Northern Ireland Office

Robin Swann Excerpts

Monday 29th June 2026 Commons Chamber

[Tonia Antoniazzi (Gower) (Lab)]

I thank the Backbench Business Committee for granting time for this timely debate on the spending of the Northern Ireland Office. As I stand here today, it remains the case that Northern Ireland has no agreed budget, despite it being a quarter of the way through the financial year. Executive Ministers have failed to agree a budget, which has left Departments and civil servants forced to rely on emergency contingency powers, with spending limited to 95% of last year’s opening budget. Most concerningly, this leaves the people of Northern Ireland uncertain about the public services they will be able to access in the coming year.

Although the Finance Minister published a draft multi-year budget in January, it was not supported by the other parties in the Executive and, frustratingly, that deadlock is still unresolved.

[Robin Swann (South Antrim) (UUP)]

Will the hon. Member also acknowledge that even Members of the Finance Minister’s party are now opposed to the budget he produced?

[Tonia Antoniazzi]

I recognise that we do find ourselves in a rather ridiculous situation, which impacts directly on the lives of people in Northern Ireland.

This precarious financial situation has serious implications beyond Northern Ireland, and the consequences for the Northern Ireland Office and the Treasury should be of concern to Members across the House. The vast majority of Northern Ireland’s funding comes from the UK Government through the block grant. Executive Ministers have raised concerns about the adequacy of the settlement and are calling for further funding. They cite the current financial year as being particularly challenging for Departments, with the block grant set to drop by 2.7%, before only modest increases in the following years.

We know that the Secretary of State has met the Finance Minister on a number of occasions in recent weeks, and I would be most grateful if he updated us on his discussions with Executive Ministers on urgently finding a resolution to agree a budget, and on the support the Government are providing to enable such a resolution to be found.

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[Tonia Antoniazzi]

I agree that our Committee has seen that the need is greater, and we are working to represent Northern Ireland and the people who live there as best we can.

My Committee has recently conducted inquiries on policing and security and on legacy, which the Government directly fund. The Police Service of Northern Ireland currently receives £37.8 million a year directly from the Government as additional security funding. This ringfenced funding was introduced in 2011, and until last year it was specifically used to address the threat from Northern Ireland-related terrorism, but this ASF has now been broadened to cover all national security threats. The increase we have seen over the current spending review period may be to cover the broadened remit, but no information is publicly available about how the level of funding is determined by the Government. While we know that publishing some information may not be possible due to security considerations, my Committee has called for greater transparency, and I would be grateful for the Secretary of State’s response to our recommendations.

The recent riots in Northern Ireland are of great concern, and they will be of serious concern to Members across this House. I take this opportunity to commend the PSNI and the emergency services for their response to the disorder. The PSNI was already facing a constrained financial position, so I welcome the additional £4 million provided by the NIO to meet some of the costs it incurred. Could the Secretary of State provide more detail on, and has he had any correspondence about, the funding that I have heard has been provided by the Irish Government for community cohesion following the riots.

Finally, I turn to the issue of legacy and the work of the Independent Commission for Reconciliation and Information Recovery, which I will refer to as the ICRIR. This body was set up under the previous Government’s Northern Ireland Troubles (Legacy and Reconciliation) Act 2023. It is responsible for investigations of legacy cases to provide information to victims, survivors and their families about troubles-related deaths and serious injury. For the present financial year, the ICRIR is receiving £232 million over the whole spending review period. However, Peter May’s recent review of the ICRIR raises some serious concerns about its capacity and governance. According to the review, cases are being paused due to a lack of resource which, in a recent Committee session, the ICRIR disputes. It says that the current funding levels “are not sufficient” to support its view of what is required under the legislation, with

“real concern that they will not have the means to deliver case outcomes within any reasonable timeframe”.

The ICRIR has also seen three finance directors in the past year, with the review describing

“a low level of maturity in terms of its financial and corporate governance.”

The review notes that the ICRIR is submitting to the Treasury a new business case seeking additional funding. Will the Secretary of State update us on the status of that? The Secretary of State told us that confidence in the ICRIR will be gained

“if it provides answers to families who have been looking for them for so long”.

Does he share my fears about the impact that pausing cases will have on victims and families who have already been made to wait decades for answers about their loved ones? Can he also assure the House that confidence in the commission’s financial management and governance arrangements has improved since the review?

[Robin Swann]

I congratulate the Chair on how she is raising the issue in this debate and how she has handled the legacy inquiry. Does she agree that there must be an answer to the concerns raised by the PSNI that it does not have any additional moneys to provide that information to the ICRIR with regard to legacy? There is also a funding issue there. Both the PSNI and the ICRIR have raised the issue of funding, saying that they are not being given the money to enable them to give the evidence they hold and manage to help the people who are waiting on those cases.

[Tonia Antoniazzi]

I thank the hon. Member for that contribution. It has been very clear from the Committee’s evidence sessions that, to cover the legacy issues it is still dealing with and will have to deal with, the PSNI is taking resource of time and money that it cannot afford, which impacts on what it can provide on the street, so I too would like to highlight that point.

