2nd Report - Economic growth in Northern Ireland: Final Report

We remain unclear as to what the NIO’s ‘economic vision’ for Northern Ireland is, or in what format it exists, or if the Government has even completed it. (Conclusion, Paragraph 20)

We reiterate our previous recommendation that the Northern Ireland Office should publish its ‘economic vision’. It should do so alongside its response to this report. (Recommendation, Paragraph 21)

The instability of the Executive has been raised as a significant constraint on economic growth in Northern Ireland, delaying critical economic and infrastructure decisions, and undermining business and investor confidence. Northern Ireland’s inadequate infrastructure and ongoing skills challenges are persistent barriers to growth. The ongoing absence of an Executive budget means that these barriers cannot be effectively tackled, putting further strain on economic growth in Northern Ireland. We remain concerned about the Executive’s ability to use the tools at its disposal effectively to overcome Northern Ireland’s skills and infrastructure challenges. (Conclusion, Paragraph 27)

We are concerned that the ongoing inability of the Executive to agree a budget is preventing vital investment in areas that are fundamental to supporting growth in the Northern Ireland economy. This risks entrenching long term economic barriers and disadvantaging the people of Northern Ireland. (Conclusion, Paragraph 28) Targets and objectives

We welcome the new Secretary of State’s focus on the promotion of economic growth in Northern Ireland, but we remain concerned that the NIO has not set transparent and measurable objectives for that growth. Without clear and objective metrics, it is impossible to accurately assess the impact of the NIO’s interventions on the economy. As the Northern Ireland Audit 21 Office (NIAO) has noted, setting milestones and performance indicators is important for public accountability, and failure to use these measures can lead to poor value for money and costly delays. (Conclusion, Paragraph 43)

The evidence we have heard since the publication of our interim report strengthens our view that the NIO should publish specific, measurable, achievable, relevant and time-bound (SMART) objectives, where appropriate, or other key performance indicators for its economic interventions. The NIO should set out how it will monitor and measure the effectiveness of its interventions, setting appropriate targets for their output. This is vital for ensuring that significant public funding commitments provide value for money for the taxpayer. (Recommendation, Paragraph 44)

The NIO should also develop SMART objectives for the ‘one stop shop’ that will support small businesses to navigate the Windsor Framework. The NIO should publish progress against these objectives in its Annual Report and Accounts. (Recommendation, Paragraph 45) Northern Ireland Office and Whitehall

The implementation of the Local Growth Fund clearly demonstrates the challenges the Northern Ireland Office faces in advocating for Northern Ireland in Whitehall. We remain concerned that cross-Government structures remain ineffective in promoting Northern Ireland’s interests and believe these should be reformed. (Conclusion, Paragraph 58)

Northern Ireland’s economic strengths and untapped potential have the potential to boost the UK’s wider economic growth, and Whitehall should take Northern Ireland’s economic growth seriously. The Government has said that the creation of Number 10 North, alongside the revived National Economic Council, will ensure that decisions about the country’s economic future will no longer be made exclusively in Westminster. In this spirit, we call on the Government to do more to consider the impact of UK-wide policies on the UK nations, and especially Northern Ireland. (Recommendation, Paragraph 59)

The Northern Ireland Office Parliamentary Under-Secretary of State should convene a new Business Advisory Council for Northern Ireland. This should include representatives from each business from each of the sectors in the Industrial Strategy. These should be businesses that are not regularly heard in Whitehall, and represent all parts of Northern Ireland. The group should be responsible for providing advice to the Minister on how the UK Government can support economic growth in Northern Ireland. (Recommendation, Paragraph 60) 22

The Northern Ireland Office Parliamentary Under-Secretary of State should also convene a new quarterly Ministerial working group attended by Ministers whose remits impact economic growth in NI. Through this group, the Minister will hold other Departments accountable for supporting economic growth in Northern Ireland and make sure Northern Ireland’s unique economic conditions are considered. This group should include relevant Ministers from HM Treasury, the Department for Business, Innovation, Science and Trade, the Ministry for Housing, Communities and Local Government, and the Minister for Skills from the Department for Work and Pensions. (Recommendation, Paragraph 61) 23