Policy paper

Joint Communique on the Northern Ireland Executive’s Interim Fiscal Framework

Published 21 May 2024

This was published under the 2022 to 2024 Sunak Conservative government

Applies to Northern Ireland

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Chief Secretary to the Treasury Laura Trott and the Finance Minister of Northern Ireland Caoimhe Archibald met in London on 21 May to discuss the Northern Ireland Executive’s interim Fiscal Framework.  

In February 2024, the UK Government committed to agree a Fiscal Framework for Northern Ireland as part of the Northern Ireland Executive’s restoration financial package.  

Following a series of negotiations, Ministers have agreed on an interim Fiscal Framework which will be published today. This is an early and significant step in realising the commitment towards new funding arrangements for Northern Ireland.  

The interim Fiscal Framework provides further clarity on: 

  • the implementation and delivery of funding within the UK Government’s 2024 Northern Ireland Executive restoration financial package
  • the application of the 24% needs-based factor in the Barnett formula for Northern Ireland
  • consideration of a review of Northern Ireland’s relative need if multiple independent and credible sources provide evidence that relative need is different to 124%
  • agreement to review and discuss the Northern Ireland Executive’s funding approach, including concerns about 2026-27 funding, at the relevant Spending Review
  • the Northern Ireland Executive’s enhanced capital borrowing powers and
  • updates on delivery of the Northern Ireland Executive’s public finances Sustainability Plan, Strategic Infrastructure Plan and the establishment of the Public Sector Transformation Board.

The UK Government and Northern Ireland Executive commit to agreeing a final Fiscal Framework, which will build on this interim Fiscal Framework.  

Ministers also agreed the terms of reference for Joint Exchequer Committee meetings to discuss further fiscal devolution. The meeting today is the inaugural meeting of the new UKG-NIE Joint Exchequer Committee.

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