Northern Ireland Office
House of Commons · Commons Chamber · 29 Jun 2026 · 47 speeches · Official Report
[Relevant documents: First Report of the Northern Ireland Affairs Committee, Policing and security in Northern Ireland, HC 184 ; Second Report of the Northern Ireland Affairs Committee of Session 2024-26, The Government’s new approach to addressing the legacy of the past in Northern Ireland, HC 586, and the Government response, HC 1716 ; c orrespondence between the Northern Ireland Affairs Committee and the Chief Secretary to the Treasury, on the Northern Ireland Executive Budget, reported to the House on 17 June ; c orrespondence between the Northern Ireland Affairs Committee and the Secretary of State for Northern Ireland, on the Northern Ireland Executive budget and the Public Sector Transformation Fund, reported to the House on 3 June.]
Motion made, and Question proposed,
That, for the year ending with 31 March 2027, for expenditure by the Northern Ireland Office:
(1) further resources, not exceeding £14,256,865,000, be authorised for use for current purposes as set out in HC 1855 of Session 2024-26,
(2) further resources, not exceeding £9,525,000, be authorised for use for capital purposes as so set out, and
(3) a further sum, not exceeding £14,317,396,000, be granted to His Majesty to be issued by the Treasury out of the Consolidated Fund and applied for expenditure on the use of resources authorised by Parliament.- (Taiwo Owatemi.)
The debate will be opened by the Chair of the Northern Ireland Affairs Committee.
I thank the Backbench Business Committee for granting time for this timely debate on the spending of the Northern Ireland Office. As I stand here today, it remains the case that Northern Ireland has no agreed budget, despite it being a quarter of the way through the financial year. Executive Ministers have failed to agree a budget, which has left Departments and civil servants forced to rely on emergency contingency powers, with spending limited to 95% of last year’s opening budget. Most concerningly, this leaves the people of Northern Ireland uncertain about the public services they will be able to access in the coming year. Although the Finance Minister published a draft multi-year budget in January, it was not supported by the other parties in the Executive and, frustratingly, that deadlock is still unresolved.
Will the hon. Member also acknowledge that even Members of the Finance Minister’s party are now opposed to the budget he produced?
I recognise that we do find ourselves in a rather ridiculous situation, which impacts directly on the lives of people in Northern Ireland. This precarious financial situation has serious implications beyond Northern Ireland, and the consequences for the Northern Ireland Office and the Treasury should be of concern to Members across the House. The vast majority of Northern Ireland’s funding comes from the UK Government through the block grant. Executive Ministers have raised concerns about the adequacy of the settlement and are calling for further funding. They cite the current financial year as being particularly challenging for Departments, with the block grant set to drop by 2.7%, before only modest increases in the following years. We know that the Secretary of State has met the Finance Minister on a number of occasions in recent weeks, and I would be most grateful if he updated us on his discussions with Executive Ministers on urgently finding a resolution to agree a budget, and on the support the Government are providing to enable such a resolution to be found.
I commend the Chair of the Northern Ireland Affairs Committee for all that she does, but this issue of course goes beyond what she is setting out. The Northern Ireland Office is tasked with co-ordinating the local growth fund across the Province, yet my local community and voluntary sector are expressing deep concerns about its flawed programme design. They say that the funding structure is inaccessible and unresponsive to local realities on the ground. Does the hon. Lady not agree that, when the Secretary of State gets to his feet, he must explain why the Northern Ireland Office has failed to properly engage with our community sector? Does she agree that urgent steps must be taken by his Department to reform this programme to ensure that these vital funds actually reach the groups who need them most?
