Archibald welcomes Treasury commitment to review funding

Date published: 21 May 2024

The signing following Executive approval on the Interim Fiscal Framework took place in London with the Chief Secretary to the Treasury, Rt Hon Laura Trott MBE MP, Finance Minister Dr Caoimhe Archibald MLA and the Secretary of State Rt Hon Chris Heaton-Harris MP.

Commenting on the framework, Dr Archibald said: “The signing of this Interim Fiscal Framework is a significant milestone as we work towards putting our finances onto a more sustainable footing so we can deliver the high-quality public services people expect and deserve.

“Following intensive and constructive negotiations I welcome Treasury’s agreement to reviewing the approach to funding the Executive at the relevant Spending Review.

“This firm commitment from Treasury starts to address our concerns over a funding cliff edge once the financial package comes to an end in 2025/26.

“It provides assurances the Executive can plan on the assumption we will be funded at or above the 124% level of relative need in future financial years.

“Treasury has agreed to the 124% needs-based adjustment factor from Barnett consequentials being applied from the date of restoration of the Executive. This means a further £24 million from the Spring Budget will now be available for allocation as part of June monitoring. Any future Barnett in 2024/25 will be at this increased level meaning additional funding for public services here. Nevertheless, the budgetary position facing the Executive remains incredibly challenging. I have been and will continue making the case for increased levels of funding in public services.

Concluding the Finance Minister said: “I have been clear since taking up the role of Finance Minister of my determination to ensure our public services are fairly and properly funded.

“This job of work is far from over. Today’s Framework which has been secured at pace is a step towards a full fiscal framework which is critical for long term sustainability.

“I will continue to work with the Chief Secretary to the Treasury on a final Fiscal Framework which ensures the Executive has the financial tools and necessary taxation levers to deliver sustainable public finances and public services for the people we serve.”