Northern Ireland Budget (No. 2) Bill

Gavin Robinson Excerpts

2nd reading
Monday 10th July 2023 Commons Chamber

[Chris Heaton-Harris]

I thank the hon. Gentleman for his point, and we could consider introducing a needs-based factor into the Barnett formula for Northern Ireland—it would be a similar mechanism to that implemented in Wales—to put Northern Ireland’s public finances on a more sustainable footing. However, the absence of a functioning Executive has an impact on what can be done to address the systemic issues that Northern Ireland faces. Locally accountable leadership is urgently required to ensure that Northern Ireland has a stable and flourishing economy, and to advocate for reform of Northern Ireland’s public finances. To completely answer the hon. Gentleman’s point, negotiations between the Welsh Government and the Treasury on a fiscal framework and Barnett formula adjustments took over seven years. This is not an issue that could be solved overnight, even with the best will in the world.

[Gavin Robinson (Belfast East) (DUP)]

I am very grateful to the Secretary of State for that confirmation that he is at least willing to discuss considering public finances on the basis of need. Of course, the reason why the Holtham Commission process took so long was that it was the first example of the Government having to get their head around need—they had to understand it, and recognise that the public finances should respond to need. Now that the principle is clear, surely he does not believe that it would take as long this time around.

[Chris Heaton-Harris]

I very much hope that no discussion with a future Executive would take seven years to come to any conclusion. In the meantime, we have a responsibility to ensure that public services and the management of public funds can continue. That is why I have commissioned a range of information and advice from the Northern Ireland civil service on potential measures for raising more public revenue and otherwise improving the sustainability of public finances in Northern Ireland that an incoming Executive could consider. That is the UK Government’s first step in supporting the development of revenue-raising measures in Northern Ireland. It will allow us to better understand the challenges of taking this work forward, and support the Northern Ireland civil service in delivering it. The Government have for many years recognised the unique challenges that Northern Ireland faces. We have provided around £7 billion in extra funding to Northern Ireland since 2014, on top of the Barnett-based block grant.

I am grateful to officials in the Northern Ireland civil service for keeping public services running until an Executive are in place. The Government will continue to support the Northern Ireland civil service where we can, but it is important to note that responsibility for the difficult spending decisions flowing from this budget will ultimately continue to rest with the Northern Ireland Departments in the absence of an Executive. I do not want that to happen, and I encourage the people of Northern Ireland to urge their locally elected politicians to return to Stormont, so that decisions can be taken by those who were democratically elected to do that. As I say, the difficulties that Northern Ireland Departments face are a result of tough decisions not having been taken by elected representatives in Northern Ireland, not just this year, but over successive years. Funding alone will not solve the issues; that will require strong, responsible leadership, backed by a stable, devolved Government. We need the Executive back, so that they can progress much-needed and long-promised public service transformation.

Like others, I welcome the parties’ ongoing discussions with the head of the Northern Ireland civil service. There is a great deal of work going on behind the scenes about what a plan for government, and a budget for government, would look like, and how critical issues will be addressed when the Executive come back—issues such as budget sustainability and better, more efficient public services, which should be everyone’s priority. However, the head of the Northern Ireland civil service has written to me to say that things now need to become more political. In a way, I agree, but if that is to happen, all the parties must confront hard choices and ensure stability, rather than regular political crisis.

We must restore confidence in the institutions and show the people of Northern Ireland and the world what good devolved government looks like. I look forward to speaking with all the party leaders in the coming weeks, and receiving their proposals for the budget and a programme for government.

--- Later in debate ---

[Gavin Robinson (Belfast East) (DUP)]

It is a pleasure to follow the Chair of the Public Accounts Committee, the hon. Member for Hackney South and Shoreditch (Dame Meg Hillier) because, in fairness, she has added a new and useful level to the debate. Hers was a very worthwhile contribution, so I thank her for participating and hope that she shows a renewed and continued vigorous interest in the issues of Northern Ireland.

