A conversation with Johnny Hanna, Partner-in-Charge of KPMG in Northern Ireland. Hanna discussed KPMG’s growing operations in Northern Ireland, how the business landscape has evolved, the unparalleled opportunities for the region, and other economic levers that could be unleashed to help it reach its full potential.
How long has KPMG been based in Northern Ireland?
KPMG is celebrating 50 years in Northern Ireland and in that time we have witnessed an incredible transformation in the region’s economy and society.In 2021, we expanded our capabilities to meet the evolving needs of our clients with the launch of a Center of Excellence, dedicated to cybersecurity, AI, and data analytic services.
As an office, we’re firmly in growth mode and because of a world-class education system, a dynamic broad-based economy, and a standard of living rated one of the best in the world, we’re able to call upon a diverse, highly skilled workforce from around the world to power those ambitions.
What makes Northern Ireland competitive as a global business hub?
Over the past 20 years, we have seen a significant influx of international companies. From the US, major firms like Citi, Allstate, and Aflac have established a large presence in Northern Ireland. This trend reflects the region’s attractiveness, with talent being a primary driver. Another factor is low operating costs, especially compared to countries like the Republic of Ireland, where rent and other expenses are considerably higher.
In our experience, the support offered by the Northern Ireland Department for the Economy’s Assured Skills program has been a considerable benefit in terms of the availability of suitably qualified talent. In conjunction with employers and local colleges, the program enables bright and well-educated graduates from all academic disciplines the opportunity to undergo a bespoke training program over several months.
Post-Brexit, the piece of legislation which sets Northern Ireland apart competitively is the Windsor Framework. Under the terms of the Brexit agreement, this provides Northern Ireland-based businesses with unfettered access to both the European Union and UK markets. This provides a competitive advantage for businesses dealing with goods, as they are able to operate with fewer trade barriers, including customs and VAT, as well as non-tariff barriers like checkpoints and inspections.
What sectors offer the most opportunities?
For sectors with a heavy focus on regulation, the Windsor Framework can offer advantages in terms of an ability to align products to both the EU and GB regulatory frameworks, allowing them to streamline compliance, a key benefit to consider when mapping out supply chains and market entry strategies.
Northern Ireland has cultivated innovative, world-class expertise across a range of industries, including advanced manufacturing, engineering, agri-food, agri-tech, health, and life sciences.
As businesses across these and other sectors explore these opportunities, KPMG is committed to guiding them through the complexities of setting up operations, ensuring they understand the benefits and challenges of investing in Northern Ireland and navigating the dual market successfully.
You mentioned other levers in Northern Ireland’s economic toolbox?
While Northern Ireland companies are subject to UK taxes (including a 25% rate of corporation tax), the UK Government has previously sanctioned the devolution of corporation tax-setting powers to the Northern Ireland Executive, powers which if finally implemented would allow us to reduce the corporation tax rate to 12.5% (15% in the case of certain large companies), on a par with the Republic of Ireland. This would further improve the competitiveness of Northern Ireland’s overall investment proposition.
What should potential investors remember about Northern Ireland?
Come and visit!
It’s only when you actually spend time in Northern Ireland you realize the friendliness of the people, the pro-business culture and appreciate the quality of life. You realize that you can leave your office and be in beautiful countryside in minutes; you can play golf on world class courses; you can visit the Mourne Mountains, the Antrim coast. There are so many things on your doorstep. For businesses there are huge opportunities in Northern Ireland; there’s an abundance of talent, and some fantastic businesses established here, both indigenous and international investors, which took a leap of faith on Northern Ireland many years ago. They are now firmly part of the business landscape having reinvested many times!
