Northern Ireland (All-party Talks)

John McDonnell Excerpts

Monday 15th December 2014 Commons Chamber

[Mrs Villiers]

I cannot agree with the hon. Gentleman on the benefit cap—I think that is what he means, rather than a welfare cap. The reality is that setting a cap on out-of-work benefits at £26,000 a year puts it somewhere in excess of average earnings in Northern Ireland. I think that most people would agree that it is entirely fair to restrict the benefits that an out-of-work family can receive to levels that are equivalent to or below the average that a working family can bring home by going out to work.

[John McDonnell (Hayes and Harlington) (Lab)]

I would like the Secretary of State to clarify the maths on this. Some £1.5 billion has been cut from the Northern Ireland budget since 2011 to assist the UK Government in reducing borrowing and tackling the deficit, yet the solution now being put forward is to ask Northern Ireland to increase its borrowing by £500 million. Is that not simply inflicting a high burden of cost on the residents of Northern Ireland?

[Mrs Villiers]

I am afraid that I do not agree with the hon. Gentleman’s figures on the Northern Ireland block grant, which has actually gone up in cash terms. In real terms there has been a reduction, but it has been around only 1% for every year of the spending review. The reality is that the Northern Ireland Executive have a larger budget now than they did when they set their programme for government, because of Barnett consequentials. Those figures compare favourably with policing and the Home Office, for example, which have had to take a significant cut in England, and English local government, where the reductions have also been very significant.