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NI businesses to get more than £16m in post-Brexit trade support

Jayne McCormackBBC News NI political correspondent
Reuters Rachel Reeves, a woman with dark brown hair, dressed in a grey suit with purple scarf, holds up a red box with gold coloured handle and gold coloured lettering in street with black railings behind her.Reuters
Rachel Reeves will announce the details of the Budget on Wednesday

Chancellor Rachel Reeves is set to announce more than £16m to support businesses in Northern Ireland dealing with post-Brexit trade rules when she reveals her Budget later this week.

The Windsor Framework was agreed between the UK and EU in 2023 and effectively keeps Northern Ireland inside the EU's single market for goods.

Earlier this month, a report by an independent panel found the government's Windsor Framework guidance for businesses is "not fit for purpose".

The government has said the financial package, to be officially announced on Wednesday as part of the Autumn Budget, will provide a "single point of contact" to solve disputes and guide businesses on trading in NI.

What is in the package?

The package comes months after recommendations from an independent review of the Windsor Framework, led by Lord Murphy.

According to the Treasury, the package builds on that report's findings and will allow for:

  • The creation of a Northern Ireland business concierge and trade resolution centre to sort out complex disputes
  • A Northern Ireland AI goods adviser and regulatory hub to guide businesses on trading in Northern Ireland
  • Funding for Intertrade UK to connect small and medium enterprises with investment opportunities

A Treasury source said "this is about recognising Northern Ireland's importance to the UK economy".

"Northern Ireland's SMEs (small to medium-sized enterprises) who need more help to realise the promise of dual market access and GB-based companies who want to capitalise on the UK-wide market will both see the benefit.

"Despite a tough fiscal situation, the chancellor sees this as an absolute priority."

Getty Images A woman counting UK sterling bank notes in her hands. At least one of them is a purple £20 note.Getty Images
A Treasury source said the package is "about recognising Northern Ireland's importance to the UK economy"

The government's funding announcement comes as Stormont ministers are already braced for potentially difficult news in the Budget.

Recent months have been dominated by media reports about which taxes could increase, with multiple potential measures floated by the government.

On Sunday, Stormont's Finance Minister John O'Dowd said executive departments are facing a £400m overspend based on current financial commitments.

O'Dowd said speculation and "confusion in messaging" ahead of the budget had been difficult for everyone.

He had previously warned other executive ministers to be braced for the potential of cuts in the Autumn Budget.

The SDLP (Social Democratic and Labour Party), Stormont's official opposition, has written to the chancellor arguing for "enhanced" fiscal powers for Northern Ireland to allow for better planning on a multi-year basis.

Its leader Claire Hanna said executive ministers "cannot continue to absolve themselves of any responsibility when it comes to the state of our public finances".

What is the Windsor Framework?

Getty Images A person with long reddish hair wearing a blue jacket with a yellow and orange bib and green hat holding a clipboard with white paper.Getty Images
The Windsor Framework aimed to reduce checks and red tape on goods arriving in Northern Ireland from Great Britain

After Brexit, Northern Ireland effectively remained in the EU's single market for goods.

That meant new checks and controls have been applied to goods being sent from Great Britain to Northern Ireland.

It became known as the Irish Sea border.

This was originally governed by a UK-EU deal known as the Northern Ireland Protocol.

It was revised in 2023 and became the Windsor Framework.

Unionist politicians remain opposed to it and have long argued that the arrangements leave Northern Ireland's constitutional position within the UK weakened.

After taking power last year, the Labour government said it would enter negotiations with the EU to reach a solution to effectively dismantle the Irish Sea border for food and agricultural products.

In May, the two sides agreed an outline deal but negotiations are still taking place with implementation not expected until 2027.