Chris Heaton-Harris tells Northern Ireland parties: Treasury package for Stormont return dependent on ‘proper’ plan for government

The Northern Ireland Secretary said previous commitments by Stormont leaders to reform public services in exchange for past UK government funding packages had not been followed through into action.

He was commenting after it emerged that the region’s main parties appear set to ask the Treasury for a £1 billion-plus package to support the return of powersharing. The size of the potential pitch for extra Government funding was discussed at a meeting of the four largest parties and the head of the Northern Ireland Civil Service, Jayne Brady, in Belfast on Thursday.

Parties are also likely to seek longer-term funding commitments from the Treasury alongside a one-off package to address Stormont’s short-term funding crisis. Such measures could include reform of the Barnett formula used by the Government to calculate the block grant allocated to Northern Ireland each year.

On the agenda at the meeting convened by Dr Brady were discussions on Stormont’s financial problems, the challenges arising from the current governance gap, and planning geared around a potential return of devolution.

On a visit to a sports centre in Lisburn on Thursday afternoon, Mr Heaton Harris was asked whether the £1.1 billion figure that emerged from the earlier meeting was a realistic ask of Treasury. He declined to be drawn.

“I’m not the Chancellor of the Exchequer, I’m the Secretary of State for Northern Ireland, and I will do everything I can to get the executive back up and running – but let’s take it step by step,” he said.

He added: “I also want to be a bit of a cheerleader for Northern Ireland when the executive is up and running, but it does need a plan for government.

“Previous iterations of UK government have given big chunks of money to Northern Ireland politicians to spend on reform and transformation of public services in the past and it just hasn’t materialised.

“So, the fact that they are coming together to look at a (plan), not just saying the words ‘this is a plan for government’, but actually coming together and building that plan, I take that as being really positive. And I look forward to working with them on it.”

Asked if the Treasury would provide extra funding in exchange for fresh commitments to reform public service delivery in the region, he said: “I mean there’s no extra money available at the moment. But I think it would be a different situation if the executive is up and running and if there was a proper plan for government.”

Civil servants have estimated that Stormont departments need hundreds of millions of pounds in extra funding to maintain public services at their current level this year.

Hundreds of millions more would be needed to settle a series of public sector pay disputes in the region.

Senior civil servants are currently running public services in the region in the ongoing absence of devolution.

Mr Heaton Harris met health unions on Thursday to discuss their pay demands. He said he understood their frustrations but insisted he did not have the ability to implement a salary increase this year.

“It just underlines, doesn’t it, the fact that we need an executive up and running in Northern Ireland to make those political decisions, because I literally do not have the power to intervene,” he said.

The DUP is blocking the powersharing institutions in protest at post-Brexit trading arrangements.

The four parties eligible to participate in a ministerial executive if it was resurrected – Sinn Fein, the DUP, Alliance and UUP – attended the meeting convened by Dr Brady at Stormont Castle.