Business leaders in Northern Ireland welcomed the extra funding that is being made available to the country, funding that was announced in the Autumn Budget by Chancellor Rishi Sunak. The Executive will get, approximately, an additional £1.6 billion per year more to top up the annual baseline funding of £13.4 billion that they already receive.
As well as the above there will be an extra £235 million for 2021-22, and there will be further funding of £70 million to the British Business Bank, which will go towards the work they are doing with various partnerships in the country.
A Shot In The Arm For The Local Administration
In welcoming these announcements Kirsty McManus, national director at IoD NI, is quoted in an article on the Insider Media website as saying:
“The additional expenditure that will now be available to the Northern Ireland Executive as a result of the Chancellor’s Budget announcement will be a shot in the arm for the local administration.
“It is incumbent now on ministers to deliver on the incredible potential it presents, with a focus, through targeted investment in key services and infrastructure, on ensuring this region is fit to capitalise on the green recovery as we continue to emerge from the coronavirus pandemic.
“With a pot of £70m being made available to small and medium enterprise through the British Business Bank, there was much in the Budget to cheer local business leaders,”
Few Surprises Or Major Changes Revealed In Budget
In the same article however, Aisléan Nicholson, tax partner at Deloitte in Belfast, said that there were few surprises or major changes revealed by Rishi Sunak in his budget. She said:
” — as anticipated, given the significant tax measures already announced this year, including the increase in the main rate of corporation tax, the Chancellor’s Autumn Budget has introduced few changes of major significance from a tax perspective for people and businesses in Northern Ireland.
“The focus for HMRC in the upcoming period will be on concluding some of the many open areas of tax consultation, with the proposals for reform of the research and development (“R&D”) regime likely to be of key interest for many businesses here in Northern Ireland.
“While we await further detail of the measures, the Chancellor did confirm an extension to qualifying costs for R&D to bring in cloud and data costs, which will be welcome for many local companies, in particular our innovative tech sector. On the other hand, there will be a refocus of support towards innovation undertaken in the UK, which may be an area to watch for businesses which rely on non-domestic workers.”
If you have a business and you require help and advice on the forthcoming tax changes, or you have any other accountancy issues, please get in touch with our dedicated team here at WHR Accountants on 028 3752 2909.