Question to the HM Treasury:

To ask Her Majesty's Government what discussions they have had with the Northern Ireland Executive on the impact of the Barnett formula on the cost of living in Northern Ireland.

The Chief Secretary to the Treasury has regular engagement with the Northern Ireland Executive Finance Minister, most recently on the day of the Autumn Budget and Spending Review 2021.

The Barnett formula is a key part of the arrangements for pooling and sharing risks and resources across the UK. It means that a downturn in one area can be supported by other areas, rather than being dependent on local economic conditions – and a windfall can be shared with other areas.

As a result of SR21, the Northern Ireland Executive will receive an average of £1.6bn per year additional funding on top of an annual baseline of £13.4bn. These are the largest annual block grants, in real terms, of any spending review settlement since the devolution Acts in 1998.