2025 Budget

Northern Ireland – in the House of Commons at on 7 January 2026.

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Photo of Catherine Fookes Catherine Fookes Labour, Monmouthshire

What assessment he has made of the potential impact of the autumn Budget 2025 on Northern Ireland.

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

This Budget provided Northern Ireland with an additional £370 million, on top of the record settlement of £19.3 billion each year on average over the spending review period. The decisions we have taken will ease trade within the UK, and will ensure that families across Northern Ireland benefit from help with the cost of living, through policies such as cutting energy Bills and lifting the two-child benefit cap.

Photo of Catherine Fookes Catherine Fookes Labour, Monmouthshire

The £370 million for the Northern Ireland Executive in this year’s Budget, which the Secretary of State mentioned, and the £505 million for Wales, on top of the settlements announced at the spending review, show that this Government take supporting the devolved nations seriously. Does the Secretary of State agree that co-operation between the UK Government and the Northern Ireland Executive, and other devolved nations, is crucial to pulling children out of poverty, improving public services and kick-starting growth across the UK?

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

I do agree with my hon. Friend. That is why the Government’s decision to lift the two-child benefit cap was widely welcomed in Northern Ireland. I would also point out that Northern Ireland is being funded slightly above its level of need; it gets 24% more than equivalent spending in England, meaning that the Executive have more money to make their decisions with.

Photo of Robin Swann Robin Swann UUP, South Antrim

When the Executive were restored two years ago, a fund was set up for the transformation of public services. As of yet, that money has not been fully allocated. Will the Secretary of State use his offices to encourage the Executive to deploy that transformation fund to transform Northern Ireland’s public services?

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

The public services transformation fund is a very important demonstration of the partnership between the UK Government and the Northern Ireland Executive. As the hon. Member will be well aware, the first six projects have been funded, and good progress is being made on them. The transformation board is currently considering bids that are coming in for the next phase of funding. Of course, we are keen—as are the Executive—to see that money spent on transformation of how public services are delivered in Northern Ireland, which is hugely needed.

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