Barnett Formula

Sorcha Eastwood (Lagan Valley) (Alliance) and Jim Shannon (Strangford) (DUP) asked the Secretary of State for Northern Ireland, Hilary Benn, about discussions with the Chancellor of the Exchequer on revising the Barnett formula for Northern Ireland. In his response, the Secretary of State stated that the interim fiscal framework agreed earlier this year introduced a needs-based funding formula set at 124% of spending per head in England, based on the advice of the Northern Ireland Fiscal Council. He committed to taking these discussions forward with the Northern Ireland Executive. Sorcha Eastwood welcomed the Secretary of State and asked him to ensure that any new arrangements are fully baselined and informed by independent expert analysis. Hilary Benn reiterated that the Northern Ireland Fiscal Council had provided the advice on the 124% figure, which was included in the interim fiscal framework. Jim Shannon raised the issue of the 5% pay increase for health and education workers in England, and asked the Secretary of State to ensure that workers in Northern Ireland receive the same increase. Hilary Benn explained that decisions about pay in Northern Ireland are a matter for the Northern Ireland Executive, and any additional spending in England will apply through the Barnett consequentials to Northern Ireland in the normal way. Tonia Antoniazzi (Gower) (Lab) welcomed the commitment to needs-based funding and agreed that how funding is allocated and further revenue generated are matters for the devolved Administration and the Assembly. Paul Holmes (Hamble Valley) (Con) welcomed the Secretary of State and Minister of State to their positions, and raised the issue of the Government's decision not to proceed with an export development guarantee or emergency loans to support Harland and Wolff. Hilary Benn responded that the reasons for the Government's decision were set out in a written ministerial statement, and that Harland and Wolff is now talking to its main supporters, Riverstone, about potential additional financial support.