There have been a number of very useful contributions so far in this debate, if we set aside that from the honourable Healy-Rae from Foyle—the hon. Member for Foyle (Colum Eastwood). We enjoy the hon. Member oscillating from a year and a half ago, when he was spending his time cajoling, provoking, ridiculing and mocking my leader and my party at a time when we were raising serious issues, to today, when he is poking, prodding, encouraging and saying, “Just get back to work”, again ignoring serious issues and not recognising the sincerity with which we have sought to highlight and the aspiration to address the issues that are frustrating the proper operation of devolution.

We have heard from my right hon. Friend the Member for East Antrim (Sammy Wilson), who talked about the imbalance between what was attempted to address the deficiency in democratic accountability on issues agreed in Europe and the lack of provision and the danger associated with divergence on Bills brought forward through this place. This week and last, for example, the Postal Packets (Miscellaneous Amendments) Regulations 2023 has been but one issue that jars entirely with what the Prime Minister said when the Windsor Framework was published.

We can see clearly how that will treat parcels coming to and from Northern Ireland as foreign parcels, and we can see clearly how it up-ends the commitments given to the people of Northern Ireland during the Windsor framework process—lest we forget—when the majority of parties in Northern Ireland said that there were no problems with the withdrawal agreement and that it should be rigorously implemented on the people of Northern Ireland. When the Windsor framework was published, they said it was a wonderful solution, yet here we are even today, and we can see that the issues left unresolved will continue to plague and cause difficulty for the shared aspiration of restoring devolution. I say that at the outset, because it is important to consider again the context of why we are considering this Bill.

When we have debates such as this, Members will hear criticism, and I will not shy away from that. From my perspective, touching on the principle of this Bill and the reason why we are here today, the Northern Ireland Office has not done enough, the Government have not given enough and the people have had just about enough. When I say that they have not done enough, we should listen to the hon. Member for Gordon (Richard Thomson). He and I do not share the same political perspective on these things, but he highlights accurately that here we are debating a Bill that has not had any pre-legislative scrutiny and that has not been before the Northern Ireland Affairs Committee.

We are implementing and allocating resource to a budget that has not been section 75 screened, and it is having huge and undetermined consequences for the public sector in Northern Ireland and the voluntary sector in Northern Ireland. Even if Members are willing, and I am not, to forget about them, it is affecting the ability of our Government Departments to fulfil their statutory functions—to educate children, to care for the elderly, to heal the sick. It is not me saying that, but every permanent secretary who has sought to engage with the Northern Ireland Office and has highlighted how difficult this process would be.

When the Children’s Law Centre, in the most non-party political way possible, writes to me and every other Member of Parliament to highlight just how deficient this process has been, it is amazing to see in the explanatory notes that the Bill is being rushed through because it is urgent. The written ministerial statement was issued on 27 April, and yet there has been nothing in between, knowing that the allocation on 27 April was not sufficient, and knowing at the time that permanent secretaries were saying they could provide their statutory and core functions, never mind extras such as extended schools or support for the most vulnerable members of our society. Let us not forget that that was a choice that the Northern Ireland Office made.

The explanatory notes say that there was no pre-legislative scrutiny, no consultation, and no equalities screening because the Bill had to be rushed, but when will Committee stage be? We do not know. Such a rush, but the Committee has not been scheduled. We hear that we are getting to the stage when things are becoming political. We also hear that there will need to be another Northern Ireland Bill—a Bill that gives the Secretary of State the ability to make decisions on behalf of permanent secretaries.

For the last two months, since the written ministerial statement about the allocation, there has been nothing. There has been no consultation on or scrutiny of the Bill, because it has to be rushed, but we do not know when its remaining stages will be. We now hear that there is need for a third Bill—by the way, a Bill specifically to provide the powers that the Northern Ireland civil service asked for, but that the Secretary of State chose not to include, in the Northern Ireland Budget Bill that received Royal Assent on 8 February. The Northern Ireland civil service provided draft provisions to the Northern Ireland Office, which refused to advance them. Now we hear that there is need of a third Bill, but we all know that there are very few weeks of parliamentary time left before this Session concludes. There will be recess in the summer. There are a couple of sitting weeks in September, but there are precious few weeks left. The Government are playing at this, and the NIO has not given enough.

