Hilary Benn
Main Page: Hilary Benn (Labour - Leeds South)Department Debates - View all Hilary Benn's debates with the Northern Ireland Office
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Euan Stainbank (Falkirk) (Lab)
The Secretary of State for Northern Ireland (Hilary Benn)
Economic growth is the priority for this Government, and our industrial strategy is central to achieving it. Last week I co-hosted a roundtable with the Minister for the Economy in Northern Ireland, Caoimhe Archibald, and business organisations to discuss how we can work together to ensure that the industrial strategy benefits Northern Ireland.
Adam Jogee
Northern Ireland, like Newcastle-under-Lyme, has a proud industrial heritage. Can the Secretary of State expand on his answer and give us a flavour of the specific discussions he has had with industry, higher education institutions and the Executive on ensuring that Northern Ireland is right alongside Newcastle-under-Lyme at the heart of the Government’s new industrial strategy?
Hilary Benn
Northern Ireland does indeed have a great industrial heritage. Titanic Studios, for example, had been the paint shed for Harland and Wolff, and now it hosts a lot of film making. Another example is the revival of Harland and Wolff, which, thanks to the takeover by Navantia, will now be building the Navy’s three new fleet solid support ships. Those are two good examples of Northern Ireland’s strength.
Adam Thompson
Does the Secretary of State agree that the UK industrial strategy is of deep importance to residents of Northern Ireland, as it is to residents of Erewash, where we are currently in the process of redeveloping New Stanton Park to form a new industrial future from the rubble of our famous former ironworks?
Hilary Benn
I do indeed, and I wish my hon. Friend every success with the New Stanton Park redevelopment. At the roundtable that I co-chaired last week, we had representatives from manufacturing, from cyber, from small businesses such as Alchemy, and from the chambers of commerce for Derry/Londonderry and for Causeway Coast. Those businesses can see the industrial strategy resulting in great opportunities for the people and businesses of Northern Ireland.
Chris Vince
A core objective of the Government’s modern industrial strategy is to unleash the full potential of our cities and regions, which is as true in Northern as it is in my constituency of Harlow. Does the Secretary of State agree that Northern Ireland’s four city growth deals, which the Government committed to at the Budget, can play a vital role in this?
Hilary Benn
I wish Harlow every success as well. The city and growth deals are really important to Northern Ireland’s economic future. The Government are investing a considerable amount of money, together with the Executive, private sector partners and businesses. Among the projects that the city and growth deals will support are those relating to digital innovation, decarbonisation and digital health—yet another example of the great strength of the Northern Ireland economy.
Josh Dean
If we are to boost productivity, drive clean, green power and build a resilient economy across the UK, collaboration will be essential. Will the Secretary of State set out what political engagement he has had with business leaders and politicians on working together to deliver the best for Northern Ireland and the United Kingdom?
Hilary Benn
Last Thursday I visited Foyle port and its innovation park. A new data centre will be built there to tap into the renewable energy that is available alongside it. That is a really good example of the port thinking about its economic future and how we will get new businesses in, drawing on the great strength that Northern Ireland has in renewable energy. I hope we see more such developments.
Euan Stainbank
My constituents in Falkirk saw at first hand the failure of Governments to collaborate in the previous Parliament. What engagement has the Secretary of State had with political leaders and business and sector leaders, such as those in bus manufacturing, to work together to deliver the best for Northern Ireland?
Hilary Benn
My hon. Friend gives me the chance to talk about the great success of Wrightbus, based in Ballymena, which has won a huge new order from Go-Ahead. It is making the electric and hydrogen buses of the future, and is taking on more staff. I would encourage anyone across the United Kingdom who is thinking of buying buses for their fleet to see what is available at Wrightbus.
Jim Shannon (Strangford) (DUP)
Can the Secretary of State further outline what representations he has made to Cabinet colleagues to ensure that the UK industrial strategy pays more than lip service to the position of Northern Ireland’s manufacturing industry, as seen in aerospace, shipbuilding and defence, which has a global reputation for being top-class? How will he advocate for our own Government to invest in those sectors even further and even better?
Hilary Benn
I have already pointed out examples of that investment. To Harland and Wolff, I would add the order that is going to Thales to make more missiles for Ukraine, which will create an additional 200 jobs. As the answers that I have given demonstrate, Northern Ireland has enormous strengths, and the task of the strategy, and for all of us, is to build on them.
Alex Easton (North Down) (Ind)
Can the Secretary of State give safeguards for the benefits of the UK industrial strategy, such as economic growth, innovation, and research and development, against the adverse effects of the Windsor framework?
Hilary Benn
The Windsor framework is a necessity arising from our departure from the European Union, because we have got two trading entities with different rules and an open border, and some arrangement had to be put in place to manage that. But the goods are continuing to flow both ways across the Irish sea. I point out to the hon. Gentleman that the growth rate in Northern Ireland is higher than in the UK as a whole. Northern Ireland also has the lowest unemployment in the UK.
