Westminster decisions resulting in higher costs locally – O’Dowd

Date published: 6 May 2025

In December, the Department of Finance commissioned Ulster University Economic Policy Centre to conduct a sectoral cost of doing business study.

Speaking after the meeting, the Minister said: “There are many factors that make up the cost of doing business including the cost of labour, energy, property and transport.

“However one of the main areas for concern highlighted by employers in both the public and private sector has been the impact of the changes in Employers’ National Insurance Contributions which came into effect last month.

“The publication of the report, by the Ulster University Economic Policy Centre, is timely as it reaffirms decisions in Westminster are having a detrimental impact on our business, community and voluntary sectors as well as impacting on our public finances.

“I have impressed upon the Chief Secretary to the Treasury the need for support or mitigations to ease the strain these changes are having on employers and have provided him with a copy of the report ahead of the forthcoming Spending Review.”

The Minister added: “Along with changes to National Insurance Contributions, the disparity of VAT and the negative implications for business, especially for hospitality businesses operating near the border, was highlighted. I want to see a reduction in VAT to enable our hospitality sector to compete on a level playing field in the all-Ireland economy.”

The Minister concluded: “While we do not have the financial capability to mitigate against decisions taken in Westminster, the Executive is committed to supporting businesses and our economy. The 2025/26 Budget provides investment in skills, childcare, agriculture and capital funding to stimulate economic growth.

“My Department recently extended the Small Business Rate Relief Scheme which supports 30,000 businesses and is just one element of the quarter of a billion pounds of support provided to business ratepayers through the rating system.

“The publication of the research today will complement the work already underway in my Department on the Strategic Review of Rates and the policy reviews into the Small Business Rate Relief and Non Domestic Vacant Rating, both priority areas requested by business organisations.”