We want to see a stable Executive, backed up by fair and sustainable public finances, reflecting the needs of the people of Northern Ireland. I am concerned that the Executive’s financial constraint and the funding pressures facing the PSNI and the ICRIR are having a very real impact on people’s lives today.

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[The Secretary of State for Northern Ireland (Hilary Benn)]

I join others in congratulating the Chair of the Select Committee, my hon. Friend the Member for Gower (Tonia Antoniazzi), on having secured this extremely important, timely and useful estimates debate and on the work she does to scrutinise what happens in Northern Ireland and the work of the Northern Ireland Office. The Committee is exceedingly energetic and will be getting full value for money from the small ministerial team, as it did today and will do over the next couple of weeks.

I shall begin by addressing the most important question that has been highlighted, to which the hon. Member for Brentwood and Ongar (Alex Burghart) just referred: the lack of an agreed budget. He has just reminded us that he thought the spending review was a pretty good settlement. The Chancellor set out that Northern Ireland would receive £19.3 billion per year on average over the course of the spending review period—the largest settlement since devolution in 1998. In addition, the Chancellor confirmed that the Government would be providing almost £750 million in additional funding through the Barnett formula over the spending review period as a result of decisions made at the autumn Budget and the spring statement. That includes an extra £373 million in the current financial year, 2026-27, and that money is available to the Executive.

To pick up on one point, I am aware of the arguments about the funding in comparison to Scotland and Wales. I simply want to make the point that funding settlements for all the nations of the United Kingdom are underpinned by the Barnett formula, and it is important to remember that, for example, compared with Wales, Northern Ireland has benefited from generous funding from the Barnett formula in previous years. The UK Government—the last Government and this one—have also committed around £16 billion in funding packages and agreed financial flexibilities from 2014-15 right up to 2029-30 for the Executive to support public services and long-term investment. The Treasury has given a commitment to discuss a fiscal framework for Northern Ireland, where, of course, funding under the Barnett formula can be discussed.

On the level of need, the fact is that this was independently assessed by the Northern Ireland Fiscal Council. The figure that it came up with was 124%, and that is indeed the level of funding that the Northern Ireland Executive are getting. My hon. Friend the Member for Cumbernauld and Kirkintilloch (Katrina Murray) recognises that fact. She rightly points out that, however much money is allocated, someone will always say, “Give us more.” How the money is spent has also been an important part of this debate, and I shall come to the remarks of the former Finance Minister, the right hon. Member for East Antrim (Sammy Wilson), in a moment.

Let us look at what is achieved in Northern Ireland for the expenditure, with 124% of the funding in England. In England, about 4% of people are waiting more than a year to see a hospital consultant. In Northern Ireland, it is nearly 50%, with more funding.

[Robin Swann]

Will the Secretary of State give way?

[Hilary Benn]

Of course I will give way to the former Health Minister.

[Robin Swann]

The right hon. Gentleman will acknowledge that, as there has not been a repetitive budget since 2016, any transformation or investment in health is always more challenging, and that is where the waiting lists are. Does he also acknowledge that that transformation funding is now there, and that the work being done by my party colleague, the present Minister of Health, Mike Nesbitt, is bringing those waiting lists down?

[Hilary Benn]

I absolutely acknowledge the work that Mike Nesbitt has been doing in health, and it shows what can be achieved if minds are put to it. It is a difficult balance between, on the one hand, running the services today and keeping them going and, on the other hand, investing in transformation. In the end, however, investing in the transformation is the way in which we will be able to deliver better public services for the people of Northern Ireland.

I share the concern that has been expressed right across the House at the absence of an agreed multi-year budget, which is creating, above all, significant uncertainty for the funding of public services. I have been talking regularly with the Minister for Finance, who clearly faces a huge challenge in trying to get an agreement, and those conversations will continue this week, because we need to get to a multi-year budget as quickly as possible. I said about a month ago that the Executive needed to come towards the Government and meet us halfway, and there are two essential requirements.

The first relates to the fact that the amount of money currently being forecast as the overspend for this year is going up, beyond the level that we saw in the last financial year. The word “pressures” is heard frequently in Northern Ireland. People say that they have budget pressures. Well, everyone has budget pressures. Quite reasonably, the Government have asked what the nature of those pressures is. Are they absolutely unavoidable legal commitments, are they things we would like to do or are they things in between? Trying to interrogate and understand the nature of those pressures and to see what the Executive tell the Government about that is the first requirement.

The second requirement is a plan for how we will move from this year-to-year crisis—which was very clearly articulated by the right hon. Member for East Antrim in his contribution—because we need to see something that will address this in the longer term. I am much struck by what the Northern Ireland Fiscal Council said in its report on the sustainability of the finances, published on 16 June. It said that

“these immediate issues facing NI’s public finances reflect an unsustainable trajectory resulting from the underlying structural problems in the Budget. These structural issues are visible in the relatively high public sector pay bill, limited revenue-raising”—

a point just referred to—

“and persistent overspends.”

