Barnett Formula

Northern Ireland – in the House of Commons at on 24 July 2024.

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Photo of Sorcha Eastwood Sorcha Eastwood Alliance, Lagan Valley

Whether he has had discussions with the Chancellor of the exchequer on a revised financial formula for Northern Ireland.

Photo of Jim Shannon Jim Shannon DUP, Strangford

If he will have discussions with the Chancellor of the exchequer on reforming the Barnett formula for Northern Ireland.

Photo of Hilary Benn Hilary Benn The Secretary of State for Northern Ireland

The interim fiscal framework agreed earlier this year introduced a needs-based funding formula set at 124% of spending per head in England, based on the advice of the Northern Ireland Fiscal Council, and we are committed to taking forward these discussions with the Executive.

Photo of Sorcha Eastwood Sorcha Eastwood Alliance, Lagan Valley

I welcome the Secretary of State to his place, and look forward to working with him in his new role. Fixing Northern Ireland’s financial framework is crucial to ensuring that our public services are properly resourced, and indeed that impacts on my constituents in Lagan Valley. Will he ensure that any new arrangements are fully baselined and informed by independent expert analysis?

Photo of Hilary Benn Hilary Benn The Secretary of State for Northern Ireland

The Northern Ireland Fiscal Council was set up to help to answer the question about what the need is in Northern Ireland. It came up with a range of between 121% and 127%, and opted for 124% in the middle. The fact that that was in the interim fiscal framework that the previous Government negotiated is welcome, and was welcomed by the Finance Minister in Northern Ireland. We are committed to taking those discussions forward, and I understand that the Finance Minister in the Executive has already met the new Chief Secretary to the Treasury.

Photo of Jim Shannon Jim Shannon DUP, Strangford

May I, too, welcome the Secretary of State to his place and wish him well in the role that he now plays? The Chancellor has indicated that there will be a 5% increase in wages for health workers and those in the education sector, but unfortunately, given the current Barnett consequentials for Northern Ireland, that will not mean 5% for those workers in Northern Ireland. Will the Secretary of State urgently look at that issue to ensure that health and education workers in Northern Ireland deserve the same increase in their wages as those on the mainland do because, quite clearly, I am here for them?

Photo of Hilary Benn Hilary Benn The Secretary of State for Northern Ireland

As the hon. Gentleman will be well aware, decisions about pay in Northern Ireland are a matter for the Executive. Any additional spending in England will apply through the Barnett consequentials to Northern Ireland in the normal way.

Photo of Tonia Antoniazzi Tonia Antoniazzi Labour, Gower

I welcome the Secretary of State’s commitment to needs-based funding for Northern Ireland. Does he agree that how funding is allocated and how further revenue might be generated are matters for the devolved Administration and the Assembly?

Photo of Hilary Benn Hilary Benn The Secretary of State for Northern Ireland

I certainly do agree. All Governments, including the Northern Ireland Executive, have the money they have coming in, the money they can raise in addition, and how they will prioritise their spending. The Northern Ireland Executive have more funding per head of population than England, and it is for the Executive to take decisions about what their priorities are, and allocate funding accordingly.

Photo of Paul Holmes Paul Holmes Opposition Whip (Commons), Shadow Minister (Foreign, Commonwealth and Development Office), Shadow Minister (Northern Ireland)

I welcome the Secretary of State and the Minister of State to their positions, and thank them for their gracious phone call last week to welcome me and my hon. Friend Alex Burghart to our positions. On Monday, the Business Secretary slipped out a written statement, rather than coming to this House, revealing that the Government have decided not to proceed with an export development guarantee, or emergency loans that would save Harland and Wolff, despite its unique role and outstanding defence contract. Will the Secretary of State use his position to continue the support that the previous Government gave to Northern Ireland, and make it clear to the Treasury that the people of Northern Ireland expect the Government to intervene in this case, and support Harland and Woolf, as is desperately needed?

Photo of Hilary Benn Hilary Benn The Secretary of State for Northern Ireland

I congratulate the hon. Gentleman on his appointment. The reasons for the Government’s decision about Harland and Wolff were clearly set out in the written ministerial statement that my right hon. Friend the Business Secretary laid before the House. Harland and Wolff is now talking to its main supporters, Riverstone, about potential additional financial support. We are committed to shipbuilding across the United Kingdom, including in Northern Ireland, and as that written ministerial statement made clear, Harland and Wolff is an essential part of the £1.6 billion contract for the fleet solid support ships.

Barnett Formula

An economic mechanism used by the Treasury to adjust automatically the amounts of public expenditure allocated to Northern Ireland, Scotland and Wales, to reflect changes in spending levels allocated to public services in England, England and Wales or Great Britain as a whole.

See http://en.wikipedia.org/wiki/Barnett_formula

Chancellor of the Exchequer

The chancellor of the exchequer is the government's chief financial minister and as such is responsible for raising government revenue through taxation or borrowing and for controlling overall government spending.

The chancellor's plans for the economy are delivered to the House of Commons every year in the Budget speech.

The chancellor is the most senior figure at the Treasury, even though the prime minister holds an additional title of 'First Lord of the Treasury'. He normally resides at Number 11 Downing Street.

Barnett formula

An economic mechanism used by the Treasury to adjust automatically the amounts of public expenditure allocated to Northern Ireland, Scotland and Wales, to reflect changes in spending levels allocated to public services in England, England and Wales or Great Britain as a whole.

See http://en.wikipedia.org/wiki/Barnett_formula

Secretary of State

Secretary of State was originally the title given to the two officials who conducted the Royal Correspondence under Elizabeth I. Now it is the title held by some of the more important Government Ministers, for example the Secretary of State for Foreign Affairs.

Minister

Ministers make up the Government and almost all are members of the House of Lords or the House of Commons. There are three main types of Minister. Departmental Ministers are in charge of Government Departments. The Government is divided into different Departments which have responsibilities for different areas. For example the Treasury is in charge of Government spending. Departmental Ministers in the Cabinet are generally called 'Secretary of State' but some have special titles such as Chancellor of the Exchequer. Ministers of State and Junior Ministers assist the ministers in charge of the department. They normally have responsibility for a particular area within the department and are sometimes given a title that reflects this - for example Minister of Transport.

Chancellor

The Chancellor - also known as "Chancellor of the Exchequer" is responsible as a Minister for the treasury, and for the country's economy. For Example, the Chancellor set taxes and tax rates. The Chancellor is the only MP allowed to drink Alcohol in the House of Commons; s/he is permitted an alcoholic drink while delivering the budget.

shadow

The shadow cabinet is the name given to the group of senior members from the chief opposition party who would form the cabinet if they were to come to power after a General Election. Each member of the shadow cabinet is allocated responsibility for `shadowing' the work of one of the members of the real cabinet.

The Party Leader assigns specific portfolios according to the ability, seniority and popularity of the shadow cabinet's members.

http://www.bbc.co.uk