Stormont Finance Minister Caoimhe Archibald warned of a £100 million shortfall due to increased national insurance contributions in Northern Ireland. She emphasized the need for efficient public service delivery and fair funding, while also raising concerns about the impact of the national insurance hike. Professor Gerry Holtham will lead an independent review to assess Northern Ireland's funding needs.
Stormont Finance Minister Caoimhe Archibald has highlighted a projected shortfall of approximately £100 million attributable to the recent increase in national insurance contributions for Northern Ireland . She also confirmed the appointment of a specialist to assess the region's overall funding needs prior to the 2026/27 Spending Review. \Addressing the Northern Ireland Affairs Committee via video link, Ms.
Archibald emphasized that rectifying years of underfunding in public services would not be achievable within a single budget. She stressed the importance of efficient and effective public service delivery, stating, 'The Executive fully recognizes the need to deliver public services as efficiently and effectively as possible and we are all in agreement that transformation is essential if the Executive is to put our finances on a sustainable footing.' She further added, 'But to be able to do that we need to have fair and stable funding.'\The finance minister expressed concern over the national insurance hike, revealing an estimated additional expenditure of around £200 million for departments and agencies in the 2025/26 financial year. She pointed out that 'The Executive, like the devolved governments in Scotland and Wales, does not have the financial capacity to compensate for decisions made on reserved taxation matters.' She continued, 'While the Chancellor has said that support will be provided for public sector employers, this is likely to fall far short of what is needed for us in the Executive, possibly in the region of £100 million. 'I’ve obviously been engaging with the Chief Secretary to the Treasury in relation to that particular point to ask for urgent clarity on the quantum of funding and to ask for these costs to be met in full, and also to appeal for consideration to be given to support for those outside central government but who support us to deliver vital public services.'\Earlier this month, Sir Robert Chote, chairman of the Northern Ireland Fiscal Council, warned that the Stormont Executive faces a financial 'cliff-edge' when stabilization funding provided by the UK Government expires. On Wednesday, Ms. Archibald informed MPs that her department is developing evidence to demonstrate the need for increased funding to inform the upcoming Spending Review for 2026/27. As part of this, she announced that Professor Gerry Holtham, who led the Holtham Commission in Wales, has agreed to conduct an independent review on Northern Ireland’s level of need.\Meanwhile, Fleur Anderson, under secretary of state in the Northern Ireland Office, told MPs earlier that the Stormont Executive faces a multitude of challenges, citing long waiting times for health services and diagnoses for children with special educational needs. She remained steadfast that the necessary funding and mechanisms are in place for Stormont to address the issue. 'Fundamentally transforming public services will require the Executive to own a difficult set of decisions,' she stated. 'The money is there, the levers and powers are there for the Northern Ireland Executive to deliver.' She highlighted the substantial financial provision: 'There has been a big settlement ... with the largest settlement in real terms since the devolution, the Government providing £18.2 billion for the Northern Ireland Executive with a £1.5 billion top-up.' She emphasized the adequacy of funds for public service transformation, urging a shift from funding to implementation: 'There is enough money to transform public services, the discussion now needs to move on from funding to delivery.'\DUP MP Gavin Robinson raised concerns about whether the increase in national insurance contributions had been factored into Northern Ireland’s budgetary outlook. Ms. Anderson acknowledged the volatility of financial circumstances, replying: 'There are always going to be changes within the year.' She also dismissed Mr. Robinson's suggestion of Westminster's nonchalant approach to Northern Ireland’s finances, asserting her awareness of the 'enormous mountain that the Northern Ireland Executive have to climb.' 'The main message we’re saying is not ‘you’ve lots of money, get on with it’, the main message is, ‘there are tough decisions to be made, it is a difficult climate but don’t let that stop transformation’,' Ms. Anderson concluded.
FINANCE MINISTER NORTHERN IRELAND NATIONAL INSURANCE FUNDING SHORTFALL PUBLIC SERVICES SPENDING REVIEW GERRY HOLTHAM
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