I thank the hon. Member for his intervention about the local growth fund. In our Committee session today, we grilled the Parliamentary Under-Secretary of State for Northern Ireland, who is sitting on the Front Bench, about this funding. On numerous occasions, we have noted our disappointment that the relevant Department has been able to shift the spending, but I am sure that the Secretary of State will give the hon. Member an explanation later. Given the potential impact of having no agreed budget on the delivery of public services if the situation continues into the autumn, does the Secretary of State foresee a circumstance in which he would step up and step in to set a budget for Northern Ireland, should the Executive remain unable or unwilling to do so? Linked to this are concerns about the Executive’s overspending and budget sustainability. At the end of the last financial year, the Government provided the Executive with a £400 million reserve claim loan to cover departmental overspends in health and education. That follows the £559 million Executive debt write-off by the Government in 2024 as part of the financial package accompanying the restoration of power sharing. The Northern Ireland Fiscal Council warns that overspending is now becoming normalised, and it describes how repeated bail-outs “could dull the Executive’s incentive to take difficult fiscal decisions”. Overspending against available budgets by devolved Governments amounts to serious financial...
Does the hon. Member accept that the Northern Ireland Fiscal Council has also said that, if spending allocations to the Executive were based on need, the Executive would be entitled to receive between £1 billion and £3.5 billion extra, which is part of the reason for this problem?
I think there are further discussions to be had about need, the Barnett formula and all those things. I am sure those discussions are happening and that those things are being continually reviewed, but I do agree about the need. The Executive will repay this £400 million loan over three years-£80 million this year and £160 million next year, with £160 million due in 2028-29. Given the Executive’s track record, are the Government confident that these payments will be met? Northern Ireland Ministers have warned of further overspends, given their continued constrained financial position. The two Departments responsible for the reserve claim are likely to see a drop in their resource funding this year. How will the Government respond to further overspends? Granting the reserve loan was on the condition that the Treasury conducted an open book exercise on the spending of Northern Ireland Departments. This found that spending per head on policing in Northern Ireland is 166% of what it is in England, spending per head on health, excluding social care, is 152% and spending per head on schools is 140%. On the other hand, spending per head on prisons and probation services is only 79% of that spent in England and Wales. The report presents a number of policy options, and says that the Executive could make savings of up to £3 billion. However, Northern Ireland Ministers contest many of its findings. In his response, will the Secretary of State address the Government’s expectations of...
I thank the hon. Lady for giving way again. As she will know, one reason for that 152% health spending figure is the level of disability and poverty across Northern Ireland. The 152% figure reflects the actual need on the ground, and meeting that need must be the major goal for the Secretary of State to achieve.
I agree that our Committee has seen that the need is greater, and we are working to represent Northern Ireland and the people who live there as best we can. My Committee has recently conducted inquiries on policing and security and on legacy, which the Government directly fund. The Police Service of Northern Ireland currently receives £37.8 million a year directly from the Government as additional security funding. This ringfenced funding was introduced in 2011, and until last year it was specifically used to address the threat from Northern Ireland-related terrorism, but this ASF has now been broadened to cover all national security threats. The increase we have seen over the current spending review period may be to cover the broadened remit, but no information is publicly available about how the level of funding is determined by the Government. While we know that publishing some information may not be possible due to security considerations, my Committee has called for greater transparency, and I would be grateful for the Secretary of State’s response to our recommendations. The recent riots in Northern Ireland are of great concern, and they will be of serious concern to Members across this House. I take this opportunity to commend the PSNI and the emergency services for their response to the disorder. The PSNI was already facing a constrained financial position, so I welcome the additional £4 million provided by the NIO to meet some of the costs it incurred. Could the...
I congratulate the Chair on how she is raising the issue in this debate and how she has handled the legacy inquiry. Does she agree that there must be an answer to the concerns raised by the PSNI that it does not have any additional moneys to provide that information to the ICRIR with regard to legacy? There is also a funding issue there. Both the PSNI and the ICRIR have raised the issue of funding, saying that they are not being given the money to enable them to give the evidence they hold and manage to help the people who are waiting on those cases.
I thank the hon. Member for that contribution. It has been very clear from the Committee’s evidence sessions that, to cover the legacy issues it is still dealing with and will have to deal with, the PSNI is taking resource of time and money that it cannot afford, which impacts on what it can provide on the street, so I too would like to highlight that point. We want to see a stable Executive, backed up by fair and sustainable public finances, reflecting the needs of the people of Northern Ireland. I am concerned that the Executive’s financial constraint and the funding pressures facing the PSNI and the ICRIR are having a very real impact on people’s lives today.
