NI minister warns against additional revenue-raising on back of Budget

The Budget has done “sod all” for working people in Northern Ireland, a Stormont minister has said.

Communities Minister Gordon Lyons also cautioned against the powersharing Executive looking at additional revenue-raising measures, stating it would target people who were already being “hammered”.

Northern Ireland Secretary Hilary Benn responded that all governments had to make decisions around raising finances and Stormont was “no different”.

Chancellor Rachel Reeves confirmed on Wednesday that the Executive would receive an extra £370 million, when she unveiled her tax and spending plans.

But Finance Minister John O’Dowd said only £18.8 million of that would come in the current financial year, warning the Executive was facing a projected shortfall of around £400 million for that period.

Mr Lyons said the new money was “not coming anywhere close to meeting the demand and the need that we have here in Northern Ireland”.

He told the BBC Good Morning Ulster programme: “We still have a far less generous settlement than what you see in other devolved administrations.”

Asked about Stormont using its own powers to raise further money, the minister said: “It will fall on the backs of the same people, those who are out working every single day, people who are getting in their cars and vans on their way to work.

“They are already getting hammered at every opportunity, they feel that they are doing the right thing, and revenue raising will simply hit them again and again.

“Quite frankly, we have a Budget yesterday that does sod all for workers and I am not prepared to put more burden on those that are actually trying to do their best and grow the economy.”

Mr Benn said it came down to the choices the powersharing Executive wanted to make.

He said: “The fact is, the Northern Ireland Executive does have the means, if it wants to raise more money, to take some decisions about how to do that, that is their choice, that is what being in government is all about.

“In the end, you have to make a choice and there are people in Northern Ireland who could perfectly well pay water charges which apply in other parts of the United Kingdom.”

Mr Lyons welcomed the scrapping of the two-child benefit cap in the Budget.

His department is responsible for the administration of the benefits system in the region.

Mr Lyons said any benefit from the change was “outweighed” by other measures announced.

He said: “The funding will come from the UK Government largely for us to be able to do this.”

The minister said the responsibility was on him and the Work and Pensions Secretary to make sure that Northern Ireland maintained parity with the rest of the UK over benefits.

“The funding will, for the vast majority of this, flow from the UK Government,” he said.

“Ultimately, any decisions that I make that require legislative change will require Executive approval but I think there is cross-party support on this one.”