From AI innovation to agri-food support: NI leaders raise key issues with Chancellor Rachel Reeves

Deputy First Minister Emma Little-Pengelly and Finance Minister John O’Dowd with Chancellor Rachel Reeves at Stormont Castle.

In a significant engagement aimed at fostering collaboration between Belfast and Westminster, Northern Ireland’s deputy First Minister Emma Little-Pengelly and Finance Minister John O’Dowd met with Chancellor of the Exchequer Rachel Reeves in Belfast today.

The discussions centred on the Executive’s key priorities, underscoring the critical need for increased investment in public services to drive public sector transformation and stimulate economic growth across the region.

This marked the Chancellor’s first official visit to Northern Ireland, highlighting a commitment to addressing the unique challenges and opportunities facing the devolved administration.

The meeting provided a platform for the ministers to articulate the Executive’s vision for a more prosperous and competitive Northern Ireland, with a particular focus on emerging sectors such as artificial intelligence (AI), cyber security, and regulatory technology (RegTech).

Deputy First Minister Little-Pengelly described the encounter as a positive step towards joint efforts in delivering tangible benefits for local communities.

“This is the Chancellor’s first official visit here and today’s meeting demonstrates the importance of working together to deliver for the people of Northern Ireland,” she said.

She elaborated on the Executive’s strategic plans, including the establishment of a new Office of AI and Digital, which is poised to position Northern Ireland as a leader in technological innovation.

“We had a constructive conversation during which I outlined the Executive’s priorities, our plans for economic growth and transformation, including our new Office of AI and Digital, and the need for funding so that we can deliver a modern service that meets the needs of our citizens,” Little-Pengelly added.

The deputy First Minister also emphasised Northern Ireland’s potential contributions to the wider UK economy.

“Northern Ireland has so much to offer, particularly around AI, cyber and RegTech and today’s meeting with the Chancellor was an opportunity to discuss how best we can work together to make Northern Ireland an economically confident and globally competitive place as well as our role when it comes to growing economic growth across the UK.”

Beyond technological advancements, the talks addressed pressing concerns affecting key industries. Little-Pengelly highlighted challenges in the hospitality sector amid high VAT rates, support for small and medium-sized enterprises (SMEs), and the aerospace industry.

She also raised alarms over proposed changes to Inheritance Tax, which could adversely affect the farming community and the vital agri-food sector. Additionally, the ministers discussed the strain on businesses from rising national insurance contributions.

“We raised a number of other key issues including the importance of supporting our hospitality sector, particularly in light of a high VAT rate, SMEs and the aerospace sector. We also highlighted the detrimental impact that Inheritance Tax changes will have on our farming community and agri-food sector, which is a cornerstone of our economy. We also discussed the pressure faced by businesses here due to increases in national insurance contributions,” she stated.

Deputy First Minister Emma Little-Pengelly and Finance Minister John O’Dowd greet Chancellor Rachel Reeves at Stormont Castle.

Finance Minister O’Dowd echoed the constructive tone of the meeting, viewing it as a valuable chance to convey the Executive’s agenda for meaningful reform.

“Today’s meeting was a useful opportunity to outline our priorities to the Chancellor. The Executive is focused on positive change that delivers real improvements in people’s lives.”

“Despite the financial challenges significant progress has been made, including the delivery of a balanced budget and the recent Spending Review agreement, which will deliver an additional £600million for public services here, as a result of our negotiation with Treasury,” he said.

O’Dowd stressed the benefits of a multi-year budget approach, which he argued would facilitate long-term planning and genuine transformation in public services.

“The Executive’s multiyear budget will enable a long-term strategic approach, creating the conditions to drive real change and public service transformation. I stressed to the Chancellor the importance of increasing investment in our public services to stimulate our local economy and of Whitehall recognising that the fiscal decisions they make in London can have a disproportionately negative impact here,” he explained.

Looking ahead, the Finance Minister reaffirmed his commitment to ongoing dialogue with the Treasury to secure a comprehensive fiscal framework. This would equip the Executive with essential tools, including taxation powers and borrowing capabilities, to ensure sustainable finances and high-quality services.

“I will continue to work constructively with the Treasury on a full fiscal framework which gives the Executive the financial tools, including taxation levers and borrowing powers, to deliver sustainable public finances and services that our workers, families and communities deserve,” O’Dowd concluded.

The meeting comes at a pivotal time for Northern Ireland, as the Executive seeks to navigate post-Brexit economic realities while capitalising on its strengths in innovation and industry. By advocating for targeted investments and fiscal autonomy, the ministers aim to not only bolster local public services but also contribute to broader UK-wide growth.

As discussions progress, stakeholders will be watching closely for concrete outcomes that could shape the region’s economic trajectory in the years ahead.