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. 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, given the Barnett consequentials. Hilary Benn explained that decisions about pay in Northern Ireland are a matter for the Executive, and any additional spending in England will apply through the Barnett consequentials in the normal way. Tonia Antoniazzi (Gower) (Lab) welcomed the commitment to needs-based funding and asked if the Secretary of State agreed that how funding is allocated and how further revenue might be generated are matters for the devolved Administration and the Assembly. Hilary Benn agreed, stating that the Northern Ireland Executive have more funding per head of population than England, and it is for the Executive to take decisions about their priorities and allocate funding accordingly.