NI MPs urge multi-year government funding for public services

Stormont politicians have repeatedly urged the government to make changes to the current funding model

The government must provide multi-year funding to the NI Executive to ensure transformation of public services, a Westminster committee has recommended.

It followed an inquiry carried out by MPs on the NI Affairs Committee.

Its report stated that multi-year funding would allow the executive to "plan meaningful changes - rather than giving them one-off pots of money to address short term issues".

Stormont politicians have repeatedly urged the government to make changes to the current funding model.

'Easier said than done'

The report also explored whether the executive raising more revenue itself could be a partial solution

The report, published on Monday, stated that when the inquiry was carried out Northern Ireland was experiencing its "10th or 11th single year budget".

This was due to unstable periods of devolution, but also dependency on the Treasury and the periods it covers in its spending reviews.

However, it added that despite having some money ring fenced to deal with transformation as agreed through a funding package that saw Stormont restored in 2024, some funding had instead "been diverted to day-to-day spend".

A spokesperson for the Department of Finance said: "The £235m ring-fenced for transformation has and will be used for transformation.

"The first tranche of funding of £129m to fund six transformation projects was announced on 4 March 2025. The funding for these projects in 2025-26 is included in the budget announced last week."

The report also explored whether the executive raising more revenue itself could be a partial solution.

'Too little, too late'

But like many inquiries that have looked at the issue before, it stated doing so would be "easier said than done", especially in relation to controversial proposals like introducing water charges.

It added that Northern Ireland must be funded according to its level of need.

The current needs-based element of funding means that since the restoration of the executive, Northern Ireland has received 124% of any increase in funding for England.

But the committee cited evidence it heard that such a figure would "not be enough" to make a significant difference to public services in the short term.

It called on the government to ensure that Northern Ireland's next block grant baseline from 2026–27 was calculated appropriately to reflect this.

Committee chair Tonia Antoniazzi said the current approach by Westminster to funding in Northern Ireland was "too little, too late".

"The crisis afflicting public services in Northern Ireland has gone on for far too long with the crippling effects of underfunding impinging on the day to day lives of people across communities," she added.

"The aim must be that public services in Northern Ireland are fully funded according to need, through stable, sustainable and predictable allocations, and our recommendations for the short, medium and long term set out the path to get there."

Autumn Budget

A UK government spokesperson said that the chancellor's Autumn Budget "provided £18.2bn for the executive over the next year – the largest settlement in real terms in the history of devolution – giving the executive the funds and resources it needs to make bold choices and turn public service outcomes around.

"We welcome the publication of the NI Affairs Committee's report.

"The government will take time to consider the findings of the report and respond in due course."