View from the Chair Our economy needs immediate action

Businesses in Northern Ireland are working 24 hours a day to keep their people safe and their operations functioning. Two things matter above all: that firms providing vital public services, from energy and health to food and transport, are able to operate; and second, that as many firms as possible survive and can therefore sustain our economy after the virus has passed.

The UK Government deserves credit for its action so far on its economic measures. Fast, coordinated action between the Bank of England and the Treasury over the last two weeks, including interest rate reductions, loan guarantees, the deferral of VAT, and the COVID-19 job retention scheme. The Chancellor’s unprecedented offer of substantial payroll support, fast access to cash and tax deferral will support the livelihoods of millions. It will give businesses the comfort they desperately need at this critical time.

CBI Northern Ireland have been working closely with the Northern Ireland Executive in tackling the challenge of COVID-19. In early March, we wrote to the Finance Minister requesting that the Executive use all available policy tools to support businesses through the coronavirus emergency, including a three-month rates holiday for all non-domestic rate payers as a starting point. The Executive have delivered on this and have subsequently introduced a grant schemes for small businesses and most affected sectors - detail of which needs to be forthcoming urgently.

But this is just the start. Many NI businesses are still at risk as a result of delays between policy announcements and implementation. What’s really important now is the speed and simplicity in which money can be delivered on the ground.

And the UK Government must outline measures to support mid-sized firms and the self-employed. Alongside action from the UK Government and the Executive, firms must continue to move fast to change the way they do things.

Rapid innovation must continue at pace, whether in new systems to support working from home or adopting more agile manufacturing processes that will keep production going through disruption.

Firms want to ensure that the NHS gets what it needs, from face masks to ventilators.

From banks to supermarkets, companies are collaborating in new ways, whether through the supply chain, ensuring joint planning and fast payment, or offering support to individuals on loans and mortgages.

At the CBI, as in other business organisations, we are providing round-the-clock support to members, sharing advice on what’s working, and ensuring the Government has the most up-to-date information from factory floors and boardrooms across the UK.

This is also a moment for exceptional collaboration across all parts of society, critically this needs to happen at an all-Island level between the Irish Government and the Executive.

Business and political leaders are facing difficult choices every day.

It’s vital that our leaders continue to consider the scientific evidence on health policy and work together to minimise the economic implications of their decisions.

In short, our response to the economic shock facing us must be as agile and ambitious as our response to the health crisis. We are in this together and will get through it together. Yes, there will be an immediate cost. But the cost of inaction will be far greater.

For the latest insights and analysis to help your business respond to the coronavirus outbreak, visit https://www.cbi.org.uk/

coronavirus-hub

To contact the CBI with your business enquiries, please email

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Further NI business guidance from NIO can be found at https://www.gov.uk/

government/news/covid-19-guidance-information-for-ni-businesses-employers