Northern Ireland Budget (No. 2) Bill

Jeffrey M Donaldson Excerpts

2nd reading
Monday 10th July 2023 Commons Chamber

[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.

[Sir Jeffrey M. Donaldson (Lagan Valley) (DUP)]

As one of those leaders, may I be absolutely clear? My objective is to ensure that we get solid foundations for the restoration of our devolved Government, and that we do not meet another crisis in six months’ time, or a year’s time. That is why I will continue to work with the Government to get this right, and to put in place the measures that are necessary to safeguard Northern Ireland’s ability to trade within its own country—within the United Kingdom—and its internal market. That is essential to building the stability of which the Secretary of State speaks.

[Chris Heaton-Harris]

I thank the right hon. Gentleman for his point. He and his party representatives, and indeed all the political parties in Northern Ireland, have been working extremely hard behind the scenes—and in front of the camera, after each occasion—to develop what will, hopefully, be a plan for government, and proposals for the budget. As I say, it is time to bring those proposals forward into more political discussions. I know that each of the political parties will require a little time to develop those plans within their political committees and what have you. I should acknowledge, though, that I have already received budget proposals from the Alliance party, and I would welcome similar engagement from all the other parties.

Before I briefly summarise the intention behind the Bill, I should express my sincere thanks to the Opposition for their continued co-operation with the Government as we seek to bring the Bill forward at the requisite pace. I am particularly grateful to the shadow Northern Ireland Secretary, the hon. Member for Hove (Peter Kyle), who, as always, has been constructive. I also thank others on the Opposition Front Bench for the way that they have approached the Bill, and my hon. Friend the Member for North Dorset (Simon Hoare), who is Chair of the Northern Ireland Affairs Committee, and the Committee members, for their interest in the Bill.

The Bill will place on a legal footing the budget allocations that I outlined to the House via written ministerial statement on 27 April. I am conscious that the hour is already relatively late, and lots of hon. and right hon. Members want to contribute. I therefore do not propose repeating the contents of that written ministerial statement, which sets out the departmental allocations reflected in the Bill.

--- Later in debate ---

[Robin Millar]

I am not sure how the hon. Gentleman got there from what I said, but that is not where I am going. That is absolutely not where I am going. I simply made the observation that they had done it and that others were doing it, and that validated the existence of a mechanism in place which people have used. That is all I said.

The point I would make, though, is that if there is a democratically elected body and the mechanisms within that institution are being used, how is that not upholding the institution in place? If that is the case—the function of the institution and the rules that underpin it are being upheld—what is the good governance that the Secretary of State is seeking? Is he seeking something else? Is he seeking something outside the rules that are in place to uphold that institution?

[Sir Jeffrey M. Donaldson]

I thank the hon. Member and my friend for giving way, and for his interest in the Union. He is making a very important point. For some, it is convenient at times to talk up the need for cross-community consensus and to talk about the rules. It is less convenient for them at other times, when the rules are followed and people play by the rules. When things happen that undermine that cross-community consensus, then unfortunately the rules mean that our institutions do not work to the extent that we would like them to. Therefore, rather than howling at the moon, is it not better that we fix the problem and restore the consensus?

[Robin Millar]

I thank the right hon. Gentleman for his intervention. That is where I am heading with my next point.

As I said, I tiptoed into this. I am very conscious that others are much closer to these issues than myself. I offer my comments because I think, from the little I understand, these are important points of context for what is happening and what we are seeing.

Finally, the Secretary of State has made the astute point that money alone cannot solve this. I think it was the hon. Member for Strangford (Jim Shannon) who said that some extra £7 billion has been put into Northern Ireland. Somewhere along the line, the United Kingdom has moved from an understanding of a covenant among the different parts to one of a contract; we have become very transactional in our understanding of things. I would just make the observation that that does not fix things. It does not fix the relationship.

At the heart of the issue, as I understand it—the Minister may comment on this point in his summing up, if he sees fit—is a relationship and a covenant, not a contract. It is about identity and a place within the Union, as expressed through trading relationships. We have been brought to a point at which Stormont has not been sitting, which is why we have this item of business before us today. I will not keep the House any longer; I thank hon. Members for their forbearance in listening to my questions.

--- Later in debate ---

[Claire Hanna (Belfast South) (SDLP)]

For the past five years, any budget that we have had has been delivered—sometimes fairly chaotically—here, not in Stormont. For the past decade, we have limped along with one-year allocations and without a new programme for government. Public services are at a genuinely precarious point, as colleagues have indicated; I might touch on that point.

