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Stormont’s Finance Minister has pressed the Chancellor to focus on help for working families in the autumn Budget. John O’Dowd said more support was needed for childcare as he made a direct appeal to Rachel Reeves ahead of the Budget in Westminster on November 26. He stressed that economic growth and improved public services cannot be achieved without “meaningful investment and support for working families”. “Ahead of the autumn Budget I have urged the Treasury to consider enhancements to the tax-free childcare scheme,” he said. “Affordable childcare is essential to improving labour market participation and driving economic growth. “That is why I am specifically calling for the support rate to be increased from 20% to 30% and for the annual cap per child of £2,000 to be reviewed. “I have also asked that the autumn Budget be used to reverse the two-child benefit cap – recognising the hardship this is placing on families. “As the cost-of-living crisis continues, I have made it clear to the Chief Secretary to the Treasury (James Murray) that further austerity measures must not be taken which place an unfair burden on people, businesses or public services.” Mr O’Dowd said he has also pressed for local growth funding, which he says had the potential to support people in terms of employment, education and training, while also helping local businesses. “The significant reduction in the resource budget for this funding will severely impact the community and voluntary sector’s ability to deliver vital services, particularly for those furthest from the labour market,” he said. “The Assembly has sent a clear and united message that we stand with the community and voluntary sector and that there must be an urgent change in approach. “I have pressed the Chief Secretary to work with the Ministry of Housing, Communities and Local Government to reconsider the funding profile, which is currently heavily weighted towards capital. “Without a change in approach, the British Government is putting frontline jobs, vital services and projects and programmes that support those furthest removed from the labour market getting back into work at risk.” Mr O’Dowd said he had also called for a change in the VAT rate to support the hospitality sector, adding: “Concerns around the disparity in VAT have been consistently raised with Westminster. “I am calling for a reduction in VAT to ensure our hospitality sector can compete on a level playing field in the all-Ireland economy.” Responding, a UK Government spokesperson said: “The Chancellor has been clear that at the next budget we will choose investment, not a return to austerity and decline, to build a fairer economy that works for, and rewards, working people. “The Government is providing a record settlement of £19.3 billion per year on average for the Northern Ireland Executive between 2026‐27 and 2028-29. “As agreed in the Interim Fiscal Framework, this includes a needs-based factor of 24% for new funding in recognition of Northern Ireland’s greater relative need for public services. It is for the Northern Ireland Executive to determine how this funding is spent. “In addition, the Secretary of State for Northern Ireland has previously made it clear that the NIO is working in close partnership with the Northern Ireland Executive and Ministry of Housing, Communities and Local Government to implement and develop the new Local Growth Fund. “The Government is committed to engagement with stakeholders in Northern Ireland to help implement a package of funding that meets local needs and delivers impact.”
