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PARLIAMENTARY DEBATE
Economic Impact of Government Policies - 11 February 2026 (Commons/Commons Chamber)

Debate Detail

Contributions from Mr Paul Kohler, are highlighted with a yellow border.
Con
Joe Robertson
Isle of Wight East
2. What assessment he has made of the potential impact of Government policies on the economy in Northern Ireland.
Con
Blake Stephenson
Mid Bedfordshire
6. What assessment he has made of the potential impact of Government policies on the economy in Northern Ireland.
Hilary Benn
The Secretary of State for Northern Ireland
The Government are supporting Northern Ireland through the four city deals, the local innovation partnerships fund, an enhanced investment zone and greater economic stability. Economic activity in Northern Ireland increased by 2.9% over the year to quarter 3, and it has the lowest unemployment in the UK.
  11:39:59
Joe Robertson
The Government are giving a 50% reduction to the emissions trading scheme levy on ferries crossing between Northern Ireland and Great Britain in an apparent effort not to negatively impact the economy there. Scottish islands are getting a 100% reduction, yet the Isle of Wight is getting no reduction. What economic assessment has been done to arrive at those figures, or are they simply plucked out of thin air?
Hilary Benn
The figures are based on the assessment that there are particular requirements for the Scottish islands in terms of services, access to essential care and so on. That is why that exemption has been applied for Scotland. The impact of this measure on trade between GB and Northern Ireland will be very small in light of the overall costs of moving goods and transportation.
Blake Stephenson
While the rise in the agricultural property relief threshold to £2.5 million is a welcome step for farmers, does the Minister recognise the broader economic concern shared by the Ulster Farmers Union that inflation and steadily rising asset values will over time pull more family farms into inheritance tax liability, even when their real wealth and income may not increase?
  11:43:55
Hilary Benn
As the hon. Member will be aware, the Government announced that the allowance for 100% rate relief will be increased from £1 million to £2.5 million. That means that a couple will now be able to pass on up to £5 million tax-free between them, on top of the existing allowances such as the nil-rate band. The president of the Ulster Farmers Union, William Irwin, welcomed the changes. In fact, he said:

“We are in a better position today than we were yesterday”.
SDLP
Claire Hanna
Belfast South and Mid Down
The local growth fund was a UK Government policy that had been working to support some people outside of the labour market into decent work, helping to address Northern Ireland’s low productivity rates. The UK Government have changed that policy and the capital revenue split in a way that works for the Treasury, but not for organisations in Northern Ireland. Funded groups are being directed to PEACEPLUS, but its funding criteria does not work for most. Why are voluntary and community sector groups being asked to distort Special EU Programmes Body rules, rather than UK Government policy adapting to local needs?
Hilary Benn
I met the Northern Ireland Council for Voluntary Action and CO3 last week to talk about this matter. It is a difficult situation because of how capital and resources have been allocated through the local growth fund. Of the £12 million of available resource funding, we agreed with the Executive that £3 million would go to Go Succeed at their request, and £9 million would go to economic inactivity programmes. We are exploring other potential sources of funding, of which PEACEPLUS is one. Another source is the Northern Ireland Executive’s record settlement. They had £9 million yesterday in additional Barnett consequentials. They could choose to invest some money in these programmes.
Lab
  11:39:59
Alison Taylor
Paisley and Renfrewshire North
Does the Minister agree that Northern Ireland, like Scotland and Wales, shares the benefits of a united United Kingdom and its collective spending power, generating jobs and opportunities across the four countries of the United Kingdom?
Hilary Benn
I certainly agree with my hon. Friend. All parts of the United Kingdom derive strength and benefit from being part of that Union. We can see in the figures I quoted a moment ago the benefit being obtained in Northern Ireland in terms of how the economy is doing.
  11:45:00
Mr Speaker
I call the Liberal Democrat spokesperson.
LD
  11:44:41
Mr Paul Kohler
Wimbledon
The Windsor framework was meant to give Northern Ireland the best of both worlds: unfettered access to the UK internal market and barrier-free access to the EU. Not so, according to a recent survey conducted by the Federation of Small Businesses, which reports that more than half those trading between Great Britain and Northern Ireland are having difficulties, with over a third having stopped trading altogether. The figures are stark. Fewer than one in six Northern Ireland businesses say that they benefit from dual market access, while nearly 80% rate Government support as poor or very poor. Will the Secretary of State commit himself to a specific time-bound plan to make dual market access work, or does he accept that Northern Ireland got the worst of both worlds?
Hilary Benn
I do not accept that Northern Ireland has the worst of both worlds. However, the hon. Gentleman is right to draw attention to the issue facing small businesses, highlighted by the FSB report and others, including Lord Murphy’s independent report. As he will have noticed, in the Budget the Chancellor announced a £16.6 million package which will include a comprehensive one-stop-shop regulatory support service to help precisely those businesses to trade more between Great Britain and Northern Ireland.

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