD and performing due diligence This webinar will feature insights from the Shift team and leading businesses on practical, real‑world approaches to implementing due diligence aligned with good practice. The session will explore how due diligence requirements under the CSDDD and reporting obligations under the CSRD can be addressed in an integrated way, rather than treated as separate exercises. Companies in scope of the CSDDD or operating within their value chains are encouraged to attend. Virtual, Thursday, 26 February 2026 | 09:00 SEAI, EXEED Energy Efficient Design Training Join our exclusive free half-day training and become a leader in energy-efficient design. The SEAI EXEED team invites you to a dynamic training session designed to upskill professionals and stakeholders in the Excellence in Energy Efficient Design (EXEED) process. This training is ideal for those aiming to become an Energy Efficient Design (EED) Expert. Virtual, Friday 27 February, 9am - 1pm 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. Workshops | Dates & Times • Friday, 27 February 2026 | Half‑day workshop • Friday, 20 March 2026 | Half‑day workshop • Friday, 17 April 2026 | Half‑day workshop • Friday, 8 May 2026 | Half‑day workshop Shift, EU Omnibus Webinar - Briefing for business on the revised CSRD and reporting on sustainability issues The session will examine what recent changes to the CSRD and the ESRS mean in practice for how companies report on sustainability issues.  The webinar will feature insights from the Shift team, alongside leading businesses, on implementation approaches that reflect good practice, support companies in identifying and addressing key risks, and remain practical and workable in real-world contexts. The discussion will also explore how reporting obligations under the CSRD and due diligence requirements under the CSDDD should be considered together, rather than in isolation.  If your company is in scope of the CSRD, or part of the value chain of a company that is, we encourage you to join us. Virtual, 3 March 2026 | 15:00 Pentland Centre for Sustainability in Business - Lancaster University, What Does ‘Good’ Look Like in Corporate Reporting? The final session in the Pentland Centre’s free webinar series for SMEs explores what effective reporting on nature and biodiversity looks like. Drawing on global examples, this webinar highlights best practices and practical approaches for integrating nature and biodiversity into corporate reporting. Virtual, Thursday 12 March 2026, 8:00am – 9:00am | 4.00pm – 5.00pm Sustainability Centre You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.  

Last Monday the Institute met with representatives from the Northern Ireland Chamber of Commerce and the Confederation of British Industry Northern Ireland (NI) to discuss potential ways forward in our ongoing campaign to reduce the corporation tax rate in NI. The meeting was very informative and productive with each of the organisations agreeing that NI needs a coherent, long term industrial policy that attracts investment, creates secure, well paid jobs, and fosters innovation. There was also agreement on the end goal of reducing the corporation tax rate in NI. The key issues and Institute stance Research by the ESRI in 2021 'Enhancing Attractiveness of the Island of Ireland to High-Value Foreign Direct Investment' states that a reduction in the rate of corporate tax to 15 percent would yield an annual increase of 7.5 percent in high-value foreign direct investment in NI. The need for an up to date economic assessment of the impact of reducing the corporate tax rate on employment, earnings, and investment is therefore viewed as an important step in the current campaign. One of the main issues remains the potential impact on the block grant that NI receives every year. The Institute outlined various measures that could be availed of to overcome this issue, most notably the use of a low interest loan from Westminster to manage the initial drop in corporate tax revenue that would arise immediately after the rate reduction.  Our progress to date and next steps  The meeting was an important step in achieving a united approach across the business community in NI. Work will continue to garner cross-party consensus on reducing the corporate tax rate in NI which will be critical when the campaign is taken to Westminster. This point was highlighted during the Institute's recent appearance before the joint Economy and Finance Committees in Stormont last month. As outlined previously, in November 2025, the Institute wrote specifically to the Exchequer Secretary to the Treasury on this issue. In the letter, we highlighted that the ultimate aim of a lower rate is for it to become self-funding in the longer term, but that it would necessitate a replacement loan at a low interest rate from HM Treasury to fund the necessary block grant reduction. Last year the Institute published its position paper ‘Enhancing Our Competitiveness: The case for a reduced rate of corporation tax in Northern Ireland’ which launched its refreshed campaign for a lower rate.

Last week the Department of Finance published the first volume of its 2026 Economic Insight series, examining key trends shaping the Irish labour market. The publication notes that Ireland’s labour market is particularly exposed to AI, with evidence suggesting that AI may already be influencing employment patters in Ireland. The report finds that while AI has the potential to significantly disrupt Ireland’s labour market over the coming years, the sectors in which AI is likely to have the greatest impact are also becoming increasingly clear. This information should assist with policy decisions to support workers in these sectors to up-skill and re-skill where necessary and support smooth labour market transitions. The publication also examines a broad assessment of current labour market conditions following an exceptionally strong post-pandemic expansion and explores recent employment trends in health, education and public administration sectors. Commenting on the release, Tánaiste and Minister for Finance, Simon Harris TD, said: “Our labour market has shown remarkable resilience in recent years, with employment at record levels and unemployment remaining low by historical standards. At the same time, we know that we are now entering a period of profound technological change. AI presents significant opportunities to enhance productivity and strengthen our competitiveness, but we must also ensure that workers and firms are equipped to adapt. That means investing in skills, supporting life-long learning, and continuing to roll out enterprise supports that help firms adopt and deploy new technologies.”  

It has been a busy week of commentary on savings and investments. An Tánaiste and Minister for Finance, Simon Harris, spoke about how he wants to help people get the most out of their money. On a Leaders interview with RTÉ, he outlined that he will bring a strategy to government setting out its plan for a Savings and Investment Scheme to bring Ireland in line with many of our European colleagues.   He outlined that he plans to: Make saving and investing more rewarding and accessible for ordinary families, not just the wealthy. Bring Ireland closer in line with European peers who have structures that help people make their money work harder and better for them. Reduce barriers like outdated rules that currently act as a drag on long-term personal investment.  The Tánaiste also commented outside the meeting of Finance Ministers in Brussels that “There is a €170 billion on deposit today, we need to make that money work – not just for our country, not just for the economy, but for our SMEs…I’m thinking of the next generation of people in Ireland and how this could help with their own personal economic resilience…At the moment they are locked out of any meaningful participation in the investment scenario in Ireland.”  Last week we updated you on our advocacy in this area and we wrote to Minister Harris, with recommendations to implement changes to Ireland’s savings and investments ecosystem including: Abolish the deemed disposal rule Reduce the tax rate on investment funds  Introduce loss relief on disposals of units in a fund at a loss Introduce a Savings and Investment Account  Prioritise financial literacy   In our letter, we outlined that increasing retail investment is not only beneficial to households and workers but also to the wider economy.  Whether it is improving the funding environment for growing innovative companies or increasing investment opportunities in infrastructure, the possibilities are considerable if Ireland gets this right.    On Budget day, it was announced that a road map would be published in the first quarter of 2026 outlining how the government plans to implement the recommendations in the Funds 2030 report. We will hopefully see the details of the Minister’s plans for savings and investments outlined in the roadmap and for it to be published in the coming weeks. We look forward to engaging with Government in this area – whether via a forum or consultation process. We will represent members views and keep members updated in this area of important work.