Swann responds to Budget

Following the announcement of the new UK Government Budget, South Antrim MP Robin Swann has welcomed targeted investments, while warning that the overall funding settlement falls significantly short of what is required to stabilise public services and support local industry in Northern Ireland.

While acknowledging specific funding allocations, Mr Swann expressed serious concern that the Budget settlement does not adequately address the structural deficits facing the Northern Ireland Executive, and criticised the decision to increase Air Passenger Duty (APD), as well as the lack of direct business rates relief for local businesses.

The Ulster Unionist MP said following the Budget:

“While I welcome the specific announcements of £7.5 million in new research and development funding for cyber and artificial intelligence in Belfast, alongside £1 million to support a Northern Ireland Investment Summit, these measures alone cannot mask the deeper financial crisis the Northern Ireland Executive faces. They do, however, show that the Government can take direct action if it is minded to.

“The £270 million delivered via the Barnett formula is spread over four years and will not meet the needs of the Northern Ireland Executive, even within this financial year. It also looks to include the Northern Ireland allocation for the £100 Household Energy Payment. Unfortunately, rather than providing stability, this shortfall pushes the possibility of a sustainable local budget even further away.

“Crucially, urgent clarification is now needed on whether these Barnett consequentials will actually be allocated this financial year, given that the Northern Ireland Executive has still been unable to agree a budget. Without an agreed budget in place, there is deep uncertainty as to how these funds can be effectively and efficiently spent.

“It is also deeply frustrating to see business rates support measures announced for England not being extended to Northern Ireland. Our local high streets, retail and hospitality businesses are facing the same cost pressures as their counterparts in England, yet they are left waiting on devolved arrangements that remain stalled by the lack of a local budget. The lack of movement towards a reduced hospitality VAT rate for Northern Ireland is also very disappointing.

“I am further disappointed by the announcement that all rates of Air Passenger Duty will increase in line with RPI from 1 April 2028. The call for APD to be scrapped entirely in Northern Ireland is clear. Scrapping it would have allowed our aviation and tourism sectors to compete on a level playing field with Dublin, rather than being hit with further tax rises.

“While I acknowledge the proposed reforms to Carer’s Allowance, I am deeply concerned that these measures fail to address the core financial pressures currently facing unpaid carers across the United Kingdom.

“If our public services and local economy are to be put on a secure footing, Westminster and the Treasury must recognise that Northern Ireland requires a realistic funding settlement that reflects the actual costs of our public services, rather than sticking plasters that leave our local institutions struggling to deliver.”