Stormont ministers should not be surprised by revenue-raising plan: NI Secretary

Stormont ministers should not be surprised over the need to implement revenue-raising as part of a plan which led to the restoration of the powersharing executive, Chris Heaton-Harris has said.

The Northern Ireland Secretary told MPs that executive parties had accepted a financial agreement which included the stipulation for raising additional funds, adding: “Everyone knew what was in the package.”

The Treasury has offered to write off almost £600 million of Stormont debt, conditional on the Executive raising £113 million – the equivalent of a 15% regional rate increase – and producing a plan to deliver sustainable finances.

The stipulation is a key element of a £3.3 billion financial package drawn up by the Government to support the return of devolution in Northern Ireland.

First Minister Michelle O’Neill has ruled out introducing a number of measures that could potentially generate the sum, such as a 15% rise on a portion of rates bills paid by householders in Northern Ireland.

During an appearance before the Northern Ireland Affairs Committee, Mr Heaton-Harris was asked by chair Sir Robert Buckland about the disagreement between the Treasury and the powersharing executive over revenue-raising.

Mr Heaton-Harris said the Government had offered an “unprecedented financial package”.

He added: “The Executive will need to make strategic choices about how it spends its money. It does need to live within its means and realistically I believe that will require some revenue-raising.”

SDLP MP Claire Hanna asked if Mr Heaton-Harris had raised revenue-raising with the parties in the negotiations prior to the return of devolved government.

He said: “I did. I think it’s fair to say they weren’t keen but they understood that it was part of this package.

“Part of the package is that there is some degree of revenue-raising and they accepted the package.”

Asked if the parties had agreed to revenue-raising, Mr Heaton-Harris said: “It is part of this package and everyone knew what was in the package.

“I believe we did (have agreement).”

Mr Heaton-Harris responded: “I don’t think they should be surprised.”

Alliance Party MP Stephen Farry asked if there was a danger of a stand-off between the Government and the powersharing executive over the £113 million.

Mr Heaton-Harris said: “I think the timeline is fairly explicit and revenue-raising was always part of this conversation.”