Finance Minister Demands Funding To Offset NI Contributions

The Finance Minister has called on the Chief Secretary to the Treasury to provide adequate funding to offset the impact of increased National Insurance contributions.

Dr Caoimhe Archibald warned that increased National Insurance contributions will be "incredibly challenging" for local businesses, community and voluntary sector and public sector employers.

Dr Archibald said: "Devolved Governments quite simply do not have the financial capacity to compensate for decisions made on reserved taxation matters.

"The Chancellor has said support will be provided for public sector employers however it is unlikely to be sufficient to meet the increased costs. I have written to the Chief Secretary to the Treasury asking for our costs to be met in full and for support for those outside central government who provide vital public services given the pressures they will face as a result of this policy decision." Outlining the impact on the community and voluntary sector, Minister Archibald added: "The Chancellor's budget is a double blow to the community and voluntary sector which will face increased costs at a time when the British Government are reducing the Shared Prosperity Fund by a third which will have funding implications for this sector.

"I raised this when I met with the Minister of Housing, Communities and Local Government yesterday and urged for reconsideration of this approach."

Minister Archibald concluded: "My Department has commissioned Ulster University Economic Policy Centre to conduct a focused cost of doing business sectoral study looking at the impact of the National Insurance contributions increases and other factors such as insurance, energy and property costs and the disparities in tax regimes, such as VAT, across Ireland.

"It is important that we hear the voices of those impacted which is why the team will be carrying out a series of sectoral and business representative body consultations to inform the research."

Terms of Reference for the Cost of Doing Business research have been published on the Department of Finance's website with the study due to be concluded by the end of March 2025.