Chancellor confirms City Deals will proceed in Autumn Budget

Chancellor Rt Hon Rachel Reeves MP announced during Wednesday’s (30 October) Autumn Budget that the City Deals for Causeway Coast and Glens and Mid South West will proceed. The deals will deliver a combined investment from the UK Government of £162 million over 15 years to rural areas in NI. The Chancellor also announced that the Northern Ireland Executive will be provided with a £18.2 billion settlement in 2025/26, including a £1.5 billion top-up through the Barnett formula, with £1.2 billion for day-to-day spending and £270 million for capital investment. Northern Ireland will also benefit from the rollout of digital infrastructure through Project Gigabit and the Shared Rural Network, and from the development of an Enhanced Economic Zone.Other key measures in the Budget include an increase in Employer National Insurance Contributions to 15% and the secondary threshold at which employers begin paying contributions on each employee’s salary will be reduced from £9,100 to £5,000 per year. Additionally, Capital Gains Tax (CGT) will increase from 10% to 18% for those paying the lower rate, and 20% to 24% for those paying the higher rate. The National Living Wage is also set to increase by 6.7% to £12.21 per hour.

What Next: Northern Ireland Secretary Rt Hon Hilary Benn MP said in a statement on the Budget that the NI Executive is to receive an additional £640 million in Barnett consequentials this year. NI Chamber CEO Suzanne Wylie “cautiously welcomed” this additional funding and extras announced in the Budget for the next fiscal year, but said “businesses need confidence that the additional money (raised by increased business taxes) will result in the delivery of reform and transformation of our public services” in Northern Ireland. Ms Wylie added that the “overwheming sentiment among [NI Chamber] members around the increase in the business tax burden is one of alarm”.

Secretary of State triggers vote on NI post Brexit trading arrangements

Northern Ireland Secretary Rt Hon Hilary Benn MP triggered the process to enable MLAs to vote on whether to continue post-Brexit trading arrangements, BBC News NI reports. Mr Benn wrote to the First Minister and deputy First Minister on Thursday, asking them to bring forward a democratic consent motion to the Assembly before the end of November. The vote must be held on Articles 5 to 10 of the Windsor Framework, which underpins the EU trade laws in force in Northern Ireland, before they expire. Unlike other votes in the Assembly, democratic consent motions do not require cross- community support, meaning the vote can pass by simple majority. Sinn Féin, Alliance and the SDLP have all signalled that they will support retention of the framework’s Articles 5-10 which relate to the EU single market, while DUP leader Gavin Robinson MP has said in a statement that his party will not support the motion, and that he expects other unionist parties to do the same.

What Next: The Irish News has reported that MLAs may return from their Christmas recess to vote on the motion. If the

motion is voted through on a simple majority, the protocols are extended for four years and the UK Government is obliged to hold a review of how the arrangements are working..

NI Water rules out £15m investment in Derry~Londonderry wasterwater infrastructure

NI Water ruled out a £15m investment in Derry~Londonderry’s wastewater infrastructure that would pave the way for developments across the city, the Belfast Telegraph reports. One of the biggest projects impacted is a £400m housing development near the border with Donegal, which would deliver 2,500 homes if approved. However, NI Water have confirmed that they will not be able to make the capital investment necessary to improve wastewater capacity, blaming insufficient funding from the Department of Infrastructure. Joe McGinnis, managing director of Braidwater Group, one of the project’s developers, said “We are now urgently demanding that NI Water commit to the necessary work, allowing us to address the severe housing crisis facing the Derry City and Strabane District Council area.” He also said that NI Water had fail to substantiate the claim that the area’s wastewater infrastructure has reached capacity. At present, the Derry and Strabane council area, which has the greatest housing need in NI, has 5,300 properties that require NI Water intervention to proceed.

What Next: In response, the Department for Infrastructure said their Minister John O’Dowd MLA was taking a “three- pronged approach” to the issue by working with the Executive to try to increase wastewater investment, review legislation on developer contributions, and introduce new legislation on sustainable drainage systems.

Stakeholder Watch

Leader of the Opposition, Matthew O’Toole MLA (SDLP, South Belfast): “Lots to scrutinise in the Budget, but in NI terms it must mark a new departure from the toxicity and chaos of recent years. From London that must mean proper funding with multi-year horizons and respect for devolution. And from Stormont, responsibility taking and delivery. 1/3”

First Minister Michelle O’Neill MLA (Sinn Féin, Mid Ulster): “I’m delighted the growth deals for Causeway Coast and

Glens and Mid South West have been secured, totalling over £350m in investment.This joint investment from the Executive and the British Government will be a game changer for communities, creating better jobs and delivering transformative projects in infrastructure, education, and tourism. With total investment from the City and Growth Deal across the North now exceeding £1.5bn, every community will reap the benefits[.]”

deputy First Minister Emma Little Pengelly MLA (DUP, Lagan Valley): “While the unpausing of the City & Growth Deals is welcome, there is much of concern. The issue of the potential devastating impact on farmers, particular family farming, on rumoured inheritance changes was raised directly with the Gov, PM & Chancellor. They did not listen. 1/2”

Sorcha Eastwood MP (Alliance, Lagan Valley): “Whilst we welcome the additional investment and unpausing of the City Growth Deals for Northern Ireland, this Budget has also come with disappointments, says @SorchaEastwood.

