Last week saw Sir Keir Starmer make his first visit to Northern Ireland as the new Prime Minister. He received a warm reception from parties at Stormont, who collectively, seem as eager as him to get to work on the issues at hand.
After a decisive election result, businesses here and across the UK will hope that with a clear majority, the new government will use the early days to prioritise the economy and take business up on its offer to work in genuine partnership to maximise opportunities and overcome challenges.
It’s been a busy period for Northern Ireland’s newly elected MPs too, some of whom will have just completed their first full week on the green benches. We congratulate each of them and look forward to working in partnership with them to help create optimum conditions for business and economic growth in Northern Ireland.
Reset required
In Northern Ireland businesses face considerable challenges, some common and many unique to the region. Rising costs, skills shortages and infrastructure gaps contribute to a difficult trading environment with low levels of productivity. So, whilst we know that the region can double down on its many areas of success and become known as a hub for growth, that growth trajectory hinges on policy and legislative reforms and transformative interventions being made in earnest.
With a new government and a fresh mandate in Westminster, it is now time for a reset.
Fiscal framework
While Northern Ireland is not alone in making difficult choices about public spending, strategic decisions and interventions at a UK level should reflect the reality of our circumstances. It costs more to run public services here for many reasons.
It is imperative that this UK government takes all steps necessary to support the Executive to stabilise public spending and transform public finances. Crucially, that means reinforcing the commitment to a long-term fiscal floor in accordance with the Fiscal Council’s assessment of Northern Ireland’s relative need. We also believe that the UK government should support an Executive-initiated, short and sharp independent review of public spending which could inform future transformation; identifying cost savings and inefficiencies whilst also driving better outcomes.
A competitive proposition
This is the only jurisdiction in the world where businesses can sell goods into GB and the EU free of customs and regulatory barriers. And whilst it will not benefit every sector, over 70% of NI Chamber members recently surveyed see it as a key driver for sales growth.
To enhance Northern Ireland’s global reputation, we believe this UK government should be clear in its support for dual market access, with the Department for Business and Trade working with Invest NI to promote this unique selling point.
Near market access
Whilst our own research indicates that members are largely positive about future trading opportunities, with the right support there is much more we can achieve. We want to see Keir Starmer’s government working with business across the UK to tackle near-market red tape in trade with GB, the Republic of Ireland and the EU.
And while the Windsor Framework marked a reset in EU-UK relations, this government needs to act fast in addressing outstanding issues, from veterinary medicines to preparedness for the next phase of implementation. More broadly, there is now an opportunity to tackle near market red tape in a changed world. That means working with the EU at pace to address common challenges like energy security, climate change and food security. By linking Carbon Border Adjustment Mechanism (CBAM) schemes and agreeing an ambitious veterinary agreement, there is so much that we can do to reduce and remove barriers to trade with our most important markets.
It is good to hear early noises from Ministers about improving EU-UK relations, which will be vital in resolving trading issues as they arise and considering long-term coherence.
The workforce of the future
Access to people with appropriate skills must be facilitated if we are to develop the workforce of the future. Northern Ireland needs more effective migration, mobility and skills policies that align with regional economic need.
With the region effectively at full employment, access to international labour is crucial for driving sustainable growth. At NI Chamber, we are calling for the development of a Northern Ireland-specific Immigration Salary List and advocating for the establishment of an Island of Ireland Mobility Taskforce to address cross-border mobility challenges.
The work starts now
With the right approach, this UK government, working in partnership with the Executive and business community, has a window of opportunity to create a prosperous, productive and competitive regional economy. It’s time to get to work.
