Dr. Caoimhe Archibald MLA, the Finance Minister, has successfully obtained a commitment from the Treasury to carry out a review on the future funding of the Executive. The formalization of this agreement occurred with the signing of the Interim Fiscal Framework in London, where Dr. Archibald signed on behalf of the Executive. This signing was witnessed by the Chief Secretary to the Treasury, Rt Hon Laura Trott MBE MP, and the Secretary of State, Rt Hon Chris Heaton-Harris MP.
Dr. Archibald has emphasized that the signing of the Interim Fiscal Framework represents a significant milestone in the effort to put the government’s finances on a more sustainable path. The primary goal of this move is to ensure the delivery of high-quality public services that people expect and deserve. Dr. Archibald has also expressed her appreciation for the Treasury’s commitment to reviewing the approach to funding the Executive in the upcoming Spending Review. The Minister has underscored the importance of this commitment in addressing concerns over a funding cliff edge once the financial package concludes in 2025/26.
The agreement provides reassurance that the Executive can make plans under the assumption that it will be funded at or above the 124% level of relative need in future financial years. Additionally, the Treasury has agreed to the 124% needs-based adjustment factor from Barnett consequentials being applied from the date of the restoration of the Executive. This translates to an additional £24 million from the Spring Budget being made available for allocation as part of June monitoring, with the potential for further Barnett funding at an increased level in 2024/25.
Dr. Archibald has acknowledged the continued budgetary challenges facing the Executive and has committed to advocating for increased funding in public services. She has emphasized her determination to ensure that public services are fairly and properly funded, underscoring the need for a full fiscal framework critical for long-term sustainability. Dr. Archibald concluded by expressing her commitment to work with the Chief Secretary to the Treasury on a final Fiscal Framework that equips the Executive with the financial tools and necessary taxation levers to deliver sustainable public finances and services to the people it serves.
For further details, the Interim Fiscal Framework, Joint Communique, and Written Ministerial Statement can be accessed at: https://www.finance-ni.gov.uk/publications/interim-fiscal-framework. Media enquiries can be directed to the Department of Finance Press Office.
The commitment from the Treasury to review funding is a crucial development in ensuring the sustainability of public finances. As the Finance Minister navigates the challenging budgetary landscape, her dedication to securing fair and proper funding for public services remains unwavering. The ongoing efforts to work with the Treasury for a final Fiscal Framework demonstrate the commitment to long-term fiscal sustainability and the delivery of quality public services.