Northern Ireland Budget (Anticipation and Adjustments) Bill

Maria Caulfield Excerpts

2nd reading: House of Commons & 3rd reading: House of Commons
Tuesday 20th March 2018 Commons Chamber

[Maria Caulfield (Lewes) (Con)]

May I start with an observation? It is interesting that when we talk in this place about Northern Ireland and Brexit, the Benches are absolutely heaving, but when we talk about the budget for Northern Ireland, which is having a real impact on the day-to-day lives of the people of Northern Ireland right now, the Benches are much less full.

I welcome the Bill. I have served on the Northern Ireland Affairs Committee, and I have heard at first hand from some of the witnesses who have attended how difficult life has been for the people of Northern Ireland without a budget in place. We have heard from the Chief Constable of the Police Service of Northern Ireland about how life is difficult in the public sector even in ordinary times, but when working to a budget that has not been set, it is almost impossible. He explained how for days, weeks and months he did not even know whether he had the money to pay his officers, which is just an unacceptable position to be in.

The Committee has also heard from members of the business community in Northern Ireland about the difficulties that not having an Assembly, an Executive or a budget was giving them. They gave the good example of the apprenticeship levy. Businesses are paying into it, but because no budget is in place, they have no access to the funds. Apprenticeships in Northern Ireland are hugely at risk, and this in a part of the United Kingdom where apprenticeships are needed for all communities more than ever. Because of the lack of a budget, businesses are finding that the apprenticeship levy is forming a type of additional taxation.

I have met charities in Northern Ireland—I am particularly thinking of Addiction NI, which works with people trying to combat alcohol and drug addiction—and I know that not having a budget in place is having a huge impact on their ability not so much to provide an immediate service, as to plan for the long term. These are difficult times for charities, and not knowing where the next penny is coming from or what direction a Northern Ireland Government will be going in makes it almost impossible.

Then we have the Belfast city deal, which was announced in the UK Budget late last year, but which, as far as I know, is going absolutely nowhere. This city deal is an opportunity for Belfast to build on its infrastructure and create jobs.

[Sir Jeffrey M. Donaldson]

May I assure the hon. Lady that the Belfast city region deal is going forward? It is being led by a consortium of local councils—Belfast City Council, Lisburn and Castlereagh Council, Antrim and Newtownabbey Council, and some others—

[Sir Jeffrey M. Donaldson]

And, of course, Mid and East Antrim. The absence of a devolved Government is therefore in no way inhibiting progress on the city deal, which is directly between central Government and local government in Northern Ireland.

[Maria Caulfield]

I am extremely pleased to hear that, because the city deal is a huge opportunity for Belfast and, if it works well, could be a huge opportunity for other parts of Northern Ireland in future.

Not having a budget set for this financial year has a huge impact, but I am greatly concerned that we do not have a budget for the next financial year, because we have heard time and time again how difficult things have been for the charities sector, public services and businesses. This constant uncertainty, a bit like the uncertainty around Brexit, is just not feasible for the long term.

[Ian Paisley]

I appreciate the hon. Lady’s point, and of course I agree with it, but we should not be totally pessimistic. Unemployment is the lowest it has ever been in Northern Ireland, at 3.9%. Exports are up and we have had drives to promote the economy in other areas, and we are not the only region of the world that from time to time does not have a stable Government. Indeed, Germany did not have a Government for several months earlier this year.

[Maria Caulfield]

The hon. Gentleman makes a valid point, although I have heard him say himself that we want some certainty and a direction of travel, because this is not just about setting the budget. This is about scrutinising how that money will be spent. The civil servants in Northern Ireland are doing a fantastic job—we have all put on record today our thanks for their dedication and hard work—but we need political decisions about how that money is allocated and political scrutiny of how it is spent.

I therefore agree with my hon. Friend the Member for South West Wiltshire (Dr Murrison) that there is a sense that Northern Ireland is treading water or standing still. That reduction in unemployment and creation of jobs, and the great place that Northern Ireland is, is down to the hard work of people in the councils—the elected members at council level—who are continuing despite there not being an Assembly or Executive, and the civil servants, yet so much more could be achieved if there was an Executive in place.

I have three asks of Ministers. I do not want to be a pessimist—I hope I do not sound too pessimistic—but I honestly do not think there is a realistic possibility of the Assembly being reformed in just the next few months. As this is budget-setting time for most authorities across the United Kingdom, serious consideration needs to be given to the impact of not having a long-term budget for the next financial year. My first ask is: if there are Members who will not get back round the table and restore the Assembly, could an Assembly be restored with those who are willing to do that? As is the case in this place, if MLAs choose not to get round the table, that is a personal decision for them.

Secondly, is there a possibility of setting a budget for the next financial year, not just the first few months, so that public sector bodies such as the PSNI, charities such as Addiction NI and communities that desperately need to know the direction of travel for their funding can have some certainty? As the hon. Member for Edinburgh North and Leith (Deidre Brock) said, that budget could be set and abandoned if an Assembly came back into being. My third ask is: could the Northern Ireland Affairs Committee be given some task-and-finish authority to scrutinise current spending? Without any scrutiny whatever, are we really sure that the money is being spent in the best interests of the people of Northern Ireland?

I welcome this much-needed Bill, but there is still a huge amount of work to do. I want to put on record my congratulations and thanks to the Secretary of State for Northern Ireland, who is doing so much to try to make progress happen. These are difficult circumstances. None of us wants to be passing this Bill, which is a necessity, but there is still so much more work to be done.