Autumn Budget 2024: £1.5bn extra for North, Causeway Growth Deal to proceed, £45.8m for PSNI
The North will receive an extra £1.5billion through the Barnett formula in 2025-26, British Chancellor of the Exchequer Rachel Reeves announced on Wednesday.
A green light for the Causeway Coast & Glens and Mid South West Growth Deals and the provision of £45.8m in security and anti-paramilitary funding for the PSNI were among the other key announcements specific to the North in Ms. Reeves’ autumn budget statement.
Under the Barnett formula – named after Joel Barnett, who introduced it over 40 years ago to facilitate increases to the North’s ‘block grant’ in line with rising expenditure in Britain-only – the Executive will see an uplift of £1.5bn.
"The devolved governments will receive an additional £6.6bn through the operation of the Barnett formula in 2025-26. This includes £3.4bn for the Scottish Government, £1.7bn for the Welsh Government and £1.5bn for the NI Executive,” the Chancellor’s budget paper explains.
As aforementioned there is good news for the Causeway Coast & Glens and Mid South West Growth Deals that were recently paused as part of a wider-ranging spending review.
The government says it is ‘proceeding with the Mid South West and Causeway Coast & Glens City and Growth Deals’ and the budget ‘confirms £162m of investment over 15 years, subject to value for money assessments of business cases, supporting economic growth in NI’s rural regions’.
The PSNI is to receive a significant funding boost with ‘a further £45.8m for the PSNI’s Additional Security Fund [£38m] and the Executive Programme on Paramilitarism and Organised Crime [£8m]’.
The British Government is also providing £730,000 to support schools work towards integrated status.
Ms. Reeves’ budget document provides a detailed breakdown of the budget settlement for the North.
The Executive will receive £18.2bn in 2025-26. This includes the additional £1.5bn through Barnett – £1.2bn resource and £270m capital.
There is also £760m in targeted funding, with £670m resource and £90m capital, including for the 2024 restoration financial package, historic funding packages, and additional security funding.
“Total targeted funding in 2025-26 for the devolved governments includes: £253m for the continuation of all planned City and Growth Deals in Scotland, Wales and NI; £662m to the NI Executive from the 2024 restoration financial package; £38m for the PSNI’s Additional Security Fund and £8m for the Executive Programme on Paramilitarism and Organised Crime,” the budget paper states.
The NIO is getting extra money for the Omagh bomb and Pat Finucane inquiries and community projects.
"The settlement for NIO includes funding for a number of important priorities related to Northern Ireland’s legacy of the Troubles, including funding for the Omagh Bombing Inquiry, the Inquiry into the death of Patrick Finucane, and continuing with the £250 million Legacy funding commitment. £1m has also been provided to support NI Community Projects,” it was confirmed.
Ms. Reeves claims that the North is funded above its relative need.
"A needs-based factor of 5 per cent for the Welsh Government and 24 per cent for the NI Executive has been applied to the Barnett formula for 2025-26.
"All devolved governments receive over 20 per cent more funding per person than equivalent UK Government funding in the rest of the UK, and the Welsh Government and the NI Executive (including the 2024 restoration financial package) are both funded above their independently assessed relative need,” the paper claims.