O’Dowd urges fellow ministers to be ‘serious’ about revenue raising

The Stormont Executive must be serious when it comes to revenue raising measures, the Finance Minister has said.

John O’Dowd said “difficult decisions” would have to be taken within the powersharing administration if the challenges facing frontline public services in the region are to be addressed.

However, Mr O’Dowd again made clear that he did not support the introduction of water charges as a way to generate extra revenue for Stormont.

The Sinn Fein minister said the Executive was facing a projected shortfall of around £400 million for the current financial year.

He said that figure did not include an estimated £120 million compensation bill for the 2023 PSNI data breach, although he said that issue was likely to “crystallise” in the next financial year.

Mr O’Dowd was commenting ahead of Chancellor Rachel Reeves unveiling her Budget in London on Wednesday.

“The Budget delivered here by Westminster is not sufficient,” he told BBC NI’s Sunday Politics programme.

“And I suspect the Budget which is delivered on Wednesday will further confirm the poor state of the economy in Britain, which we’re hitched to.”

The minister unveiled a series of measures last week intended to raise more revenue through the rating system in Northern Ireland.

He said he had made a proposal to the Executive in June that included raising the high level cap on the rates paid by the owners of expensive homes.

The present cap applies to all homes valued in excess of £400,000. The move could see the valuation at which the cap applies rise to £485,000.

“It was brought to the Executive in June,” he said.

“It’s still a live document. There has been some discussions in that regard.

“But if we are going to face the challenges in relation to our frontline public services, then ministers are going to have to – and collectively as an Assembly and our society – are going to have to be serious in terms of raising revenue and redirecting it towards frontline services.

“That at times is a difficult decision but it has to be taken.”

Mr O’Dowd insisted he did not believe water charges were the right way to raise added revenue.

“There’s differences of opinion in relation to whether we should introduce water charges,” he said.

“My view, my party’s view, is we won’t be introducing water charges.

“Why would we place another £50-a-month bill on hard-pressed workers and families at this stage when the cost of food is rising and the cost of energy is rising, and all other elements of cost of living are rising?

“So, it can’t be a simple equation of saying ‘OK, you can introduce water charges and you’ll raise X’.

“You have to look at the consequences on the broader economy and on family budgets as well.”

Mr O’Dowd was also asked about recent comments from DUP Education Minister Paul Givan who said he did not consider his party to be “partners” with Sinn Fein in the mandatory coalition.

The Finance Minister said he did consider the arrangement with his party and the DUP to be a partnership.

“There’s only one way this Executive is going to be able to support our public services workers and families and communities out there through the next period of time, and that’s working in partnership,” he said.

“We are in a mandatory coalition. I’m actually proud to be in a powersharing executive.

“I’ve said it before, and I’ll say it again – I’m proud to serve the powersharing executive. I believe it is the best way forward for this society.”