PM told budget was 'missed opportunity' for NI by Stormont leaders

The UK prime minister has been told by the leaders of the Stormont Executive that the chancellor's budget was "a missed opportunity" for Northern Ireland.

Sir Keir Starmer heard the criticism when he attended the latest meeting of the British Irish Council (BIC) in Cardiff.

First Minister Michelle O'Neill and Deputy First Minister Emma Little-Pengelly took the chance to deliver an attack on the government's plan even though it included an extra £370m for Northern Ireland.

Little-Pengelly said it was "a good opportunity" to speak directly with the prime minister so shortly after the budget.

"We emphasised that while there were some good aspects to the budget, we do feel that it was a missed opportunity," she added.

"We need to have economic growth in Northern Ireland. We need to have economic growth across the UK. These types of fiscal events are an opportunity to try to get that economic growth to support businesses.

"You don't get economic growth by taxing those who work more. You don't get economic growth by putting more and more cost on to businesses. So we do feel it was a missed opportunity."

Little-Pengelly added that the ministers raised several specific issues.

"We wanted to see, not least, that VAT reduction pilot for Northern Ireland, the issues with agricultural relief, the changes that had been proposed, and we want to see that reversed in this budget," she said.

"So there were a number of key things that didn't happen."

The deputy first minister also said she raised extending grace periods for some post-Brexit trade rules with the prime minister, including veterinary medicines and changes around new cars coming into Northern Ireland.

There has been concern from vets that some medicines may not be available in Northern Ireland after the EU's full implementation comes into force on 1 January 2026.

"While the discussions with the EU are ongoing with the UK government, there is a gap between what it will be the conclusion of those substantive UK-EU discussions," she said.

"I think it's critically important that we create that stability for businesses in Northern Ireland.

"So it was a call to the UK government to extend those grace periods and to not allow those derogations to end while those discussions are ongoing."

O'Neill said: "I said publicly before I came here, that I would put directly to the prime minister the anger that's out there among many families and households that are really struggling to meet the food bills, that are really struggling with the cost of living crisis, and I feel that this budget was a missed opportunity.

"And I said that directly to the prime minister today, I don't believe the policy choices being made in London reflect the needs of the people that we represent at home."

The two leaders said they were not looking for special treatment.

Taoiseach (Irish Prime Minister) Micheál Martin and the Irish government's Foreign Affairs Minister Helen McEntee also joined the proceedings.

It is McEntee's first bilateral meeting with Northern Ireland Secretary Hilary Benn since taking up her new role in the Dublin administration.

She replaced Tánaiste (Irish Deputy Prime Minister) Simon Harris last month after the Fine Gael leader moved to the finance portfolio.

Senior UK government minister Darren Jones, chief secretary to the prime minister, is also expected to attend.

The summit comes after Chancellor Rachel Reeves last week unveiled the government's Autumn Budget, which included an extra £370m for Northern Ireland.

Stormont's Finance Minister John O'Dowd has said the funding "falls far short of what is needed".

But the secretary of state said the Northern Ireland Executive "does have the means if it wants" to consider its own revenue-raising measures.

The first minister said she would challenge Sir Keir over his government's budget settlement for Northern Ireland.

In an interview with the PA news agency on Thursday ahead of the summit, she accused the government of "prioritising weapons of war while people are struggling to pay for food and energy".

The government was approached for comment.

The BIC also follows the UK and Irish governments agreeing a joint framework on addressing the legacy of the Troubles in Northern Ireland.

It includes plans for a commission to investigate Troubles-related killings, an information recovery body, and a dedicated legacy unit within An Garda Síochána (Irish police).

The government's bill last month passed its second reading in the House of Commons.

But some unionist MPs have criticised the Irish government's involvement in the deal, while some have questioned the strength of a separate package of protections for veterans.

The BIC summit is set to be the second Sir Keir has attended as prime minister. He also joined the event when it was held last December in Scotland.

The Labour leader is only the third prime minister to attend a meeting of the British-Irish Council in 18 years.

It is the 44th summit of the BIC - one of the bodies established as a result of the 1998 Good Friday Agreement.

Political leaders from BIC's eight member administrations are set to attend.

The eight administrations are the UK government, Irish government, Scottish government, Welsh government, Northern Ireland Executive, and the governments in the Isle of Man, Guernsey and Jersey.

This will be the seventh BIC summit hosted by the Welsh government.

The latest summit's theme is: "A creative future: unlocking the potential of the creative industries across these islands."