Autumn Statement

Stephen Farry Excerpts

Wednesday 22nd November 2023 Commons Chamber

[Jeremy Hunt]

The hon. Gentleman is omitting the fact that in the autumn statement a year ago, when I was having to make big cuts in public spending going forward, I found an increase of £4.7 billion from next year for adult social care, which will make an enormous difference to every council in the country.

[Stephen Farry (North Down) (Alliance)]

Further to the Chancellor’s answer on Northern Ireland and Barnett consequentials, he will be aware that Northern Ireland is facing an unprecedented budget crisis. Will he therefore confirm that he is open to discussions on a fiscal floor and an invest-to-save transformation package for any potential restored power sharing Executive?

[Jeremy Hunt]

The UK Government will continue to do everything we can to support the restoration of power sharing in the Province. All I will say is that the Treasury is actively involved in all those discussions.

Economic Growth

Stephen Farry Excerpts

Tuesday 14th November 2023 Commons Chamber

[Stephen Farry (North Down) (Alliance)]

I want to concentrate on the Northern Ireland economy, as this is primarily a debate on the economy. First, however, I want to touch upon the situation in the middle east, and in particular the need for a ceasefire. I utterly condemn the actions of Hamas as terrorism. However, we must recognise that Israel’s response has been disproportionate, represents collective punishment and sees ongoing breaches of international humanitarian law. We have all been deeply touched by the images we have seen on our televisions, and we know that there is a massive humanitarian crisis ongoing in Gaza.

Hopefully, we all recognise that there is no military solution to the situation. The only way forward lies in both Israel and Palestine having freedom and security, and the reaching of a political accommodation, notably with a two-state solution. Continued death and destruction achieves nothing—arguably, it makes the situation even harder, because it will only compound people’s sense of bitterness and feed extremism. It also risks wider regional escalation. A ceasefire, which must include the release of hostages and humanitarian access, requires a collective international effort, as does the renewed peace process that should follow any initial ceasefire. I hope I can speak with some degree of authority on peace processes, given my experience in Northern Ireland.

Moving on to the situation in Northern Ireland, our economy continues to function and businesses are continuing to invest, but our economy is being held back massively by the absence of a devolved Executive. We need an Executive for political stability and investment in skills, infrastructure and research and development. As a former Minister for Employment and Learning in Northern Ireland, I appreciate the importance of skills. Rather than further investment in those areas in Northern Ireland, we are seeing budget cuts. The impact on further and higher education is mirrored more widely in health, education and other public services.

I want to see a restored Executive working closely with the UK Government to address Northern Ireland’s current financial crisis through two key interventions. The first is the introduction of what is called a fiscal floor. Northern Ireland is structurally underfunded by around £400 million a year. A fiscal floor would need to be set at the correct level, taking into account policing and justice needs based on the most relevant period, 2010 to 2015, adjusted for inflation, as that was based on actual need as assessed by the Government at that particular point. We have the precedent of what happened in Wales, fed by the Holtham commission. That model could be replicated with adjustments for Northern Ireland relatively quickly.

We also need a transformation fund. We cannot fix public services in Northern Ireland from a burning platform of cuts and further cuts. We need an invest-to-save programme for both public services and our economy, as part of a renewed financial package. Of course, we have to learn lessons from previous financial packages in Northern Ireland. I say to the Government that I fully accept that there will be a need for a certain degree of conditionality around any intervention, but unless we have that financial package, we are never going to turn the situation around in Northern Ireland.

We have a very particular opportunity in Northern Ireland through the presence of the Windsor framework. I welcome the Government’s efforts to secure it earlier this year. I am disappointed that others are failing to see the importance of that breakthrough and to return to the Executive as a consequence. Without a functioning Executive and those key interventions in our economy, we will not be able to take full advantage of the opportunities provided by the framework, particularly in terms of dual market access.

Finally, I will touch briefly on climate change. It is by far the deepest, most far-reaching challenge facing the world, including us in the UK. While the Government’s targets may remain, there is a clear sense that the brakes are being slammed. It is a false narrative to pitch economic wellbeing against climate change. Through a green new deal, we can address not just economic change but social justice, alongside climate change. I strongly suggest that the narrative needs to change around a green new deal, both UK-wide and in Northern Ireland.

Draft Postal Packets (Miscellaneous Amendments) Regulations 2023

Stephen Farry Excerpts

Monday 17th July 2023 General Committees

[Victoria Atkins]

I want to ensure that I can provide the list to my hon. Friend now. However, just on that wider subject, the situation that he has described is exactly what we want to try to avoid in the future. He will know that there was uncertainty about how the protocol would apply. I think it was the chairman of Marks & Spencer at the time who came on to the radio at some point and talked about the 50 or so checks that M&S had to go through to send products to its stores in Northern Ireland. We want to cut through all of that, and I hope the Windsor framework will help the businesses in my hon. Friend’s constituency. I also hope that he will know that we are putting a great deal of effort into the trader support service to help businesses to navigate these new customs duties. Of course, that is in the freight space as well. The Government want to grow the economy and our relationship with businesses. I am very helpfully reminded that there is published guidance on gov.uk already, but I am happy to provide it separately to my hon. Friend if he wishes to see the complete list. It is published on there already.

