Northern Ireland accountants demand public sector reform

There must be reform of Northern Ireland’s public sector with 90% of accountants here saying improved efficiency must come before tax hikes.

Half of respondents to Chartered Accountants Ulster Society believe Northern Ireland’s current public funding model is no longer sustainable and requires significant change.

And nine out of 10 say believe “improving efficiency and prioritising existing spending must come before raising taxes or cutting services”.

Just 6% of those responding believe the economic outlook is position, with the majority (56%) expecting “fair” conditions and 38% remaining pessimistic.

Meanwhile, 58% reported that financial distress among businesses is still increasing, underlining the persistent strain across the economy.

And 76% of respondents describe current conditions as either stagnant (38%) or growing only slowly (38%), with just 7% reporting strong or moderate growth.

Almost all of those surveyed said the rising cost of doing business remained a major negative factor, alongside taxation, energy costs and wider public finance pressures.

“Northern Ireland’s economy has stabilised, but momentum remains modest,”

“Businesses continue to face elevated costs and financial pressures, and greater confidence will depend on clearer, faster policy delivery,” Mark Lawther, chairman of Chartered Accountants Ulster Society, said.

“There is a clear message from our members that reform must come before additional revenue-raising. Improving how public money is spent, alongside stronger governance and decision-making, is essential to restoring confidence.

“At the same time, there are real opportunities to transform our economic outlook. A more competitive corporation tax rate, combined with Northern Ireland’s unique dual market access, has the potential to attract significant investment – but only if supported by clear strategy and delivery.

“We also see growing potential in areas such as AI and innovation, which can support productivity and long-term growth. The challenge now is to turn opportunity into action.”

More than 200 chartered accountants in Northern Ireland took part in the survey.

“A clear and consistent theme throughout the findings is the need for fundamental public sector reform,” it says.

“Respondents expressed strong concerns around governance and delivery, pointing to inefficiency, slow decision-making and a lack of strategic direction as key barriers to growth.

“Public sector performance is widely viewed as a constraint on economic progress, particularly in areas such as infrastructure, skills and service delivery.

“At the same time, there is strong support for measures to enhance competitiveness. 85% of respondents believe a more competitive corporation tax rate would strengthen Northern Ireland’s ability to attract and retain mobile investment.”