North's firms 'expecting decade of growth'

Almost three quarters of the North's businesses anticipate steady and sustained growth over the next decade, according to a report.

Despite strong economic headwinds including rising unemployment, high demand for debt relief and weak consumer demand, company owners in the North are the more positive than anywhere in the UK about the potential for 10 years’ time, the report for Barclays said.

Two thirds of business leaders felt there would be much more foreign ownership of UK assets over the next decade.

Adrian Doran, head of Barclays’ corporate operation in the North, said: “It is very encouraging that many businesses believe in the fundamental strength of Northern Ireland as a place to do business, and hopefully underlines that many of the challenges we are currently experiencing are temporary rather than permanent.

“It is also telling to see that locally based businesses are more positive about their region than the UK as a whole, showing the importance of regional development.

“The fact that 70% of Northern Ireland businesses are anticipating steady and sustained economic growth over the next decade should also be welcome news for a Government that is focused on developing a growth strategy.”

He said the proposed changes to corporation tax could also boost investment.

The survey said 70% of businesses in the North expected steady and sustained growth over the next decade.

The research is based on a survey of 664 businesses of all sizes across the UK, and is part of a wider report on the predicted business landscape in a decade, ’Business 2021’, which will be released next month. The sample includes 51 companies from the North.

When asked to identify areas of growth, 89% of businesses in the North identified the technology sector as one of the areas most likely to fuel economic growth over the next decade, while 86% cited the hospitality and tourism sector and 71% the manufacturing sector.

Nigel Smyth, director of the CBI in Northern Ireland, said the outlook should be considered on a company-specific basis.

“It is tough out there and while the property market is very difficult indeed, at the same time there is good news out there,” he said.

“It is tough, particularly for the small businesses which find themselves in difficult positions. The ICT sector is screaming out for jobs, the food sector is doing OK, although manufacturing is softening.

“It is not all bad, some of this is company and sector-specific.”

Meanwhile, according to the charity Consumer Credit Counselling Service (CCCS), demand in the North for debt relief orders (DROs) was more than double the UK average during the first month of their availability.

The insolvency was introduced in the North at the end of June and was recommended to 14% of people contacting the charity for help in July, compared with 6% in England and Wales.

Debbie Mills, managing counsellor for CCCS Northern Ireland, said: “The fact that we are seeing more than twice the level of demand for DROs as in other parts of the UK shows how valuable their introduction will be in helping people who are struggling with debt in Northern Ireland.

“With rising prices continuing to push up the cost of living, many people are finding it increasingly difficult to cope at the moment – and our advice to anyone struggling with their debt repayments is to seek free advice as early as possible.”