Weekly Bulletin. What you kneed to know this week

5 days ago 12

Finance Minister confirms rise in regional rate Responding to an Assembly written question this week, Finance Minister John O’Dowd MLA confirmed that the Executive has now formally agreed his proposals to raise the regional rate for 2025/26 as set out if the draft Budget before Christmas. Under the proposals, the Domestic Regional Rate is set to increase by 5% (twice the current rate of inflation) and the Non-Domestic Regional Rate by 3%. The news comes as all 11 local councils across NI have reported their district rates increases for ... Read more...

Finance Minister confirms rise in regional rate
Responding to an Assembly written question this week, Finance Minister John O’Dowd MLA confirmed that the Executive has now formally agreed his proposals to raise the regional rate for 2025/26 as set out if the draft Budget before Christmas. Under the proposals, the Domestic Regional Rate is set to increase by 5% (twice the current rate of inflation) and the Non-Domestic Regional Rate by 3%. The news comes as all 11 local councils across NI have reported their district rates increases for 2025/26. Belfast City Council has the highest percentage uplift of 5.99%. As the Irish News has reported, many councils have attributed the rates rises to the upcoming increase in employers’ national insurance contributions, leading to questions about how much funding the Executive is due to receive via Barnett consequentials, to help Stormont departments and local councils cover their increased national insurance costs. The Department of Finance has said it has not yet received formal confirmation of the funds due through Barnett but they were likely to “fall far short of what is required, by tens of millions of pounds, to meet our increased costs”.
What Next: The Secretary of State Hilary Benn MP told The Irish News that the Executive is not obliged to pass on the money secured via the Barnett Formula to local councils. The Department of Finance confirmed that it was a matter for the Executive to decide how additional funding is allocated.

Assembly approves GB Energy Bill despite concerns over “lack of detail”
On Tuesday (11 February), the Assembly approved the extension of the Great British Energy Bill to Northern Ireland through a legislative consent motion, despite some MLAs expressing concern over a “lack of detail” around its operation here. The Bill, first introduced at Westminster in July 2024, creates a new publicly owned company to support the delivery of clean power projects in Britain and NI. Given that energy policy is fully devolved to NI, an amendment to clause 5 of the Bill requires the Department for the Economy to consent to its strategic statement. Economy Minister Dr Caoimhe Archibald MLA said that this provision ensures that GB Energy’s investments in the region align with the Executive’s priorities. However, several MLAs, including Leader of the Opposition Matthew O’Toole MLA voiced concern at a current lack of detail around how it will operate in Northern Ireland. Whilst supportive in principle, Mr O’Toole queried how GB Energy will approach the fact that NI is subject to certain EU regulation and part of the single electricity market operating across the island of Ireland. Chair of the Economy Committee Philip Brett MLA welcomed the investment it would bring to the renewable sector, whilst also expressing concerns that the Department for the Economy were not able to specify the degree of agency they will have in directing GB Energy’s invest in NI.
What Next: The Economy Minister told MLAs she will “scrutinise all proposals closely to ensure our devolved powers are properly represented and respected”, adding that early indications were that GB Energy has the potential to support the transition to net zero. Meanwhile, the Bill is awaiting its third (final) reading in the House of Lords.

Infrastructure Minister updates Assembly on plans to tackle wastewater infrastructure
Speaking in the Assembly this week, newly appointed Infrastructure Minister Liz Kimmins MLA provided MLAs with an update on her plans to tackle the region’s ageing wastewater infrastructure as she takes on her new brief. Describing modernisation of the system as a “top priority”, she said that “Funding, innovative thinking and working in partnership” would be the key to tackling this issue. Minister Kimmins reiterated her intention to “build on” the previous Minister’s “three-pronged approach”. She added that she has tasked her officials to work at a strategic level with the Department for Communities and the Department of Agriculture, Environment and Rural Affairs to establish better ways of working together to increase housing provision. Responding to calls from Leader of the Opposition Matthew O’Toole MLA for more clarity on the proposal for a “developer charge”, the Minister advised that she hoped to consult on developer contributions proposals in March 2025. Adding that innovative, nature-based solutions can also form part of the solution, the Minister said she would be introducing a Water, Flooding and Sustainable Drainage Bill to the Assembly later in the year. The Minister was speaking during an Assembly adjournment debate on wastewater infrastructure in East Belfast, in which MLAs raised concerns about how the essential works to upgrade Sydenham pumping station (which services 6% of the population) have been effectively shelved following NI Water’s announcement that its Living with Water programme for Belfast cannot be delivered in its original 12 year timescale.
What Next: Meanwhile, a delegation comprising the heads of NI Chamber of Commerce & Industry, Construction Employers Federation and NI Federation of Housing Associations met with the Infrastructure and Finance Minister this week to highlight the major shortfalls in capital funding of the region’s wastewater infrastructure, which they say is the most “significant, cross-cutting challenge facing Northern Ireland”. The leaders told the new Ministers that their respective organisations, “stand ready to work in partnership with the Executive to address the immediate challenges and find a landing zone on a long-term sustainable funding model”.