Whatever the size of the budget that anyone has, we have, in the end, a responsibility to find a way of living within that and to raise more revenue if that is open to us. That is what all Governments must do. The current Government have done it in relation to the public finances, and the same is true for the Northern Ireland Executive. In addition to the funding I have already described, there is the £617 million from the UK Government that is going into the city and growth deals, as well as the defence growth deal, which the Under-Secretary of State for Northern Ireland, my hon. Friend the Member for Wirral West (Matthew Patrick), has spoken about in the House; the enhanced investment zone; and the local growth fund.

A point was raised about the local growth fund. I recognise and accept that the change in the profile from revenue to capital has created a difficulty for the voluntary sector. That is why I met representatives of the voluntary sector and said to them, “There is unspent money in the PEACEPLUS programme; you can make a bid to that.” I think about £12 million is available in revenue. The Exec came to the Government and said, “We would like to keep £3 million of that for Go Succeed; we think it is a great programme, and we’d like you to carry on backing it.” We said, “Fine.” That left £9 million available in revenue for the economic inactivity programmes that the voluntary sector has been running. I said to the Executive, “How about putting the extra Barnett consequentials that you now have, including £373 million in the current year that you were not expecting, together with the £9 million? We could then enable those projects to continue.” That is an example of what can be done if we put our minds to it.

The extra capital allocation in the local growth fund may in part be the answer to the question asked about the ports fund. A number of commitments were made in the “Safeguarding the Union” document. I remember a large commitment that Casement Park would be fully funded so that the Euros could be hosted. Well, no money was allocated for it at all. The previous Government were very free with the promises, but they did not do the work to find the money. No funding has been identified for the ports fund, but there is money in the local growth fund. I also point out that Belfast harbour has a masterplan, which I understand it is looking to self-fund, and that the Government have made available an increase in capital funding to the Northern Ireland Executive. If the Executive wish to put money into port infrastructure, they are entirely able to do so.

Let me turn to PSNI funding. I once again pay tribute to the officers of the PSNI who, every time there is disorder in Northern Ireland, show extraordinary courage in protecting the public from those who are setting fire to buses, throwing bricks and burning people out of their houses. I had the chance to thank some of those officers when I returned to Northern Ireland the week before last, following the disorder. They are very brave. From memory, I think some 42 officers were injured in the recent disorder.

I appreciate the financial pressures faced, but this is a devolved matter. The hon. and learned Member for North Antrim said that he thought it was a profound mistake to have devolved responsibility for policing and justice. I respectfully disagree with him. The trouble with the call for ringfencing, which we have heard from other sources this evening, is this: we either believe in devolved Government—the elected representatives of the people of Northern Ireland taking decisions about how the money is spent—or begin to move back towards a ringfence; once we have a ringfence for the PSNI, it will not be long before someone says, “Can I have a ringfence over here?” In the end, we have a choice to make. I believe in devolved Government in Northern Ireland, and the Government believe in devolved Government in Northern Ireland. There is a matter of principle here: the funding is available to the Executive; it is for them to decide how much they allocate to policing as opposed to other priorities.

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[Hilary Benn]

I would indeed accept that point, if it was not for the fact that a decision had been made to leave the European Union when there is an open border between Northern Ireland and the Republic of Ireland. That was the fundamental problem that had to be solved, and none of the alternative suggestions would enable us to do this.

I want to respond to my hon. Friend the Member for Thurrock (Jen Craft) about the Muckamore hospital report. I think that every single Member of the House was deeply shocked by what we read in that report, and our hearts go out to all those who have been affected by the mistreatment that has been revealed. I think the answer to the very reasonable question that she put is that we all hope to see all the many recommendations in that report implemented.

[Robin Swann]

Will the Secretary of State give way?

[Hilary Benn]

I think the hon. Gentleman was responsible for establishing the inquiry, and I pay credit to him for doing so. The real way to honour those who have suffered is to ensure that the recommendations of the report are fully implemented.

[Robin Swann]

I thank the hon. Member for Thurrock (Jen Craft) for raising the matter. I was the Minister who commissioned the inquiry, and listening to the families and the individuals who were in Muckamore at that time was a harrowing experience. I want to put on the record my thanks to Tom Kark KC, who chaired the inquiry, for handling the inquiry and bringing forward the recommendations in an engaging and compassionate way. The health service, the trusts and the entire health family in Northern Ireland need to pay careful tribute to a number of those recommendations, and the hon. Lady made a good point that they contain learnings for health bodies, trusts and Departments across the United Kingdom.

[Hilary Benn]

I congratulate the hon. Member on having established the inquiry, because when things go catastrophically wrong, it is what we do about it that counts, and that requires an independent look and for the truth to be told.

In conclusion, it is of course for the Executive to agree a budget—above all, for the citizens they serve. That is the fundamental principle of devolved government in Northern Ireland. I repeat what I said earlier: both myself and the Chief Secretary to the Treasury are ready and willing to try to assist the Executive in doing that, but we need to see the things that I described earlier to be able to do so.