Budget Resolutions and Economic Situation

Claire Hanna Excerpts

Wednesday 15th March 2023 Commons Chamber

[Sammy Wilson]

As the hon. Member for North East Hampshire said, a tax-free allowance provides much more flexibility in the system, and I agree that that would have been a better way of dealing with the issue.

[Claire Hanna (Belfast South) (SDLP)]

Will the right hon. Gentleman give way?

[Sammy Wilson]

I will not give way again, because I have spoken for nearly seven minutes, and I want to make one or two points before I finish my speech.

There are many other measures in the Budget that I want to mention, such as the tax-free zones for industry and the changes in the system of licensing for medicines. Has the Chancellor considered whether those measures can apply to Northern Ireland? Given that, even after the Windsor framework, we are still subject to EU law and EU state aid laws in Northern Ireland, I fear that when we try to apply the measures, we will find that the EU is once again able to interfere in the affairs of the United Kingdom by preventing them from benefiting Northern Ireland as a whole.

I had further points that I wanted to make, but as many other Members want to speak, I will make just one last point. Reductions in VAT for the hospitality sector—this also applies to corporation tax—are very important in Northern Ireland, because we have a land boundary with another country where corporation tax and VAT rates are lower. Without changes in those two measures, we are placed at a competitive disadvantage.

--- Later in debate ---

[Claire Hanna (Belfast South) (SDLP)]

It is a pleasure to follow the hon. Member for Worcester (Mr Walker), who gave a characteristically fair and practical speech.

Many of the measures announced today are to be welcomed, although it is clear that people struggling with the cost of living, increased mortgages and pressures on small businesses to pay energy bills and find staff will not recognise the rosy picture presented by Government Members. It is impossible not to see that so many of the initiatives are due to commence in 2024, when it is likely that the Government Benches will not be occupied by the same people. In many cases, this is a fiscal hospital pass for my colleagues.

Of course, my focus is on Northern Ireland. The context for us is the real opportunity that we have to get on with things, through the Windsor framework, but also our disadvantage through the lack of an Executive to implement initiatives that may be better funded after today. Nowhere is that implementation gap clearer than in childcare. I commend all the Members of the House and the campaigning groups outside who fought very hard and pushed for these measures to be announced. As the lucky mum of three large childcare bills, I can confirm that the approach is overdue and vital, but it is crucial that it goes further than a press release, an announcement and a headline.

The sector needs serious reform that supports families, focuses on children’s development and tackles the educational inequality that we know is set in the first 1,000 days of a child’s life, in which childcare has such a role to play. We need to ensure that funding is there, so that this is not just about “minding” young people but gets in there and changes some of those stubborn, fixed outcomes. The changes must not leave behind the workforce of this vital sector, whose wages have never matched the skill, care and, increasingly, the qualifications that they need.

I am a true believer in devolution and its power to protect a region such as mine, but as a founding chair of the Assembly’s all-party group on childcare, I regret to say that this is one area where we have absolutely fallen behind. Northern Ireland does not even have the 30 free hours for three and four-year-olds that is in place in parts of England.

I welcome the proposed allocation of up to £40 million for Northern Ireland for further and higher education. I hope that we can begin to end the export of Northern Ireland’s finest resource: our young people. Many thousands of young people have to leave after tens of thousands of pounds have been put into their primary and post-primary education in order to get a university place, because of the artificial MaSN—maximum student number—cap, but I hope that the funding is one of the things that gets us moving.

On the skills deficit that leaves workers, young and old, unable to access the training opportunities they need to get into the labour market of today and of the future, there is a mismatch in what we are providing for skills. I am disappointed that there are not, as yet, specific proposals to address the alarming cliff edge facing many charities and third sector organisations in Northern Ireland that specialise in employability, because of the loss of the European social fund. We are reckoning on a loss of tens of millions of pounds per year in Northern Ireland.

The Chancellor spoke directly about the so-called economically inactive, so it is penny-wise and pound-foolish to allow to fail many of the schemes that are tried and tested in getting people who need a little extra support, because of additional needs or other reasons, into the labour market. There are opportunities now and we cannot let fail the organisations that support them.

Our labour market, by the way, is undoubtedly disadvantaged by the difficulty in bringing in talent from elsewhere. It is disappointing that there has not been a recognition of that and about the impact of labour shortages in key parts of the economy.

I welcome the specific allocation to the tackling paramilitarism programme, and I urge those allocating that to invest, invest and invest in community resilience and alternative leaders, and to learn the lessons of practice in paramilitary transition. Look at the good and look at what absolutely has not worked, as we try to rid our neighbourhoods and our society of the cancer of paramilitary hard men holding people back and preying on the vulnerable.

On green technology and transition, some progress is welcome but, as the Leader of the Opposition said, we are not yet really even on the pitch. I remind the Government that green jobs are not just people in hi-vis jackets working with steel and all that; jobs in caring and education are, by definition, low emission. Northern Ireland can play a real part in the multi-level transition that we need. We are very well positioned to be a leader in wind, tidal and hydrogen power, and other things, but to be really game changing we need the sort of strategy and investment we see in the US and EU.

It is a disappointing missed opportunity, with the squeeze on the most vulnerable, not to reinstate the universal credit uplift or address the two-child limit. Those are key concerns of the Northern Ireland Women’s Budget Group, which has led in this area.

All of Northern Ireland’s opportunity comes back to the Windsor framework and the chance that we now have for a new beginning, politically and economically. That includes selling our dual market access. I and my party have shouted loudly for two years, in and outside this House, about the unique proposition that we now have. We are seeing a boom in some parts of the economy, such as life sciences, advanced manufacturing and agrifoods, but that needs an Executive and it needs a very serious strategy in place to spend the Barnett consequentials and realise the potential of our region.

Over the next few weeks we will be marking and celebrating the 25th anniversary of the Good Friday agreement. We have had two and a half decades of peace processing. With the right investment and the right strategy, the next 25 can be our prosperity years.

[Several hon. Members rose—]