NI finances need to move on to 'long-term sustainable footing'

A political process with the aim of moving Northern Ireland’s finances on to a “long-term sustainable” footing is to begin, Hilary Benn has said.

The Northern Ireland Secretary was joined by the chief secretary to the treasury, Lucy Rigby, for meetings with the leaders of executive parties to discuss Stormont’s budget crisis.

placeholder image — Northern Ireland Secretary Hilary Benn and chief secretary to the treasury Lucy Rigby speak to the media at Hillsborough Castle, after meeting with Stormont party leaders over the budget crisis. Photo: Jonathan McCambridge/PA Wire

The two Labour ministers said work would begin on Friday to understand financial pressures that Stormont departments are facing.

Devolved ministers have failed to agree a budget for the current financial year, with departments operating on contingency budgets since April. Ministers have consistently said they need more funding from the treasury.

Today’s Hillsborough talks were attended by Sinn Fein, the DUP, the Alliance Party and the Ulster Unionists.

Speaking afterwards, Mr Benn said it had been a “productive day” but that officials need to “fully understand” the financial pressures the executive faces.

“Detailed work can now begin with full disclosure,” he said.

“We need a long-term sustainable plan for the future of Northern Ireland’s finances, and this is the start of a political process with that objective in mind.”

Ms Rigby added the work would “hopefully” continue over the summer, working out what’s causing budget pressures while maintaining an “emphasis on plans for fiscal reform” that will move the executive onto a “sustainable footing”.

DUP leader Gavin Robinson said he’d been asking for a process around Stormont’s budgetary challenges since last October.

He said: “It would have been better to our mind if there had been engagement in a detailed and a sincere way since that period of time, because it is unconscionable that we’re in a position we are today, which is three months into a financial cycle and no budget.

“It is clear to us from our engagement that whilst the willingness is there across the political spectrum in Northern Ireland, this exercise is around trying to get the best advice necessary for the Prime Minister.”

He added: “The idea that (a treasury) open book process that concluded a couple of months ago didn’t culminate in a good understanding of departmental information is a strange place to be, but there is now collective agreement that information should be made available.

“I hope that allows the chief secretary to the treasury, the secretary of state and the government more generally to understand and appreciate some of the real financial challenges that are going to need to be grappled.”

Sinn Fein leader Mary Lou McDonald and vice president Michelle O’Neill were among their party’s delegation.

Speaking before the meeting, Ms McDonald said there was a “very, very significant deficit” in how Northern Ireland was funded compared with Scotland or Wales.

She stated: “The failure of the British government and the British state to fund this place correctly isn’t a phase. This is a permanent fixture."

Referring to the likelihood of Andy Burnham becoming the next prime minister, Ms O’Neill said “the face might change, but the policy never does”.

Ulster Unionist leader Jon Burrows said calls for more funding had to be accompanied with a recognition that better government was needed at Stormont.

“We’ll also be making the case to help Northern Ireland grow by getting things like cuts in corporation tax, in VAT and hospitality and tourism that allows us to compete better with the Irish Republic.”