In introducing the debate, the hon. Member for Gower (Tonia Antoniazzi), the Chair of the Northern Ireland Affairs Committee, lamented the failure of the Northern Ireland Executive to agree a budget; indeed, for any of the parties in the Northern Ireland Executive to even agree with their own party on a budget. That, clearly, is a difficulty in terms of providing the services for the people of Northern Ireland. It would do this House well to ask more probing questions on how, not for the first time, the Northern Ireland Executive have failed to agree a budget. Are there political influences at stake? Sinn Féin controls the Department of Finance. Sinn Féin does not even want Northern Ireland to exist, never mind succeed, so is it really any great surprise that when it is in charge of the Department of Finance there is a stand-off about agreeing a budget? For Sinn Féin, the default position is always to blame the Brits, demand more money and turn that into a political campaign on how Northern Ireland is being treated unfairly. Even if it had all the money imaginable, Sinn Féin would not seek to make Northern Ireland work. It cannot make it work and then say, “But none the less, we need the fundamental constitutional change” which is its raison d’être and what it demands. There are at play bigger issues than a mere failure to balance the books. On balancing the books, many of the parties that form the Northern Ireland Executive bear much responsibility themselves. When...
Order. I know this is an interesting debate and topic, but Members would be best to keep speeches 100% within scope.
I will do my best on that score, Madam Deputy Speaker. I congratulate my hon. Friend the Member for Gower (Tonia Antoniazzi) on securing this important debate. I want to draw on a consistent message that the Northern Ireland Committee has heard throughout a number of inquiries, whether into public services, the Northern Ireland economy, or police and security: the recurring question about whether the Northern Ireland Executive have been given sufficient funding to deliver the public services that people rightly expect. I know that am looking at that question from an interesting perspective-that of an MP whose constituency is not on the island of Ireland, and who is not directly affected by the day-to-day machinations and interdependence of relationships between the Northern Ireland Office, the Treasury, this place, the Northern Ireland Executive and the Assembly-but as a Scottish MP, I do understand the practical realities of devolution. Week in, week out, I see the impact of different political priorities being pursued by different Governments with the resources available to them. We always say we do not have enough money, but we will never have enough money; we always want more money. And that experience has shaped how I view this debate. The Committee has considered in depth the evidence of the Northern Ireland Fiscal Council, recognising that Northern Ireland’s unique circumstances means that it requires more funding than a simple Barnett consequential. I keep coming...
I want to start by thanking the Chair of the Northern Ireland Affairs Committee, the hon. Member for Gower (Tonia Antoniazzi), for the work of her Committee and for the diligence she has applied to the job she has taken on. It is deeply appreciated by Members from Northern Ireland that we have a Chairperson who is totally interested in the work that she is doing. I would not always agree with everything that comes out of the Committee, but she has nevertheless shown a desire to try to get things sorted out in Northern Ireland. First, as has already been emphasised by a number of speakers, we are approaching this debate at a time when -a quarter of the way through the year-we do not actually have a budget in Northern Ireland, and not for the first time. I do not know, as the hon. and learned Member for North Antrim (Jim Allister) has said, whether this is a co-ordinated political plan or an example of the incompetence of Sinn Féin Ministers. If it is a co-ordinated political plan, it is a very stupid one, because not having a budget and not having money allocated to Departments does not just affect the Unionist population in Northern Ireland-it affects everybody. It affects both Sinn Féin voters and Unionist voters. While it may add to Sinn Féin’s argument that Northern Ireland is not a viable state, I nevertheless do not believe that they should be punishing they own constituents to prove that. We have to look at the context of Northern Ireland. Getting a budget agreed...
