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Ibec-CBI report urges governments to make immediate progress on cross-border working

23 July 2026
  • Ibec and the CBI urge immediate progress on cross-border working issues following commitments made by the Irish and UK governments at March’s UK-Ireland Summit.
  • The annual £14.6bn (€17bn) All-Island economy is not reaching its full potential due to 25-year-old regulatory barriers.
  • Business groups propose a joint forum for priority solutions, including the creation of an All-Island work visa and streamlined tax arrangements for hybrid work.

Ibec and the CBI have called on both the Irish and UK governments to work together to tackle the growing barriers facing hybrid and cross-border workers across the All-Island economy.

The business groups have published a paper outlining that cross-border work falls short of its potential due to various obstacles impacting both employers and employees,

While the All-Island economy is underpinned by over £14.6bn (€17bn) in annual cross-border trade, the Ibec-CBI study found that outdated regulatory and tax frameworks are severely restricting firms’ ability to recruit, limiting competitiveness, and depressing growth potential.

Key issues outlined by the paper:

  • Taxation compliance burdens regarding dual payroll obligations and ‘permanent establishment’ risks, which are triggered when employees attempt standard hybrid or remote work arrangements across the border.
  • Cross-border workers have faced increased administrative challenges since the advent of hybrid working.
  • Difficulties hiring and deploying non-UK or non-Irish nationals to work fluidly across both jurisdictions due to rigid, uncoordinated work permit regimes.
  • Highly complex, fragmented, and unclear employment rules, coupled with a lack of official, reliable guidance to help employers and employees navigate them.

Fergal O’Brien, Executive Director, Policy, Lobbying and Global Affairs, Ibec, said:

“The business community welcomed the commitments made by both governments at the UK-Ireland Summit 2026 in Cork. CBI NI and Ibec members are keen to see the governments progress this commitment and believe a bilateral approach should address key barriers preventing frictionless cross-border working.

“This is enabled by the free movement of people across the jurisdictions of the island, secured by the Belfast Good Friday Agreement and underpinned by the Common Travel Area. The ability to live and work between jurisdictions underpins the peace and prosperity of this island, especially for individuals and businesses in the border regions. It also provides a practical mechanism for addressing skills shortages, supporting All-Island business growth, and strengthening our economic resilience.”

Angela McGowan, Director, CBI Northern Ireland, said:

“We are delighted to launch the latest joint CBI-Ibec report: All-Island Labour Mobility: Obstacles and Opportunities. Thiswork builds on the commitment made by the UK Government and the Irish Government at the UK–Ireland Summit to develop a bilateral approach to address the barriers to cross-border employment. These restrictions constrain business investment and limit efforts to tackle skills shortages across the all-island economy.

“With the new Secretary of State for Northern Ireland, Sir Chris Bryant, and the wider Westminster administration seeking to drive growth, it is imperative that we maintain this momentum by urgently addressing the barriers to cross-border working and unlocking greater labour mobility across the island. This should include exploring the idea of an All-Island work visa that would allow non-Irish or British citizens to work seamlessly across the island. In a modern economy, a delivery driver travelling between Letterkenny and Derry, or an IT specialist working in Dublin and Belfast, should not face unnecessary barriers to doing their job.

“Partnership between business and government across the island will be vital to tackling the challenges that firms’ face and allow them to seize the opportunities ahead.

“With labour mobility, flexible working, access to talent and the growing impact of AI all high on their agenda, firms have a powerful opportunity to shape the future of work, enhance competitiveness and drive sustainable growth across the all-island economy.”

Read the ‘All-Island Labour Mobility: Obstacles and Opportunities’ report in full: Unlocking All-Island labour mobility potential | CBI