Vital that any return of the Stormont power-sharing institutions must be accompanied by adequate funding - Donaldson

The DUP leader said Northern Ireland is falling behind the rest of the UK in terms of per capita spend on services and called for a review of the way the province is funded.

He also said public sector workers in Northern Ireland deserve to have pay parity with those in the rest of the UK.

A document published by the Department of Finance this week said Stormont's budget has fallen by more than £2 billion in real terms since 2021 due to the impact of inflation.

Northern Ireland Secretary Chris Heaton-Harris wrote to senior civil servants last month, directing them to launch public consultations on measures to support budget sustainability and raise additional revenue.

These include potential measures such as introducing domestic water and waste water charges, drug prescription charges and increasing university tuition fees.

While Stormont ministers would have to make decisions on any revenue-raising measures, Northern Ireland is currently without devolved power-sharing institutions due to the DUP's protest against post-Brexit trading arrangements.

Stormont departments have also said they do not have the funds to settle a series of public sector pay disputes in the province. A number of trade unions have been involved in ongoing industrial action.

Sir Jeffrey said his party is very concerned about the state of public finances in Northern Ireland.

He said: “We were the first party to raise this at Westminster, we were the first party to identify the gap in funding our public services that we are now falling below Scotland, Wales and England in terms of the per capita spend on public services, including health and education.

“Therefore that gap needs to be bridged. That is why we have called for a reset on our funding formula, a moving away from what we have in the moment in the Barnett formula towards a needs-based funding formula which actually delivers what we need for our public services.

“There is no doubt that gap is growing. It is why we had an overspend last year, it is why there will inevitably be an overspend this year if we don't secure the funding.”

He added: “On top of that, not only is it more difficult to deliver basic public services in health and education at the moment but there is the whole question of pay parity.

“We are very clear that our public sector workers, whether it is our hard-working nurses and doctors, our teachers, our police officers, our civil servants, they deserve to have parity of pay.

"This is a major issue for the delivery of our public services because our ability to recruit and retain staff within public services is increasingly challenging because we are not getting that pay parity. We are having public servants who are delivering services denied pay increases of any kind and that is simply not acceptable.

“This is a key element. If Stormont is to be restored then it needs the funding to deliver the public services which are vital for the people of Northern Ireland.

“We are looking to the government in circumstances if and when we are to see Stormont restored that it has the wherewithal to deliver on public services. That is absolutely vital.”