Northern Ireland Budget (No. 2) Bill

Debate between Gavin Robinson and Simon Hoare

Committee of the whole House
Monday 4th September 2023 Commons Chamber

[Gavin Robinson (Belfast East) (DUP)]

It is a pleasure, as always, to follow the hon. Member for Belfast South (Claire Hanna), my constituency neighbour, but the content of my speech will be slightly different from hers.

I will not delve into the Committee stage, amendments that were tabled but not brought forward, or amendments that were needlessly provocative and stepped far away from the principles that the party that tabled them purport to stand for, but I want to talk about the Northern Ireland Budget (No. 2) Bill, which is the second such budget Bill that has been before this House this year.

When we discussed the original Bill, it was just called the budget Bill, rather than No. 1 or No. 2. We were dealing with last year’s financial position and, at that stage, Members from my party introduced the discussion around need. We challenged the Government about their understanding of need, and we were patronised at that time. We were told, without any sense of irony, shame or knowledge of the facts, that in Northern Ireland we are over-funded and get £1.21 for every £1 that is spent in England.

But still we tried to bring the conversation back to assessed need and the similar process that Wales had to go through over five years with the Holtham Commission. However, there was no sense that the position that we were outlining, identified by the Northern Ireland Fiscal Council in September last year, was a position that recognised that while our Budget may grow by 3.6%, public spending in England was going to grow by 6%, or a recognition that by the end of this financial cycle households in Northern Ireland would each be £2,000 less well-off than their counterparts in the rest of the United Kingdom, and therefore there was a budgetary problem. It has taken from January of this year to now for that seed to start germinating.

When there is a recognition in public discourse that this is a punishment budget before us this evening—this has been described as a punishment budget, which has been ignored by those in power—and no decision is taken to change it meaningfully or beneficially for the people of Northern Ireland, it will hurt us economically. We cannot systemically assess Northern Ireland public finances and know that what Northern Ireland gets is less than what it needs and not recognise that that has a material impact on the delivery of public services. Yet that is exactly what we are discussing this evening. The Fiscal Council has now published and what it says is recognised. I remember the back and forth with the Chairman of the Northern Ireland Affairs Committee. I was grateful that he took on my request to carry out an inquiry on this issue. He has been on a journey and now recognises that when the Fiscal Council says what we need to deliver effective public services with £1.24, we are getting less than what we need. When that is done year on year, there is a compounding negative impact. It means that every year we are starting with less and that this budget simply has a recurring feature of making sure that public services in Northern Ireland are denied the money that they need to be operated effectively.

I know that repetition is not sinful in this place, but it is worth reiterating time and again that, until the Government embrace this discussion meaningfully and properly, Northern Ireland public services will not be able to flourish. Drastic decisions that are being taken and have been taken will continue to be taken.

[Simon Hoare]

What the hon. Gentleman is saying is undoubtedly true, but does he also accept—I think the Select Committee has been hearing this during our inquiry—that there is a real sense of frustration among many of the professional practitioners about the absence of the delivery of transformational change: delivering public services in a different way; or getting more bang for the buck, to put it more crudely. A functioning Executive in Stormont would lead to some big, bold and brave decisions. I understand that would be difficult for parties across the piece, but trying to deliver public services in the same old way in the absence of transformational change, given budgetary pressures across the public purse in respect of whichever party in the UK, is an opportunity that is missed and is to the detriment of people across the whole of Northern Ireland.

[Gavin Robinson]

The best that can be hoped for in this scenario is that a return to devolved Government means that locally elected representatives and Ministers in an Executive can make the choices based on the information put before them. The hon. Gentleman cannot—nor can I—dictate what those choices should be. The choices have been there for previous Executives, yet I may argue that the wrong decisions have been made. But what I am suggesting in the here and now is what we can control. Not only are we continuing to finance less than what we need, but we are continuing to break parity between the delivery of public services in Northern Ireland and England, Scotland and Wales.

The former Secretary of State, the right hon. Member for Skipton and Ripon (Julian Smith), who is in his place, will remember the pay award parity issue that abounded whenever he was embarking on the New Decade, New Approach discussions in 2019, culminating in a deal in 2020. The first nursing strike ever in any part of the United Kingdom was based on that pay parity issue alone. And here we are, just three years later, and parity has broken again. Here we are from the last financial year and we recognise that there is not only a £500 million projected overspend this year, but a £575 million public pay pressure. When we add on the overspend from last year, which was £297 million but now seems to be £254 million, the figure, whatever it is, takes us close to a deficit of £1.3 billion.

