Northern Ireland (Regional Rates and Energy) Bill

Anne Main Excerpts

2nd reading: House of Commons & 3rd reading: House of Commons
Wednesday 21st March 2018 Commons Chamber

[The Secretary of State for Northern Ireland (Karen Bradley)]

I beg to move, That the Bill be now read a Second time.

I start by wishing my hon. Friend the Member for Tewkesbury (Mr Robertson) an early happy birthday because I know that it is coming up. I am afraid that I will not be able to celebrate with him, but I wanted to wish him a happy birthday in the Chamber. I am sure that we will all join in wishing the former Chair of the Northern Ireland Affairs Committee a happy birthday.

As with the Northern Ireland Budget (Anticipation and Adjustments) Bill that we introduced yesterday, I stand today to ask the House to give a Second Reading to legislation that is a necessary intervention to safeguard public services and finances in the ongoing absence of a Northern Ireland Executive and sitting Assembly. I covered the broader political situation in my statement last week, but it will be helpful to remind the House of the context in which we are taking forward this Bill today.

During the past 14 months, in the absence of an Executive and Assembly in Northern Ireland, the UK Government have worked tirelessly to facilitate the restoration of devolved government. It had been my firm hope that a new Executive would be in place to complete its own 2017-18 estimates process and to set their own budget for 2018-19, as well as to extend the current cost capping on the renewable heat incentive scheme. It was therefore with disappointment that I had to bring forward yesterday’s Bill to put 2017-18 public spending on a legal footing.

As I set out in my statement on 8 March, there are acute pressures across public services to be addressed in 2018-19, which is why I took steps that day to provide clarity and certainty on Northern Ireland’s finances for 2018-19. The Northern Ireland (Regional Rates and Energy) Bill seeks to build on that certainty, delivering on this Government’s commitment to protect public services and to ensure good governance in Northern Ireland. Today, the focus is on taking forward key steps to provide support for public services and sustainable finances in Northern Ireland as we move into the next financial year.

[Mrs Anne Main (St Albans) (Con)]

Will my right hon. Friend elaborate on something that the public may not be aware of? There are key decisions that ought to be taken and priorities that ought to be set, but that cannot happen because there is no ministerial grouping in Northern Ireland to make such decisions.

[Karen Bradley]

My hon. Friend is absolutely right. There are decisions that ideally would be taken by Ministers sitting in Stormont as part of a devolved Government, but that has not been the case for 14 months. I am therefore taking steps today, reluctantly, and it is pressing that we are able to proceed. I hope that we can get devolved government in Stormont again in the near future, because that is the best thing for the people of Northern Ireland to be able to take advantage of the available opportunities.

Clause 1 addresses the collection of the regional rate, which represents more than 5% of the total revenue available to the Northern Ireland Executive. With a devolved Government in place, it would be set via an affirmative rates order in the Assembly, enabling bills to be issued in 10 instalments, providing certainty to ratepayers and allowing various payment reliefs to be applied. Last year, it fell to the UK Government to take that step in the absence of an Executive. When I took office as Secretary of State earlier this year, I had sorely hoped that it could be one of the first acts of a new devolved Government and Assembly and would not fall again to this Government and this Parliament to set the regional rates. That will not be possible before the next financial year, and it would be unacceptable to allow uncertainty to linger in the meantime until a new Executive are formed.

While we are clear that it is a devolved matter, we are also clear that only the UK Government and Parliament can take such action to secure the interests of individuals and businesses in Northern Ireland. This Bill therefore sets out rates, in pence-per-pound terms, for both domestic and non-domestic properties. For non-domestic properties, the rate reflects a 1.5% inflationary increase. For domestic properties, the rate would be raised by inflation—1.5%—plus 3%, as I set out in my budget statement on 8 March.