‘Significant gap’ on Northern Ireland finances remains, DUP leader says

A “significant gap” remains in funding to Northern Ireland, despite the £3.3 billion package offered on the return of powersharing, DUP leader Sir Jeffrey Donaldson has said.

Sir Jeffrey was joined by shadow Northern Ireland minister Fleur Anderson on questioning the Government as to whether more funding from the Treasury would be forthcoming.

The Government has provided a £3.3 billion financial package upon the return of devolved government, with the Stormont Finance Minister Caoimhe Archibald meeting with Laura Trott, chief secretary to the Treasury, on Wednesday.

The powersharing Executive has been told by the Government it should raise £113 million in additional funds over the next year and produce a plan to deliver sustainable finances as a condition for the Treasury writing off almost £600 million of Stormont debt.

But Stormont leaders have voiced concern about introducing new revenue-raising measures in the region and have ruled out increasing the regional rate in Northern Ireland by 15% to raise the £113 million.

During oral questions in the House of Commons on Wednesday Sir Jeffrey asked Northern Ireland Secretary Chris Heaton-Harris if he would work to secure “further support” for the Executive’s finances.

He said: “(Chris Heaton-Harris) referenced earlier the financial package that the Treasury has put in place to support our public services in Northern Ireland, but there remains a significant gap in the next two financial years in relation to our commitments on public sector pay.

“Will he (Mr Heaton-Harris) work with us to seek further support from the Treasury to ensure that the Executive lives within its budget but that we are able to pay our public sector workers a decent wage for the vital work that they do.”

Mr Heaton-Harris responded: “It is good to see the Executive back up and running and making these choices and opening the negotiations with the unions to get the public sector back on track when it comes to pay and work in Northern Ireland.

“I know there’ll be meetings, I believe a meeting today, between the Finance Minister and the Chief Secretary of the Treasury, but I’ll always happily work with him on these agendas.”

Ms Anderson then asked if levelling-up funding that had previously been denied to Northern Ireland on the basis that government at Stormont was not operational, would now be provided.

She told MPs: “According to a Northern Ireland Affairs Committee report, Northern Ireland received proportionally less than Scotland, Wales and England in the first round of levelling-up funding. In the latest round of funding in November, not a penny was allocated to Northern Ireland.

“The Government said that this was because the Executive wasn’t sitting, so is there good news for the people of Northern Ireland today? Now that powersharing has been restored will the Secretary of State update the House on discussions he’s had about ensuring a fair share of the levelling-up funding goes to Northern Ireland.”

Northern Ireland Minister Steve Baker said he would “be glad to continue conversations with the Executive”.

He said: “As (Ms Anderson) knows we have made available a generous package of £3.3 billion overall. We continue conversations on the detail of those areas of funding which have been repurposed. Those conversations will continue and when we can update the House in fuller detail of course we’ll be glad to do so.”