Stormont choices 'may add to funding pressures', says Benn

Northern Ireland secretary Hilary Benn

Stormont "may add to the pressures" on its finances by choosing not to "raise more funds for itself", the Northern Ireland secretary has said.

Hilary Benn said being in government was "about making choices" as he refused to be drawn on whether the Budget later this month would involve tax rises.

Northern Ireland's power-sharing executive has been facing several funding challenges, including pay for health staff and a police compensation bill.

Benn said the Stormont executive received a "record settlement" from the Treasury in terms of its overall funding.

"Nine months ago people were talking about a fiscal black hole - people are not talking about that now," he said.

Stormont's major source of funds is the "block grant" it receives from the Treasury each year.

Speaking to reporters on Wednesday in Lisburn, the secretary of state said: "It is always open to the executive to raise more funds for itself.

"If it chooses not to do that, then that may add to the pressures, but being in government, especially these days, is about making choices.

"It's about how you spend the money you have been given. I think the government has played its part with that record settlement."

Stormont has yet to resolve a pay dispute with health workers, prompting unions to engage in discussions about potential strike action.

Last month, the executive said it had agreed £100m for this year's award, but Health Minister Mike Nesbitt still needs to find the remaining £100m required.

The Treasury has also turned down a request for £119m to fund compensation for police officers affected by a huge data breach.

'Fantasy figures'

Meanwhile, Benn said he was "not going to speculate" on the government's plans for the Budget later this month.

It comes after Chancellor Rachel Reeves made an unusual pre-Budget speech at Downing Street in which she did not rule out tax rises.

That could mean a U-turn on Labour's general election manifesto pledge not to hike income tax, VAT or National Insurance.

Benn said that "government is about making decisions, and sometimes it's about making tough ones".

He described cuts to public expenditure suggested by some as "fantasy figures", adding: "We're not going to go down that road."

"We have got tough decisions to face, but the best way out of this is the government's long-term commitment to economic growth."