I agree with the Secretary of State when he said—I am sure with much thought—that Northern Ireland does not need the sticking plaster of a one-off financial package. Let me be very clear that not one person from my party, or anyone sensible from Northern Ireland, has suggested that what we need is a one-off, one-year sticking plaster to fix a problem that is of this Government’s making. We are asking for a pragmatic and mature reflection on how much it costs to deliver Northern Ireland’s public services, and to get on with recalibrating the Barnett formula to ensure that we can do so. That is what we need. That is not yet what we have. The choices will be there for a new Executive.

The second most drastic thing that I think the Government have introduced into the debate is the notional view that we just need to get on and raise revenue. You have heard it, Madam Deputy Speaker. The Minister mentioned it this evening: a £27 billion budget for the forthcoming year. Take household rates, the biggest household contribution to the public finances that individuals make outside of tax and national insurance, with £1.7 billion raised each year. Can we honestly imagine indicating in a cost of living crisis to our public, businesses and wider society that they should double their domestic and non-domestic contributions to household rates? Doubling them would allow us to get close to where we need to be. No problem. By 2025, we will have £2,000 less than every household in England, but add another £2,000 on, please, to stand still. Get real. Transformation? I have an idea: let us raise money by increasing tuition fees.

That brings me back to when I replied to the hon. Member for North Dorset about the choices that an Executive will have. We cannot determine those, but in the past whenever people were saying that there should be an increase in tuition fees it was for a beneficial outcome. Increase tuition fees and we can get rid of the maximum student numbers cap. Increase tuition fees and we will be able to fund more places so that our best and brightest will no longer have to leave Northern Ireland to be educated in England, Scotland and Wales, or anywhere else in the world. Those were positive benefits from an increase in tuition fees, yet it was never politically acceptable. Now what is on offer is just raising the cost to stand still, or to provide public services when we know that what we get is not sufficient to match the need.

Nobody is asking for a sticking plaster. Nobody can say what the choices shall be. I did not intend to speak for as long as I have, and I want to let other people contribute, but here we are again, with the second budget Bill of the year and the same challenges. It is progress at least that on 5 July the Deputy Prime Minister accepted for the first time, in response to a question from my right hon. Friend the Member for Lagan Valley (Sir Jeffrey M. Donaldson), our party leader, that finances in Northern Ireland need to be predicated on need. That was the first time that we had heard that. Having been dismissed and ignored in January, we had acceptance of it in July. Yet the challenge is there for the rest of the financial year.

The punishment budget that has been outlined and is being advanced this evening will continue to cripple the effective delivery of public services in Northern Ireland. I have heard nothing from the Northern Ireland Office, or from anyone else around Government, to suggest that they are in the space of turning that around within this financial year. We are halfway through it. We want to see political progress, but the idea that we get political progress only for an incoming Executive to falter because they cannot deliver for the people would be the biggest crime of all.

Northern Ireland Budget Bill

Debate between Gavin Robinson and Simon Hoare

2nd reading
Monday 23rd January 2023 Commons Chamber

[Simon Hoare]

If the hon. Member would like to set out in a short email or letter to the Committee the scope of the inquiry that he envisages and the reasons that underpin it, I will take that to Committee colleagues in the not-too-distant future and see what, if any, progress we can make on it, because he makes a valid point.

[Gavin Robinson]

I am grateful to the hon. Gentleman.

It is what is known as the Barnett squeeze: it started off at 29%, it was 25% in 2002 with the Northern Ireland Executive, and it is currently sitting at 21%. Over the next 50 years, it will be 6%. That 6% higher sounds great, but it is not when we assess the relative need of people in Northern Ireland and the disproportionately higher level of public services. The pay parity issue in 2019 and 2020, when nurses went on strike for the first time in the UK in Northern Ireland, illustrates the point entirely: pay awards were being agreed in England, but the funding was not being sent to Northern Ireland to pay nurses the money that they deserve.

In September, the Northern Ireland Fiscal Council was as clear as it could be when it said that, by 2030, Northern Ireland will have public spending below relative need. The tensions we hear about today, and the pain we experience in individual aspects of public services, indicate that we are quickly getting to the point where we cannot provide the public services that people in Northern Ireland need at the funding levels that we have. In the next spending cycle from 2022 to 2025, Northern Ireland will see a 3.6% increase in spending, but in England, there will be a 6% increase. The squeeze will get worse.

