£3.3bn funding package: ​What’s on offer from the government

It was widely reported to include revenue raising measures. Yesterday, the government published a summary of its ‘financial settlement’ with the Northern Ireland Executive, which it had sent to the finance minister Caoimhe Archibald.

The national government has agreed a ‘needs-based factor’ in the Barnett formula for Northern Ireland to be set at 24% from 2024-25. They say this could generate £785 million over the next five years. The government will also open discussions with the Executive on a new Fiscal Framework for Northern Ireland.

On public sector pay the UK Government has committed £584 million for 2023-24 and it will be up to Stormont to negotiate those deals with workers.

The Executive won’t have to repay money to the Treasury up to £559 million to allow time for the Executive to stabilise services and begin implementing its plan to deliver sustainable finances. But that is contingent on the Executive “publishing and implementing a plan to deliver sustainable public finances and services”.

The Executive must deliver a balanced budget for 2024-25 at the outset of the financial year by raising a minimum of £113 million through locally generated income.

£34 million will be made available in 2024-25 to tackle hospital waiting lists.

There will be “spending power” of over £1 billion for stabilisation over two years. A total of £520 million per year in 2024-25 and 2025-26 will be made available to the Executive to spend on immediate priorities and pressures in line with its new Programme for Government, according to the government.

There will also be an Enhanced Investment Zone in Northern Ireland worth approximately £150m; an increase to Northern Ireland’s annual capital borrowing limit over the next five years with an initial 10% uplift followed by annual increases by inflation.

Stormont will also be expected to publish a comprehensive and costed long-term strategic infrastructure plan setting out how it will support prosperity and growth.

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