PARLIAMENTARY DEBATE
Spring Forecast - 25 March 2026 (Commons/Commons Chamber)

Northern Ireland will directly benefit from the spring forecast, with almost £390 million in additional funding to the Executive over the next three years, including £231 million in 2026-27. That is money that the Executive can use to deliver on its priorities, which include transforming public services and promoting economic growth.

The £379 million in Barnett consequentials announced by our Chancellor earlier this month is on top of the £370 million of extra funding announced in the Budget, and that is all in addition to the £19 billion funding settlement announced at the spending review. Does the Secretary of State agree that, with that record level of investment, it is now for the Executive to produce a balanced, multi-year budget that will deliver for the people of Northern Ireland?

I agree with my hon. Friend. The Government have taken a decision to enable the Executive, if they wish to do so, to agree a multi-year budget. Discussions are taking place, we have had the open book exercise and I hope that the Northern Ireland Executive, given those considerable additional resources, will be able to find a way forward.

As a result of the Government’s mismanagement of the economy, the spring statement forecast that economic growth and wage growth would go down and that we would have increased inflation, all of which will hit Northern Ireland more severely than other parts of the United Kingdom. Yet the Government refuse to do anything about the massive costs of the Windsor framework and have imposed, from 1 July, carbon taxes on sea transport from GB to Northern Ireland, which will hit our economy even harder. Why are the Government ignoring the real issues that face the Northern Ireland economy, through both their actions and their inactivity?

I do not accept the right hon. Gentleman’s characterisation of what the Government are doing. We have brought economic stability to the country after the disaster of the previous Government, we have given record support to the Northern Ireland Executive and we are working through our negotiations with the EU to reduce the impact of the Windsor framework. The SPS agreement, which as I said is widely welcomed across Northern Ireland, is a really good example of that.

I call the Chair of the Northern Ireland Affairs Committee.

Though the funding in the spring statement is welcome, the Secretary of State told us that he was looking at alternative sources of funding for the charity sector because of the disappointment in Northern Ireland over the local growth fund split of 70:30. Will he update the House on his conversations?

Yes; I am working hard, together with the voluntary sector and, I hope, the Executive to find a way forward. There is £9 million available in resource to fund those schemes from 1 April. I held a meeting to encourage the voluntary sector to apply for a bid to Peaceplus, and with the considerable additional resources that have been made available to the Northern Ireland Executive, it is open to them to make a contribution so that the economic inactivity programmes, which we all value enormously, can continue.

The Northern Ireland Office and the Treasury are doing an open book exercise on how all the Departments of the Northern Ireland Executive are spending their block grant allocations. Will the Secretary of State commit to publishing their findings?

There will be a report from the Treasury to the Northern Ireland Executive. It is for the Executive to take the decision, but I say from this Dispatch Box that I would welcome its publication.

I call the shadow Minister.

Hospitality adds nearly £2 billion to Northern Ireland’s economy, supporting more than 75,000 jobs, but last year more than 2,000 hospitality workers in Northern Ireland lost their jobs. Does the Secretary of State agree with Unite the union, of which I know he is a member, that this is the result of the Government’s disastrous national insurance rises?

The national insurance rise decision that the Chancellor took in her first Budget was necessary because of the woeful economic legacy left to this Government by their predecessor. If the hon. Gentleman is not prepared to recognise that very basic fact, he has not been paying attention.