Stormont Executive has choice to raise its own revenue, says Benn

The Stormont Executive has the choice to raise its own funds to help alleviate financial pressures, Northern Ireland Secretary Hilary Benn has said.

Mr Benn said being in government is about making difficult choices as he highlighted that Northern Ireland has received a record settlement from Westminster.

Stormont’s Finance Minister John O’Dowd said this week he had pressed Chancellor Rachel Reeves to focus on help for working families in the autumn Budget.

The four-party powersharing coalition has consistently lobbied for further funding from the UK Government to address pressures in public services, particularly in the health service.

Stormont leaders have previously voiced concern about introducing new revenue raising measures in the region and have ruled out water charges.

But, speaking during a visit to Lisburn, Mr Benn pointed out that the option remained for the Executive to raise its own revenue.

He said: “We have done a lot more by giving the Northern Ireland Executive a record settlement, it is really important that we step back from the current circumstances and say Northern Ireland has a record settlement.

“My job is to go and fight for Northern Ireland and I think the result of that is seen.

“Nine months ago people were talking about a fiscal black hole, people are not talking about that now.”

He added: “All governments are facing difficult choices at the moment because of global economic circumstances, you saw what the chancellor had to say in her speech about the challenges that the UK Government is facing.

“It is always open to the Executive to raise more funds for itself.

“If it chooses not to do that, it may add to the pressures.

“But being in government, especially these days, is about making choices, about how you spend the money that you have been given.

“I think that the Government has played its part with that record settlement.”

The Secretary of State pointed out the arrangement ensures that people in Northern Ireland receive 124% of the funding received by the population in England.

He added: “There are always choices that the Executive faces, decisions that they could make to raise more funds which would help ease some of the pressures that they face.”

Mr Benn said he would not speculate on what might be in the chancellor’s Budget later this month.

He said: “There are those that are arguing for a return to austerity, people are making up fantasy figures about cuts in expenditure that they think could be achieved.

“We are not going to go down that road, we cannot borrow more because one pound in 10 of the tax revenue that is contributed at the moment is going on servicing the debt.

“We have got tough decisions to make.”