BELFAST (Reuters) – Northern Ireland’s new power-sharing executive on Monday told the British government that the region’s tight budget would exceed the 3.3 billion pounds ($4.2 billion) included in a deal to restore decentralized governance. He called for an increase in the proposal to ease the situation.
Chancellor Rishi Sunak took political action in Belfast on Monday, after last week persuading the pro-Britain Democratic Unionist Party (DUP) to end its two-year boycott of regional parliaments by easing post-Brexit trade tensions. He plans to meet with leaders.
This paved the way for a new power-sharing coalition to be formed on Saturday, with Sinn Féin’s Michelle O’Neill as prime minister, but it is a historic milestone for the British region. It was the first time for that.
In a joint statement with the DUP’s new deputy first minister, Emma Littlepengelly, Mr O’Neill said: “This morning the Prime Minister will be meeting with the executive departments to unite our determination to agree an appropriate long-term funding package. ” he said.
The new devolved government published a letter to Mr Sunak on Monday, saying the £3.3bn package was welcome but would only provide a short-term solution and would not provide the basis for delivering sustainable public services. He said no.
The UK Government proposed the package in December after consultation with all parties. Early last year, London refused to increase Northern Ireland’s annual budget by £14.2 billion, despite inflation reaching its highest levels in decades.
This led to the biggest public sector strike in a generation last month, with workers angry that, unlike their colleagues in other parts of the UK, they were not getting any pay increases.
Ministers in Northern Ireland said the £584 million set aside for salaries was below the “known pressures” of £690 million, and that the remaining support was also used to support the long-term needs of delivering public services. He said it was below the standard.
Northern Ireland Minister Chris Heaton-Harris said the package was a “fair and generous” proposal, but did not rule out the possibility that the new government could negotiate an increase.
“We will now have a Chancellor of the Exchequer and a Minister for the Economy who will be able to speak directly to the ministers responsible for Her Majesty’s Treasury. I am confident that if we have data to prove otherwise, they will listen. ,” Heaton said. – Mr Harris told BBC Radio. ($1 = 0.7927 pounds)
(Additional reporting by Sarah Young in London; Writing by Padrick Halpin; Editing by Alex Richardson)
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