Recommendation 6

Northern Ireland’s public services, especially in the health, education and justice sectors, are in a poor state after years of political instability, lack of funding and of reform. The additional £520 million per year promised by the Government in 2024/25 and 2025/26 will help to address pressures in the immediate term, as well as public sector pay offers for 2023/24. However, the Northern Ireland Fiscal Council has warned of “an abrupt ‘cliff-edge’ drop in funding” from 2026/27. Given this concern, we invite the Government to set out its assessment of the implications for public services of the expected drop in funding from 2026/27 and the rationale for its decision on the two-year stabilisation funding in response to this report. (Paragraph 38) Funding, reform and absent institutions