Barnett Formula

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.

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?

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.

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?

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.

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?

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.

I call the shadow Minister.

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 the Member for Brentwood and Ongar (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?

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.