Select committee: Northern Ireland Affairs Committee
Conclusion 2
Second Report: New Decade, New Approach Agreement
Published 16 Jul 2020
Paragraph 13
Addressed to Northern Ireland Office
Northern Ireland Affairs Committee New Decade, New Approach Agreement All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
We received evidence questioning the equity of the decision in the New Decade, New Approach agreement to link funding for public services in Northern Ireland to the restoration and operation of the devolved institutions. Although we understand this argument, we recognise the Government’s rationale of using the incentives available to it to encourage the restoration of, and commitment to, devolved government after a prolonged suspension. The Government’s focus must now be on helping to foster stable devolved government in Northern Ireland, where politicians deliver on their commitments to transform public services, so that such an incentive is rendered redundant in future.
From: Northern Ireland Affairs Committee, Second Report: New Decade, New Approach Agreement (HC 160), paragraph 13, 16 July 2020
Government response
The government responded to the whole report on 18 September 2020 (deadline 16 September 2020).
Summary written by Accountability Index from the government's response. It is not the government's own words.The Government states it is "in full agreement" with the Committee on the importance of implementing the New Decade, New Approach deal, but "cannot accept" the recommended long-term financial plan and does not accept a need to re-examine borrowing powers "at present".
- On funding, the Government says it has made £2 billion available to the Executive and that it is "for the Executive to set out how implementation of the commitments" for which it is responsible "will be funded". The Joint Board "remains the principal forum" for reviewing funding.
- On borrowing, the Government "does not accept that there is a need to re-examine borrowing powers at present", noting that the Executive decided not to access Reinvestment and Reform Initiative borrowing for Budget 2020-21.
- On the Independent Fiscal Council, the Government "accepts this recommendation fully" that it must operate independently. On its remit, it says "further work is being undertaken" so that decisions can be made on the exact scope of its work.
- The Secretary of State "will commit to writing to the Committee with an update on implementation by the end of the year" and is "happy to attend a one off oral evidence session" at "an appropriate point in the future".