I remember the debates that we had back in January about the Northern Ireland Budget Bill, and I remember the Minister of State responding, “Northern Ireland gets £1.20 where my constituents get just £1.” I remember crying out in the wilderness back in January about the Northern Ireland Fiscal Council, and the difference between what we are allocated and what we need. The only difference now is that more people seem to engage with that argument. The Fiscal Council has revised downwards its figure of how much spending Northern Ireland needs to England’s £1, from £1.28 to £1.24. Year on year, financial cycle after financial cycle, there is a deficit in the resources that we get. There is a compounding negative impact on the ability to deliver public services in Northern Ireland.

New Decade, New Approach was mentioned. That, and some of the industrial relation issues that arose at the time, were about pay parity. Pay for public sector workers in Northern Ireland was not keeping up with that for their counterparts in England, Scotland and Wales. Parity was achieved in 2020, yet the rates in Northern Ireland are now growing ever faster apart from those in England, Scotland and Wales.

[Chris Heaton-Harris]

indicated dissent.

[Gavin Robinson]

The Secretary of State shakes his head, but he knows the figures. In the next financial year, public spending in Northern Ireland will increase by 3.6%; public spending in England will increase by 6%. The disparity between what we get and what we need, and between what we get and what other parts of the United Kingdom get, continues to grow. That compounds the difficulties.

Some £297 million is scheduled to be taken out of our allocation this year and next. We are supposed to be grateful for the fact that it will not be taken out this year, and that the cut will be spread over two years. There is a projected overspend this year of £500 million, and a deficit of £575 million from public pay awards. That is £1.4 billion before we even start. I do not say that to be boring or over-detailed. Do I even care whether the Government agree with those figures? Not really, but people who should share our aspiration for a positive return to devolution when the circumstances are right need to recognise that there is nothing positive about the consequences of this budget—nothing positive at all. I am not an Assembly Member, but I suspect precious few will wish to take responsibility for the austerity and cuts that this Government have provided. That is why I say that people have just about had enough. They are not unfamiliar in Northern Ireland, despite how frustrating it is, with political discord. They understand the challenges in devolved Government. It is not lost on people, when we have just celebrated 25 years of the Good Friday agreement, that, for 40% of those 25 years, devolution did not operate. In fact, the majority of the time that it did operate was when the DUP and Sinn Féin were leading it, but the people of Northern Ireland are not unfamiliar with the frustrating circumstances that we find ourselves in. However, they want to hear a bit of realism.

When the Chairman of the Northern Ireland Affairs Committee, the hon. Member for North Dorset (Simon Hoare), who is not with us today, was batting back and forth with me in January on need and the Northern Ireland Fiscal Council, he dismissed those points. In fairness to him, we corresponded thereafter—it is not often I praise him, by the way—and he took my initiative. He talked to his colleagues and got Committee agreement to hold an inquiry on these financial issues. The evidence sessions have been useful, highly illuminating and will be in our best interests. That is why I say people want to see realism. They want to see us working together.

Yes, we will disagree about different methods and different ways of doing things, but we should recognise that, when there is a core problem, we need to work on the core solution. When there is a deficiency in how we are funded in Northern Ireland, we need to work to address that. When we need more resource simply to stand still—not to provide luxuries, but to provide essential services that people need and rely upon in Northern Ireland—we will do that collectively if needs be, but the Government should not sit back and wait for some collective ask. They know the facts and they have ignored the facts for month after month.

I am delighted to hear the Secretary of State say that they will now engage in the discussion on need. That is a departure from what the Northern Ireland Office has been saying for months. It is not a departure for Government in policy terms, given what has gone through in Wales previously, and it should not all be one-size-fits-all. We need to ensure that we invest not only in the financial aspects of how we deliver for people in Northern Ireland, but in Northern Ireland itself.