PARLIAMENTARY DEBATE
Cost of Living - 10 May 2023 (Commons/Commons Chamber)

The UK Government are committed to supporting Northern Ireland through the recent increase in the cost of living. That is why we are taking steps such as lowering the cost of energy; targeting support at the most vulnerable through a £900 cost of living payment in 2023-24 for households on means-tested benefits; delivering £600 energy payments to businesses and households; the £300 cost of living payment for pensioners; and an additional £150 disability cost of living payment for individuals entitled to disability benefits.

Last week, the permanent secretary to the Department of Finance in Northern Ireland told the Northern Ireland Affairs Committee:

“We are rapidly if not already at the point at which the funding per head is not at the level of measured need.”

The truth is that the Barnett consequential funding model has not kept up with the cost of living crisis. What exactly does the Minister have to say to the people who have to make their money stretch further and further while their bills continue to skyrocket?

This Government, my right hon. Friend the Secretary of State, Lord Caine and I are all absolutely seized of the imperative to put the finances on a sustainable basis and to have public sector reform to ensure that the money is well spent. There are a number of opportunities in health and education that have been not only articulated today but identified in public in the past. We do need to consider revenue raising, and I hope that the hon. Lady will return to that when we get on to the Northern Ireland (Interim Arrangements) Bill later today. Absolutely, we need to say to people that it is time to put Northern Ireland’s finances on a sustainable basis and have reforms so that they get the public services they deserve. Of course, the route to that is to have a restored Executive.

This Government are creating more red tape for businesses, with new labelling requirements for food products across the UK after the Windsor framework. Will the Government look again at having a veterinary agreement with the EU, which would eliminate those costs?

Forgive me, Mr Speaker, but I only partially heard the hon. Gentleman’s question. We will, of course, continue to talk to the European Union about these matters. We want the smoothest flow of trade not only with the European Union but with all our international trading partners. Certainly, we will consider things, but we are determined that, as we have left the European Union, we will not follow its rules as handed down.

The Chancellor has failed to bring in a proper windfall tax, while oil and gas giants are raking in record profits. Does the Minister agree that there are still huge holes in the Government’s levy, meaning that households in Northern Ireland will lose out on billions of pounds that could be used to address the cost of living burden?

I note that the hon. Gentleman said “a proper windfall tax”, which indicates, of course, that what a windfall tax should be is a contested matter. Really, if I may say so, his question is rather out of scope for the Northern Ireland Office. Many of those matters are devolved; others are reserved to the Treasury.

I call the Chair of the Northern Ireland Affairs Committee.

My hon. Friend will know that many groups in Northern Ireland provide advice to people to help with the cost of living and other challenges. Many of those organisations receive funding from the shared prosperity fund. That notwith-standing, may I urge the Minister to talk to Ministers in the relevant Department to ensure that there is a bespoke definition and that the unique circumstances of Northern Ireland are taken into account when making funding determinations under the shared prosperity fund?

My hon. Friend makes a good point. May I encourage him to meet me to discuss exactly what should be in that definition? I would be grateful if he did.

Just as in Newcastle-under-Lyme, I welcome the Government’s support for households and businesses in Northern Ireland with energy costs. However, is it not the case that some of those schemes could have been delivered more efficiently had there been a functioning Executive in Northern Ireland?

One hundred per cent—that is absolutely right. I experienced for myself, as did the Secretary of State, the difficulties that followed. I am very grateful to the Ministers and officials of the Department for Business, Energy and Industrial Strategy for making the delivery of those schemes possible, but my hon. Friend is 100% correct.

The Government have demonstrated a swiftness of foot in responding through the pandemic and the energy crisis to support businesses and residents. The previous question notwith-standing, can my hon. Friend reassure the House that residents and businesses in Northern Ireland will continue to receive Government support with energy bills over the coming months?

We will, of course, continue to be seized of the situation in Northern Ireland. I can tell my hon. Friend that we will keep the situation under review.