Northern Ireland’s public service funding to be examined by Committee
10 March 2023
Ahead of next week’s Budget, MPs on the cross-party Northern Ireland Affairs Committee have launched a new inquiry into funding for Northern Ireland’s key public services.
- Inquiry: The funding and delivery of public services in Northern Ireland
- Northern Ireland Affairs Committee
Northern Ireland’s finances face a black hole of £660m according to NI Secretary Chris Heaton-Harris and there have been reports of impending cuts for NI departments of at least £500m.
As well as exploring the impact of the lack of a functioning Executive and Assembly on the management of public finances, the Committee will review existing and potential revenue streams for Northern Ireland. This will include the effectiveness of the Barnett Formula that determines the amount of cash that is transferred to NI’s departments following budgets to spend on services like healthcare, policing, and education.
On 15 March, when Jeremy Hunt delivers his Budget questions will probably again be raised over the effectiveness of the Barnett Formula and whether it can help to address gaps in need between NI and the rest of the UK.
NI Affairs Committee Chair Simon Hoare said, “With the NI Assembly not sitting and the Executive absent, decisions on funding and spending will in effect be made in Westminster and by civil servants in NI. This is less than ideal given the specific challenges faced by Northern Ireland.”
“When the Executive is restored, is business as normal going to cut it to address challenges in education, policing and health in Northern Ireland?”
“The public funding situation is extremely concerning.”
“Our inquiry will examine how we can ensure these areas get what they need, while also ensuring that they can be sustainable.”
While the Executive and Assembly are in abeyance, budgets for NI departments are drawn up by the Northern Ireland Office and passed in the UK Parliament, the last entering force on 8 February.
Terms of reference
The Committee invites information from academics or people with knowledge of NI public spending and services on our webpage on the following subjects before the end of Friday 21 April:
- the impact of the lack of a functioning Executive on budgetary management and strategic decision-making across Northern Ireland Departments;
- the financial situation facing Northern Ireland’s public services, including the police, health, education and children’s social care, and the consequences of budgetary pressures on the delivery of those public services;
- the effectiveness of the Barnett formula in calculating the amount of money the UK Government makes available to Northern Ireland for providing essential services; and
- alternative options for increasing revenue in Northern Ireland which could be open to the NI Executive or UK Government in bringing NI’s finances onto a more sustainable footing.
Further information
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