Income Tax (Charge)

Robin Swann Excerpts

Monday 4th November 2024 Commons Chamber

[Robin Swann (South Antrim) (UUP)]

I want to bring a Northern Ireland point of view on this Budget. First, I thank the Government for the £11.8 billion they have allocated for the infected and affected victims of the infected blood scandal, but I question whether it is enough and whether they will now deliver it at pace. It is unfortunate that the right hon. Member for Salisbury (John Glen) is no longer in his place, because I know the work he did on that previously as Paymaster General. I also welcome the moneys for the postmasters, but I ask the Government why there is still no recognition of or assurances for our WASPI women—the Women Against State Pension Inequality—despite the recommendation of the Parliamentary and Health Service Ombudsman and the pre and post-election photo opportunities taken by both the Government and the Opposition.

Health is devolved and, while I welcome the significant funding that health has been given here in England, I ask the Treasury to consider ringfencing the Barnett consequential that will go to health in Northern Ireland. I noticed that the Parliamentary Under-Secretary of State for Northern Ireland met our health trusts and health unions prior to the Budget, so it would be interesting to know exactly what the Northern Ireland Office is doing in regard to our health service in Northern Ireland.

It is also noticeable that our Northern Ireland Office has received a 66% increase in its allocation. I would question whether that is an indication that the Northern Ireland Office intends to be more hands-on, and exactly what it is going to fund in Northern Ireland with those moneys. I want to ensure that that is scrutinised by this House and is used in support of strategies that are implemented and supported by all the parties in the Northern Ireland Executive.

It has been said that the national health service will be exempt from the rise in employer national insurance contributions, but I seek clarification from the Treasury in respect of social care in Northern Ireland. I note that the Chancellor said that additional moneys would be delivered to local authorities so that the additional cost could be covered by social care providers here in England, but social care in Northern Ireland is paid for by our health service and our health trusts. I ask what contributions, and what considerations, the Treasury has put into that allocation so that there is equity across the piece. I also support the comments that the hon. Member for Torbay (Steve Darling) made about the challenges facing our GPs, our community pharmacies, our dentists, our social care providers, and the voluntary and community sector that supports our health service.

--- Later in debate ---

[Jim Allister (North Antrim) (TUV)]

When the Chancellor introduced her Budget, one thing she said was that change must be felt. This Budget will be felt, but, in many instances, not in a good way. My constituency is peppered with small businesses employing 10 or 12 people. They are the victims of this Budget, because they are now going to be soaked with additional tax on jobs, and that will not bring change that will be felt in a good way; it will diminish employment in my constituency. My constituency also has many family farms, and they too will not feel this Budget in a good way, because inheritance tax will put many of their futures in jeopardy. Family farms are asset rich, but more often than not they are cash poor, so how on earth will they ever meet the huge imposition that has been placed on them?

[Robin Swann (South Antrim) (UUP)]

The average farm income in the past year in Northern Ireland was £27,345, which does not exactly leave those family farms a lot of slack. It does not leave them much to live on, let alone meet inheritance tax bills.

[Jim Allister]

That illustrates my point. It shows how impossible and unfair it is to say to family farms—and it does not take a lot of acreage to be worth £1 million—“You may have the assets, you do not have the income, but you must pay the inheritance tax to HMRC.” What do those farmers do? They sell off part of the farm, and what does that do? It diminishes the food production, and it diminishes the viability of the farm. That will be how this Budget will be felt in many family farms. Similarly, it will be felt in a negative way by new homebuyers because of the stamp duty threshold reductions: new purchasers will now pay significantly more in tax to buy a new home.

As for the Budget allocation for Northern Ireland, back in 2012 the Government accepted a national barometer of need. Through Professor Holtham, it set out what was needed in each part of this nation. What £100 could buy in public services in England was then translated—because other areas were smaller—into what it would cost to buy the same amount in the rest of the United Kingdom: £105 in Scotland, £115 in Wales and £121 in Northern Ireland. Yes, according to the block grant transparency document this Budget provides for Wales £120 per £100 in England, but in Northern Ireland we continue to be just at need. Why is there that uplift for some parts of the United Kingdom and not for others? We in Northern Ireland also have no guarantee of meeting need beyond 2026-27. That is not assured in this Budget. I ask for my constituents what has been afforded to the constituents of Wales, an uplift on need so that they can see their public services provided properly.