Autumn Budget 2024

The record £18.2 billion funding settlement for 2025-26 will provide Northern Ireland with funding in line with its independently assessed level of need, and it is now for the Executive to decide how that funding is spent.

The Royal College of General Practitioners in Northern Ireland has said that the hike in national insurance contributions will be catastrophic for GP surgeries. With many practices teetering on the edge, why are Ministers not doing more to talk to their colleagues in the Treasury?

I would point out to the hon. Member that the previous Government left—[Interruption.] However much they may deny it, the previous Government left a fiscal black hole that had to be filled. The increase in expenditure resulting from the autumn Budget is helping to fund, in part, the record settlement that the Northern Ireland Executive have got for 2025-26.

I call the Chair of the Northern Ireland Affairs Committee.

The Committee will soon publish our first report to the House on the funding of public services, and the issue of revenue raising by the Executive continues to be highlighted. What conversations is the Secretary of State having with the Executive to help deliver longer-term financial sustainability in Northern Ireland?

I have regular discussions with the Executive about the financial situation and about their plans. The truth is very simple: all Governments around the world, including the Northern Ireland Executive, have choices to make, with the resources available, as to whether they seek to raise revenue to fund more things, including further investment in health. Those are choices for the Executive to make, but if they do not make those choices, they will have less funds than would otherwise be available to them.

I call the Liberal Democrat spokesperson.

Yesterday, Belfast Chamber, which represents 600 businesses, warned that many Northern Irish businesses are being forced to freeze growth plans, halt recruitment and, in some cases, cut jobs to absorb rising costs as a consequence of the rising employer national insurance contributions due to take effect in just four days. What assessment has the Northern Ireland Office made of the impact of those tax rises on small and medium-sized enterprises, and what practical discussions is the Secretary of State having with the Northern Ireland Executive to support SMEs, which are the future of Northern Ireland’s growth?

Of course the increase in employer’s national insurance will be difficult for some firms—that is clearly the case—but, as I said, the North Ireland economy is growing faster than the rest of the United Kingdom and has low unemployment. The rest of today’s questions time has highlighted the huge areas of potential that the Northern Ireland economy has to continue to grow and create new jobs and businesses.

I call the shadow Minister.

The Northern Ireland Farming Minister estimates that three quarters of dairy farms in Northern Ireland could be hit by inheritance tax following the Chancellor’s disastrous changes. Given the particularly high cost of agricultural land compared with farming incomes in Northern Ireland, does the Secretary of State recognise that the Budget is a direct threat to family farms and thousands of livelihoods across Northern Ireland?

The figures the hon. Gentleman just referred to do not reflect the Treasury’s assessment of the number of farms that will be affected, which is based on claims submitted in the past. I understand the farming industry’s concerns, but the Treasury is clear that, first, it will not hit the majority of farms and, secondly, we have to do something about very big landowners who buy a lot of land to avoid inheritance tax.