‘Increasingly difficult’ for Stormont to mitigate decisions made at Westminster

It is becoming “increasingly difficult” for the Stormont Executive to mitigate decisions being made at Westminster, Northern Ireland’s Finance Minister has said.

John O’Dowd said decisions, such as the recent hike in employers National Insurance contributions, are having a “significant impact” in the region.

Appearing before the Assembly Finance Committee, he said the Ulster University’s Cost of Doing Business Review this week gave a “timely insight” into the challenges faced by businesses in Northern Ireland and said he has forwarded a copy to the Chief Secretary of the Treasury.

“Decisions that are being made in Westminster are having significant impacts here and I am confident that when these decisions are being made in Whitehall departments, they’re not taking into account the needs of the local businesses and communities here,” he told MLAs.

“It is becoming increasingly difficult, if not impossible, for the Executive to mitigate against the decisions that are being made at Westminster.”

Previously the Executive has intervened on some decisions, including mitigating cuts to some benefits.

But Mr O’Dowd said “decades of underfunding and new decisions that are being made are putting more and more pressure on Executive budgets”, and suggested further Executive financial assistance may not be plausible.

Mr O’Dowd earlier reiterated to MLAs that it is essential that the Executive is “funded fairly and sustainably” to deliver public services.

He hailed an independent assessment of need in Northern Ireland being undertaken by Professor Gerald Holtham, and said he hopes to have a final draft of that report next week.

“This work is close to being finalised in the coming days and I will of course share with the committee at the appropriate juncture,” he said.

“I have already engaged with the Chief Secretary to the Treasury in respect of this and will be immediately engaging further on receipt of the report.”

He also said that work has started on multi-year budgets for Northern Ireland, which he said have the “potential to be a game changer and enable departments to plan on a longer-term strategic basis”.

But he warned the benefits “will only be realised if the Westminster Government use the Spending Review as an as opportunity to invest in public services”.

“I have made this clear in my meetings with the British Government,” he added.

Finance Committee chair Matthew O’Toole challenged Mr O’Dowd during the meeting to take action over the findings of the Cost of Doing Business Review report.

Speaking afterwards, Mr O’Toole questioned why no action has been taken beyond forwarding the report to the Treasury.

“The minister made much of this study but it’s clear there will be no action from the Executive other than forwarding this document to the Treasury,” he said.

“This is preposterous given the heavy press and expectations created by this study.

“We are all aware of the huge pressures facing businesses across Northern Ireland. From the recent rise in employers’ national insurance contributions to increasing rent, rates and bills many business owners are contemplating a difficult future, while others have already made the decision to close their doors, leaving staff out of a job.

“The UK Government does need to do more to support this place financially – we all agree on that. However, it is galling to see the same excuses trotted out time after time for Executive inaction.

“The Minister refuses to act to support businesses, the same way he won’t look at fiscal devolution or funding and reforming Northern Ireland Water – with disastrous consequences for the public.”