The introduction of domestic water charges in Northern Ireland is inching closer as its budget crisis worsens in the absence of political leadership at Stormont.
Currently the Department for Infrastructure pays an annual subsidy of £300m to Northern Ireland Water in lieu of domestic consumers’ contributions.
The publicly-owned utility has complained that lack of financing is crippling investment in wastewater treatment which is frustrating development in many parts of Northern Ireland. The Northern Ireland secretary, Chris Heaton-Harris, is currently considering ways of increasing public revenues including introducing household water charges.
Although Sinn Féin and the DUP might never agree (they blocked a move for a £400 annual charge in 2016), observers suggest they could acquiesce in their imposition by a UK government – a prospect that is increasing.
This week a UK parliamentary committee was told that introducing domestic water charges would bring in £350m and would be the biggest revenue raiser for the region.
That figure came from former chair of the Independent Fiscal Commission for Northern Ireland, Paul Johnson. He agreed there was “not a great deal of keenness to make that change” but noted it would bring Northern Ireland into line with the rest of the UK.
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