Tory-DUP deal paves way for £3.3bn and new Barnett formula that will hike funding by 24%

Speaking in the British House of Commons on Wednesday he said the ‘new deal will help put public services on a sustainable footing – with funding totalling over £3bn to support Northern Ireland’s public services in Northern Ireland, providing a solid foundation for the Executive to deliver better outcomes in the day to day lives of the people in Northern Ireland’.

He said the DUP’s acceptance of the deal will facilitate changes to the Barnett formula which will see funding uplifted by 24 per cent from 2024-2025.

The formula was named after former Labour minister Joel Barnett and was introduced in the late 1970s.

It is supposed to ensure the North’s ‘block grant’ increases in line with rising British Government expenditure in Britain-only.

Mr. Heaton-Harris said the £3.3billion financial package will be complemented by ‘an updated Barnett formula for Northern Ireland now and into the future, reflecting the needs and unique circumstances of the people of Northern Ireland’ that will ‘give the Executive significant funding to stabilise public finances’.

He was speaking after the British Government published its new 24 point plan for ‘safeguarding the union’ including legislation guaranteeing the North’s status in the UK and the replacement of the ‘green lane’ for goods in the Windsor Framework with a so-called ‘UK internal market system’.

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