Northern Ireland Budget Bill

Roger Gale Excerpts

Committee stage
Monday 23rd January 2023 Commons Chamber

[Mr Steve Baker]

What I propose to do, given the wide-ranging debate we have had, is to canter briskly through the provisions made in the Bill. Clauses 1 and 2 authorise Northern Ireland Departments and other specified public bodies to use resources amounting to £26,656,975,000 in the year ending 31 March 2023. Of that sum, £24,242,977,000 is authorised for use for current purposes and £2,413,998,000 is authorised for use for capital purposes.

Clauses 3 and 4 authorise the Northern Ireland Department of Finance to issue the sum of £21,487,341,000 out of the Consolidated Fund of Northern Ireland for this financial year.

The estimates in schedule 1 set out the allocations for the sums provided for in clauses 1 to 4 between each of the Departments and listed public bodies, as well as the purposes for which each Department and public body may use those funds. I know that two amendments were tabled but not selected in relation to the remediation of cladding, and we discussed that earlier. I hope that the hon. Member for Belfast East (Gavin Robinson) accepts what I said.

A separate Northern Ireland main estimates document will be provided to give further detail beyond the summaries set out in the schedules. That will be prepared and laid as a Command Paper in the Libraries of each House. I expect it to be laid before the end of the financial year. Separately, we have provided the supplementary memorandum, which provides more detail to right hon. and hon. Members.

Clause 5 provides for authorised temporary borrowing by the Northern Ireland Department of Finance, up to approximately half of the sum issued out of the Consolidated Fund of Northern Ireland under clause 3. This is a normal safeguard against the possibility of a temporary deficiency arising in the Consolidated Fund, and any borrowing authorised under this clause is to be repaid by 31 March 2023.

Clause 6 authorises Northern Ireland Departments and other listed public bodies to use the income they receive from the specified sources listed in part 3 of their schedule 1 estimate.

Turning to clause 7, the authorisations provided for in clauses 1 to 6 supersede the previous authorisations in the Budget Act (Northern Ireland) 2022 and other legislation. To give effect to them, clause 7 allows the authorisations in the Bill to be treated as having effect from the beginning of 1 April 2022.

Clauses 8 and 9 relate to a vote on account. Clauses 8 to 12 look ahead to the next financial year, and provide for similar authorisations in that year as those set out for the current year in clauses 1 to 5. Clauses 8 and 9 authorise the use of resources by Northern Ireland Departments and other listed public bodies, amounting to £17,404,266,000 over the course of the financial year ending on 31 March 2024. Of that total, £15,835,528,000 is authorised for use for current purposes, and £1,568,738,000 is authorised for use for capital purposes. The authorisation is for a vote on account of 65% to allow public services to continue to be delivered in the first half of the next financial year. Given the continuing political uncertainty in Northern Ireland, the vote on account is greater than usual—65% instead of the normal 45%.

The vote on account does not imply the setting of a Budget for 2023-24 for the Northern Ireland Departments. Its purpose is to allow the use of resources so that services can continue to be delivered, pending the consideration of a Budget Act for the full 2023-24 financial year.

Clauses 10 and 11 authorise the Northern Ireland Department of Finance to issue the sum of £14,154,737,000 out of the Consolidated Fund of Northern Ireland during that period. The authorised purposes for which the resources and sums referred to in clauses 8 to 11 can be used during that period are set out in part 2 of schedule 2.

Clause 12 authorises temporary borrowing by the Northern Ireland Department of Finance in the next financial year, to be repaid by 31 March 2024. Clause 13 provides that the Bill will have the same effect as if it were a Budget Act of the Northern Ireland Assembly, and clause 14 repeals provisions of other legislation that have been superseded by this Bill. Finally, clauses 15 and 16 are on interpretation and the short title of the Bill. I hope that helps the Committee to understand the Bill.

[The Second Deputy Chairman of Ways and Means (Sir Roger Gale)]

I call the Opposition Front Bencher.

[Tonia Antoniazzi]

I do not want to repeat too much of what was said on Second Reading. The Labour party has been clear: we accept the need for this Budget, which allows Northern Ireland Departments financial certainty. We have not tabled any amendments, as any change in allocations between Departments at this stage is likely to clause more complications than solutions.

I put my thanks on the record to all the officials who worked on the Bill. It cannot have been easy to pull it together in the time available. I understand that the Government had conversations with the Northern Ireland Fiscal Council before setting the Budget. I do not want to stray out of order, but it is good that the council is involved and that it will publish a report on what we are agreeing today.

Clause 13 sets out provisions enabling the Bill to take effect as though it were a Budget Act of the Assembly. We have highlighted challenges that Departments have said that they will face in trying to stick within the limits set out in the Bill. It would be much better if the Bill were being discussed in the Northern Ireland Assembly, so that it could receive the scrutiny that it deserves.

Question put and agreed to.

Clause 1 accordingly ordered to stand part of the Bill.

Clauses 2 to 16 ordered to stand part of the Bill.

Schedules 1 and 2 agreed to.

The Deputy Speaker resumed the Chair.

Bill reported, without amendment.

Third Reading

--- Later in debate ---

[Sir Jeffrey M. Donaldson]

I simply rise on behalf of my party to thank the Minister and his officials in the NIO for the work they have done on this Bill. I want to thank Jayne Brady and Neil Gibson in particular, and their colleagues across all the Departments in the Northern Ireland civil service.

To be honest, we would much prefer that these decisions were being taken by Ministers in the Northern Ireland Executive. I assure the Minister, in response to what he said earlier, that if the UK Government do their bit and deliver a deal, an outcome or legislation here at Westminster that resolves the problems and difficulties created by the protocol and that meets our seven tests, we will not be found wanting. We will ensure that Ministers are appointed to the Executive not only to get on with the job, but to address the real issues that need to be addressed to enable better and more effective delivery of public services in Northern Ireland, to reform of our public services in Northern Ireland, and to drive forward the growth agenda to develop our economy, because we want prosperity to be the mark of Northern Ireland for the future.

We will need the Government’s help with that; we will need the Government to help deploy the levers that will be required to transform our economy. I do not want Northern Ireland in the future to be dependent on the Treasury to fund our public services to a far greater level than the other parts of the United Kingdom. I want Northern Ireland to stand on its own two feet; I want Northern Ireland to prosper and our economy to grow. But to do that, and to see the institutions restored, we need to resolve the issues around the protocol, and the sooner that happens the better.

I thank the Minister for the contribution he and his colleagues are making in that endeavour, but I say again what I said at the weekend: let us not have half measures; let us get this job done, get it done right, and get it done once and for all so we can move forward together.

[Mr Deputy Speaker (Sir Roger Gale)]

I call the shadow Secretary of State.