Commons Sense

House of Commons · Ministers' Questions

Economic Impact of Government Policies

Wednesday 11 February 2026 · 6 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 2 Partly answered 4 Not answered 0

Key points

  • The Government supports Northern Ireland through various initiatives including city deals and an enhanced investment zone, contributing to a 2.9% increase in economic activity.
  • The exemption for Scottish islands from the emissions trading scheme levy is due to specific service and care requirements, impacting trade differently between GB and Northern Ireland.
  • The agricultural property relief threshold has been increased from 1 million to 2.5 million, allowing couples to pass on up to 5 million tax-free.

Topics (select to filter)

Questions & Answers

Q1 Blake Stephenson Con Mid Bedfordshire
Economy Northern Ireland
Context

The MP asked about the potential economic impacts of government policies.

Question

What assessment has been made of the potential impact of Government policies on the economy in Northern Ireland?

Answer from Hilary Benn

The Government are supporting Northern Ireland through the four city deals, the local innovation partnerships fund, an enhanced investment zone and greater economic stability. Economic activity in Northern Ireland increased by 2.9% over the year to quarter 3, and it has the lowest unemployment in the UK.

Answered
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Q2 Joe Robertson Con Isle of Wight East
Economy Northern Ireland Scotland
Context

The MP asked about the economic assessment behind the emissions trading scheme levy reductions for Northern Ireland, which contrasts with those given to Scotland.

Question

What economic assessment has been done to arrive at the figures of a 50% reduction in the emissions trading scheme levy on ferries crossing between Northern Ireland and Great Britain versus a 100% reduction for Scottish islands?

Answer from Hilary Benn

The figures are based on the assessment that there are particular requirements for the Scottish islands in terms of services, access to essential care and so on. That is why that exemption has been applied for Scotland. The impact of this measure on trade between GB and Northern Ireland will be very small in light of the overall costs of moving goods and transportation.

Partly answered

How: The Figures Are Based On Certain Assessments, But The Specifics Of Why Scotland Gets A 100% Reduction Were Not Fully Explained.

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Q3 Blake Stephenson Con Mid Bedfordshire
Economy Agriculture & Rural Affairs
Context

The MP raised concerns about the rise in the agricultural property relief threshold affecting family farms due to inflation and rising asset values.

Question

While welcoming the increase in the agricultural property relief threshold, does the Minister recognise broader economic concerns that inflation and rising asset values could pull more family farms into inheritance tax liability?

Answer from Hilary Benn

As the hon. Member will be aware, the Government announced that the allowance for 100% rate relief will be increased from £1 million to £2.5 million. That means that a couple will now be able to pass on up to £5 million tax-free between them, on top of the existing allowances such as the nil-rate band. The president of the Ulster Farmers Union, William Irwin, welcomed the changes.

Partly answered

How: Acknowledged The Change But Did Not Address The Specific Concern About Inflation And Asset Values Pulling More Farms Into Tax Liability.

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Q4 Claire Hanna Social Democratic & Labour Party Belfast South and Mid Down
Northern Ireland Local Government
Context

The MP inquired about the impact of policy changes to the local growth fund on Northern Ireland's voluntary and community sector groups.

Question

Why are voluntary and community sector groups being asked to distort Special EU Programmes Body rules, rather than UK Government policy adapting to local needs?

Answer from Hilary Benn

I met the Northern Ireland Council for Voluntary Action and CO3 last week to talk about this matter. It is a difficult situation because of how capital and resources have been allocated through the local growth fund. Of the £12 million of available resource funding, we agreed with the Executive that £3 million would go to Go Succeed at their request, and £9 million would go to economic inactivity programmes.

Partly answered

How: Discussed Allocation Of Resources But Did Not Directly Address Why Groups Are Being Asked To Distort Rules.

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Q5 Alison Taylor Lab Paisley and Renfrewshire North
Northern Ireland
Context

The MP questioned if Northern Ireland benefits equally from being part of the UK, like Scotland and Wales.

Question

Does the Minister agree that Northern Ireland shares the benefits of a united United Kingdom and its collective spending power?

Answer from Hilary Benn

I certainly agree with my hon. Friend. All parts of the United Kingdom derive strength and benefit from being part of that Union. We can see in the figures I quoted a moment ago the benefit being obtained in Northern Ireland in terms of how the economy is doing.

Partly answered

How: Agreed Generally But Did Not Provide Specific Evidence Or Details.

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Q6 Paul Kohler Lib Dem Wimbledon
Northern Ireland Brexit
Context

The MP referenced a survey by the Federation of Small Businesses about difficulties facing small businesses trading between Great Britain and Northern Ireland under the Windsor framework.

Question

Will the Secretary of State commit himself to a specific time-bound plan to make dual market access work, or does he accept that Northern Ireland got the worst of both worlds?

Answer from Hilary Benn

I do not accept that Northern Ireland has the worst of both worlds. However, the hon. Gentleman is right to draw attention to the issue facing small businesses, highlighted by the FSB report and others, including Lord Murphy's independent report. As he will have noticed, in the Budget the Chancellor announced a £16.6 million package which will include a comprehensive one-stop-shop regulatory support service to help precisely those businesses to trade more between Great Britain and Northern Ireland.

Answered
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