PARLIAMENTARY DEBATE
Economic Growth - 21 May 2025 (Commons/Commons Chamber)

Economic growth is this Government’s priority, and our industrial strategy is central to that. It will be published in June, and will support the Executive’s plans for growth. The latest figures from the Northern Ireland Statistics and Research Agency show that Northern Ireland experienced stronger growth than the United Kingdom as a whole last year.

Northern Ireland has a long and proud history of advanced engineering industries. What discussions has my right hon. Friend had with the Ministry of Defence to ensure that companies such as Spirit AeroSystems have access to the Government’s increased investment in defence?

I am sure that my hon. Friend, and the whole House, welcomes the recently announced increase in defence expenditure. Northern Ireland has a strong and significant defence sector, and Spirit is part of that. The Secretary of State for Defence has made it very clear that he wants the increased expenditure to result in more jobs and more orders for British companies.

Economic growth will be supported by physical connectivity. One example is the new Grand Central station in Belfast, where there is some controversy over Irish language signage. The Secretary of State has commented that there are

“so many more important things”

in which to be involved, but, setting that view to one side, can he confirm that if there were no Executive at Stormont, he, as Secretary of State, would be in a position to make decisions on that and other equally important issues?

The new Grand Central station is a magnificent piece of infrastructure, and I recommend any Members who have not yet had a chance to visit it to do so. I am not contemplating for one second that there will not be an Executive in place. Perhaps the single most important contribution that the Executive can make to continued economic growth in Northern Ireland is to stay in place and give confidence to those whom we are all working hard to encourage to come and invest in Northern Ireland’s economic future.

I regularly receive representations from businesses, some of our biggest employers, who are frustrated by the apprenticeship levy. They pay in like businesses in Britain, but cannot access the fund to reinvest in skills and fix our broken skills pipeline. Does the Secretary of State agree that there is merit in devolving this to the Assembly as part of a package of measures to encourage the Executive to take responsibility and control, to be ambitious for the local economy, and to drive growth?

There is a great deal that the Executive can do to help promote economic growth. I have just given one example, and investing in and supporting the development of skills is another. Northern Ireland has the lowest unemployment in the United Kingdom, but it also has a higher rate of worklessness, and getting more people back into work and giving them the skills that will enable them to take part in the economy will help to boost growth.

Economic growth has been severely damaged as a result of the Northern Ireland protocol and the Windsor framework. The new EU arrangement will enable animals and food to travel unfettered between Northern Ireland and the rest of the UK. Why was manufacturing not included in that arrangement, and when will the customs process be removed?

The agreement on the application of sanitary and phytosanitary measures that was reached with the European Union on Monday is extremely significant. As the hon. Member will know, it has been widely welcomed by businesses throughout Northern Ireland, including supermarkets, retailers and farmers, because of the assistance it will give in getting rid of many of the elements associated with the SPS arrangement. It is the fruition of this Government’s determination, when we came into office, to negotiate a closer relationship with the EU, which is exactly what we have done.

I call the Liberal Democrat spokesperson.

As we have just heard, since last we met in this place for Northern Ireland questions, we have had the announcement of the UK-EU SPS agreement. That comes as a great reassurance to many Northern Irish agrifood retailers, but the Northern Ireland Chamber of Commerce and Industry has cautioned that key trade barriers remain, particularly around broader regulatory divergence across supply chains and ongoing customs issues under the Windsor framework. In the Secretary of State’s opinion, how will the latest arrangements ease east-west trade in practice? What specific customs reform does he intend to pursue to further cut red tape and unlock the full potential of dual-market access and latent economic growth in Northern Ireland?

On customs, in addition to the SPS deal, the significantly reduced Windsor framework customs arrangements, introduced on 1 May, will of course remain in place, because the UK is not in the EU customs union and we have no intention of joining it. It is clear from the text of the agreement what will be removed and that customs information will remain for SPS goods, but we are working hard to make life easier and introduced changes on 1 May. Reducing the number of lines of information that need to be provided from 75 to 21 is a very good example of how we are working with the EU to make it easier for goods to flow.