Finance Bill

Lord Rogan Excerpts

2nd reading & 3rd reading & Committee negatived
Tuesday 20th December 2022 Lords Chamber

[Lord Rogan (UUP)]

My Lords, I welcome the opportunity to contribute to this now short debate and to place on record some concerns and observations from a Northern Ireland perspective.

I had expected to be a little less gracious in my comments towards His Majesty’s Government than I am about to be. However, yesterday’s announcement that Northern Ireland households will now receive a £600 payment to help with their energy bills lightened my mood somewhat.

When I spoke in our debate on the Autumn Statement on 29 November, the noble Baroness, Lady Kramer, who I am delighted to see in her place today, expressed her shock at being informed that Northern Ireland consumers had received no support whatever with rocketing energy costs. That was in sharp contrast with consumers in Great Britain, who were already receiving their payments.

Several weeks have passed, with temperatures falling well below zero for days and nights on end, and still no money has been received by Northern Ireland. The Government’s failure to put a Minister up for interview yesterday to answer questions about how and when that money will be paid has caused widespread upset across the Province. It also added to a general sense of scepticism about the process and whether, to put it bluntly, the Government’s restated commitment to finally release these much-needed funds can be trusted.

I do not for a second question the integrity or word of the Minister, who I am pleased to see at the Dispatch Box today. So I ask him to make it absolutely clear to the people of Northern Ireland precisely when they will receive their £600 payment. According to the latest statement of information I am aware of, the Government’s line now is that the money will be released starting in January. That is simply not good enough, with temperatures tumbling long before that. I am not being sensationalist or scaremongering when I say that lives are at risk if these payments are not made promptly. I make a heartfelt plea to the Minister to please do all that he can to get this money out to the people of Northern Ireland without further delay, bringing them into line with energy consumers elsewhere in the UK.

In common with many of your Lordships, including a sizeable number on the Government Benches, I am concerned about the ever-rising tax burden affecting so many people, especially the lowest paid, in the midst of a cost of living crisis. This is a particular problem for Northern Ireland workers. According to the Annual Survey of Hours and Earnings, published at the end of October by the Northern Ireland Statistics and Research Agency, UK weekly earnings in the 12 months to April 2022 increased by 5% to £640. However, Northern Ireland had the joint lowest increase across the 12 UK regions, with weekly earnings falling to £48 below the UK average.

This is why the Chancellor’s decision to freeze the personal allowance thresholds until the 2027-28 tax year is so disappointing for those on low incomes who go out to work, sometimes doing more than one job, but see their hard-earned inadequate wages swallowed up by tax. I know that the Chancellor and Prime Minister are keen to grow the economy, and I hope they are more successful in their endeavours than their immediate predecessors. However, if they succeed—I trust they will—I hope that allowing people at the bottom of the income ladder to keep more of their money will be an absolute priority for them.

Air passenger duty has long been a major bugbear of mine, and I was pleased when Rishi Sunak announced in last year’s Budget that the rate of APD levied on domestic flights would be halved to £6.50 from April 2023. Had it been up to me, I would have abolished the tax altogether, as has been done in the Republic of Ireland, thus giving extra support to its airports in competing with Northern Ireland airports. Unfortunately, this is not the case, and the decision not to reduce the APD earlier seems to have had consequences. For example, Aer Lingus announced just last week that it may end its Belfast to London Heathrow flights, with the loss of 30 jobs. As other Peers from Northern Ireland will testify, it is already something of a challenge to travel to your Lordships’ House from Belfast by air, and this will not help. Business travellers and tourists wishing to visit the Province from other UK regional airports have seen schedules reduced in recent weeks. Therefore, I ask the Chancellor to please consider cutting or abolishing APD between Northern Ireland and Great Britain in his Budget Statement next March, if not before.

Finally, last night, Members in another place received a “Dear colleague” letter from Dehenna Davison, the Minister for Levelling Up, informing them that the announcement on successful bidders for round 2 of the levelling-up fund had been delayed. This was despite assurances from a succession of Ministers, including in a Written Answer to me, that the intention was to make the announcement before the end of the year. That is the bad news. But there is also good news: in his Autumn Statement, the Chancellor said that round 2 of the levelling-up fund would at least match the £1.7 billion allocated in round 1. However, in her correspondence, and as a result of the number of high-quality applications received, Ms Davison said that this figure would now be raised to £2.1 billion. That being the case, I seek an assurance from the Minister that the amount of funding set aside for successful bids from Northern Ireland—including a rather impressive application from Coleraine Football Club, which I visited last month—will be increased in line with the Barnett formula. I imagine that this will be the case, but it would be reassuring for Northern Ireland bidders to hear it confirmed at the Dispatch Box.