Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what the Barnet consequentials for Northern Ireland will be in relation to the Local Government Finance Settlement.

The Ministry of Housing, Communities and Local Government have announced final allocations for the Local Government Finance Settlement for 2025-26. Part of this funding comes from Departmental Expenditure Limits (DEL) agreed at the Phase 1 of the Spending Review 2025.

The Barnett formula applies to all increases or decreases to UK Government department DEL, including at the Spending Review, as set out in the Statement of Funding Policy.

The Barnett formula does not apply to spending financed by council tax.

The Northern Ireland Executive’s Spending Review settlement for 2025-26 is the largest in real terms of any settlements since devolution. It is for the Northern Ireland Executive to allocate their funding in devolved areas as they see fit.