Oral Answers to Questions

Jim Shannon Excerpts

Wednesday 24th July 2024 Commons Chamber

[Sorcha Eastwood (Lagan Valley) (Alliance)]

3. Whether he has had discussions with the Chancellor of the Exchequer on a revised financial formula for Northern Ireland.

[Jim Shannon (Strangford) (DUP)]

9. If he will have discussions with the Chancellor of the Exchequer on reforming the Barnett formula for Northern Ireland.

[The Secretary of State for Northern Ireland (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, and we are committed to taking forward these discussions with the Executive.

[Hilary Benn]

The Northern Ireland Fiscal Council was set up to help to answer the question about what the need is in Northern Ireland. It came up with a range of between 121% and 127%, and opted for 124% in the middle. The fact that that was in the interim fiscal framework that the previous Government negotiated is welcome, and was welcomed by the Finance Minister in Northern Ireland. We are committed to taking those discussions forward, and I understand that the Finance Minister in the Executive has already met the new Chief Secretary to the Treasury.

[Jim Shannon]

May I, too, welcome the Secretary of State to his place and wish him well in the role that he now plays? The Chancellor has indicated that there will be a 5% increase in wages for health workers and those in the education sector, but unfortunately, given the current Barnett consequentials for Northern Ireland, that will not mean 5% for those workers in Northern Ireland. Will the Secretary of State urgently look at that issue to ensure that health and education workers in Northern Ireland deserve the same increase in their wages as those on the mainland do because, quite clearly, I am here for them?

[Hilary Benn]

As the hon. Gentleman will be well aware, 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.