Stormont budget to receive extra money in government deal

Public spending per head in Northern Ireland is higher than in England as it costs more to deliver public services of the an equivalent standard to a smaller population.

The UK government has endorsed the view that Northern Ireland is currently being funded below its objective level of need.

Independent experts on the Northern Ireland Fiscal Council have estimated that Northern Ireland needs about £124 per head for every £100 per head spent in England.

Northern Ireland is estimated to have now fallen below that level to about £120 per head, when the one-off impacts of the funding package are excluded.

The government has agreed to top up any funding allocations by 24% as a way to get back to the assessed level of need.

It has also committed to review the size of the top up if credible independent analysis makes the case that it should be higher than 24%.

The Executive wants the Stormont budget to be given a new baseline which will take it back to the level of need in one jump.

There is an acknowledgment that would only happen in the context of a UK spending review which is due to happen shortly after the general election.