Stakeholder Watch

The Executive Office : “Deputy First Minister Emma Little-Pengelly has met with Chris Hayward, the Policy Chairman at the City of London Corporation, at Parliament Buildings. A range of issues were discussed, including the importance of financial and professional services in NI, and how strong ties between the Executive and City of London Corporation can help drive economic growth here”.

First Minister Michelle O’Neill: “I was pleased to welcome GAA President Jarlath Burns to Stormont today [Tuesday 11 February] as part of a GAA delegation. I reaffirmed Sinn Féin’s full commitment to building a world-class Casement Park, and we will continue working alongside the GAA and others to deliver this game-changing project. With contributions from the Executive, GAA, and Irish Government secured, it’s now time for the British Government to honour its funding commitment […] read full X post here.

Ulster Unionist Party : “Speaking today on the Inheritance Tax Changes Impacting Family Farms motion, @RobbieButlerMLA reiterated the Ulster Unionist Party’s opposition to the Labour Government’s family farm tax. No Farmers. No Food. No Future. Their future is our future! #MakeNIWork”

Paula Bradshaw (Alliance, South Belfast): “Another TEO failing is on International Relations where, a year on from restoration, we still lack a Strategy. We should not be spending public money and resources on this without clear objectives. This is even more essential as we approach St Patrick’s”.

Jim Allister MP (TUV, North Antrim): “Read my @News_Letter article to find out why, from 24 Feb, the Govt will actively undermine its own justification for the Irish Sea border and why we must get back to Mutual Enforcement which, far from representing ‘magical thinking’, is a proposal that came from within the EU Commission, protects the integrity of both the EU and UK Single Markets for goods and makes provision for the re-enfranchisement of the people of NI”.

Other stories

Tobacco and Vapes Bill receives support to be extended to Northern Ireland
Health Minister Mike Nesbitt MLA welcomed the Assembly’s support for Northern Ireland’s inclusion in the UK Tobacco and Vapes Bill, which was approved on Monday (10 February) via a legislative consent motion. The Bill prohibits those born in or after 2009 from buying tobacco and bans the sale of non-nicotine vapes and other nicotine products to under 18s. It also provides powers to extend smoke-free places. During the debate, the Minister stated that this Bill would be central in addressing “health inequalities”, preventing illness and premature death. The Bill was welcomed and supported by the Health Committee. Minister Nesbitt stated that is was a “good day for public health in Northern Ireland”.

Economy Minister launches Skills Barometer 2023-2033
On Monday (10 February), whilst launching the NI Skills Barometer 2023-2033, Economy Minister Dr Caoimhe Archibald MLA said that doubling down on the Economic Vision will support achievement of around one million jobs across the region. The report finds that NI’s workforce is projected to grow to around one million jobs by 2033 – an additional 79,000 jobs created over the decade. The report forecasts high rates of growth in sectors closely aligned with the Department for the Economy’s priority sectors including agri-tech, advanced manufacturing, fintech, software and cyber, screen industries, and low carbon. However, it also suggests a potential overall skills undersupply across all qualification levels, and finds that raising labour force participation will be essential to ensure that businesses have access to a sufficient supply of labour to achieve growth objectives.

Sinn Féin councillor co-opted to replace Conor Murphy as MLA
At a convention on Saturday (9 February), Aoife Finnegan was selected by Sinn Féin to become a Member of the Legislative Assembly (MLA). Finnegan was selected to fill the Newry and Armagh seat which was vacated last week by serving MLA Conor Murphy after his election to Ireland’s Seanad (Senate). Finnegan had been a Sinn Féin councillor for the Slieve Gullion area of Newry, Mourne and Down District Council since 2020.

Sinn Féin Assembly committee membership changes
On Monday (10 February), a number of changes to committee membership were approved at the Northern Ireland Assembly. The key changes include: Emma Sheerin MLA (SF, Mid-Ulster) replaces Philip McGuigan MLA (SF, North Antrim) as a member of the Committee for the Economy; Jemma Dolan MLA (SF, Fermanagh and South Tyrone) replace Nicola Brogan MLA (SF, West Tyrone) as a member of the Committee for Finance; Nicola Brogan MLA replaces Danny Baker as a member of the Committee for Infrastructure; Áine Murphy MLA (SF, Fermanagh and South Tyrone) replaces Emma Sheerin MLA as a member of the Committee for the Executive Office.

Alliance Party launch proposals for “New Deal for Private Renters”
The Alliance Party launched a housing policy paper, a “New Deal for Private Renters. This proposes creating an affordable rent “triple lock”, by restricting rent increases to once per year, conducting an annual review of local housing allowance, and banning inflation-busting rent hikes during tenancies. Other proposals include establishing a local Housing Ombudsman, suspending the Housing Executive’s Right to Buy scheme, a review of minimum fitness standards in the private rented sector, and statutory maximum timescales for landlords to investigate and carry out repair and maintenance work.

