Freya McClements
Tue Dec 19 2023 – 12:17

The UK government has upped the financial package aimed at restoring Northern Ireland’s political institutions to £3.3billion (€3.8 billion) and said it is now time for the DUP to “make a decision” about returning to Stormont.

The latest round of talks between the Northern Secretary Chris Heaton-Harris and Northern Ireland’s four largest political parties – Sinn Féin, the DUP, Alliance and Ulster Unionists – took place at Hillsborough Castle on Tuesday.

Speaking to reporters following the talks, Mr Heaton-Harris said “these financial talks have concluded and there is a financial package worth in excess of £3bn on the table should the Executive be restored.

“From our perspective, the Windsor Framework talks, on all issues of substance, have effectively concluded, but we are always, always happy to answer concerns and any questions on these.

“The UK government also stands ready to deliver on the outcomes of the Windsor Framework talks when the institutions are restored,” he said.

The new deal, which was outlined to the parties on Tuesday, is an increase of 0.8bn compared to London’s offer last week of £2.5bn (€2.9bn), which the Northern parties said did not go far enough.

The financial package is dependent on the restoration of the Stormont Assembly and Executive.

However, hopes the financial agreement would lead to the return of power-sharing were dashed on Monday when the DUP ruled out a return to power-sharing this week, saying discussions were not yet complete and the party was “condition-led not calendar-led.”

The North’s devolved government has been suspended for almost two years due to a DUP boycott over post-Brexit trading arrangements.

The other main political parties in Northern Ireland – Sinn Féin, Alliance, the Ulster Unionists and the SDLP – have all urged a swift return to power-sharing and spoken of their frustration that the Assembly and Executive have not yet been restored.

The improved financial package outlined by the UK government to the parties on Monday is understood to comprise £184m for a public sector pay award.

Northern Ireland will be funded through a new needs-based model, which means it will receive £1.24 for every £1 spent in England.

The repayment of the Stormont overspend – estimated at £559m – will be deferred for two years and will be written off if a restored Executive publishes and implements a fiscal sustainability plan.

The previous proposal for a 15 per cent increase on the regional rate has been removed and replaced with a broader requirement to raise revenue by whatever means the Executive chooses.

It is understood this would require it to raise at least £100m per year.

More than £600m of new and existing funding will be used to create a fund for the transformation of public services, with an additional £34m provided to tackle health waiting lists next year.

In the wake of the PSNI data breach, an additional £15m has been approved, and Northern Ireland will be regarded as an enhanced investment zone, worth £150m.

by badger-biscuits

9 comments

  1. Oh come on Chris.

    At least give nationalists something and make it £3.2B.

    Wanker

  2. Consider: DUP refuse, Westminster says ‘fine’ and pulls the funding while raising rates, public sector service delivery collapses over the next 12-18 months, polling figures for ‘remain in the UK’ start to decline, Sir Keef (now PM) takes note of this and the fact that NI is proving the fly in his great plan to decentralise the UK, and then….

  5. If I was HH I would just tell them to fuck off and rule through WM. Even from here couldn’t necessarily blame them. Imagine selling to your English constituents “for every £1 we spend, NI gets £1.24”

  7. This is just all a big pantomime isnt it?

    Probably been agreed at this figure for months but DUP needed to be shown to turn down the first offer so not to be “selling out” and claiming a victory by the UK govt coming back with a better offer

  8. We need some kind of legislation after this that when a party refuses to take a seat, there is a re-election without them. We’re voting to let someone get the first slice of cake, and they’re locking the cake in a box until later.

    Edit: worth extending this to point out that the person locking away the cake was voted second but just pushed in front first too!

  9. Those pesky Brits offering us money so that we can have a government. They never give us anything.

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