Select committee: Northern Ireland Affairs Committee
Conclusion 3
Second Report: New Decade, New Approach Agreement
Published 16 Jul 2020
Paragraph 23
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 heard that £2 billion of Government funding is insufficient to meet the objectives of the agreement. In addition, the economic effects of Covid-19 will exacerbate pressure on public finances in Northern Ireland. We also heard that the need to prioritise which commitments to enact in the agreement due to insufficient funding could destabilise the Northern Ireland Executive.
From: Northern Ireland Affairs Committee, Second Report: New Decade, New Approach Agreement (HC 160), paragraph 23, 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".