NI Businesses Anticipate Less Reliance On Public Sector

According to a recent research report, two-thirds of businesses in Northern Ireland (67%) believe the economy will have less reliance on the public sector over the next decade.

The findings of the report, conducted by Barclays Corporate, are based on a survey of 664 businesses of all sizes across the UK.

The sample includes 51 respondents from Northern Ireland.

There was significant regional variation in attitudes in relation to public sector reliance, with South West of England businesses (71%) also confident of a move away from public sector reliance, while businesses in the North West of England (36%) were the only region expecting an increase in the influence of the public sector in the economy.

In terms of sectors, the majority of media and technology companies predict less reliance on the public sector as do the majority of healthcare companies.

Manufacturing is the only sector that believes there will be an increase in public sector reliance over the next decade.

660 business leaders were polled on the political conditions they expect their businesses to face in a decade.

The findings revealed that Northern Ireland businesses (62%) are the most positive of all the regions in the UK about the potential for the region to have improved local infrastructure that will be able to support the needs of business by 2021.

Most UK companies (64%) were resigned to the fact that they would be dealing with more red tape in a decade, with Northern Ireland companies (70%) being amongst the most pessimistic in relation to this issue.

Head of Barclays Corporate in Northern Ireland, Adrian Doran, commented: "These findings are very positive. The fact that the majority of businesses in Northern Ireland are looking to private enterprise for growth is welcome news. While central and local government is a key source of income for companies, these results underline the fact that many companies now realise that relying on the public sector alone is not going to be a recipe for success over the coming decade."

Mr Doran added: "It is also encouraging to see that Northern Ireland businesses are amongst the most optimistic in the UK when it comes to expecting improved local infrastructure. However, given the UK wide concerns in this respect, it is important that local companies are proactive in advocating to Stormont exactly what infrastructure investment they believe will best facilitate growth in the coming decade."

(JG/CD)