Labour’s landslide victory in the UK general election has been met with “a palpable sense of optimism among the Irish public” after several years of turbulent relations with Britain since the Brexit vote, Baker Tilly Ireland has said.
Brendan Murphy, head of tax at the accountancy group, said there is “significant opportunity” for Anglo-Irish and cross-border relations to improve after Keir Starmer‘s party swept to power today following 14 years of Conservative rule.
“Starmer is keen to get Anglo-Irish relations back on track regarding ease of trade, which is crucial for sectors like agriculture, food and beverage, logistics, FMCG, construction, and any business involved in exporting goods,” said Murphy.
“This emphasis on seamless trade processes generates cautious optimism within the Irish business community.”
Murphy also hopes for closer UK-EU relations with Labour in power, and said that improved links between Westminster and Brussels would benefit both Britain and Ireland, and Irish businesses in particularly.
Exports to the UK totalled €17.6bn last year while British imports to Ireland came to just over €21bn, a decline of nearly €3bn from 2022, and Britain remains Ireland’s largest trading partner after the EU and the US.
Murphy highlighted the number of Labour figures with Irish heritage and connections, which he expects will facilitate “smoother diplomatic and economic interactions.”
This cultural affinity is a practical advantage and a source of connection and understanding, fostering closer economic ties,” he continued “The business community is cautiously optimistic.”
Baker Tilly Ireland began trading this week following the merger of Roberts Nathan and MHA.
(Pic: Getty Images)
