Northern Ireland

Conor Murphy says new rescue package for economy 'does not go far enough'

Finance Minister Conor Murphy. Picture by Kelvin Boyes/Press Eye
Finance Minister Conor Murphy. Picture by Kelvin Boyes/Press Eye Finance Minister Conor Murphy. Picture by Kelvin Boyes/Press Eye

FINANCE minister Conor Murphy last night said a fresh package of measures to rescue the economy as it emerges from Covid lockdown "does not go far enough".

British chancellor Rishi Sunak had unveiled a £30bn package to help keep people in work and boost the hospitality and tourism industries.

He warned that "hardship lies ahead" but said no-one will be left "without hope".

Among the measures are slashing VAT on food, accommodation and attractions for six months, a £1,000 bonus for every staff member kept on when the furlough scheme ends, and a discounts of up to £10 to encourage eating out from Monday to Wednesdays in August.

Stamp duty on properties up to £500,000 will also be scrapped until next March.

While Mr Murphy welcomed the package, he said a comprehensive stimulus package was needed.

"The announcement of an additional £39m for economic recovery as well as the further £116m confirmed by Treasury today for Covid-19 is a welcome boost towards the Executive's Covid-19 response," he said.

Read More: Chancellor's summer statement offers up £155m of new money to Stormont Executive

"The cut in the VAT rate and the Job Retention Bonus Scheme are also welcome measures, as is the Eat Out to Help Out discount scheme.

"However, the measures are not ambitious enough to spur economic recovery."

NI Hotels Federation chief Janice Gault described the VAT cut as a "tremendous result" for the sector.

"It will allow us as an industry to compete on an all-island basis and it also helps hoteliers address a number of challenges as they return to trading."

However, Retail NI chief executive Glyn Roberts said the chancellor "should have been more ambitious".

"There is little in this economic update to boost consumer confidence and to get people spending again in our retail sector," he said.