I say all that not to be boring—I do not like economics; I do not find it that interesting—but because it is crucial. In Northern Ireland, the headlines will be, “Parliament rushes through a Budget Bill.” The Bill is a snapshot in time that crystallises what has happened over the last 10 months, determines what will happen for the rest of the financial year and sets out projections for the next six months. It misses the fundamental point, however, that unless there is a total and earnest recalibration of how Northern Ireland is funded, the situation can and will only get worse. With or without an Executive, and with or without a protocol, this will only get worse, and public services in Northern Ireland will stall. They will stall and get to a point where it is irretrievable. As an elected representative who believes in raising issues that are of huge importance to the people I have the privilege of representing, I cannot let this evening pass without raising those fundamental issues.

Northern Ireland Troubles (Legacy and Reconciliation) Bill

Debate between Gavin Robinson and Simon Hoare

Committee stage
Wednesday 29th June 2022 Commons Chamber

[Mr Baron]

rose—

[Simon Hoare]

rose—

[Gavin Robinson]

I will give way in turn to the hon. Members, and then I will conclude.

[Gavin Robinson]

I accept that and I am grateful to the hon. Gentleman.

[Simon Hoare]

I want to add to the hope of my hon. Friend the Member for Basildon and Billericay (Mr Baron), if it is of any help. To the best of my knowledge, conversations are taking place within Government and with the official Opposition to try to resolve this issue before we get to the moment of interruption. Principally that is because of the strong case that has been made by the hon. Member for Belfast East (Gavin Robinson), by colleagues and by the shadow Secretary of State, which I hope a number of us on the Government Benches have helped to augment.

[Gavin Robinson]

I do not want to sow discord or break the prospect of agreement, but I will say this to those who are outside talking about an amendment that we have signed, but who are not talking to us about that amendment: it is not just the first signatory who can ensure it proceeds to a Division. I hope there is an agreement on that amendment, but as signatories to it, should there not be an agreement, we think the Committee should divide on it.

Northern Ireland Protocol Bill

Debate between Gavin Robinson and Simon Hoare

2nd reading
Monday 27th June 2022 Commons Chamber

[Simon Hoare (North Dorset) (Con)]

Thank you, Madam Deputy Speaker. Ten minutes is the time usually taken to make opening remarks, and popularity is something that I have always shunned.

The shadow Foreign Secretary is right: at the heart of this is trust or the absence of it—or, as she leaves the Chamber, the absence of Truss. Is the protocol perfect? No, it is not. The question, therefore, is not whether but how changes should be made. There are many ways to achieve change, but this Bill is not one of them.

The Office of Speaker’s Counsel has provided a legal opinion to all members of the Northern Ireland Affairs Committee, and it raises enormous concerns about this Bill’s legality. The Foreign Secretary and others have tried to conflate—they have fallen into the trap of conflating—the resurrection of devolution and the protocol. Those are two very separate and different workstreams, and we need to decouple them. Treaty making is reserved to this place; devolution is the duty of the politicians of Northern Ireland. We can and should be able to see the resurrection of one and negotiation on the other, but to fall into the trap of conflating them, the result of which is this Bill, is very sad indeed.

This is not a well thought-out Bill, it is not a good Bill and it is not a constitutional Bill. The integrity of the United Kingdom can be changed only via the Good Friday agreement. The protocol and trading arrangements do not interrupt or change the constitutional integrity of the UK, so I do not agree with those who try to position this as a constitutional Bill.

[Gavin Robinson]

Will the hon. Gentleman give way?

[Simon Hoare]

If the hon. Gentleman will allow me, I want to make a few more points.

This Bill represents a failure of statecraft and puts at risk the reputation of the United Kingdom. The arguments in support of it are flimsy at best and irrational at worst. The Bill risks economically harmful retaliation and runs the risk of shredding our reputation as a guardian of international law and the rules-based system. How in the name of heaven can we expect to speak to others with authority when we ourselves shun, at a moment’s notice, our legal obligations? A hard-won reputation so easily played with—

--- Later in debate ---

[Simon Hoare]

My hon. Friend was obviously not listening, because I made it very clear at the start that the constitutional integrity of the United Kingdom is not touched by the protocol. The constitutional integrity of Northern Ireland within our United Kingdom is contained within the clauses of the Good Friday agreement—that is the only way. Anybody who tries to position this protocol—

[Gavin Robinson]

Will the hon. Gentleman give way?

[Simon Hoare]

I will not, if the hon. Gentleman does not mind, because of the time.

Anybody who thinks that this is, in some way, a back door to a speeding up of the reunification of Ireland is fundamentally wrong.