Source · Select Committees · Northern Ireland Affairs Committee
Recommendation 14
14
Acknowledged
Paragraph: 85
Consider lower income households' needs when Northern Ireland Executive examines revenue-raising options for public services.
Recommendation
We note that there have been calls that any consideration given by the Northern Ireland Executive to revenue raising should only take place once UK Government funding at levels equal to or above assessed need has been restored. The Northern Ireland Executive should take the needs of lower income households into account when considering a range of revenue raising options to protect and improve public services and provide more sustainable public finances.
Government Response Summary
The government commits to implementing corporation tax devolution via a Joint Exchequer Committee and notes ongoing discussions for the next phase of the fiscal framework. It states the NI Executive needs to make difficult decisions on revenue-raising to ensure financial sustainability, but does not explicitly state how lower income households will be considered.
Paragraph Reference:
85
Government Response
Acknowledged
HM Government
Acknowledged
In the Safeguarding the Union Command Paper, the previous UK Government committed to a rapid, focused process, on the implementation of corporation tax devolution through a new Joint Exchequer Committee. The Joint Exchequer Committee will take forward urgent work on this process. However, the devolution of fiscal powers alone will not solve the financial challenges facing Northern Ireland. The Executive needs to make difficult decisions around revenue-raising and public service transformation to put Northern Ireland’s finances on a sustainable footing. The previous UK Government agreed an interim Fiscal Framework with the Northern Ireland Executive to ensure the long-term sustainability and health of Northern Ireland’s public finances. The Chief Secretary to the Treasury and the Minister of Finance have agreed that the next phase of these discussions can begin. I am confident that HM Treasury and Department of Finance will consider a range of options to ensure Northern Ireland has the correct tools to ensure financial sustainability and effective public service delivery.