MPs are today urging the UK Government to rethink both the levels
and mechanisms for funding public services in Northern Ireland
amid warnings of the impact the continuing state of crisis is
having on people's quality of life.
The report from the cross-party Northern Ireland Affairs
Committee highlights how the health service, schools and
criminal justice system are facing particular pressures, partly
because of the legacy of the recent past, with poor public
services stifling Northern Ireland's ability to invest in skills,
infrastructure and grow its economy.
While the current needs-based element of funding means that since
the restoration of the Executive, Northern Ireland has received
124% of any increase in funding for England - in part due to
comparatively widespread poverty, greater disadvantage and a
higher proportion of the people being in receipt of benefits -
the Committee highlights evidence that such a figure will not be
enough to make a significant difference to public services in the
short term.
The Committee therefore calls on the Government to ensure that
Northern Ireland's next Block Grant baseline, from 2026–27
onwards, is calculated according to NI's level of need.
The report also calls on the Government to provide stable and
sustainable multi-year funding as part of future settlements to
enable the Northern Ireland Executive to properly plan public
services transformation in the medium term. The Committee
does note, however, that money currently earmarked for
transformation has been diverted to day-to-day spending.
In the longer term, the Committee calls on both the Government
and Executive to agree a route map to further fiscal devolution
to reduce Northern Ireland's reliance on central government
funding and give it the ability to raise more revenue itself.
MP, Chair of the Northern
Ireland Affairs Committee, said:
“The crisis afflicting public services in Northern Ireland has
gone on for far too long with the crippling effects of
underfunding impinging on the day to day lives of people across
communities. The current hand to mouth approach when it comes to
funding has often been too little, too late, particularly when it
comes to what one witness to our inquiry called the three hungry
children of the health service, schools and the police. The aim
must be that public services in Northern Ireland are fully funded
according to need, through stable, sustainable and predictable
allocations, and our recommendations for the short, medium and
long term set out the path to get there.”
Main findings and recommendations
The state of public services in Northern Ireland
Health
- Witnesses to the inquiry told the committee that of all
Northern Ireland's public services, there is particular pressure
on the health service, with long waiting lists, a struggling
primary care sector and an acute mental health situation, in part
due to Northern Ireland's recent history.
Education
- Lack of funding for children with special educational needs,
a discrepancy in spend between pupils in Northern Ireland
compared with the rest of the UK and a schools maintenance
backlog were all highlighted in evidence to the inquiry.
Police and justice
- Policing and justice continue to operate under budgetary
constraints, while dealing directly with the legacy of Northern
Ireland's recent past.
Other sectors
- The Committee also heard concerns about funding in the
infrastructure, childcare, housing and skill sectors.
The needs-based assessment
- The Committee welcomes the independent assessment of need in
Northern Ireland being undertaken by Professor Gerald Holtham and
says the Government must engage constructively with the
conclusions when deciding on future levels of, and mechanisms
for, needs-based funding.
- The Government should backdate assessed need to the start of
the 2021 Spending Review period, in order to include it in the
Block Grant baseline figure for the next Spending Review period.
Transformation and reform
- The Executive, public service providers and, most
importantly, service users need longer-term funding settlements
to enable better long-term planning, implementation and outcomes.
- The Government must provide stable, sustainable, multi-year
funding as part of future budget settlements, to enable the
Northern Ireland Executive and service providers to plan for
long-term public services transformation.
Raising revenue
- While easier said than done, in the longer term one way in
which Northern Ireland could reduce its reliance on the vagaries
of the Block Grant, Barnett formula and short-term funding would
be to raise more revenue itself.
- As a matter of urgency, the Government and Executive should
agree a final Fiscal Framework which includes a route map to
potential further fiscal devolution — to improve Northern
Ireland's public services and the daily lives of all the people
of Northern Ireland.
