The reality of inescapable pressures

In recent days we have heard Ministers talk about facing ‘inescapable pressures’ in their departments and needing to use their budgets to prioritise meeting those pressures first.

At first hearing, that may seem reasonable, but priorities are about choices, so let’s consider the context.

99% of businesses in Northern Ireland are SMEs; and this vital sector provides 55% of all jobs here. When an SME comes under ‘inescapable pressure’ the harsh reality is collapse, closure and job losses; a situation that we have already seen reported dozens of times in the past few weeks alone.

For months now, households and businesses across Northern Ireland have been tightening their belts. The strain on finances has forced countless families and small firms to re-adjust their priorities and relentlessly focus on controlling their spending. Firefighting against the costs of fuel, utilities, product inputs, labour shortages and tax increases is taking its toll. As the scale of the economic crisis intensifies, the time for action is now - across every level of government and society. The emergency mindset which our citizens and business owners have had to adopt must be matched by a sense of urgency from political leaders in both Westminster and Stormont.

Robust government help to relieve the acute pressures that are closing in on our entrepreneurs and self-employed cannot be delayed any longer. FSB set out long ago the key steps that Westminster must take to protect livelihoods, lobbying for a reversal of the hike in National Insurance as well as cutting VAT and fuel duty, but we must also see politicians at Stormont taking action in the areas for which they hold responsibility.

In the absence of any local interventions to date, FSB set out a clear proposal in a letter to Finance Minister, Conor Murphy, which can feasibly be implemented by the Department of Finance, despite the current absence of a full Executive. The proposal would involve using the pre-existing Small Business Rates Relief scheme regulations as a vehicle to allocate additional assistance by increasing reliefs to businesses for the nine months of the financial year from July 2022 to March 2023. This is an achievable recommendation which I believe will command the support of politicians, people, and businesses. It will require cross departmental support and so, to ensure that our that micro and small businesses are not left unassisted, I would urge all Ministers to set aside their differences during this time of crisis and ensure the Finance Minister has their support to deliver this.

The limitations caused by the vacuum being created by a caretaker administration in Westminster and a non-functioning Executive at Stormont should not be allowed to hamper progress on tackling this emergency. The SME sector has survived challenging times but to position our businesses on firmer ground over the coming winter months will require government responses that match the scale of the crises.

Any cost-of-living plan worthy of the name needs to tackle the mounting energy bills that small firms are facing. The establishment of a taskforce to coordinate support that could help ease the strain is needed – but with the caveat that it is the urgent actions of such a taskforce that will be the measure of success, not just its creation. Joined up thinking between business organisations and Stormont officials will also be vital if laying the groundwork for meeting one of the biggest crises of our age is to be taken seriously.

High levels of collaboration between governments, citizens and businesses were essential to stem the pandemic and showed what could be achieved when the challenge was recognised as being so great. Now, once again, the challenge is massive, so collective action and trust are needed again. Threats to our businesses represents threats to every one of us. We need to move beyond talking about solution mode to address the issues facing businesses right now before it is too late. Otherwise, the inescapable pressure will not only take more businesses to the brink and beyond but will then quickly lead to further such pressures for the employees who will inevitably lose their jobs. Political choices mean this situation can be avoided - which means it must be avoided. Anything less would be unforgivable.