Stormont leaders demand urgent meeting with PM as funding gap could reach £3bn a year

UK Prime Minister Andy Burnham at 10 Downing Street. (Picture by Alecsandra Dragoi / No 10 Downing Street)

Northern Ireland’s entire Executive has united to demand an urgent meeting with new Prime Minister Andy Burnham, warning that mounting financial pressures are threatening the ability of departments to plan and deliver public services.

In a joint intervention signed by all Executive Ministers, Stormont leaders argue Northern Ireland is not being funded on a comparable basis with Scotland and Wales — claiming parity with Wales could mean around £1 billion extra every year, while parity with Scotland could be worth approximately £3 billion annually.

The Executive says the additional funding could help transform public services and put Northern Ireland’s finances on a more sustainable footing, while also accusing Westminster of taking funding decisions which fail to reflect local needs.

Pressure over Northern Ireland’s funding

The intervention comes as Stormont continues to face significant pressure over its finances and the funding available for health, education and other public services.

In their letter to Mr Burnham, Ministers point to work by Professor Gerry Holtham and analysis from the independent Northern Ireland Fiscal Council as evidence for their argument that the current settlement does not provide Northern Ireland with funding comparable to Scotland and Wales.

They told the Prime Minister:

“Funding parity with Wales would provide the Executive with an additional £1 billion each year, while parity with Scotland would deliver around £3 billion more annually.”

Ministers said such a settlement would offer a “transformative opportunity” to pursue the Executive’s ambitions for Northern Ireland.

They added:

“The existing funding framework does not provide a sufficient basis to fund public services, support economic growth or respond to ongoing cost-of-living pressures.”

O’Neill: ‘We need action and we need it urgently’

First Minister Michelle O’Neill said previous approaches to the UK Government had failed to secure what the Executive considers a sustainable settlement.

She said:

“We have repeatedly made the case to the British Government for a fair and sustainable funding package, but our calls have consistently not been met. People here deserve high-quality public services, but we cannot deliver the transformation they need without the necessary investment.

“The people we represent should not be left paying the price for a failure to properly fund public services here. We need action and we need it urgently.”

Deputy First Minister Emma Little-Pengelly said the issue had already been raised with Mr Burnham following his appointment as Prime Minister.

She said:

“When we spoke to the Prime Minister following his appointment, we were very clear about the urgent need to resolve these issues.

“Transforming our public services and delivering real change for the people of Northern Ireland is our priority but we cannot do this alone. We are committed to working with the UK Government to deliver economic growth across the UK, securing a funding envelope that enables us to invest in our public services and secure better outcomes for everyone living here.”

Fiscal Framework talks have stalled

Beyond its demand for more money, the letter raises wider concerns about the financial relationship between Stormont and Westminster.

Ministers say agreement on a full Fiscal Framework must form part of the solution and express concern that discussions have stalled over the past year.

The Executive specifically identifies Housing Executive borrowing powers and access to the National Wealth Fund as areas where Northern Ireland’s different system of public service delivery can create barriers.

Ministers also criticise funding decisions made in London without local agreement, pointing to the Local Growth Fund and arguing that its emphasis on capital spending does not reflect Northern Ireland’s needs.

The letter additionally calls for an urgent resolution to the funding dispute surrounding Victims’ Payments, which entered dispute resolution in 2022.

Executive demands greater say over Westminster funding

Stormont’s leaders are also seeking a formal role in shaping future UK Government funding programmes where they affect devolved responsibilities.

They argue this would allow investment to better reflect Northern Ireland’s priorities and respect the responsibilities of the devolved administration.

Introductions have already been made with the Chancellor, while the Executive says further information was supplied following talks at Hillsborough in June.

However, Ministers warn that the continuing absence of an agreed Stormont budget is increasingly forcing departments into short-term financial decisions, making longer-term planning and delivery more difficult.

Their letter states:

“The sustainability of public finances and services cannot be delivered by the Executive alone. It will only be through joint working and delivery from both your Government and the Executive that we can deliver in the long-term.”

The immediate test will now be whether Mr Burnham agrees to the requested face-to-face meeting — and whether the change of Prime Minister leads to movement on a funding settlement that Stormont has been pursuing with Westminster for considerably longer.

The Executive says it wants that meeting at an early stage, with Ministers seeking both a sustainable funding agreement and renewed negotiations on the wider Fiscal Framework governing Northern Ireland’s finances.