Finance Minister John O'Dowd has underscored the significant impact of recent UK-wide changes to Employers' National Insurance Contributions on businesses and organisations in Northern Ireland, following a roundtable discussion with business bodies and NICVA (Northern Ireland Council for Voluntary Action).

The meeting, held today, provided an update on the wider budgetary context, the Department's ongoing Strategic Review of Rates, and new research into the cost of doing business. In December, the Department of Finance commissioned the Ulster University Economic Policy Centre (UUEPC) to conduct this sectoral cost study.

Speaking after the meeting, Minister O'Dowd said: "There are many factors that make up the cost of doing business including the cost of labour, energy, property and transport. However one of the main areas for concern highlighted by employers in both the public and private sector has been the impact of the changes in Employers' National Insurance Contributions which came into effect last month." He stated that the UUEPC report "reaffirms decisions in Westminster are having a detrimental impact on our business, community and voluntary sectors as well as impacting on our public finances." The Minister confirmed he has raised these concerns directly with the Chief Secretary to the Treasury, urging support or mitigations and providing a copy of the report ahead of the UK's forthcoming Spending Review.

Mr O'Dowd also addressed the issue of VAT, particularly its effect on the hospitality sector. "Along with changes to National Insurance Contributions, the disparity of VAT and the negative implications for business, especially for hospitality businesses operating near the border, was highlighted. I want to see a reduction in VAT to enable our hospitality sector to compete on a level playing field in the all-Ireland economy," he said.

While acknowledging the limits of local financial powers, the Minister reaffirmed the Executive's commitment to supporting the economy. "While we do not have the financial capability to mitigate against decisions taken in Westminster, the Executive is committed to supporting businesses and our economy. The 2025/26 Budget provides investment in skills, childcare, agriculture and capital funding to stimulate economic growth," he noted.

He also pointed to existing support measures: "My Department recently extended the Small Business Rate Relief Scheme which supports 30,000 businesses and is just one element of the quarter of a billion pounds of support provided to business ratepayers through the rating system."

The Minister concluded that the newly published research will inform the Department's Strategic Review of Rates and policy reviews into Small Business Rate Relief and Non-Domestic Vacant Rating, both identified as priority areas by business organisations.