Select Committee · Northern Ireland Affairs Committee

Funding and delivery of public services: follow up

Status: Closed Opened: 4 Dec 2024 Closed: 19 Jun 2025 4 recommendations 3 conclusions 1 report

The Northern Ireland Affairs Committee is launching a follow-up inquiry into the funding of public services in Northern Ireland. The inquiry is looking at the challenges facing Northern Ireland’s public services (including health, education and the police) and considering: Northern Ireland’s level of need relative to the rest of the UK; the implications of the …

Reports

1 report
Title HC No. Published Items Response
1st Report - Funding and delivery of public services: follo… HC 477 7 Apr 2025 7 Responded

Recommendations & Conclusions

7 items
1 Conclusion 1st Report - Funding and delivery of pu… Acknowledged

Northern Ireland's public services remain in crisis across health, education, and justice.

Northern Ireland’s public services remain in crisis. Its health service is under immense pressure, with long waiting lists, a struggling primary care sector and an acute mental health situation, in part due to Northern Ireland’s recent history. There are severe demands on the education sector, too, with SEN pupils suffering …

Government response. The government welcomes the assessment on the state of public services in Northern Ireland and recognizes that improving them will not be quick or easy.
Northern Ireland Office
2 Recommendation 1st Report - Funding and delivery of pu… Deferred

Northern Ireland requires stable, needs-based funding, with potential backdating, for public services.

Northern Ireland must be funded according to its level of need. In the short term, that means in the main by central Government. The previous Government accepted that for every £100 spent on public services in England, it costs £124 to run the equivalent services in Northern Ireland. Opinions differ …

Government response. The government states that Northern Ireland is currently funded above its independently assessed level of need and will receive a large settlement through the Spending Review. It commits to immediately begin negotiations on a full Fiscal Framework to determine long-term, …
Northern Ireland Office
3 Recommendation 1st Report - Funding and delivery of pu… Deferred

Backdate Northern Ireland's assessed funding need based on Holtham's independent review.

The Government must engage constructively with the conclusions of Prof. Gerald Holtham’s independent review of Northern Ireland’s level of need in deciding future levels of, and mechanisms for, needs-based funding. In negotiations with the Executive on the final Fiscal Framework, we urge the Government to backdate assessed need to the …

Government response. The government states that negotiations on a full Northern Ireland Executive Fiscal Framework, encompassing the Holtham Review, will commence immediately, deferring decisions on backdating assessed need or compensating for past shortfalls. It highlights that NI is currently funded above its …
Northern Ireland Office
4 Recommendation 1st Report - Funding and delivery of pu… Accepted

Northern Ireland needs long-term funding and integrated government for public service transformation.

Northern Ireland must have appropriate funding now to transform its public services in the medium term. In recent years, Northern Ireland has received one-off funding packages to alleviate short-term problems. This well-intentioned resourcing has done little to help Northern Ireland plan and invest strategically for long-term public service transformation. We …

Government response. The government committed £235 million to the Transformation Fund, ringfenced for public service transformation, and has already allocated £129m to six projects, with plans to allocate the remaining funds soon.
Northern Ireland Office
5 Recommendation 1st Report - Funding and delivery of pu… Accepted

Provide stable, sustainable, multi-year funding for Northern Ireland public services transformation.

The Government must provide stable, sustainable, multi-year funding as part of future budget settlements, to enable the Northern Ireland Executive and service providers to plan for long-term public services transformation. (Recommendation, Paragraph 62) Raising revenue

Government response. The government confirmed multi-year funding for the Spending Review period until at least 2028-29, aligning with the recommendation for stable, sustainable funding for Northern Ireland.
Northern Ireland Office
6 Conclusion 1st Report - Funding and delivery of pu… Accepted

Northern Ireland could reduce Block Grant reliance through increased revenue raising.

In the longer-term, one way in which Northern Ireland could reduce its reliance on the vagaries of the Block Grant, Barnett formula and short-term funding would be to raise more revenue itself. That is, of course, easier said than done. The introduction of water charges (for example) may be politically …

Government response. The government has agreed with the Northern Ireland Executive to immediately begin negotiations on a full Fiscal Framework, including discussions on Northern Ireland Housing Executive borrowing and the Holtham Review, aiming for long-term financial sustainability.
Northern Ireland Office
7 Conclusion 1st Report - Funding and delivery of pu… Deferred

Agree a final Fiscal Framework including a route map for fiscal devolution.

As a matter of urgency, the Government and Executive should agree a final Fiscal Framework which includes a route map to potential further fiscal devolution—to improve Northern Ireland’s public services and the daily lives of all the people of Northern Ireland. (Recommendation, Paragraph 74) 37

Government response. The government response quotes a statement about the need for stable, sustainable, multi-year funding for Northern Ireland's public services. It does not directly state the government's commitment to agreeing a final Fiscal Framework or a route map to further fiscal …
Northern Ireland Office

Oral evidence sessions

3 sessions
Date Witnesses
22 Jan 2025 Ciarán Hayes · Northern Ireland Office, Dr Caoimhe Archibald MLA · NI Department of Finance, Fleur Anderson MP · Northern Ireland Office, Joanne McBurney · NI Department of Finance, Neil Gibson · NI Department of Finance, Stephen Rusk · Northern Ireland Office View ↗
15 Jan 2025 Alex Brennan · Northern Ireland Women’s Budget Group, Ann Watt · Pivotal Public Policy Forum, Celine McStravick · Northern Ireland Council for Voluntary Action, Dr Alan Stout · British Medical Association Northern Ireland Council, Dr Graham Gault · National Association of Headteachers Northern Ireland, Pamela McCreedy · Police Service of Northern Ireland View ↗
8 Jan 2025 Dorinnia Carville · Northern Ireland Audit Office, Professor Stephen Farry · Ulster University, Sir Robert Chote · Northern Ireland Fiscal Council View ↗