Stormont parties 'are playing a game of poker with the Tory government over rates - but are not holding many cards' says Jim Allister

That is the view of Jim Allister, who said it appears the parties are playing a game of high-stakes “poker” with the Province’s public finances.

He was reacting to the news on Thursday that Northern Ireland’s leaders have agreed to raise the regional rate in the Province by 4%, with First Minister Michelle O’Neill saying this is equivalent to a “freeze”.

The regional rate is set centrally by the Department of Finance, and is different from district rates, which are set by local councils.

Concern had been voiced that the 4% rise will not be enough to plug a gap in the Northern Ireland’s budget – upon which a much bigger bailout package depends.

Writing in Friday’s News Letter, economist and former UUP MLA Esmond Birnie had said that extra money pledged by the Tories last year to a restored Stormont government is “conditional on Stormont raising revenue by £113m in 2024-25”.

However, he added that a 4% hike in the regional rate will fall “far short of that” target.

Failing to hit the mark means that Westminster might decide not to write-off an estimated £500m-plus of public debt which Northern Ireland has racked up in recent years.

In other words, not making savings of £113m now could end up costing Northern Ireland nearly five times as much in the longer run.

Mr Allister would not be drawn on how much he thinks the regional rate should have been raised, saying he is “not in government”.

But he told the News Letter: “They’re trying to play a game of poker with the government, and of course what they are risking is £550m which has to be repaid if they don’t do what they’re required to do.

"I think really they’re trying to see can they make the British government blink. But they don’t have a lot of cards.

"I think they’re working on the premise that the British are so desperate to make Stormont a success that in the end, against their better judgement, they’ll give them more money.”

He also said there was “grandstanding and hypocrisy” involved, because in recent years the parties of government on various councils have voted through increases to the district rate which are much higher than 4%.