Robin Swann (South Antrim) (UUP)
With regard to international trade, as mentioned by the hon. Member for North Down (Alex Easton), what assessment has made been made of the UK industrial strategy and the impact of US tariffs that may come on goods manufactured in Northern Ireland?
Hilary Benn
We will discover more later today about the decision that we are told the US Administration are about to make. Tariffs are not good for any country, and they are not good for the global trading system, but we will have to see what the consequences are. Any tariffs that the United States of America puts on the United Kingdom will be felt equally in Northern Ireland and in Great Britain. We will not hesitate to take the action that is necessary to respond, but we are not going to make snap decisions, because we are also trying to negotiate an economic agreement with the United States of America.
Jim Allister (North Antrim) (TUV)
An industrial strategy would be very welcome, but is not the reality that any assistance under an industrial strategy in Northern Ireland would be subject to EU state aid rules, that any raw materials for industry in Northern Ireland that come from GB would have to pass through the international EU customs border, and that many goods would have to be made to EU, not UK, standards? Unless or until we get rid of those hindrances, how do we liberate such a strategy?
Hilary Benn
As I pointed out in my previous answer, the Windsor framework, which was negotiated by the previous Government and was a huge improvement on the Northern Ireland protocol, is the only available means of managing the challenge of having two systems, with two different sets of rules, and an open border. Not all Members of the House may want to recognise that fact, but it is a fact, and we have to deal with it.
Colum Eastwood (Foyle) (SDLP)
The Secretary State will be aware that over the past couple of decades investment from US companies in Northern Ireland has been important for economic growth and for cementing the peace process. As we all await the announcement from the President of the United States later today, will the Secretary of State give some thought to supporting businesses that could be detrimentally affected by any potential tariffs in Northern Ireland?
Hilary Benn
We are going to have to wait and see what the US Administration decide. As I have already indicated, the Government will take the steps that are necessary in the national interest, but we are seeking to negotiate an agreement, and that work is continuing, notwithstanding what is announced later today.
Alex Burghart (Brentwood and Ongar) (Con)
As the House has heard, we are expecting Washington later today to announce the biggest changes to its tariff regime in a generation. That may cause huge disruption to industry and business throughout the United Kingdom, and that disruption may be particularly felt in Northern Ireland. What guidance have the Government provided to businesses in Northern Ireland to help them prepare for different scenarios?
Hilary Benn
We do not yet know, apart from the tariffs on cars and on steel and aluminium, what else the US Administration may announce later today. But the effects of any tariffs, if imposed, will be felt equally in Northern Ireland and across the rest of the United Kingdom. We will have to deal with the consequences when we know what the US Administration have decided.
Alex Burghart
I am afraid that reveals that the Government have provided businesses with no information to help them prepare for the different scenarios that may emerge. The Secretary of State will be aware that in some scenarios Northern Ireland, because of its unique arrangements, may be particularly disadvantaged in a trade war. Will he confirm to the House that, if that happens, the Government will be prepared to use article 16 of the Windsor framework to take unilateral safeguarding measures to protect businesses in GB and Northern Ireland?
Hilary Benn
In respect of tariffs that affect the whole of the United Kingdom, as I have already said to the hon. Gentleman, we will have to see what they are and take the appropriate action in response. If the EU retaliates, then there will be an issue in respect of Northern Ireland, as he will be well aware. However, there is the tariff reimbursement scheme, of which he will also be aware, and that means that, provided those businesses can demonstrate that the goods they have bought from the United States of America are not leaving the United Kingdom, they can get that tariff reimbursed.
Johanna Baxter (Paisley and Renfrewshire South) (Lab)
The Secretary of State for Northern Ireland (Hilary Benn)
The Government’s commitment to increasing defence expenditure to 2.5% of GDP from April 2027 will provide an opportunity for defence companies in Northern Ireland to secure investment and create jobs.
Luke Myer
Teesside has strong and enduring ties with Northern Ireland: we remember the contribution of the late Mo Mowlam and her legacy, as well as the economic ties. Does my right hon. Friend agree that the Government’s historic uplift in defence spending can deepen those ties and ensure jobs and growth across the UK?
Hilary Benn
I do indeed agree, because it is an opportunity for UK defence businesses, including in Northern Ireland, to take advantage of the increased defence expenditure. I have already indicated to the House two examples, in Thales and in Harland and Wolff, where the Government are investing in Northern Ireland already.
Johanna Baxter
The UK defence industry supports hundreds of thousands of good jobs and represents UK manufacturing at its best. Will the Secretary of State outline what the Government are doing to support the defence sector in Scotland and in Northern Ireland?
