Recommendations & Conclusions
15 items
1
Recommendation
Third Report - The funding and delivery…
Deferred
We are concerned about staff recruitment and retention in the health service, with thousands of empty posts and a reliance on costly agency staff. The equivalent of 26.3% of the Northern Ireland population are on waiting lists, with some going on to develop further health complications while they wait. While …
Government response. The government details substantial past and future financial packages for the NI Executive and states that discussions on the next phase of the fiscal framework are commencing. Regarding a statutory duty on the Department of Health to publish workforce projections, …
Northern Ireland Office
2
Recommendation
Third Report - The funding and delivery…
Deferred
After years of under-investment, the education sector has been struggling to fulfil its statutory duties. Spending per pupil has been consistently lower in Northern Ireland than in England. We are particularly concerned about the future of provision for children and young people with Special Educational Needs (SEN), with the number …
Government response. The UK Government's response did not address the recommendation for the Northern Ireland Executive to account for increasing SEN pupil numbers in education funding, instead quoting a different recommendation without providing a specific reply.
Northern Ireland Office
3
Recommendation
Third Report - The funding and delivery…
Deferred
Cuts in police officer numbers due to recent budgetary pressures will impact on the PSNI’s visibility and ability to respond to increased demand. Officer numbers have dropped some way below the 7,500 committed to under the New Decade, New Approach agreement in 2020. More complex crimes, threats to staff and …
Government response. The government recognises the PSNI's difficult financial position but states that policing is a devolved matter for the Northern Ireland Justice Minister to determine funding allocation. While detailing significant financial packages to the NI Executive and specific additional security funding, …
Northern Ireland Office
4
Recommendation
Third Report - The funding and delivery…
Deferred
The voluntary, community and social enterprise sector has struggled in the recent funding environment, and this is likely to have piled further pressure onto stretched public services. When making future budgetary decisions the Northern Ireland Executive must take account of the significant contribution that the sector offers and provides often …
Government response. The government recognises the significant contribution of the voluntary, community, and social enterprise sector, but states that budgetary decisions regarding the sector are a devolved matter for the Northern Ireland Executive.
Northern Ireland Office
5
Recommendation
Third Report - The funding and delivery…
Accepted
The delivery and timing of the UK Shared Prosperity Fund (UKSPF) caused considerable distress and uncertainty in the sector, particularly the decision to communicate the outcome of applications on the day European Social Funding ceased. The Government has announced that decisions on the future funding of UKSPF from April 2025 …
Government response. The government has announced that the UK Shared Prosperity Fund will be extended for 2025-26 at a reduced level of £900 million. Regional, nation-level, and local allocations will be confirmed and published on gov.uk as soon as possible.
Northern Ireland Office
6
Recommendation
Third Report - The funding and delivery…
Not Addressed
Northern Ireland’s public services, especially in the health, education and justice sectors, are in a poor state after years of political instability, lack of funding and of reform. The additional £520 million per year promised by the Government in 2024/25 and 2025/26 will help to address pressures in the immediate …
Government response. The government states that budgets for 2026-27 onwards are based on projections and confirms the Executive can plan on being funded at or above 124% of their relative need. It provides general information on the fiscal framework but does not …
Northern Ireland Office
7
Recommendation
Third Report - The funding and delivery…
Accepted
Single-year budgets and a lack of an agreed Programme for Government have not allowed for long-term thinking and planning for public services and spending in Northern Ireland over recent years. We urge the Executive to commit to returning to multi-year budgetary settlements following the next UK Spending Review as part …
Government response. The government commits to multi-year spending reviews every two years, starting Spring 2025, and expects the Northern Ireland Executive to return to multi-year budgets following this. It also clarifies that the NIE can already carry forward underspends via the Budget …
Northern Ireland Office
8
Recommendation
Third Report - The funding and delivery…
Accepted
We are pleased to see reference to the publication and implementation of a fiscal sustainability plan as part of the settlement between the Government and Executive, which will include detail on long-term budget planning. It is noted that there is a strong view that the Government’s conditionality for writing-off Executive …
Government response. The government clarifies that the £559 million debt will be written off if the Executive balances its 2024-25 budget and raises £113m revenue from 2025/26, with the Chief Secretary to the Treasury confirming this if conditions are met, thus outlining …
Northern Ireland Office
9
Conclusion
Third Report - The funding and delivery…
Deferred
The transformation agenda is critical to getting Northern Ireland’s finances onto a sustainable footing and cannot be delayed any further. The underfunding of local public services by the Treasury and the lack of an Executive for five out of the last seven years has undermined progress and difficult political decisions …
Government response. The UK Government's response did not address the recommendation for the Northern Ireland Executive to set out public service transformation plans and establish the Transformation Board, instead quoting a different recommendation without providing a specific reply.
