Secretary of State statement at Hillsborough Castle, 19 December
The statement follows plenary sessions with the four Executive parties at Hillsborough Castle
The Rt Hon Chris Heaton-Harris MP, Secretary of State for Northern Ireland
The Northern Ireland Secretary of State, Chris Heaton-Harris, said:
Over the last number of days my team and I have been meeting the main parties in Northern Ireland to discuss how we can financially support a restored executive.
On behalf of the United Kingdom Government, last week I presented a significant package which sets the executive up for success.
We asked the parties for their views and we have listened.
Following a lot of discussions over the weekend and over the last few days this morning I brought forward a new plan that reasonably and generously responds to the parties concerns and provides Northern Ireland Ministers with an offer for a restored executive worth in excess of £3bn.
This package provides solutions to many of the issues the parties have raised.
The parties have asked for a new formula for deciding how much Northern Ireland receives from the UK Government. We have agreed to establish such a model reflecting the different levels of need in Northern Ireland. That would see funding uplifted through the Barnett Formula by 24% from 2024-2025.
The parties have asked for assistance with public sector pay; this package includes £584m to address this.
The parties asked for money to stabilise Northern Ireland’s public services. We have made available more than £1bn for them to do this.
The parties have raised concerns about their existing debt. Now I’ve been clear that we will be prepared to take steps to address those concerns of the Northern Ireland Executive if the Northern Ireland Executive publishes and implements a plan to deliver sustainable public finances and services.
On top of that, the UK Government has committed more than £30m to immediately start tackling health waiting lists and indeed following the PSNI data breach we have granted an initial reserve claim of £15m which would not need to be repaid.
And, we have offered to create an enhanced investment zone in Northern Ireland worth over £150m.
It is disappointing that there will not be a new executive up and running to take up this offer and deliver it for the people of Northern Ireland before Christmas. However, this package is on the table and will remain there, available on day one of an incoming Northern Ireland Executive to take up.
This is a generous package but like any government, an incoming executive will have to make decisions on its priorities going forward. That will need to include, as part of this offer, increasing the revenue the executive raises through its own powers.
The UK Government has also held extensive talks with the Democratic Unionist Party on the Windsor Framework over the last eight months. I’d like to thank the DUP and its leadership for the way they’ve engaged constructively in those talks. In particular, the Government has sought to address the specific concerns raised by the DUP prior to and during these negotiations.
From our perspective, those talks on all the issues of substance have reached a conclusion.
We stand ready to introduce a package of measures that have been worked on together should the DUP reach a decision to proceed.
I have always believed that Northern Ireland is best governed by locally elected and accountable MLAs. They can use the financial package and put in place the policies that will transform public services for the better of everyone across the whole of Northern Ireland and there is before us a great opportunity for the parties to return to governing on behalf of the people who elected them.
The financial package that is now before the parties would set Northern Ireland on a sustainable footing with a bright future ahead.
So to end, these financial talks have concluded and there is a financial package worth an excess of £3bn on the table should the executive be restored. From our perspective the Windsor Framework talks on all issues of substance have effectively concluded but we’re always, always happy to answer concerns and any questions on these.
The UK Government also stands ready to deliver on the outcomes of the Windsor Framework talks when the institutions are restored.
It is now time for decisions to be made.