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.

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.  

The Chairman of Chartered Accountants Ulster Society has called for a reduction in Corporation Tax as part of a wider, credible industrial strategy to drive investment, job creation and long-term economic growth in Northern Ireland. Speaking at the Ulster Society’s Annual Dinner, attended by almost 500 business leaders, policymakers and professionals, Chairman Mark Lawther highlighted the findings of the Society’s latest member survey, which points to ongoing economic uncertainty and the need for decisive policy action. “The global outlook remains unpredictable, and that uncertainty is clearly reflected at a local level,” said Mark Lawther. “Confidence in Northern Ireland’s prospects has dipped slightly, with fewer than 6% of our members currently describing the outlook as ‘good’. That underlines the scale of the challenge—and the urgency of the response required.” Ulster’s Chartered Accountants also voice significant concern around public finances, with 94% of members citing public sector funding pressures as having a negative impact on the local economy. “Public sector reform is seen by our members as the single most important priority,” he said. “Alongside that, there is a clear message that we are not yet making the most of Northern Ireland’s unique post-EU trading position, despite the real potential that exists.” Mark Lawther emphasised that Northern Ireland has strong economic fundamentals, including dual market access to Great Britain and the EU, a competitive cost base, and growing political stability. “After a period when certainty felt like a rare commodity, it is encouraging that we can now talk about stability not as an aspiration, but as a foundation,” he said. “That gives us a real opportunity to build momentum and create an environment where Northern Ireland—and its people—can genuinely thrive.” However, he stressed that unlocking this potential will require bold and coordinated action. “A reduction in Corporation Tax, as part of the right policy mix, could be genuinely transformational,” he said. “It would allow us to leverage our unique market position, attract global investment, support local businesses, and create high-value jobs.” “In recent months, we have engaged with all five of Northern Ireland’s main political parties on this issue. As people who live and work here, and who care deeply about its future, we believe that a competitive Corporation Tax rate could be a game changer for our economy.” Reflecting on the role of the profession, Mark Lawther highlighted the contribution Chartered Accountants make across the economy. “Chartered Accountants are at the heart of business and public service, supporting organisations to adapt, grow and innovate,” he said. “We don’t just witness change—we help make it happen. Every day, our members are working alongside businesses that are evolving and expanding, helping to build a more competitive and resilient Northern Ireland.” He also welcomed the attendance of the First Minister and deputy First Minister, noting the importance of political leadership and engagement with the business community. “Business thrives best in an environment of certainty, collaboration and ambition,” he said. “We very much value the leadership shown in restoring stable government and in setting a constructive tone for the work of the Executive.” The Annual Dinner, sponsored by Danske Bank and MCS Group, celebrated the contribution of Chartered Accountants across Northern Ireland and brought together leaders from across industry, professional services and enterprise.  

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.”   

Last Monday, Chartered Accountants Ireland and the Ulster Society were pleased to meet with representatives from the Northern Ireland Chamber of Commerce and the Confederation of British Industry Northern Ireland to discuss potential ways forward in the ongoing campaign to reduce the corporation tax rate in Northern Ireland. The meeting was very informative and productive and each of the organisations agreed that Northern Ireland 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 Northern Ireland. The key issues and Institute stance One of the main issues discussed was the need for an economic assessment of the impact of reducing the corporate tax rate on employment, earnings and investment. The 2021 ESRI research 'Enhancing Attractiveness of the Island of Ireland to High-Value Foreign Direct Investment' shows that a reduction in the rate of corporate tax to 15% would yield an annual increase of 7.5% in high-value Foreign Direct Investment in Northern Ireland. One of the main issues that remains is the potential impact on the block grant that Northern Ireland receives every year. The Institute outlined various measures that can 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  This meeting was an important step in achieving a united approach across the business community in Northern Ireland. Work will continue to garner cross-party consensus on reducing the corporate tax rate in Northern Ireland 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 Committee’s in Stormont earlier this month. As outlined previously, in November 2025, the Institute wrote specifically to the Exchequer Secretary to the Treasury on this issue. In this 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’.   

