Select committee: Northern Ireland Affairs Committee

Recommendation 4

1st Report - Funding and delivery of public services: follow up Published 7 Apr 2025 Addressed to Northern Ireland Executive; Northern Ireland Office
Recommendation (the committee's words)
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 note, however, that the Executive has more than the ring-fenced £235 million at their disposal which they could spend on transformation, but it has failed to do so. In the case of the Executive restoration package, funding has been diverted to day-to-day spend. Despite Government reassurances, the public sector, and community and voluntary sector are still concerned about upcoming increases in National Insurance contributions. The Executive, public service providers and, most importantly, service users need longer-term funding settlements to enable better long-term planning, implementation and outcomes. With the political institutions stabilised, funding needs to follow suit. We also note some evidence which seems to demonstrate that the siloed nature of NI Executive Departments works against joined-up government and collective responsibility. The cohesion of government structure in the Executive and between the Departments in Northern Ireland will need to be enhanced in the medium-term if the funding and delivery of public services is to be more efficient and effective in the future. (Conclusion, Paragraph 61) 36

From: Northern Ireland Affairs Committee, 1st Report - Funding and delivery of public services: follow up (HC 477), 7 April 2025

Government response

The government responded to the whole report on 19 June 2025 (deadline 7 June 2025).

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government's response "notes" the Committee's recommendations on needs-based funding, multi-year budgeting and tax devolution, and sets out funding and Fiscal Framework developments, stating that "more time is needed" on the long-term framework.

  • On needs-based funding, the government says the Executive will "continue to receive over 24% more per person" than equivalent UK Government spending in the rest of the UK, "above their independently assessed level of need". Its response does not address the request to backdate assessed need.
  • On the Fiscal Framework, the UK Government and the Executive "have also agreed to immediately begin negotiations" on a full framework, covering Housing Executive borrowing and the Holtham Review. The government says "more time is needed" for any long-term agreement to be robust.
  • On multi-year funding, the Chancellor "has confirmed multi-year funding for the Spending Review period until at least 2028–29". The government says it "would expect" the Executive to return to multi-year budgets.
  • The government says £129m of the £235m Transformation Fund has been allocated to six projects, and it will "seek to identify more projects" and continue to monitor and evaluate allocated funding with the Public Sector Transformation Board.

Read the government's response ↗ Report an error