Northern Ireland (Regional Rates and Energy) Bill

Lady Hermon Excerpts

2nd reading: House of Commons & 3rd reading: House of Commons
Wednesday 21st March 2018 Commons Chamber

[Karen Bradley]

My hon. Friend is absolutely right. There are decisions that ideally would be taken by Ministers sitting in Stormont as part of a devolved Government, but that has not been the case for 14 months. I am therefore taking steps today, reluctantly, and it is pressing that we are able to proceed. I hope that we can get devolved government in Stormont again in the near future, because that is the best thing for the people of Northern Ireland to be able to take advantage of the available opportunities.

Clause 1 addresses the collection of the regional rate, which represents more than 5% of the total revenue available to the Northern Ireland Executive. With a devolved Government in place, it would be set via an affirmative rates order in the Assembly, enabling bills to be issued in 10 instalments, providing certainty to ratepayers and allowing various payment reliefs to be applied. Last year, it fell to the UK Government to take that step in the absence of an Executive. When I took office as Secretary of State earlier this year, I had sorely hoped that it could be one of the first acts of a new devolved Government and Assembly and would not fall again to this Government and this Parliament to set the regional rates. That will not be possible before the next financial year, and it would be unacceptable to allow uncertainty to linger in the meantime until a new Executive are formed.

While we are clear that it is a devolved matter, we are also clear that only the UK Government and Parliament can take such action to secure the interests of individuals and businesses in Northern Ireland. This Bill therefore sets out rates, in pence-per-pound terms, for both domestic and non-domestic properties. For non-domestic properties, the rate reflects a 1.5% inflationary increase. For domestic properties, the rate would be raised by inflation—1.5%—plus 3%, as I set out in my budget statement on 8 March.

[Lady Hermon (North Down) (Ind)]

I am sure the Secretary of State would like to confirm that she is well aware that the general public in Northern Ireland will not be one bit pleased that, when rates are going up in Northern Ireland, it is expected that Members of the Legislative Assembly will get a salary increase from 1 April, unless the Secretary of State exercises the power that she will take later this afternoon. Will she confirm that she will cut their salaries and eliminate any increase before 1 April?

[Karen Bradley]

The hon. Lady is pre-empting the speech that I will make later—I hope not in six hours’ time—when I will be legislating to bring powers to this Parliament to vary the rates of MLA pay. I am doing so this week to ensure that it happens before the start of the new financial year, so that no pay increases go through. I well understand her strong feeling, which is one that has been expressed to me by many in Northern Ireland.

--- Later in debate ---

[Lady Hermon]

Again, I am grateful to the Secretary of State for giving way. Will she confirm for the benefit of people in Northern Ireland in particular the savings to the public purse as a result of the Bill? How much would it cost without a cap on the RHI scheme for another 12 months, compared with the measures in the Bill?

[Karen Bradley]

As I have said, the estimated saving for 2016-17 was £27 million. I assume a similar sort of saving this year. The total saving as a result of the cost capping is in the region of £450 million.

--- Later in debate ---

[Dr Murrison]

Well, if the Secretary of State wants me to go on, I certainly will, but I think I would rapidly lose the House’s sympathy. I clearly support the Bill, which is completely uncontroversial, given the grave situation.

[Lady Hermon]

rose—

[Dr Murrison]

The hon. Lady will lengthen my speech, but of course I give way to her.

[Lady Hermon]

I am delighted to lengthen the speech of a distinguished chair of the Northern Ireland Affairs Committee and, indeed, former Minister in the Northern Ireland Office. In both those capacities, the hon. Gentleman will have built up expertise on and a considerable body of knowledge about inward investment into Northern Ireland. The second part of the Bill is on the renewable heat incentive scheme. Has the hon. Gentleman come to any conclusions about the negative impact on inward direct investment into Northern Ireland as a consequence of the continued uncertainty and bad publicity surrounding that scheme?

[Dr Murrison]

The straight answer to the hon. Lady’s question is no, I have not formed a view on that. The absence of the institutions at Stormont is most definitely acting to reduce confidence in Northern Ireland as a place to invest. Indeed, the hon. Lady will recall our discussion of the electricity market earlier. All I can say—it has been repeated at length in this place and will continue to be—is that the solution is clear, and it is the restoration of the Executive and the Assembly.

