Northern Ireland's exemption from Prime Minister Andy Burnham's VAT cut on electricity bills has been described as evidence of the 'madness' of the region's post-Brexit relationship with the EU, according to DUP Communities Minister Gordon Lyons.
Burnham's first major policy
In his first significant policy as Prime Minister, Andy Burnham announced an £850 million tax cut on energy bills to help ease the cost-of-living crisis. From October 1, electricity bills will be VAT-free in England, Scotland, and Wales, saving households approximately £45 a year, the Government stated.
However, due to post-Brexit rules under the Windsor Framework, EU VAT rates continue to apply on electricity bills in Northern Ireland, meaning the cut does not apply there. The Government plans to provide funding to the Stormont executive to implement an equivalent level of support.
DUP minister's criticism
Gordon Lyons told BBC Ulster's Nolan Programme that the Government has been 'far too willing to do the EU's work, and we haven't seen what we need to see in terms of the repair of the damage done to that relationship between Northern Ireland and the rest of the UK'.
'I don't think you see this anywhere more clearly than the issue that has come up this morning, where you have the UK Government wanting to reduce VAT on UK household bills, and because of the rules that have been put in place by the EU, we're unable to do that in Northern Ireland,' he added.
Call for direct EU derogation
Mr Lyons called for the funding to be implemented directly via a derogation from the EU, describing this as a 'far more preferable way of ensuring that people in Northern Ireland get this additional bit of support'. He criticised the Government for deciding to allow Stormont to administer the scheme rather than seeking agreement with the EU, suggesting they feel 'that's hassle, that's difficulty, so instead of that, we're just going to throw it over to the executive instead'.
'That shows the madness of some of the rules that we have in place,' he said. 'I would ask the question what possible harm or difficulty would that cause the EU? What harm or difficulty would that cause the operation of the single market? That goes to the heart of the problems that we are facing, it's that rules were put in place that are not in any way sensible. They're not about protecting people from the changes that came about as a result of Brexit, but they seem to be adding in additional difficulties.'
Other policy changes
Mr Burnham also scrapped the previous government's plans for a digital ID scheme and pledged to build more council housing. Mr Lyons noted that the former Manchester mayor 'has taken on some DUP policies', adding, 'I'm quite happy with that. But there are many other issues on welfare, on how we support business, on how we reward those who work hard, all of those issues need to be dealt with as well. There have been some good words, I understand that rhetoric needs to turn into results.'
