As Westminster prepares for the Autumn Budget, Northern Ireland’s business leaders are clear: this Budget must deliver for our region as well as for the rest of the country.
For too long, firms here have faced structural disadvantages compared to competitors in England, Scotland and Wales.
While we are rightly proud of the breakthroughs in the region’s tech and advanced manufacturing sectors, business sentiment remains fragile, and the gap between Northern Ireland and Britain is widening.
The CBI’s own growth indicator shows UK-wide activity is set to decline over the next three months.
Locally, companies still struggle with higher energy costs, more complex trade arrangements, and fewer incentives to invest. The Autumn Budget must not only give clarity on UK-wide tax and skills policy, but it must also ensure Northern Ireland’s economy is not left behind.
Firms tell the CBI that Northern Ireland is receiving less strategic support than counterparts in England, Wales and Scotland.
For example, on energy, the Prime Minister announced a £22 billion carbon capture programme for the UK, yet NI missed out completely in the government’s latest hydrogen allocation Funding round issues and lack of support.
When it comes to investment incentives, companies with operations in NI and across the UK say that Northern Ireland does not receive the same support as other regions.
In addition, the local economy must compete for investment with a 25% corporation tax rate when – just a few miles down the road – investors are offered a rate of 12.5%.
On skills, employers also face a smaller talent pool, an apprenticeship levy that is not returned to the employer and visa costs for migrant workers that are significantly higher than competitors in the Republic of Ireland.
The differential is stark, with NI work visas costing around £7,000 per worker compared to just £1,400 in the Republic of Ireland. Border firms in particular say this makes NI uncompetitive when hiring global talent.
When it comes to wages, local firms complain that minimum wage policies are set at UK-wide levels that do not reflect productivity differences across the country.
These gaps need to be addressed as they risk deterring investment, slowing job creation, and eroding competitiveness.
Yet, in spite of these challenges, Northern Ireland is also showing what success looks like when support lands.
Just last month, Industry Minister Sarah Jones confirmed over £30 million for science and technology projects in NI, supporting sectors like cybersecurity and advanced manufacturing.
The package included £2 million for Queen’s University Belfast’s Cyber AI Hub, further cementing our leadership in digital security and £30m for Ionic Technologies in Belfast to pioneer a circular supply chain for rare-earth magnets.
We also know Thales Group secured a £1.6 billion government-backed contract leading to the creation of another 200 jobs at their local manufacturing base.
These wins show what can be achieved when policy, funding, and ambition align. Sadly these examples remain the exception, with too many local firms continuing to face systemic barriers, leading to sizeable commercial opportunities being missed. For example, one local firm that makes protective clothing has told me that, despite significant effort, they struggle to gain access to the UK Government’s defence procurement contracts.
Business leaders are clear: a growth strategy is meaningless without a people strategy. The Department of Economy has made great progress with the creation of a Skills Fund for Northern Ireland and putting a collaborative approach with business at the heart of the Skills Strategy – the Green Skills Action Plan is a perfect example.
Programmes like ‘Skill Up’ and the Assured Skills Academies demonstrate successful and genuine collaboration.
But we also need to make sure that all Apprenticeship Levy funds are re-invested in business, fix the funding gaps, and ensure that employers here can invest in the training they need.
For Northern Ireland, this Budget is a moment of truth. Westminster cannot continue with a one-size-fits-all approach.
We need energy reforms to close the gap with GB and unlock stalled hydrogen and renewable projects; fair investment incentives so NI can compete with both Great Britain and the Republic of Ireland; skills and visa reform to expand the local talent pipeline, make recruitment easier and return all Apprenticeship Levy funding back to employers; and targeted procurement and government spending so that NI secures its fair share of national contracts.
At the same time, government should build on the good news — scaling up successful innovation projects like Ionic Technologies, expanding the £30m Industrial Strategy package, and ensuring Enhanced Investment Zones deliver real results for local firms.
Northern Ireland has unique strengths: world-class universities, a thriving cyber sector, advanced manufacturing expertise, and a proud industrial heritage.
Angela McGowan (DARREN KIDD)
With the right support, we could be at the forefront of the UK’s growth mission. But that requires targeted action and a recognition that the playing field is currently not level.
The CBI stands ready to work with the UK Government and the Stormont Executive to co-design solutions that drive investment, create skilled jobs, and raise living standards.
The Chancellor now faces a choice: deliver a Budget that stimulates and supports growth across all nations — or risk leaving Northern Ireland behind.
- Angela McGowan is director of CBI Northern Ireland