--- Later in debate ---

[Jim Shannon]

Yes, I agree with my hon. Friend. There may be an odd council or two that are not quite as prudent as they should be, and we would like them all to be every bit as prudent as one another.

With the additional money, we live in hope that the Ballynahinch bypass might even be started, that nurses could be trained in using diabetic insulin pumps and that there may be more hours for NHS staff and more classroom assistance. We hope for all these things from this money, and we will see how it goes.

I am very pleased that the Government have awarded NHS staff a wage increase today. This House should be proud of that, use it to encourage them and say that it is a recognition of their efforts and hard work.

As we all know, the nature of rates is that they go up every year; it is very unlikely that they will not. The fact is that they are higher this year than they were last year and the year before. I want to point out, however, that families are struggling. It would be remiss of me to come to the Chamber without making that point. I obviously say that regularly, and I have done it again today.

It is my belief that the working poor are becoming more and more prevalent, with parents in work and yet struggling under the burden of bills. Another sacrifice for a struggling family who are not on benefits is that they do not get any form of rates relief, yet their children might be living in poverty. In Northern Ireland, we have some of the highest child poverty levels in the whole United Kingdom. An area may be perceived to be affluent, but that does not mean that the issues of child poverty are not real, because they clearly are.

[Lady Hermon]

Will the hon. Gentleman give way?

[Jim Shannon]

If the hon. Lady wants to make a contribution, I encourage her to make a speech, because that would be very helpful.

In 2016, it was found that 24% of children in Northern Ireland live in poverty. We need to address that issue and ensure that raising the rates will help those in poverty as well as others. For those who are well off enough to live in a large house with no thought of a rates increase, such an increase is wonderful, and it is fine for those who are receiving housing benefit and help with rates, but for those who are just above the income threshold for help, it is another blow. I again ask the Secretary of State whether it is possible to respond to the needs of households that fall below that threshold. They would not have been affected a while ago, but will find that they are with this rates increase.

I wish to comment on the fact that, as people know, the Northern Ireland Assembly has not functioned correctly or been able to make legal decisions for the past 14 months. As we are aware from our discussions yesterday, this period has seen some of the largest growth, the highest percentage rises in job opportunities and the lowest unemployment that we have had for a great many years. The Assembly set the scene for that, putting concrete foundations in place for it, and we are now seeing the benefits. Again, as I am sure others would agree, we would love to see even more of that, as we would if we had a functioning Assembly that was able to work.

I thank the Secretary of State for setting the rate, but is there a way to lower it for households on the threshold of help, and indeed for those that receive no help? They now have yet another higher bill to pay, and that bill is not taken into account in working out what comes to the household in the form of tax credits or other support. Again, we knew that the rate increase had to come, but we cannot ignore what may happen. Will the Minister outline what help in relation to the rates increase is available for those who are being squeezed financially?

It would be remiss of me not to comment on the continuation of the small business rate relief scheme, for which I am thankful, as we are seeking to revive our high streets and provide support to small retailers and small employers. In the main town of Newtownards in my constituency, and indeed in Comber and Ballynahinch as well, small business rate relief has brought dividends and positivity. Where once there were vacant shops in the high street of Newtownards, there are none today.

It is well known—I will say it again to make sure that it is recorded—that Newtownards is one of the towns with one of the best shopping and town centres in the whole of Northern Ireland. It is not only me saying so, but those who live there and businesses as well. If hon. Members have not been to Newtownards for their shopping, I encourage them to do so. I know that the shadow Minister, the hon. Member for Ealing North (Stephen Pound), has done so, and I encourage others to do likewise. We also look forward to having the opportunity to take the Minister to Newtownards shortly as well.

In the same way that Ards and North Down Borough Council found an innovative way to educate the community, and in turn to save it, by keeping the rates down, what innovations can be made to ensure that the rate is not continually uplifted well above inflation and to help people who, through no fault of their own, find themselves in a financial squeeze? We need infrastructure and an influx of funding for the NHS, but we also need to ensure that those who are in the middle and working hard—they see their children having massive debt in student loans, but are unable to help them—are not squeezed any further. I again thank the Secretary of State for the Bill.