Northern Ireland Budget Bill

Debate between Lindsay Hoyle and Nick Hurd

Committee: 1st sitting: House of Commons & Report stage: House of Commons
Wednesday 30th October 2019 Commons Chamber

[The Chairman]

With this it will be convenient to consider clauses 2 to 7 and schedules 1 and 2 stand part.

[The Minister of State, Northern Ireland Office (Mr Nick Hurd)]

In speaking to clause 1 stand part, I will also try to address very briefly the issue of housing associations, which I did not have time to do in my closing speech on Second Reading.

Clause 1 authorises the issue out of the Consolidated Fund of Northern Ireland the sum of just over £5.3 billion. The allocation levels for each Northern Ireland Department and the other bodies in receipt of these funds are set out in schedule 1, which also states the purpose for which the funds are to be used. The authorisations and appropriations in this clause are a balance to complete in addition to the vote on account previously authorised in section 4 and in column 2 of schedule 3 of the Northern Ireland Budget (Anticipation and Adjustments) Act 2019.

I will now address the issue of housing associations out of respect to previous comments made. The Government, to be very clear, recognise the absolute importance of housing associations as the main mechanism for delivery of social and affordable homes. We agree 100% that classification as public sector has serious implications for their funding stream, for the reasons cited in the debate. We completely agree, therefore, that action must be taken, and the Government are committed to taking forward legislation to facilitate reclassification as soon as parliamentary time allows. I hope that the hon. Member for Belfast East (Gavin Robinson) will realise that standing here today on the brink of an election I do not feel I can give a guarantee of a specific time, but I can say that this will be a priority for this Government, if re-elected, and that officials are continuing to work closely with officials in Northern Ireland to facilitate it.

Police Employer Pension Contributions

Debate between Lindsay Hoyle and Nick Hurd

Wednesday 14th November 2018 Commons Chamber

[Mr Deputy Speaker (Sir Lindsay Hoyle)]

Order. Mr Gapes has only just come into the Chamber. He wants to hear a bit more of the debate before he intervenes so quickly. Come on! He should know better.

[Mr Hurd]

Thank you for correcting me, Mr Deputy Speaker.

[Mr Deputy Speaker]

This man has been here throughout the debate!

--- Later in debate ---

[Mr Deputy Speaker]

Let the Minister at least answer the point of order first.

[Mr Hurd]

I am grateful to Mr Deputy Speaker. What I said at the Dispatch Box is what I was authorised to say. I have no further updates.

--- Later in debate ---

[Mr Deputy Speaker]

That is not a matter for me, as the hon. Gentleman well knows, but at least, if nothing else, Members have put a lot on the record tonight.

[Mr Hurd]

To continue with the Adjournment debate, the right hon. Member for Wolverhampton South East understands the context of the pensions issue. There was a Treasury decision, on independent advice, to revalue the public pension. I say to the hon. Member for Ilford North that this is not a technocratic issue. Only the hon. Member for Birmingham, Erdington (Jack Dromey) referred to this issue in human terms; it is about safeguarding the affordability, sustainability and value of the pensions of the public sector workers in our constituencies. So it is an important issue, and there is no other motivation behind it. In the 2016 Budget the Treasury indicated its intention to change the discount rate that applies from 3% to 2.8%. In the 2018 Budget, again on independent advice, it indicated that it intends to make a further change to 2.4% and, as a result of that, increased contributions are required from public sector employers.

The net impact on the police in 2019-20 would be an additional cost of £417 million. The Treasury clearly indicated very early that it would meet most of that, but its position has been to ask the police to find £165 million, which is broadly equivalent to what it felt it had indicated at the 2016 Budget. However, as hon. Members know, police and crime commissioners did not budget for it and they are therefore quite understandably concerned about the impact of this. The Government recognise their concern and, as the Chancellor said in his Budget statement, he recognises the pressure on the police and it is his intention to work with Home Office Ministers and the Home Secretary to find a resolution to this in the 2019-20 funding settlement. That is exactly what we intend to do.

I repeat my message of what I hope is reassurance to my hon. Friend the Member for Brigg and Goole (Andrew Percy) about our intention to build on the work that I did last year and to take the steps that are required to increase the capacity of the police, to help them to meet the demand on them, because public security is the No. 1 priority of this Government. We are determined to do what we can within the resources we have to ensure that the police have the resources they need.

Question put and agreed to.