Asked by: Lord Kilclooney (Crossbench - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what was the most recent annual credit to Northern Ireland as a result of the Barnett Formula.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
As set out recently in the Main Estimates memoranda, the Northern Ireland Executive has received £2.0 billion through the Barnett formula for 2023-24 on top of the Spending Review 2021 baseline. This means the Northern Ireland Executive’s total block grant (Total DEL) funding for 2023-24 is £15.8 billion.
Asked by: Lord Kilclooney (Crossbench - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government whether the outstanding loan principal due by the Republic of Ireland has been fully repaid; and what were the total interest payments received from the Republic of Ireland.
Answered by Lord Agnew of Oulton
Ireland received a loan of a total of £3,226,960,000 under the Loans to Ireland Act 2010, which has been repaid in full as of 31 March 2021. The total interest paid was £628,677,551.77.
Asked by: Lord Kilclooney (Crossbench - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government which organisation oversees firms which provide life insurance policies for persons in the UK.
Answered by Lord Agnew of Oulton
The Financial Conduct Authority (FCA) and the Prudential Regulatory Authority (PRA) oversee firms which provide life insurance policies for those in the UK.
The Prudential Regulatory Authority (PRA), which is part of the Bank of England, promotes the safety and soundness of insurers, and the protection of policyholders. This includes arrangements for protecting customers in the event of an insurer failing, via the Financial Services Compensation Scheme.
The Financial Conduct Authority (FCA) regulates the conduct of insurers, as well as more broadly the integrity of the UK’s financial markets. The FCA also has an objective to secure an appropriate degree of protection for consumers.
Asked by: Lord Kilclooney (Crossbench - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government whether Airport Passenger Duty is applied to internal flights from Northern Ireland within the UK; and if so, what plans there are for this to cease.
Answered by Lord Agnew of Oulton
Air Passenger Duty (APD) is a per-passenger tax levied on flights departing from UK airports, including those between Northern Ireland and Great Britain.
At Budget, the Government announced that, from April 2023, it would introduce a new reduced domestic band of APD, covering flights between England, Scotland, Wales and Northern Ireland, in order to support connectivity across the UK.
Asked by: Lord Kilclooney (Crossbench - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what plans they have to identify a freeport within Northern Ireland.
Answered by Lord Agnew of Oulton
Freeports will be national hubs for international trade, innovation and commerce, regenerating communities across the UK by attracting new businesses, spreading jobs, investment and opportunity to towns and cities up and down the country.
We want to ensure that the whole of the UK can benefit. We remain committed to establishing at least one Freeport in Northern Ireland as soon as possible.
Asked by: Lord Kilclooney (Crossbench - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the implications of the Northern Ireland Protocol for the selection of any Northern Ireland ports as freeports.
Answered by Lord Agnew of Oulton
We want to ensure that the whole of the UK can benefit from Freeports. The UK Government is holding ongoing discussions with the Northern Ireland Executive to establish at least one Freeport in Northern Ireland as soon as possible.
The Northern Ireland Protocol does not prevent the establishment of Freeports in Northern Ireland. However, it is appropriate that we take the time, working with the Northern Ireland Executive, to ensure the Freeport offer fully aligns with the circumstances in Northern Ireland and our international obligations, and delivers for ports, businesses and communities in Northern Ireland.
Asked by: Lord Kilclooney (Crossbench - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what interest has been paid by the Republic of Ireland for loans made under the Loans to Ireland Act 2010; and when any such loans are expected to be repaid.
Answered by Lord Agnew of Oulton
The latest statutory report under section 2 of the Loans to Ireland Act 2010 discloses all interest payments made up to 30 September 2020. Since that date, Ireland has made one further regular interest payment, and one further tranche repayment with associated interest. Ireland is scheduled to repay the final tranche in March 2021. The Government continues to expect the loan to be repaid in full and on time.
Asked by: Lord Kilclooney (Crossbench - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government how much they have loaned to the Republic of Ireland during the past decade; and of those loans, (1) what capital has been repaid, and (2) how much interest has been received.
Answered by Lord Bates
I refer the noble Lord to the most recent statutory report under section 2 of the Loans to Ireland Act 2010, which was laid in Parliament on 15 October 2018. The report shows that the outstanding principal is £3,226,960,000, with repayments due in tranches from 15 April 2019 until 26 March 2021. Interest payments have been paid twice-yearly since 15 December 2011 and payments received so far total £483,359,983.93. The government expects the loan to be repaid on time and in full.
[1] The statutory report is available here: https://www.gov.uk/government/publications/report-under-section-2-of-the-loans-to-ireland-act-2010-1-april-2018-to-30-september-2018
Asked by: Lord Kilclooney (Crossbench - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government whether they consider that the annual block grant payments to the devolved administrations in Northern Ireland, Wales and Scotland represent a subsidy from taxpayers in England or a transfer of the shares of national income due to those devolved administrations.
Answered by Lord Bates
The devolved administrations' block grants are generally linked to changes in comparable spending by UK Government in devolved areas. This is achieved by means of the Barnett Formula and supports the principles underlying inter-administration financial relations including accountability, autonomy, transparency, economic efficiency, stability and predictability, discipline and consent. More information on HM Treasury’s policy on funding the devolved administrations is set out in the Statement of Funding Policy.
Asked by: Lord Kilclooney (Crossbench - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government whether air passenger duty is applied to flights from Northern Ireland to other parts of the UK; and if so, what plans they have to introduce a rate of 0 per cent.
Answered by Lord Bates
Flights between regions of the UK are subject to the short haul rate of Air Passenger Duty. Under State aid rules, it is not possible to vary tax rates for domestic flights only.
The government has made a number of reforms to reduce the effect of APD on consumers, including exempting children on economy flights. This could save a family of four £52 on a roundtrip within the UK.
Like all taxes, Air Passenger Duty remains under review. In June we closed a call for evidence on ‘VAT, Air Passenger Duty and tourism in Northern Ireland’. It is the government’s intention to report at Budget.