Sir Jeffrey Donaldson says ‘much more’ needed from Government on NI funding model

In a letter to party members seen by the PA news agency, Sir Jeffrey said he expects Westminster to "advance" its current offer on Monday and work towards "substantive change" in Northern Ireland's funding model.

The Government has offered the lump sum to settle outstanding public sector pay demands and a new fiscal floor for Northern Ireland, but it is dependent on a restored powersharing administration in Belfast.

Northern Ireland's institutions require the largest unionist and nationalist parties to share power but the Stormont Assembly and executive have been effectively collapsed for almost two years amid DUP protest action over unionist concerns around post-Brexit trading arrangements.

Sir Jeffrey said his party would not let "hype, spin and sometimes ill-founded claims" distract it from its own negotiations with the Government to "restore Northern Ireland's place in the United Kingdom and its internal market".

He also told members that those negotiations are separate from the ongoing talks on the region's public finances.

Secretary of State for Northern Ireland Chris Heaton-Harris chaired another plenary session with the four Executive parties at Hillsborough Castle on Wednesday evening after outlining the £2.5 billion package.

Sir Jeffrey said the DUP took the lead in arguing that Stormont could only be restored on the basis of sustainable funding and protecting the union, adding: "Others would have been back long ago without any of these requirements being met."

Sir Jeffrey said there needs to be a change in the formula that calculates the amount of money Northern Ireland receives compared with other regions in the UK.

"That situation can only change when we secure a new long-term funding model for Northern Ireland that is needs-based.

"Additionally, I have been making the argument that any future Northern Ireland Executive must be able to deliver on transforming our health system, a focus on getting waiting lists down, investing in our schools for the benefit of the next generation, and be able to help hard-pressed families with childcare."

Although acknowledging progress on restructuring the funding for Northern Ireland, Sir Jeffrey said "much more will be required" to secure future transformation.

"While some have focused on adding the numbers on the pages given to the parties by Government, we know that much of what is proposed does not deal with our long-term challenges.

"More work will be required and I have no doubt the Government will want to advance on their offer on Monday. They will ultimately need to move on a substantive change to our funding formula."

Sir Jeffrey said the DUP "makes no secret" of pursuing a conclusion to its own negotiations on post-Brexit trading arrangements with the Government.

The MP for Lagan Valley said: "While we know the importance of having our public finances on a secure long-term footing, an adequate financial package from the Treasury does not fix the constitutional and economic issues arising from the protocol.

"In negotiations with the Government across a range of issues, we have been able to identify legislative measures and potential actions that would be in keeping with our negotiating objectives.

"This is important work and we will not allow ourselves to be distracted by hype, spin and sometimes ill-founded claims as we seek to deliver long-term solutions, measured against the tests in our manifesto, and that work for Northern Ireland and our place within the United Kingdom."