People and businesses across the UK will be struggling with some of the decisions made in this budget.”

Ulster Unionist Party: : “Ulster Unionist Peer Lord Elliott has said that today’s Labour Budget will have a devastating impact on Northern Ireland farmers. Read More here @TB_Elliott”

Other Stories

Commons NI affairs committee membership confirmed

On Tuesday (29 October), membership of the Northern Ireland Affairs Committee was confirmed, with Tonia Antoniazzi MP (Labour, Gower) as Chairperson. The 11 other members are Sorcha Eastwood MP (Alliance, Lagan Valley), Claire Hanna MP (SDLP, Belfast South), Dan Aldridge MP (Labour Weston-Super-Mare), Leigh Ingham (Labour, Stafford, Eccleshall, and the Villages), Adam Jogee MP (Labour, Newcastle-under-Lyme), Alicia Kearns MP (Conservative, Rutland and Stamford), Jerome Mayhew MP (Conservative, Broadland and Fakenham), Katrina Murray MP (Labour,

Cumbernauld and Kirkintilloch), Dr Al Pinkerton MP (Lib Dem, Surrey Heath), Chris Bloore MP Labour, Redditch), David Smith MP (Labour, North Northumberland).

UK/EU Committee on the Implementation of the Windsor Framework meets

The Specialised Committee on the Implementation of the Windsor Framework met on Monday (21 October), co-chaired by officials from the UK Government and the European Commission. The co-chairs took stock of the implementation of the Windsor Framework since the last meeting in July 2024. They welcomed the operationalisation of tariff rate quotas for certain agricultural products. They discussed the intensive work underway in the areas of agrifood, customs, medicines and trade. They underlined the importance of progressing concrete actions to ensure the full operation of the safeguards and flexibilities of the Windsor Framework for the benefit of people and businesses in Northern Ireland. The Committee reiterated the importance of continued joint engagement with Northern Ireland stakeholders.

Finance Minister brings rates proposal to the Executive

Finance Minister Caoimhe Archibald MLA has brought a proposal to the Executive which will see Northern Ireland’s most valuable homes facing higher rates bills. The rateable value of houses is currently capped, and Ms Archibald is seeking agreement for this cap to be lifted in 2025. She said the proposal is part of a package of short, medium and long term measures to ensure the rating system is “fair, progressive and equitable”. The proposal was described as a “proportionate elevation” of the cap, but final numbers are still to be agreed by the Executive, according to BBC News.

The Minister also intends to publish a draft budget for 2025/26 before the end of 2024, which will be subject to a 12- week public consultation.

Stormont all party group calls on UK government to take urgent action on gambling advertising

Following the signing into law of the Gambling Regulation Act in Ireland last week, the NI Assembly’s All Party Group (APG) on Reducing Harm Related to Gambling is calling for the UK Government to take urgent action to restrict gambling advertising. Welcoming the new legislation APG Chair Philip McGuigan MLA said the “changes, including a 5.30am – 9.00pm watershed on when gambling advertising can be broadcast on television and radio and a de facto ban on gambling related social media content, will provide protection to those who may be at risk of gambling harm”. Robbie Butler MLA, APG Vice Chair says “Northern Ireland now stands alone as the only jurisdiction on these islands without updated gambling legislation since the advent of the internet”. He added that the Stormont Executive doesn’t have enough time in the current Assembly to bring forward a Gambling Bill. However, the UK Government does, he said, have “the power under existing laws to introduce restrictions on gambling advertising in the UK similar to those in the Republic”. This he said would “prevent our children from being bombarded with gambling related marketing during sports broadcasts and those already experiencing gambling harm from being targeted by gambling companies on social media”.

NISRA report shows increase in real earnings for first time in three years

On Tuesday, the Northern Ireland Statistics and Research Agency (NISRA) published their annual Employee Earnings in Northern Ireland report. The report says that average weekly earnings, as of April 2024, were £666, an increase of 4.3% on last year. In real terms (adjusted for inflation), weekly earnings in NI increased by 1.2%, after two years of decreases in real earnings. However, out of the 12 UK regions NI experienced the joint lowest increase in weekly earnings over the year, and is now the third lowest earning region. The proportion of low-paid jobs in NI fell for the fourth consecutive year to a record low (4.7%), though this remains the highest proportion of the 12 UK regions. The gender pay gap for all employees (full-time and part-time combined) in NI was 7.3% in favour of males.

