2
Recommendation
1st Report - Funding and delivery of pu…
Deferred
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 …
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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 on whether this 124% uplift in funding a fair and accurate assessment of Northern Ireland’s relative level of need is. There are clearly opportunities for the Executive and service providers to use their current funding more efficiently, as highlighted by the BMA, and through improved data collection. To that end, we welcome the work that Prof. Gerald Holtham is undertaking to make a new, independent assessment of need in Northern Ireland. From the evidence which we have taken, it seems clear that a figure of 124% or 127% will not make a significant difference to Northern Ireland’s public services on its own in the short term, if it is applied in future only to Barnett consequentials. To ensure that Northern Ireland is funded according to need as quickly as possible, and to avoid a potential 35 cliff edge in funding from 2026–27 when the additional one-off funding Northern Ireland received under the 2024 Executive restoration package comes to an end, there is a compelling case for backdating the 124% uplift to the start of the 2021 Spending Review period, and reflecting that in the Block Grant baseline figure for the next. Applying the figure for relative need to the Block Grant year-on-year, without Barnett consequentials, is another option. But, whatever the means, the key objective is to ensure that Northern Ireland is fully funded according to need, through stable, sustainable and predictable allocations, starting with the allocation at the next Spending Review. (Conclusion, Paragraph 40)
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Government response AI summary
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, stable, and predictable needs-based funding.
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Northern Ireland Executive
Northern Ireland Office
3
Recommendation
1st Report - Funding and delivery of pu…
Deferred
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 …
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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 start of the 2021 Spending Review period, in order to include it in the Block Grant baseline figure for the next Spending Review period—or, alternatively, having acknowledged the shortfall during that Spending Review period, compensate Northern Ireland in future years. (Recommendation, Paragraph 41) Transformation and reform
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Government response AI summary
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 independently assessed level of need.
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Northern Ireland Executive
Northern Ireland Office
7
Conclusion
1st Report - Funding and delivery of pu…
Deferred
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
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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
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Government response AI summary
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 devolution as recommended.
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Northern Ireland Executive
Northern Ireland Office