Readers will be aware that in recent weeks the Institute has written to Ministers in Dublin and Belfast outlining the tax and compliance challenges affecting cross-border workers on the island of Ireland. It seems the timing of our letters was prescient given the commitment announced last week by the Irish and UK Governments to reach a decision in principle this year on a bilaterial Ireland-UK approach to address the concerns affecting hybrid cross-border workers.
In a joint statement issued by Taoiseach Micheál Martin and Prime Minister Sir Keir Starmer following the conclusion of the UK-Ireland Summit in Cork last Friday, both leaders acknowledged the decision and also committed to reviewing the Irish-UK Double Tax Agreement as part of the work. A bilateral agreement has the potential to reshape the labour market on the island to make it compatible with hybrid working models that have proliferated following the Covid pandemic.
Following our recent correspondence with Ministers in Ireland and Northern Ireland, the Institute has received feedback from several of the Ministers and we will be engaging with officials in the coming weeks. 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.
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