It has to be pointed out, as we look at the context of this budget, that those factors are the consequences of two specific pernicious features of our politics over the past decade. The first is the austerity politics that have been practised by successive Conservative Governments and are being foisted on the people of Northern Ireland with no visible care for public services, let alone for how we create a better and more sustainable economic future or tackle the chronic challenges that are contributing to the financial drain.

The second factor is boycott politics, which are being practised by the DUP right now and have been practised by others in the recent past with, clearly, no real regard for how that affects devolved government and public services, how it gradually wears people down, or how it gradually undermines the belief of the people of Northern Ireland that elections matter, devolution works and politics is the way to do things.

[Sir Jeffrey M. Donaldson]

At the risk of becoming a history lesson, may I remind the hon. Lady that between 1982 and 1986, following democratic elections, the SDLP refused to take its seats for a single day of the lifetime of that Assembly, at a time when people were dying on our streets in their thousands?

[Claire Hanna]

I am happy to correct the right hon. Gentleman’s history lesson. That was not a power-sharing Government, and I remind him that subsequently, in 1998, the overwhelming majority of the people of Northern Ireland made a different choice. They said, “We want to work together, in our substantial common interest, in devolved institutions that put power in the hands of our people from all backgrounds and traditions.” That is the choice before us, but unfortunately the Government are choosing austerity politics and the DUP is choosing boycott politics.

The thing that links those two toxic trends is Brexit. When the Government say there is not enough money to spend on public services, it is in large part because, as every forecaster suggested, Brexit has been economically disastrous. It is also a consequence of the disastrous Budget pushed by the previous Prime Minister. Brexit and the kamikaze Budget were the Government’s choices, and it is now their choice to inflict this budget on the people of Northern Ireland.

When the DUP says it cannot take responsibility for its share of governing Northern Ireland, it is because of the DUP’s choice for a bone-hard, bone-headed Brexit. Despite all the protestations we now hear about the lack of consensus and the DUP’s deeply held concerns not being listened to, for many years of the Brexit process the DUP refused to take on board the advice and pleading of many of us about the consequences of what we were being walked into.

[Sir Jeffrey M. Donaldson]

That is simply not true. One of the reasons why the DUP stated very clearly that it cannot support a hard border on the island as a result of Brexit was to take account of nationalist concerns. If only that had been reciprocated and nationalists had taken account of our concerns about an Irish sea border, we would not be in the situation we are in today.

[Claire Hanna]

I would be happy to give way in a moment if the right hon. Gentleman wants to tell me about any proposals or votes he made in this House with a view to achieving a solution that has the consent and consensus of all the communities. I was not a Member at the time, but I spoke at meetings in this House on a borderless solution being the only outcome without a sense of winners and losers.

As I say, this has been about choices. I do not doubt that the DUP’s concerns are sincerely held but, on the choice to boycott politics, not a single thing is advanced by having no Government. Not a single technical concern about the Northern Ireland protocol or the Windsor framework is addressed by not having a Government. It is a choice, and we want a different choice. We want devolved government based on the common good and Northern Ireland’s huge economic opportunities, and devolved government in which the SDLP can play a constructive role in opposition. To that end, we have already published our detailed triple-lock proposals to protect public services from these sharp, short-term cuts while creating a pathway to much better long-term governance.

If the DUP continues to immiserate our politics, and if the Government continue to press ahead with this budget, more fundamental choices will present themselves. The first choice is to reform Stormont’s Standing Orders to make sure that one party can no longer hold up the formation of a Government. And if the DUP insists on creating the sense that Northern Ireland, as a unit, cannot work, the second choice is to realise the potential of all our people in a new Ireland back in the European Union. Especially when people are told that devolution within the UK is no longer available, the SDLP will pursue that aim vigorously and with honour, based on reconciliation and the potential of all our people.

That is a big choice about our future, but there is also a here and now that this budget does not serve well. Colleagues from across the House have highlighted some of those impacts. On infrastructure, our ability to address climate change, let alone things such as road safety, is hampered. The PSNI is facing its numbers falling to their lowest level, at a time of not just security threat, but increasing complexity of the issues it deals with, particularly on mental health. Across the economy, regions that are doing well are doing well by leaning into their economic potential and their successes, but instead we are cutting things such as the arts sector and Northern Ireland Screen, and we are cutting the budgets of Tourism NI and of further and higher education. All of these cuts undermine all of the flagship strategies about our economic future, particularly 10X. I am not sure where we can start on health and education, and I hope to be able to explore those areas in more detail in a Westminster Hall debate next week.

