Mini-budget: NI politicians presented with chance to seize powers

Following the mini-budget announcement from the Chancellor of the Exchequer Kwasi Kwarteng, Alan Lowry praised the ‘series of measures announced’ adding they ‘will go some way towards helping SMEs tackle the daunting challenges currently before them’.

He continuned: “With so many small businesses across Northern Ireland operating in survival mode, it is encouraging to see the government giving the green light to a plan which will ease some of the burdens they are facing.

“However, it is deeply disappointing that no moves were made to reduce VAT for the hospitality sector nor cut the cost of road fuel.

“The series of measures announced by the Chancellor will go some way towards helping SMEs tackle the daunting challenges currently before them. It is particularly pleasing to see that many of FSB’s calls have been adopted, including the decision to reverse the NICs hikes introduced in April. “Reversing all four - employer, employee, self-employed and the dividend equivalent – will help small businesses and the self-employed at a crucial time, as should the changes announced to IR35.

“The scrapping of the planned hike in Corporation Tax is also a welcome measure which will benefit local companies as well as help in attracting foreign direct investment; similarly, retention of the Additional Investment Allowance at 100% year-one allowance for up to £1million of capital investment is a powerful measure to stimulate growth, as are some of the other investment reliefs announced.

“However, the prize of highly attractive powers for investment zones in Northern Ireland has been dangled before us but these will only be secured if we have a functioning Executive to seek and deploy them.

“We cannot afford for the local economy to miss out on opportunities because of political stalemate, so we continue to urge our local political leaders to overcome the challenges they face and find the means to restore a fully functioning Executive and Assembly.

“Overall, this fiscal statement is a major change of direction which presents some significant opportunities, but which has delayed or ignored others.

“Our local businesses and our local politicians need to seize all that is made available so we can weather the short-term economic storms and bolster our economy for the longer term, whilst continuing to press for further measures to assist the hardest hit sectors.”