Northern Ireland Office
10
Recommendation
Third Report - The funding and delivery…
Not Addressed
Northern Ireland would benefit from being more entrepreneurial in how it bids for funding for public service reform - for example, by linking its bids into wider Government agendas and aims including cross-Departmental working, partnership with the business community and third sector. We recommend that the Treasury work with the …
Government response. The government provided £235 million for public service transformation and notes the NI Executive has established a Public Sector Transformation Board and published its Programme for Government. However, the response does not address the specific recommendation for the Treasury to …
Northern Ireland Office
11
Conclusion
Third Report - The funding and delivery…
Acknowledged
Many of the structural, resource and funding issues facing Northern Ireland have been a long time in the making, but the lack of ministerial direction and accountability in recent times has not helped the plight of public services in Northern Ireland. Core reforms required across public services have not been …
Government response. The government acknowledges the severe funding situation for the PSNI and expresses an urge for a rethink by the Treasury, Northern Ireland Office, and the Northern Ireland Executive regarding the PSNI’s financial framework.
Northern Ireland Office
12
Conclusion
Third Report - The funding and delivery…
Acknowledged
Decisions by UK Governments to reduce overall UK public spending have a significant impact on the funding Northern Ireland receives through the block grant, which makes up the vast majority of its expenditure. With tighter budgets in England, annual allocations to Northern Ireland under the Barnett formula have been squeezed.
Government response. The government acknowledges Northern Ireland's unique financial challenges and higher relative need, referencing ongoing discussions towards a full fiscal framework and existing structural changes like the 24% needs-based factor in the Barnett formula.
Northern Ireland Office
13
Recommendation
Third Report - The funding and delivery…
Accepted in Part
We endorse calls for a review of the fiscal framework for Northern Ireland and welcome the willingness of the Government to open negotiations with the Executive in this regard. However it is deeply regrettable, because of the failure to baseline the new needs-based Barnett factor as if it had been …
Government response. The government commits to taking forward discussions towards a full fiscal framework and will consider a review of the relative needs-based factor if multiple independent and credible sources provide evidence that the current assessment is different. This falls short of …
Northern Ireland Office
14
Recommendation
Third Report - The funding and delivery…
Acknowledged
We note that there have been calls that any consideration given by the Northern Ireland Executive to revenue raising should only take place once UK Government funding at levels equal to or above assessed need has been restored. The Northern Ireland Executive should take the needs of lower income households …
Government response. The government commits to implementing corporation tax devolution via a Joint Exchequer Committee and notes ongoing discussions for the next phase of the fiscal framework. It states the NI Executive needs to make difficult decisions on revenue-raising to ensure financial …
Northern Ireland Office
15
Recommendation
Third Report - The funding and delivery…
Deferred
We welcome the work of the Independent Fiscal Commission for Northern Ireland on further fiscal devolution. The devolution of such powers will not address the difficult situation in which public services currently find themselves but could help strengthen the economy and increase the fiscal accountability of the Executive. Income tax …
Government response. The government's response does not address the recommendation for fiscal devolution negotiations to start in the first half of 2024, instead stating that the Northern Ireland Executive must consider a sector's contribution when making future budgetary decisions.
Northern Ireland Office