AQO 536/22-27

Mr Gerry Kelly
Sinn Féin
North Belfast

Tabled Date: 23/05/2024
Answered On Date: 04/06/2024
Priority Written: No

Question:
To ask the Minister of Finance for an update on her discussions with Treasury on a fiscal framework.

Answer:

I recently signed an interim Fiscal Framework with the British Government.

The Framework clarifies a number of elements of the financial package. For example, the 24% needs-based factor will be applied to all new Barnett consequentials since the restoration of the Executive. This is worth £24 million to the Executive.

I have also obtained the agreement of the British Government that the needs-based factor will apply this year and next, even if the funding from the financial package is above the assessed level of need.

The British Government have also committed to reviewing the approach to the funding of the Executive before 2026-27. The Framework states that the Executive can plan on the basis it will be funded at or above the 124% level of relative need in future financial years. This provides assurance that the Executive will not face a cliff-edge once the financial package ends.

The Framework also includes a commitment that the 124% level of relative need will be reviewed if a range of sources can be provided to support a change.

I intend to move quickly to begin engagement on a final Fiscal Framework once the General Election takes place.