Commons Sense

House of Commons · Ministers' Questions

Barnett Formula

Wednesday 24 July 2024 · 5 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 4 Not answered 0

Key points

  • Jim Shannon asked about discussing with the Chancellor of the Exchequer to reform the Barnett formula for Northern Ireland.
  • Sorcha Eastwood inquired about ensuring new financial arrangements are fully baselined and informed by independent expert analysis.
  • Jim Shannon questioned the Secretary of State to urgently look at the issue of Northern Ireland workers not receiving the same 5% wage increase announced for health and education workers in England.

Topics (select to filter)

Questions & Answers

Q1 Jim Shannon DUP Strangford
Economy Northern Ireland Local Government
Context

There is an ongoing discussion about the Barnett formula for Northern Ireland, which affects funding distribution.

Question

If he will have discussions with the Chancellor of the Exchequer on reforming the Barnett formula for Northern Ireland. The interim fiscal framework agreed earlier this year introduced a needs-based funding formula set at 124% of spending per head in England, based on the advice of the Northern Ireland Fiscal Council.

Answer from Hilary Benn

The interim fiscal framework agreed earlier this year introduced a needs-based funding formula set at 124% of spending per head in England, based on the advice of the Northern Ireland Fiscal Council. We are committed to taking forward these discussions with the Executive.

Partly answered

Not addressed: Did not commit to specific reforms or timeline for reforming the Barnett formula

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Q2 Sorcha Eastwood Alliance Lagan Valley
Northern Ireland
Context

The need for a properly resourced public service in Northern Ireland is crucial and impacts constituents. The question centres around ensuring new arrangements are fully baselined and informed by independent expert analysis.

Question

Fixing Northern Ireland's financial framework is crucial to ensure that our public services are properly resourced, impacting my constituents in Lagan Valley. Will he ensure that any new arrangements are fully baselined and informed by independent expert analysis?

Answer from Hilary Benn

The Northern Ireland Fiscal Council was set up to help answer questions about what the need is in Northern Ireland. It came up with a range of between 121% and 127%, opting for 124% in the middle, which was included in the interim fiscal framework negotiated by the previous Government.

Partly answered

Not addressed: Did not commit to ensuring new arrangements are fully baselined or informed by independent expert analysis

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Q3 Jim Shannon DUP Strangford
NHS Education Northern Ireland
Context

The Chancellor has indicated a 5% increase in wages for health workers and those in the education sector, but due to current Barnett consequentials for Northern Ireland, this may not apply to workers there. The question seeks urgent action.

Question

The Chancellor has announced a 5% wage increase for health workers and those in the education sector. However, given the current Barnett consequentials, Northern Ireland workers will not receive the same increase. Will the Secretary of State urgently look at this issue to ensure that these workers get the same increase?

Answer from Hilary Benn

Decisions about pay in Northern Ireland are a matter for the Executive. Any additional spending in England will apply through the Barnett consequentials to Northern Ireland in the normal way.

Partly answered

Not addressed: Did not commit to urgently addressing the issue of wage increases for workers in Northern Ireland

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Q4 Tonia Antoniazzi Lab Gower
Northern Ireland
Context

The question discusses how funding is allocated and generated, which are matters for the devolved administration and assembly in Northern Ireland.

Question

Does he agree that how funding is allocated and further revenue might be generated are matters for the devolved Administration and Assembly?

Answer from Hilary Benn

All Governments, including the Northern Ireland Executive, have the money they have coming in, the money they can raise in addition, and how they will prioritise their spending. The Northern Ireland Executive has more funding per head of population than England.

Answered
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Q5 Paul Holmes Con Hamble Valley
Northern Ireland Business & Trade
Context

The question addresses the export development guarantee that was not proceeded with to save Harland and Wolff, a company with an outstanding defence contract. The speaker asks for continued support.

Question

On Monday, the Government decided not to proceed with an export development guarantee or emergency loans to save Harland and Wolff despite its unique role and outstanding defence contract. Will the Secretary of State use his position to continue previous Government's support and make it clear to the Treasury that people in Northern Ireland expect intervention?

Answer from Hilary Benn

Harland and Wolff is now talking to its main supporters, Riverstone, about potential additional financial support. We are committed to shipbuilding across the United Kingdom, including in Northern Ireland.

Partly answered

Not addressed: Did not commit to continuing previous government's support or making a clear stance on intervention with Treasury

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