Schools have not been on the pig’s back at any point that I can remember, but the projected shortfall of £200 million is catastrophic. One of the many things not being covered is a much-awaited pay deal for the most shamefully undervalued parts of the workforce, SEN classroom assistants. That could lead to further strike action, which literally hurts the most vulnerable children, including those at Glenveagh School in my constituency, who have already picked up much too much of the slack of the politics.

In health, we know that a standstill budget is, in essence, a cut and that we are doing nothing. We talked a lot in this House last week about a workforce plan, none of which reaches Northern Ireland. The Chairwoman of the Public Accounts Committee rightly highlighted cuts to the Northern Ireland Audit Office and NIPSO—the Northern Ireland public services ombudsman. Those are problematic in practice and in principle, because at many times in the past few years those bodies, particularly the NIAO, have provided some of the only scrutiny we have had. They have acted as an effective opposition in some cases to aspects of Government waste and failure to reform.

In practical terms, discretionary spending is all but gone. Even permanent secretaries, who, as we know, do not like to dabble too much in the politics, are asking the Secretary of State to resolve that tension for them and asking how they reconcile their statutory duties with the budget they have. I hope that one of the Ministers can clarify the position. If their section 75 duties are always followed, as they say they are, will they clarify whether those section 75 assessments are content with the scale and depth of these cuts? What steps have they taken to identify and mitigate the impact? Have they received any advice about an overarching equality assessment?

Will the Secretary of State also clarify whether the Government have taken into account the long-standing guidance as well as the Equality Commission’s investigation into failings in the preparation of the 2019-20 budget? What lessons were learned from that? Finally, the UK has been a signatory to the UN convention on the rights of the child for at least three decades, so will he clarify what regard they have given to the UN committee’s recommendation that this budget be withdrawn and replaced with something that protects the rights and needs of children?

The budget is unworkable and it is a false economy. It is storing up so many problems, both in terms of democratic grip in Northern Ireland and in public services. Devolution has never been more needed. People in Northern Ireland feel that they are part of a political game that they are not playing and that is being played on them. I urge all of those with the ability to make these choices to stop practising austerity politics and to stop practising boycott politics, and to do so as soon as possible.

--- Later in debate ---

[Mr Baker]

That brings me on to a point I wanted to make. My right hon. Friend the Secretary of State and I sat here throughout the debate listening to a number of Members imploring us to take one action or another, which would amount to going down the road toward direct rule. We have no plans to go toward direct rule. We have been asked what we will do if this situation continues. In the event that we need to take further steps, we will announce them, if the need arises and when the time is right, but we have no plans to go to direct rule, and no amount of pressing us on one issue or another will cause us to take up direct rule.

Regarding the Windsor framework, yes, there are some technical matters that we might deal with in order to fulfil the policy intent clearly agreed by both sides. Where there are technical issues we need to move forward on, please, let us take them up as technical issues and deal with them in the Joint Committee. Let us not again raise such matters up to levels that require the attention of the great statesmen and women of Europe. It is better to deal with these things in a low-key way.

[Sir Jeffrey M. Donaldson]

With great respect to the Minister, the matters that we want to be addressed are not matters for the European Union; they are matters for His Majesty’s Government. They relate to the internal market of the United Kingdom and its workings. Either the UK Government are in charge of that, or they are not. When I see the UK Government introducing new statutory instruments to impose customs arrangements on parcels being sent from one part of the UK to another, I begin to wonder if the UK Government actually get our concern about the workings of the internal market.

[Mr Baker]

We certainly do. The right hon. Gentleman and I have walked a long way together over the last seven years. As he well knows, I regret that we have had to part ways somewhat at this point, but we are clearly aware of his concerns, which he articulates with great clarity and force. I hope he will not mind if, at this late hour, I say that I will leave this to my boss, the Secretary of State, and the other parties to work through.

Finally, I think, I turn to the issue of the Northern Ireland Audit Office, which the hon. Member for Hackney South and Shoreditch (Dame Meg Hillier) set out in some detail. Of course we appreciate the important role played by the NIAO and other independent bodies that hold the devolved Government to account, and ensure that public finances are spent properly and efforts are made to improve public services. However, when the Secretary of State considered budget allocations, he needed to take account of the challenging budget context and reductions faced by other Northern Ireland Departments. In such challenging circumstances, we believe it is only right that we ask the non-ministerial Departments and independent bodies to find savings in the same spirit as the rest of the Northern Ireland Departments.