Finance Minister says Consumers must be protected after Storm Éowyn
On Thursday (13 February), Finance Minister John O’Dowd MLA met with Association of British Insurers to discuss the insurance industry response to Storm Éowyn. Speaking after the meeting, Minister O’Dowd stated that “insurance companies must support and protect consumers” in the aftermath of the storm. He added that it is important that consumers are “not to be left to meet the long-term costs” of the storm through higher insurance premiums. He concluded by stating his commitment to working with the insurance industry.

Hospitality VAT Harmonisation Motion passes in the Assembly
On Monday (10 February), a motion calling on the Minister for the Economy and the Minister of Finance to work jointly with Hospitality Ulster to “engage with HM Treasury and secure a meeting with the Chancellor of the Exchequer to advocate for a reduction in the VAT rate” to align with the ROI was passed. The motion highlighted the “unfair competition” from the Republic of Ireland, following reports that its value added tax (VAT) rate for hospitality would be reduced from 13.5% to 9%. In the UK, by comparison, the rate is 20%.

UUP Peer says new NI Scrutiny Committee has important role to play to address Windsor Framework
Ulster Unionist peer Lord Empey, welcomed his selection as a member of the newly established House of Lords Northern Ireland Scrutiny Committee. The remit of the Committee, which held its inaugural meeting on Wednesday (12 February), is to “scrutinise EU legislation within the scope of the Protocol/Windsor Framework, and relevant UK legislation and policy, and to examine related matters”. It will build on the work of the Windsor Framework Sub-Committee in the Commons, which was not reestablished following the dissolution of Parliament on 30 May 2024. In a statement released by the UUP, Lord Empey said “I am sure we will be able to work closely with the NI Assembly Democratic Scrutiny Committee as we examine all the implications of new and existing EU law and regulations as they affect Northern Ireland”.

Across the border

Government to review Rent Pressure Zones
Taoiseach Micheál Martin TD said the Government will review the policy of Rent Pressure Zones (RPZs), which limit rent increases to 2%. Following criticism from the Opposition, Mr Martin clarified that the Government would evaluate the recommendation of the expert-led Housing Commission report that RPZs be replaced with a system of reference rents, under which rent increases would be determined relative to a set rent for local homes of a similar quality. RTÉ News reports that reaction has been mixed. The Chairperson of the Irish Property Owners Association, Mary Conway, said she was “delighted to see that the Taoiseach recognised that rent pressure zones haven’t worked” and are driving landlords out of the market, while Director of Advocacy at Focus Ireland, Mike Allen, said possible changes to rent pressure zones “has only got investors in mind,” and criticised the reactive approach of the Government.

Cabinet ‘furious’ at €6m spend on unsuccessful Arts Council IT project
The Irish Independent reports that the Cabinet were left “furious” after receiving a long-delayed annual report and accounts of the Arts Council, including details of a “unsuccessful” IT project that cost €6.675m. Arts Minister Patrick O’Donovan TD said he has “deep concern regarding all aspects of the project,” while Minister for Public Expenditure Jack Chambers TD said the project was a “complete waste of money” and that that oversight and governance rules in the Department were not followed. Ministers were also “shocked” by the fact that the report was submitted to the Department in July, but were not brought to the attention of Cabinet until now.

€420m plan to reduce waiting lists approved
The Government has signed off on a new plan that aims to reduce waiting times for scheduled care to under 6 months. The Irish Times reports that over half of the funding will be allocated to the National Treatment Purchase Fund (NTPF), which looks to find capacity in the public and private healthcare service for specific groups of patients on existing waiting lists. Bernard Gloster, chief executive of the Health Service Executive, said the plan was a “critical step in addressing the challenges our health service faces head-on”.

What we’re reading

The term ‘reform’ is becoming the “political equivalent of the Loch Ness monster”
Writing in the Irish News, David McCann reflects on the backlash and implications that the calls for reform, made by the Secretary of State Hilary Benn last week, have had. McCann began by claiming that the “direct” nature of the speech from a Secretary of State was something Northern Ireland’s politicians are familiar with. However, he observes how “remarkable” the response to the speech has been, suggesting that the reactions to the speech have overshadowed its “central points”. McCann questions the Executive and UK Government’s use of the word ‘reform’, often invoked as the “silver bullet” to solving Northern Ireland’s problems. He adds that ‘reform’ is becoming the “political equivalent of the Loch Ness monster”. That is, “all of us have heard about it, but nobody has actually seen it”. McCann stresses the importance of the Executive taking actions to truly implement reform of big ticket items, such the health service, instead of continuing to use the term in an “abstract” way. He cautions against the notion that direct rule could be the answer to deliver these public sector reforms noting that “detailed ideas to reform public services here have been just as scarce when we have had direct rule ministers in post as they have been with our own local ministers”. He concludes by calling on the Executive to deliver the real and substantive reform proposals that are on the table and set to be implemented to “to show devolution sceptics that reform is possible driven by local ministers”.