Cost of living crisis: DUP boss in call to party leaders over aid package

The Democratic Unionist Party leader said crisis measures were needed as the protocol has prevented a VAT cut on energy bills for customers not only in the Province but throughout the UK.

He said the Government had backed away from a “VAT holiday” on electricity, oil and gas bills because the EU via the Protocol prohibits changes to VAT rates unless all 27 European countries agree to it.

The British Government could have pressed ahead with the “VAT holiday” for the rest of Britain but decided not to in order to avoid Northern Ireland being excluded from a major energy policy shift.

Sir Jeffrey said: “I have written to the leaders of all Executive parties with a request that we discuss and agree a package to help families facing this cost of living crisis. The crisis is being driven by global factors outside local or even national control.

“However, there is action we can take to help mitigate some of the effects. The Russian invasion of Ukraine has made this crisis significantly worse and the effects will be felt in further energy cost rises as well as increases in the cost of food and other basic essentials.”

A meeting of the leaders of the parties in the power-sharing coalition at Stormont is scheduled for next week and Sir Jeffrey has suggested it should also be used to draw up a revised budget that includes extra cash help for families under financial stress over spiralling energy bills.

He said the draft budget put forward some time ago by Finance Minister Conor Murphy was not designed with the current crisis in mind.

“It isn’t tailored to deliver assistance that I or some of the other parties might like to see delivered. Therefore, I have also asked the other party leaders to discuss the need for agreement on the way forward in relation to the draft budget.”

The DUP leader insisted the Northern Ireland protocol is a problem when it comes to the energy/cost of living crisis.

“One option is for the Government to give everyone in the UK a VAT cut on their energy bills but this is problematic because Northern Ireland has to comply with EU VAT rules under the protocol. Therefore, because of the Northern Ireland protocol such measures are restricted from applying to Northern Ireland. The protocol is even impacting on the Government’s ability to help in this cost of living crisis.”

Sir Jeffrey said: “I want to see an Executive restored as soon as possible on the basis of fairness. However, it is possible to deliver on important issues in the meantime.

“We were told that it wouldn’t be possible to advance an apology for the victims of Historical Institutional Abuse, for Covid regulations to be rolled back or for funding to be delivered for football stadium development. In each of those cases I was clear that progress could be made and despite some initial claims from some other parties, that has proven to be correct.”

Sinn Fein’s leader Mary Lou McDonald said the “British Exchequer needs to intervene” in the energy crisis.

She said: “The reality for many people today is that they’re sitting anxious and worried about how they are going to feed their families, heat their homes, keep their lights on, and unfortunately we are limited in our ability to do things in the Executive because the DUP have walked away.”

Meanwhile the DUP leader insisted he would continue to attend anti-protocol rallies despite his party colleague Sammy Wilson being booed at a protest in Markethill, Co.Armagh last month.

“I will be in Crossgar next Friday evening. I have invitations to attend rallies in Ballymoney, in Castlederg and in Lurgan and other invitations are coming in.

“I have never been afraid to go and talk to the people and listen to the people. I will continue to do that. I want to see unity at these rallies,” Sir Jeffrey said.

He said those who booed Mr Wilson in Markethill “damaged the unionist cause, it damaged and harmed our campaign against the protocol and I hope that the people who did it now realise the harm they did in splintering the united opposition of unionists to the protocol.”

Sir Jeffrey added that he hoped the war in Ukraine would not “freeze” UK-EU negotiations over the protocol.