[Stephen Farry (North Down) (Alliance)]

I am grateful to the Minister for giving way, and I congratulate her on the clarity with which she is explaining the issue. I will stress that there are people in Northern Ireland who support the Windsor framework and appreciate that it is a good deal. Obviously, with Brexit, there are no perfect solutions to these situations.

Just building on the answer that the Minister has just given about the trader support service, does she recognise that there is a potential role for the Government beyond that to try to promote to GB-based businesses the requirements in terms of selling into Northern Ireland? I think that is an area where more work can be done without impinging directly upon the legal framework that has been agreed.

[Victoria Atkins]

I am very open to ideas and suggestions, particularly from those parliamentarians who represent Northern Ireland, as to how we can improve that understanding within the Northern Irish business community but also, importantly, here in Great Britain, because I want businesses to continue trading, and indeed to grow their trade, with Northern Ireland.

There are experts in this room who know just how ambitious and powerful the messages of support were from the international community when the Windsor framework was signed about the opportunities available for this corner of the United Kingdom, so I very much hope that this measure is seen as part of that drive and that ambition to help Northern Irish businesses to grow.

Non-domestic Energy Support

Stephen Farry Excerpts

Monday 9th January 2023 Commons Chamber

[James Cartlidge]

We do see the importance of the hospitality sector in every part of the United Kingdom. That is precisely why we have the current six-month scheme—£18 billion. Let us be clear about something: if a Government wanted to raise £18 billion year on year, that would require an increase in the basic rate of income tax of 3p. That is enormous and puts into context the scale of that cost.

Yes, we want to support hospitality. To give one example, because of freezes or cuts to the duty on whisky and spirits, that duty is now at the lowest level in real terms since 1918. Alongside that, next August, for the first time ever in this country—something not possible when we were a member of the EU—we will have a differential duty with a lower rate on a pint in a pub compared with a can of the same beer in a supermarket. We are supporting hospitality but we are balancing that against the need to run a tight fiscal ship.

[Stephen Farry (North Down) (Alliance)]

The Minister has already clarified that the scheme will automatically apply to Northern Ireland. However, energy policy is normally devolved in Northern Ireland. As he knows, we have a distinct energy market with a different profile in the use of fuels, including alternative fuels. Will a restored Executive have the opportunity to shape that policy to suit local needs? I suspect that we will get a much greater share through the Barnett formula based on the population than we would through direct support, given that we do not have the same degree of reliance on gas.

[James Cartlidge]

The hon. Gentleman makes a fair point. There are substantive differences between the way the energy market works in Northern Ireland and how it works on the Great British mainland, as it were. We want to see, as far as possible, the same support in Northern Ireland as in England, Scotland and Wales. He will know that the £600 payment, which combines the £400 support that all households should have had and the £200 alternative fuel payment, is being paid out this month. That shows the degree of support for Northern Ireland. On what would happen were an Executive to be in place, although we would very much like to see that, I will not speculate on Northern Ireland politics at this stage.

Economic Update

Stephen Farry Excerpts

Monday 17th October 2022 Commons Chamber

[Jeremy Hunt]

My hon. Friend has actually answered the previous question much better than I did—the answer is yes.

[Stephen Farry (North Down) (Alliance)]

It is right that the Chancellor is seeking to reassure the markets, but will he take the opportunity today also to reassure the millions of people who rely on benefits, both those who are in work and those who are out of work? The UK has some of the lowest benefits in Europe. There are people on benefits with no plan B and no savings, and huge anxiety at present, given the current situation. So will he pledge that benefits will increase in line with existing Government policy—in line with the consumer prices index? Will he also reverse what the previous Chancellor said in his mini-Budget about the more punitive approach to be taken against those on benefits?

[Jeremy Hunt]

What I will say to the hon. Gentleman is straightforward. It is because I want us to be able to support the poorest, the most vulnerable and those in the greatest difficulties in society that the most important thing I can do right now as Chancellor is what I can to create economic stability, and that is what I am doing.

The Growth Plan

Stephen Farry Excerpts

Friday 23rd September 2022 Commons Chamber

[Kwasi Kwarteng]

I am pleased to confirm to my hon. Friend that that is exactly what we need to be driving forward. We need to be accelerating the process so that we can deliver outcomes more quickly. I pay tribute to the fact that he and I have been talking about these issues for many years now. I am pleased that he remains as focused on growth as he was many years ago.

[Stephen Farry (North Down) (Alliance)]

It may be an uncomfortable truth for some, but the biggest barrier to growth at present is the fact that there are increased barriers to trade with our nearest neighbour, the European Union, as a result of Brexit. There is an alternative reality: an increased windfall tax on energy companies, investment in a green new deal, investment in skills and sound public finances. How on earth can we look our constituents in the eye when they have been offered only £100 for home heating oil and the wealthiest in our society will get thousands in extra benefits today?