Many Members across the House have spoken about the financial situation in Northern Ireland. My hon. Friend the Member for Gower (Tonia Antoniazzi) spoke very well about the impact that it has on the lives of people in Northern Ireland. I would like to touch briefly on the impact that it is having on a particular group of vulnerable individuals, and I declare an interest at this point as the chair of the all-party parliamentary group on learning disability. That group of individuals is the people who had the misfortune to be housed at Muckamore Abbey hospital. An inquiry into two decades of systemic abuse concluded two weeks ago and published its report. Some of the findings were absolutely horrific. The report found that mistreatment became a normality and that patients suffered black eyes, broken bones and severe neglect. These were patients who had learning disabilities and mental health issues. They were some of the most vulnerable people in our society-quite often non-verbal and unable to raise concerns about their treatment themselves. They were subjected to neglect, poor care and a wider diminution of their rights. Many had their lives made miserable by systematic bullying by certain members of staff. The report raised serious concerns about the attitude of the trust towards patients and the abuse being reported. There was evidence of patients not being washed, with faeces under their fingernails or on their clothes, becoming obese or losing weight dramatically, owing...
We come to the Front-Bench contributions. I call the Liberal Democrat spokesperson.
The 2026-27 main estimate for the Northern Ireland Office asks the House to approve spending plans for this politically sensitive region of the United Kingdom. In cash terms, the 2026-27 block grant has barely increased from 2025-26 levels. As the Stormont Executive are warning, that will leave a massive deficit and represents a 2.7% decrease in real spending power. That settlement arrives against a backdrop in which the Executive overspent their budget by £400 million in the last financial year, covered only by a Treasury reserve advance now being repaid in instalments, with £80 million due this year in the first tranche. We have a Government clawing back money, not investing in Northern Ireland’s future. On policing, the Government have provided an extra £113 million through the PSNI digital security fund. That figure sounds impressive, but it does not begin to address the operational drain that legacy demands place on day-to-day policing. The Chief Constable, Jon Boutcher, has warned that without the PSNI being funded to service the demands of what is planned to become the Legacy Commission, the entire project will fail, yet when he petitions the Secretary of State he is told that policing is a devolved matter, and when he turns to the Executive he is told that legacy costs arose under direct rule and are a matter for Westminster. The responsibility bounces between the two, but the PSNI ends up footing the bill. The estimates do not contain any resolution to that...
I call the shadow Secretary of State.
I will also begin by congratulating the Chair of the Northern Ireland Affairs Committee, the hon. Member for Gower (Tonia Antoniazzi), on making sure that we got this debate. It is clear that without her and the support of her Committee, we would not be discussing this incredibly important issue on the Floor of the House. I repeat the remarks made by the right hon. Member for East Antrim (Sammy Wilson): the Select Committee in this Parliament has been exemplary and given us high quality analysis, which has benefited debate on both sides of the House. We are here debating the estimate simply because the situation is becoming dire. As was said by the hon. Member for Cumbernauld and Kirkintilloch (Katrina Murray)-I fear that my pronunciation may be slightly out-this is not an abstract matter; it is having a genuine impact on public services today and on the planning of public services for tomorrow. Uncertainty is building and-I am sorry to say this-there is no suggestion that it will be alleviated any time soon. In fact, as the hon. and learned Member for North Antrim (Jim Allister) mentioned, it appears that we are further from agreement now than we were at the start of the year, because there is disagreement within Sinn Féin on the proposals put forward. That begs an important question for the Government: what will happen next? This is a debate about devolved issues, but I know that the Secretary of State and his officials from the Northern Ireland Office have been in talks...
I join others in congratulating the Chair of the Select Committee, my hon. Friend the Member for Gower (Tonia Antoniazzi), on having secured this extremely important, timely and useful estimates debate and on the work she does to scrutinise what happens in Northern Ireland and the work of the Northern Ireland Office. The Committee is exceedingly energetic and will be getting full value for money from the small ministerial team, as it did today and will do over the next couple of weeks. I shall begin by addressing the most important question that has been highlighted, to which the hon. Member for Brentwood and Ongar (Alex Burghart) just referred: the lack of an agreed budget. He has just reminded us that he thought the spending review was a pretty good settlement. The Chancellor set out that Northern Ireland would receive £19.3 billion per year on average over the course of the spending review period-the largest settlement since devolution in 1998. In addition, the Chancellor confirmed that the Government would be providing almost £750 million in additional funding through the Barnett formula over the spending review period as a result of decisions made at the autumn Budget and the spring statement. That includes an extra £373 million in the current financial year, 2026-27, and that money is available to the Executive. To pick up on one point, I am aware of the arguments about the funding in comparison to Scotland and Wales. I simply want to make the point that funding...
