AQW 5929/22-27

Mr Eóin Tennyson
Alliance Party
Upper Bann

Tabled Date: 08/02/2024
Answered On Date: 13/03/2024
Priority Written: No

Question:
To ask the Minister of Finance for her assessment of the needs-based factor of 124 per cent to be applied on additional Barnett consequentials from 2024-25.

Answer:

The current fiscal formula will trap Executive funding below need after the short-term funding provided is exhausted, and under a ‘fiscal ceiling’ for a considerable time due to the wrong starting point. This is also the assessment of the Independent Fiscal Council in its 15 February report on our public finances and the British Government’s financial support package.

Furthermore, the Treasury has used a figure of 124%, which was an option, rather than a recommendation, within the Fiscal Council's previous report on relative need. I do not believe it represents a fair estimate of need. There is a wealth of evidence from the Council that this could, and in my view should, be higher. This includes its latest report of 5 March. These options remain unexplored.

I stressed to the Chief Secretary to the Treasury when we met on 28 February that the immediate priority must be getting the British Government to put a fair, and appropriately baselined, needs-based Fiscal Floor in place. This must recognise our underfunding for the start of the next Spending Review.