Stormont ability to mitigate Budget decisions ‘very restricted’, O’Dowd says

The Stormont Executive’s ability to mitigate against “detrimental” decisions made by the Chancellor in the Budget is “very restricted”, John O’Dowd has told MLAs.

The Finance Minister urged Rachel Reeves to use the autumn Budget to invest in public services.

Ms Reeves will lay out her spending plans in the Commons on Wednesday.

During question time at the Northern Ireland Assembly, Mr O’Dowd urged her to scrap the two-child benefit cap, stating it was having a “harmful impact” on families.

Asked about his engagement with the Treasury ahead of the Budget, the minister said he “recognised the scale of the financial challenge facing the Westminster Government”.

He added: “Investment in public services is key to growing the economy.

“Economic growth and improved public services cannot be achieved without meaningful investment.

“The Chancellor has political choices to make, I would encourage the Chancellor to do the right thing and use the autumn Budget to help hard-working families by increasing the tax-free childcare threshold, reverse the two-child cap recognising the harmful impact it is having on families and increasing the level of child poverty, back hospitality businesses by making changes to the VAT rate and support the community and voluntary sector by changing their approach to the local growth fund.

“As the cost-of-living crisis continues, I have consistently urged the Chief Secretary to the Treasury to avoid further austerity measures that would place an unfair burden on people, businesses and public services.

“The Treasury has an ideal opportunity to support public services, workers, families and small and medium-sized businesses, and I hope they seize this opportunity.”

SDLP Opposition leader Matthew O’Toole asked the minister if he would intervene by raising revenue himself if the UK Government did not act on the two-child limit.

Mr O’Dowd said: “In terms of the Executive’s ability to continue to mitigate against British Government decisions, that is very, very restricted.

“Every pound we spend in mitigating against British Government detrimental decisions is one pound we can’t spend elsewhere.”