Will the Secretary of State give way?
Of course I will give way to the former Health Minister.
The right hon. Gentleman will acknowledge that, as there has not been a repetitive budget since 2016, any transformation or investment in health is always more challenging, and that is where the waiting lists are. Does he also acknowledge that that transformation funding is now there, and that the work being done by my party colleague, the present Minister of Health, Mike Nesbitt, is bringing those waiting lists down?
I absolutely acknowledge the work that Mike Nesbitt has been doing in health, and it shows what can be achieved if minds are put to it. It is a difficult balance between, on the one hand, running the services today and keeping them going and, on the other hand, investing in transformation. In the end, however, investing in the transformation is the way in which we will be able to deliver better public services for the people of Northern Ireland. I share the concern that has been expressed right across the House at the absence of an agreed multi-year budget, which is creating, above all, significant uncertainty for the funding of public services. I have been talking regularly with the Minister for Finance, who clearly faces a huge challenge in trying to get an agreement, and those conversations will continue this week, because we need to get to a multi-year budget as quickly as possible. I said about a month ago that the Executive needed to come towards the Government and meet us halfway, and there are two essential requirements. The first relates to the fact that the amount of money currently being forecast as the overspend for this year is going up, beyond the level that we saw in the last financial year. The word “pressures” is heard frequently in Northern Ireland. People say that they have budget pressures. Well, everyone has budget pressures. Quite reasonably, the Government have asked what the nature of those pressures is. Are they absolutely unavoidable legal...
I accept the argument that the Secretary of State is making. I served on the Northern Ireland Policing Board during the change from the Royal Ulster Constabulary to the PSNI, and was on the finance committee of the board. We had continual battles with the then Secretary of State, who was no more generous or flexible than a devolved Minister would have been. Devolution or no devolution, the fiscal and the financial situation is the same. I suppose the difference is that, when it comes to putting on pressure, the Secretary of State here is perhaps a bit more remote than the Justice Minister in Northern Ireland.
I will reflect on that point. I do not know in what sense the right hon. Gentleman uses “remote”; if it is geographical, I agree with him entirely. I acknowledge that, as he said from experience, agreeing a budget is difficult in a power-sharing system. It is difficult. He told the House an interesting story about being faced with reductions in budget and it being possible to come together and agree one. All Governments have to deal with the financial and fiscal circumstances they find, but when we take office, we have a responsibility to fulfil the tasks that are in front of us, which include balancing the budget. He also made interesting points about conditionality. How do we ensure, in return for whatever support a Government give-we have seen a long history of lumps and bumps of money, restoration after collapse, and so on-a consistent, measurable path to balanced budgets year after year, and an end to boom and bust in times of crisis? We have increased the additional security funding, which, from memory, I think was flat for about 10 years under the previous Government. This Government came in and decided to increase the additional security funding. The point has been raised in the Select Committee about the comparison with the counter-terrorism policing grant that is available in England and Wales. However, if we divide the grant by the population, we get £19.42 per head of funding; if we divide the additional security funding for Northern Ireland by the population of...
That’s why we funded it.
Well, it is entirely the result of that. The funding that was made available was the fixed sum to which I referred a moment ago. That is the first point. Secondly, the Department of Justice had put aside a sum of around, from memory, £50 million when the inquests five-year plan was put in place. It thought it would have 50 cases. A number of those, of course, are now not going ahead, and the troubles Bill proposes to restore nine and to sift the rest. Thirdly, prior to the legacy Act’s coming into law, the PSNI had about 1,000 cases to investigate; had the legacy Act not been passed, it would have continued to have to investigate those and receive requests for disclosure. The final point I would make on this issue-and I did make this point to the Select Committee when I was asked about it-is that we are looking in particular at schedule 4 to the Bill because Jon Boutcher makes the point that if there is a requirement to sift all the material to identify that which is of high security before handing over the files, that puts an obligation in place. We are looking at what we can do to ease some of the cost burdens, as hon. Members have said, as more people come to the Legacy Commission-and I hope more people will come forward. I will turn now to a couple of other points.
