Budget Sustainability Plan

Where were we, Mr Speaker? I welcome the publication of the Northern Ireland Executive’s budget sustainability plan—a positive and necessary step towards sustainable public finances—and the Chief Secretary to the Treasury has agreed with the Northern Ireland Finance Minister that discussions over a long-term fiscal framework for Northern Ireland can now begin.

Does the Secretary of State agree that to ensure sustainable finances the Northern Ireland Executive need to take steps to reform the NHS and public services?

I share my hon. Friend’s view. As the House will be aware, people in Northern Ireland face the longest waiting lists in the whole United Kingdom, and all Governments, including the Northern Ireland Executive, have to balance the money coming in and the funds that they can raise, and take decisions about public service reform. I am very encouraged by the recent event organised by the Northern Ireland Health Minister, which Dr Bengoa, who produced a report on reform in Northern Ireland, returned to Northern Ireland to attend, because there is now a commitment to take forward that process.

What impact does the Secretary of State think that the UK leaving the European convention on human rights would have on the sustainability of Northern Ireland’s finances and devolved government?

Given that the European convention on human rights is one of the foundations of the Good Friday agreement, I am frankly astonished that anyone who aspires to lead His Majesty’s Opposition should suggest that our country should leave the ECHR. It would be utterly irresponsible.

I commend all those who worked to re-establish devolved government earlier this year at Stormont. It is now vital that the Northern Ireland Executive ensure that they have sustainable finances. Does the Secretary of State agree that revenue raising by the Northern Ireland Executive has an important part to play in delivering financial sustainability and stability to Northern Ireland?

I do. Indeed, raising £113 million was part of the deal that the last Government put in place as part of the £3.3 billion package that led to the restoration—well, that followed the restoration of the Executive. That includes delivering a balanced budget in the current year, and I am very encouraged by the statements of the Northern Ireland Finance Minister in that regard.

The budget sustainability plan is commendable, but does the Secretary of State agree that our public services are in crisis? Our roads are crumbling, we have the longest health waiting lists in the whole of the UK, and our schools need investment. Northern Ireland needs to be in receipt of a fair long-term funding allocation, based on Treasury needs. Will he confirm to the House that he is making the case for that to the Treasury for the people of Northern Ireland?

Northern Ireland’s greater spending needs are recognised. The Northern Ireland Fiscal Council was established to answer the question of what that additional funding should be, and it came to the conclusion that the figure should be 124%, which will be met this year in respect of the budget. The interim fiscal framework also said that if further credible sources come along suggesting that the figure should be different, the Government would undertake to look at that. But nothing takes away from the Executive’s responsibility to manage the budget that they have, and to take decisions, including on reform.

Does the Secretary of State agree that the budget resources for the Northern Ireland Justice Minister are extremely short and that we are not able to recruit enough Police Service of Northern Ireland officers, and has he had any discussions with the Justice Minister about resolving that problem?

As the hon. Member will be aware, decisions about the allocation of the Northern Ireland budget rest with the Northern Ireland Executive. Funds go to the Justice Minister, who then decides principally how much to pass on to the policing board for policing costs and how much to deal with the justice system and the prisons, which are also under pressure. I recognise the pressure that PSNI officers face, not least because I met a number of those who were injured in the recent disorder.

I call the shadow Secretary of State.

It is very generous of you to call me again, Mr Speaker. The Executive’s draft programme for government acknowledges that policing numbers in Northern Ireland are at an all-time low, a situation that the chief constable has described as dangerous. The draft programme commits to increasing numbers in line with New Decade, New Approach. Is the Secretary of State convinced that the budget sustainability plan is sufficient to achieve that aim?

The hon. Gentleman raises an important point, as we discussed just a moment ago. I recognise the pressures on the PSNI, but it falls to the Executive to decide how much to allocate, from the funds available to them, to policing and other public services in Northern Ireland. If they wish to allocate more, they are in a position to do so, but it involves making a choice.

The Secretary of State is of course right that policing in Northern Ireland is a devolved matter, but national security is not. If we look at policing numbers right now, which are at an all-time low, we are reminded that his party’s manifesto made explicit commitments to improving public services in Northern Ireland. Will the Government commit to ensuring that policing in Northern Ireland is sufficient to keep the people of Northern Ireland safe and maintain national security, and to protecting the additional security funding of £32 million a year that comes direct from His Majesty’s Treasury?

On the latter point, the hon. Gentleman just has to wait a week to see what the Budget produces. I simply say to him that the PSNI, the security services and others do an outstanding job in protecting the people of Northern Ireland from terrorist threats, and we should all support them in that endeavour.

I call the Liberal Democrat spokesperson.

The budget sustainability plan highlights that Northern Ireland has been systemically underfunded, with the fiscal council estimating an annual shortfall of between £300 million and £400 million since 2022. Meanwhile, the Northern Ireland Executive reported a £559 million overspend between 2022 and 2024. What measures are the Government taking to address Northern Ireland’s immediate budgetary pressures, ensure long-term financial stability and equitable funding, and, crucially, guarantee sustainable public services?

In addition to the £3.3 billion package that followed the restoration of the Executive, the Executive gained £185 million in July when the main estimates were published. In order to avoid having to repay the debt that the hon. Member refers to, they have to put their finances on a sustainable path, deliver a balanced budget, and raise the additional £130 million revenue to which they committed when the deal was done. The fiscal council’s view is that 124% is the right funding.