Hilary Benn
The most important thing that we are doing is increasing defence expenditure, which will provide the opportunities to which I referred a moment ago. I also very much welcome the Ministry of Defence’s announcement of a new hub for small and medium-sized enterprises to allow them better access to the defence supply chain. The MOD has also committed to setting a target by July this year for spending on SMEs.
Gavin Robinson (Belfast East) (DUP)
The Secretary of State might recall that two years ago I launched a report that highlighted that Northern Ireland receives one fifth of the UK average spend on defence. That incorporates the commitment for Harland and Wolff, which I worked on and greatly welcome. I also welcome the announcement of a £1.6 billion contract for Thales. However, does he accept that the previous Government committed to a thorough and thoughtful publication of how they would support continued growth in Northern Ireland’s defence sector? Will he similarly commit to doing so?
Hilary Benn
The Ministry of Defence has agreed to deliver precisely that “Safeguarding the Union” commitment through its defence industrial strategy, which will look at how the UK’s defence, technological and industrial base can contribute to the Government’s growth mission, including in Northern Ireland.
Gavin Robinson
The House of Commons will this afternoon recognise 125 years of the Irish Guards as a British regiment. When we consider the capacity to arm those who defend us, should we not also continue in our resolve to defend those who stand up for the values of this nation? In terms of legacy, will the Secretary of State commit to defending those who defended us?
Hilary Benn
I certainly will. Those who served in Operation Banner were protecting the people of Northern Ireland and standing up for the values of our country. We have discussed that a great deal recently, and since I last had the opportunity to address the House, the right hon. Gentleman will have seen the decision the Ministry of Defence has taken to judicially review the Clonoe inquest verdict—a decision that I support.
Mary Glindon (Newcastle upon Tyne East and Wallsend) (Lab)
Sarah Bool (South Northamptonshire) (Con)
The Secretary of State for Northern Ireland (Hilary Benn)
The record £18.2 billion funding settlement for 2025-26 will provide Northern Ireland with funding in line with its independently assessed level of need, and it is now for the Executive to decide how that funding is spent.
Sarah Bool
The Royal College of General Practitioners in Northern Ireland has said that the hike in national insurance contributions will be catastrophic for GP surgeries. With many practices teetering on the edge, why are Ministers not doing more to talk to their colleagues in the Treasury?
Hilary Benn
I would point out to the hon. Member that the previous Government left—[Interruption.] However much they may deny it, the previous Government left a fiscal black hole that had to be filled. The increase in expenditure resulting from the autumn Budget is helping to fund, in part, the record settlement that the Northern Ireland Executive have got for 2025-26.
Tonia Antoniazzi (Gower) (Lab)
The Committee will soon publish our first report to the House on the funding of public services, and the issue of revenue raising by the Executive continues to be highlighted. What conversations is the Secretary of State having with the Executive to help deliver longer-term financial sustainability in Northern Ireland?
Hilary Benn
I have regular discussions with the Executive about the financial situation and about their plans. The truth is very simple: all Governments around the world, including the Northern Ireland Executive, have choices to make, with the resources available, as to whether they seek to raise revenue to fund more things, including further investment in health. Those are choices for the Executive to make, but if they do not make those choices, they will have less funds than would otherwise be available to them.
Dr Al Pinkerton (Surrey Heath) (LD)
Yesterday, Belfast Chamber, which represents 600 businesses, warned that many Northern Irish businesses are being forced to freeze growth plans, halt recruitment and, in some cases, cut jobs to absorb rising costs as a consequence of the rising employer national insurance contributions due to take effect in just four days. What assessment has the Northern Ireland Office made of the impact of those tax rises on small and medium-sized enterprises, and what practical discussions is the Secretary of State having with the Northern Ireland Executive to support SMEs, which are the future of Northern Ireland’s growth?
Hilary Benn
Of course the increase in employer’s national insurance will be difficult for some firms—that is clearly the case—but, as I said, the North Ireland economy is growing faster than the rest of the United Kingdom and has low unemployment. The rest of today’s questions time has highlighted the huge areas of potential that the Northern Ireland economy has to continue to grow and create new jobs and businesses.
Mike Wood (Kingswinford and South Staffordshire) (Con)
The Northern Ireland Farming Minister estimates that three quarters of dairy farms in Northern Ireland could be hit by inheritance tax following the Chancellor’s disastrous changes. Given the particularly high cost of agricultural land compared with farming incomes in Northern Ireland, does the Secretary of State recognise that the Budget is a direct threat to family farms and thousands of livelihoods across Northern Ireland?
Hilary Benn
The figures the hon. Gentleman just referred to do not reflect the Treasury’s assessment of the number of farms that will be affected, which is based on claims submitted in the past. I understand the farming industry’s concerns, but the Treasury is clear that, first, it will not hit the majority of farms and, secondly, we have to do something about very big landowners who buy a lot of land to avoid inheritance tax.
Jenny Riddell-Carpenter (Suffolk Coastal) (Lab)