I am pleased that the Government are looking at some sort of additional support for PSNI. I sense that the Secretary of State is about to move off legacy. I did ask him whether he had discussed the Northern Ireland Troubles Bill with the right hon. Member for Makerfield (Andy Burnham) because, obviously, his view of the Bill will be critical for its future.
The hon. Gentleman invites me to speculate on discussions I may or may not have had, and I will kindly resist the request that he has just made for reasons that I am sure will have been obvious to him when he wrote that question into his speech. The hon. and learned Member for North Antrim (Jim Allister) and I have discussed the internal market many times before. He talks about the firms that have stopped shipping stuff to Northern Ireland. He will find many, many firms that have stopped shipping stuff to Europe for exactly the same reason: the decision to leave the European Union. It is from that that all the consequences have flowed.
indicated dissent.
The hon. and learned Member shakes his head. With respect, I am afraid that it is a self-evident fact.
Would the right hon. Member accept that international trade is much different than trade within the country that we belong to? If the impediments are stopping trade within our own country, of course that is much more serious than companies deciding that they are not going to sell to countries abroad.
I would indeed accept that point, if it was not for the fact that a decision had been made to leave the European Union when there is an open border between Northern Ireland and the Republic of Ireland. That was the fundamental problem that had to be solved, and none of the alternative suggestions would enable us to do this. I want to respond to my hon. Friend the Member for Thurrock (Jen Craft) about the Muckamore hospital report. I think that every single Member of the House was deeply shocked by what we read in that report, and our hearts go out to all those who have been affected by the mistreatment that has been revealed. I think the answer to the very reasonable question that she put is that we all hope to see all the many recommendations in that report implemented.
Will the Secretary of State give way?
I think the hon. Gentleman was responsible for establishing the inquiry, and I pay credit to him for doing so. The real way to honour those who have suffered is to ensure that the recommendations of the report are fully implemented.
I thank the hon. Member for Thurrock (Jen Craft) for raising the matter. I was the Minister who commissioned the inquiry, and listening to the families and the individuals who were in Muckamore at that time was a harrowing experience. I want to put on the record my thanks to Tom Kark KC, who chaired the inquiry, for handling the inquiry and bringing forward the recommendations in an engaging and compassionate way. The health service, the trusts and the entire health family in Northern Ireland need to pay careful tribute to a number of those recommendations, and the hon. Lady made a good point that they contain learnings for health bodies, trusts and Departments across the United Kingdom.
I congratulate the hon. Member on having established the inquiry, because when things go catastrophically wrong, it is what we do about it that counts, and that requires an independent look and for the truth to be told. In conclusion, it is of course for the Executive to agree a budget-above all, for the citizens they serve. That is the fundamental principle of devolved government in Northern Ireland. I repeat what I said earlier: both myself and the Chief Secretary to the Treasury are ready and willing to try to assist the Executive in doing that, but we need to see the things that I described earlier to be able to do so.
I thank the Secretary of State and the Under-Secretary of State for Northern Ireland, my hon. Friend the Member for Wirral West (Matthew Patrick), for their positive engagement with the Committee. We understand the challenges the Secretary of State faces, but we hope to provide the correct amount of scrutiny to get Northern Ireland into a better place financially. Many thanks to the shadow Secretary of State, the hon. Member for Brentwood and Ongar (Alex Burghart), and also to the right hon. Member for East Antrim (Sammy Wilson) for his kind words. I also pay tribute to my hon. Friend the Member for Thurrock (Jen Craft) for talking about the very difficult reading that is the Muckamore Abbey hospital review. I want everybody to be able to see that across this House, we care for everybody wherever they live, but especially in Northern Ireland. Question deferred until tomorrow at Seven o’clock (Standing Order No. 54).