Utility Regulator launches first Small Business Energy Charter

The Utility Regulator introduced its fist Small Business Energy Charter during the launch of NI’s Consumer Energy Charters, which contains extra measures to support small businesses across NI this winter. According to the News Letter, suppliers that have signed up to the charter have agreed to discuss all available options with small businesses who are struggling with their bills and to engage with them before letters referencing disconnection are issued. The charter also contains a commitment that all correspondence is to be encouraging, enabling engagement, and demonstrates an openness to providing assistance. Chief Executive at the Utility Regulator John French urged any consumer who is struggling to reach out and avail of this extra support offered by suppliers.

Economy Minister launches Apprenticeship Inclusion Challenge Fund

On Wednesday (30 October), Economy Minister Conor Murphy MLA announced that the Apprenticeship Inclusion

Challenge Fund is open for applications. The fund, worth more than £600,000, is aimed at enabling more people with disabilities, people from disadvantaged areas, and women to take up apprenticeships. Further information and details of how to apply can be found on the Apprenticeship Inclusion Challenge Fund page of the DfE website.

New Prisoner Ombudsman appointed

Queen’s University Belfast (QUB) is set to cut up to 270 jobs, more than 5% of its workforce, according to documents seen by BBC News NI. The documents also show that the university is facing a deficit of more than £11m in 2024-25. QUB is planning to cut jobs through a voluntary redundancy scheme. Both the University and College Union (UCU) and Northern Ireland Public Service Alliance (Nipsa) trade unions have raised concerns about the process, saying the university failed to consult them properly over the redundancy plans. The UCU’s Northern Ireland official, Katharine Clarke, said that the university had failed to supply the information required by law to allow union to engage in statutory consultation.

Across the Border

Former Sinn Féin TD Brian Stanley to contest general election

Brian Stanley TD announced that he will run in the forthcoming general election in Laois as an independent republican candidate. In a statement to the Laois People, he said he had already received “commitments of assistance with campaigning from people in all areas, including those who have resigned from Sinn Fein.” Mr Stanley resigned from Sinn Féin earlier this month following an internal inquiry into a complaint against him. The inquiry’s draft report concluded that Mr Stanley had sexually harassed a woman in October 2023. The matter has now been referred to the Gardaí..

Up to 80,000 extra workers needed to address housing crisis, fiscal council says

Almost 80,00 additional workers are potentially needed to address Ireland’s infrastructure deficits, “mainly to build new housing” and retrofit existing homes, according to a new report from the Irish Fiscal Advisory Council. The Irish Times writes that the research highlights “a huge shortfall in essential labour across the housing, healthcare, transport and energy sectors.” It says that key barriers to the delivery of infrastructure projects include a “slow and unpredictable” planning and objection system, and a construction sector that is approximately 30% less productive per worker than the average among high-income European countries. The report also says that in order to address pent-up demand over the next 10 years, housing completions would need to be around 68,500 a year, more than double the number of housing completions in 2023 (32,600). The full report is available here.

Government turns down opposition parties’ offer of Dáil time to pass the Occupied Territories Bill Government ministers have indicated that the Occupied Territories will not be passed during this Dáil term, RTÉ News reports. The Bill is aimed at banning trade between Ireland and Israel’s illegal settlements in Occupied Palestinian Territories. Earlier this week, the Government formally removed the “money message”, a technical blockage on non- Government legislation, meaning the Bill will advance to committee stage next week. Sinn Féin and the Social

Democrats offered to give up a total of four hours of their Dáil time to facilitate the enactment of the Occupied Territories Bill. However, the Government have said that “substantial” amendments will be made to the Bill during the committee stage. Green Party leader Roderic O’Gorman said that it was important to pass “the most legally robust bill possible”, in anticipation of challenges from the European Union.

What we’re reading

Small businesses will be smarting from the Budget, but the picture is not all negative

In its editorial the Belfast Telegraph comments on the potential impact of the Chancellor’s Autumn Budget on Northern Ireland, saying that measures like the 6.7% increase in the hourly national living wage, whilst great for workers, will be felt keenly in the pockets of small business owners. The editorial continues that along with the announced rise in employer national insurance contributions, the new measures “could leave some struggling to stay afloat”. It argues that such measures could hit home here more than in Britain given that NI’s economy is heavily reliant on small and medium

enterprises. However, the 40% rates relief for independent retailers and other high street businesses in England could end up having a positive impact on our SMEs the editorial notes, concluding that if the Barnett mechanism for this was used by Finance Minister Caoimhe Archibald to provide the same support here, it would be a big help to our smaller retailers.