Butler Warns NI Businesses Being Squeezed from Every Angle as Business Confidence Falls
Ulster Unionist Agriculture, Environment and Rural Affairs spokesperson Robbie Butler MLA has warned that businesses across Northern Ireland are being squeezed by weak growth, rising costs and political dysfunction, with confidence being steadily eroded by instability, planning paralysis and the growing burden of rates.
His comments follow the publication today (Wednesday 28 January 2026) of the NI Chamber and Queen’s University Belfast Quarterly Economic Survey, which shows that while 59% of firms expect their own business to grow in 2026, just 23% expect the wider Northern Ireland economy to grow.
Mr Butler said the findings strongly reflect what he has heard repeatedly through direct engagement with many business owners across Lagan Valley and beyond, whose experiences mirror pressures being felt right across the economy.
He said: “Business owners are telling me the same thing again and again: that they are resilient, they’re working flat out, but the environment they’re operating in is making growth harder, riskier and, in some cases, impossible. That is not a failure of enterprise, it is a failure of the system around them.”
The survey shows that 80% of firms are trading well or reasonably, yet only 32% say they are trading well, with 13% just covering costs and 6% struggling. Nearly half of all businesses reported a slowdown in demand in Q4 2025, pointing to an economy stuck in low gear rather than moving towards recovery.
Mr Butler warned that the non-domestic rates revaluation, combined with imminent local rate-setting decisions, risks inflicting serious damage on already stretched businesses.
He added: “Businesses are being hit from every angle wages, energy, insurance, inputs and now rates. The revaluation followed by local rate setting is landing at the worst possible time. If this is handled badly, councils and ministers risk pushing viable businesses over the edge.”
He said hospitality, retail and locally rooted service businesses are particularly exposed, with knock-on consequences for jobs and town centres.
“Higher rates don’t just hit balance sheets, they reduce hours, stall investment and cost jobs. Once businesses close, they don’t simply reappear.”
He also raised serious concerns about planning paralysis, particularly in the agri-food sector, which remains one of Northern Ireland’s most important economic pillars.
Robbie Butler said: “I am hearing growing frustration from agri-food producers who fully support higher animal welfare and environmental standards, but are being strangled by a planning system that has failed to keep pace. The result is reduced productivity, stalled expansion and, in some cases, significant drops in output.”
He added that welcome animal welfare regulatory improvements have not been matched by common-sense, timely planning decisions, leaving producers trapped between rising standards and an unworkable system.
“When major food producers cannot secure planning decisions in a reasonable timeframe, the entire supply chain suffers. That is not protecting the environment or animal welfare, it is choking growth and undermining food security.”
Mr Butler said business owners are also deeply concerned by the impact of political instability, with confidence being damaged by what many describe as performative politics.
“There is a consistent and growing message from businesses that political instability, sham fights and point-scoring are actively harming confidence. Many have lost faith in parties who put narrow party interest ahead of Northern Ireland’s economic well being.”
He warned that this lack of confidence is now feeding directly into decisions on investment and recruitment.
“When politics looks chaotic and unserious, businesses pause. When they pause, growth stalls.”
Mr Butler concluded by calling for an end to day-to-day trench warfare politics and urgent agreement on a credible multi-year budget.
“Northern Ireland cannot be governed on a ‘battle-a-day’ basis. Businesses and constituents are sick of it. What is needed now is stability, long-term thinking and agreement on a multi-year budget that champions beneficial planning, investment and reform.
“Without that, we risk locking ourselves into permanent low growth and that would be a profound failure of leadership.”