[Kwasi Kwarteng]

My right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy is looking at the heating oil issue and we will come to a decision on Northern Ireland imminently.

Oral Answers to Questions

Stephen Farry Excerpts

Tuesday 28th June 2022 Commons Chamber

[Lucy Frazer]

The Government are very much committed to trade agreements across the globe and would welcome a trade agreement with India.

[Stephen Farry (North Down) (Alliance)]

3. What fiscal steps he is taking to help reduce the impact of rises in the cost of living in Northern Ireland.

[The Chancellor of the Exchequer (Rishi Sunak)]

The UK Government are providing £37 billion-worth of support to help families with the cost of living, and most of that support is being provided directly to households across the United Kingdom. Indeed, we are legislating to ensure that our one-off payments to those on welfare that are worth up to £650 can be paid directly to households and families in Northern Ireland.

[Stephen Farry]

As the Chancellor will be aware, the energy bill support scheme cannot currently be extended to Northern Ireland due to the absence of the Northern Ireland Executive, so can he update the House on what steps he is taking to put in place measures to ensure that the people of Northern Ireland can avail themselves of that support? I appreciate that it is not due until October, but there is a long lead-in time required in that respect.

Oral Answers to Questions

Stephen Farry Excerpts

Tuesday 17th May 2022 Commons Chamber

[The Exchequer Secretary to the Treasury (Helen Whately)]

I completely agree with my hon. Friend. In fact, we do support families with the cost of childcare. One thing we do is to provide families with access to tax-free childcare, which means they can get a 20% reduction on the cost of childcare, up to a cap of £2,000 a year.

[Stephen Farry (North Down) (Alliance)]

T6. The Foreign Secretary is about to make a statement regarding unilateral changes to the Northern Ireland protocol that risk unpicking the trade and co-operation agreement and a trade war with the European Union. I understand that the Chancellor had been a voice for restraint and caution in Cabinet. Why has his view not prevailed?

Financial Statement

Stephen Farry Excerpts

Wednesday 23rd March 2022 Commons Chamber

[Rishi Sunak]

No, it is not remotely, actually. There has been good unity in the House on this topic. The hon. Gentleman claims that somehow we are behind other countries when it comes to sanctioning Russian banks; it is simply not true. This Government are taking a leading role in this. We are ahead of most of our peers. He does not know, but I know, because I am in the conversations with Finance Ministers about where else they are prepared to go. I am very confident that we have done a lot and have played a leading role internationally in bringing others along with us.

[Stephen Farry (North Down) (Alliance)]

We have heard the Chancellor try to excuse his failure to increase benefits in line with inflation. He has referred to the universal credit taper and the national living wage, which help those people on benefits who are in work. However, does he recognise that the majority of people on benefits in the UK are not in work, and there is nothing in this budget to help them?

[Rishi Sunak]

I think the hon. Gentleman missed the household support fund announcement, which is specifically for local councils, so that they can help those who are most vulnerable. Many of those people who are not currently in work can, with the right support, care and attention, be supported into work. That is something that this Government are spending a lot on doing.

Oral Answers to Questions

Stephen Farry Excerpts

Tuesday 15th March 2022 Commons Chamber

[Helen Whately]

My hon. Friend makes an important point. There is the basic principle that people should in general be free to spend their money as they see fit. There are about 100,000 jobs in the gambling industry in this country. It is important to ensure that we protect people who are most vulnerable from exploitation, and I know that the gambling review I mentioned is looking carefully at the best way to do that.

[Stephen Farry (North Down) (Alliance)]

5. What discussions he has had with Cabinet colleagues on the potential merits of reviewing the inflationary uplift in universal credit in response to the increase in the cost of living.

[The Financial Secretary to the Treasury (Lucy Frazer)]

Details of ministerial discussions are not normally disclosed. Treasury Ministers have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development. From April, universal credit and many other benefits will be uprated by 3.1%, the rate of the consumer prices index in September 2021. In addition, the Government are providing support worth over £20 billion across this financial year and next to help families with the cost of living.

[Stephen Farry]

Millions of families across the UK, both in and out of work, depend on universal credit and other benefits. As the Minister knows, the 3.1% uprate was set in September. We are now seeing inflation of over 7%. The Joseph Rowntree Foundation, the Trussell Trust and many other organisations highlight the real jeopardy that families are now facing. They have no plan B. Indeed, families are facing cuts in real terms of over £500 over the course of the year. Surely that decision has to be reassessed in the light of changing circumstances.

[Lucy Frazer]

CPI has been the default inflation measure for the Government’s statutory annual review of benefits since 2011, as the hon. Gentleman knows, but we are fully aware of the impact on households of the cost of living. That is why we are providing £20 billion of support, whether that is through £9 billion of support to help with rising energy bills or through universal credit. As he also knows, we have cut the taper rate so that families can keep an additional £1,000 annually in their pockets.