Chartered Accountants Ireland is warning that family-owned businesses in Northern Ireland, including those in the agricultural sector, will be the biggest losers from the recent tax changes announced in the Autumn Budget. Impacted family businesses are now facing a triple whammy of mounting employment costs, higher Capital Gains Tax on sale or succession, and an unexpected Inheritance Tax bill when passing businesses on to the next generation. Commenting, Janette Burns, Chair of the Institute’s Northern Ireland Tax Committee said: “Northern Ireland family-owned businesses are the heartbeat of our economy with around 80% of businesses here either family owned or managed. Many of these businesses, particularly those who employ minimum wage workers, will face a stark increase in their wage bill from April 2025 as a result of the changes to Employer’s National Insurance Contributions and the National Minimum Wage. For example, a business with 50 part-time staff aged 18-20 working around 15 hours per week will have to find an additional £65,000 from April 2025 just to pay wages. This will particularly impact businesses reliant on part time staff such as in the retail and care sectors but especially for already struggling hospitality businesses.” Reflecting further on what’s still to come for Northern Ireland family-owned businesses, Janette commented: “From 30 October 2024 the rates of Capital Gains Tax have already increased from 10% to 18% and 18% to 24% ahead of a stepped reduction in the benefit of a key Capital Gains Tax relief, Business Asset Disposal Relief, commencing from April 2025. Then, from April 2026 the benefit of two key Inheritance Tax reliefs is being reduced by 50% for businesses (including farms) worth more than £1 million. This means that further down the tracks the same family business owners are facing a significantly higher tax bill when the time comes for the next generation to take over. Those who are approaching retirement will now pay more Capital Gains Tax either when they sell the business or pass it on to their successors whilst still alive. On a death transfer, the Budget’s Inheritance Tax changes from April 2026 mean that whomever inherits the business will be hit with an extra 20% Inheritance Tax bill on any value over £1 million. Figures suggest that an estimated 33% of farmers in Northern Ireland will be affected. Many family-owned businesses and farms here started out small 20 or 30 years ago and through sheer hard work, sacrifice, and determination have grown in size. It would not be unusual for those businesses to now be worth several million pounds. For a business or farm worth £2million, these changes will add as much as £200,000 onto the family Inheritance Tax bill. The reality is that many will be forced to sell the business or farm to pay this new bill.”

Chartered Accountants Ireland welcomes this week’s announcement of a series of new measures to support early learning and childcare in the 2024/25 financial year in Northern Ireland. While the announcement marks an important step forward in supporting working parents as well as childcare providers themselves, the focus must now move toward developing a longer term strategy around securing more sustainable, affordable childcare in the region. The measures announced as part of this week’s package include: £7.1 million to expand and stabilise existing early years and childcare provision (programmes such as Sure Start, Pathway, Toybox and others including those focused on supporting children with special educational needs and disabilities). £2 million to address sustainability challenges and deliver a targeted business support scheme for childcare providers to assist those in financial difficulty and in areas where the demand for childcare exceeds supply. £5 million to begin the transition process for standardising the pre-school education programme to 22.5 hours for all children. This is expected to make an additional 2,200 full-time places available from September 2025. £9 million for a Northern Ireland Childcare Subsidy Scheme, with payments being made from September 2024. £2.5 million for a major data collection exercise to help with evaluation of these measures and inform the longer-term strategy.   A link to the official Ministerial Statement on the measures can be found here.

Chartered Accountants Ireland has outlined a series of concrete steps aimed at making the provision of childcare across the island of Ireland work for both providers and parents, which could leave working parents financially better off and free up vital working capacity in the economy. Our paper ‘Supporting Working Parents – The case for better childcare policy’ sets out the core economic arguments for improved childcare provision as well as shining a light on the experiences of working parents seeking childcare.