Institute responds to consultation on upcoming Northern Ireland Budget 2026
Chartered Accountants Ireland has urged the Northern Ireland Executive to prioritise measures that will help attract investment, support entrepreneurs and enable more people to participate in the workforce. The Institute made the recommendations in its submission to the public consultation on the upcoming Northern Ireland Budget 2026.
Grant Sweetnam, Head of Public Policy at Chartered Accountants Ireland said: “Northern Ireland has enormous economic potential but realising that potential requires a consistent, coherent and long-term industrial policy that attracts investment, creates secure, well-paid jobs and fosters entrepreneurialism and innovation.
“Entrepreneurs and foreign direct investment are central to growth, and they need a tax system that encourages ambition and innovation. At the same time, removing barriers to cross-border working and investing in affordable childcare would make it easier for people to participate fully in the labour market.
“Taken together, these measures would strengthen competitiveness, attract investment and support sustainable economic growth for the long term. In an environment of geopolitical upheaval these are measures that are within the government’s control.”
Improving cross-border working arrangements
The Institute highlighted the growing importance of cross-border and hybrid working across the island of Ireland, noting that current tax and administrative rules can create challenges for both employers and employees when frontier workers spend part of their time working from home.
To support a more integrated all-island labour market, the Institute is urging the Executive to work with HM Treasury and the Government of Ireland to reduce administrative burdens and address disparities in the tax treatment of pension contributions and retirement income.
Exploring a reduced corporation tax rate
Chartered Accountants Ireland also calls for renewed efforts to reduce the corporation tax rate in Northern Ireland, suggesting the Department of Finance and the Department for the Economy commission an economic analysis on the potential impact of this reduced corporation tax rate.
Sweetnam said: “A competitive corporate tax rate could help attract investment, create well-paid jobs and encourage innovation and entrepreneurship and we urge the Executive place a renewed focus on achieving a lower corporate tax rate.
“The Institute also called on the Executive to invest in, and reform Invest NI to strengthen its ability to build relationships with major international companies and better promote Northern Ireland as a destination for investment.”
Investing in childcare
The Institutes submission highlights the economic benefits of affordable and accessible childcare. Greater childcare provision would help increase workforce participation and improve productivity.
Sweetnam concluded: “Research conducted by the Institute found that 51% of respondents in Northern Ireland had either reduced their working hours or requested flexible working arrangements because of childcare pressures.
“We welcome the publication of the draft Early Learning and Childcare Strategy and encourage the Executive and the Northern Ireland Assembly to prioritise childcare investment in the forthcoming budget.”
Supporting entrepreneurs
Chartered Accountants Ireland emphasises that entrepreneurs are central to economic growth, creating jobs and driving innovation across the economy. It calls for greater support through the tax system and warned of potential divergence between Northern Ireland and Great Britain as changes to the UK’s Tax Advantaged Venture Capital Schemes come into effect.
The Institute argues that entrepreneurial tax supports should not be limited to high-growth companies alone, but should also benefit other businesses with strong growth ambitions. The Institute also suggests that a wider review of how the UK tax system can encourage entrepreneurship and business growth would be beneficial.
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