Sammy Wilson updated their status.

4 days ago

The ongoing budget crisis facing Northern Ireland is a matter of deep concern. While there are genuine financial pressures across the United Kingdom, I made it clear during the debate that the current situation in Northern Ireland cannot simply be blamed on a lack of funding. Political leadership, sound decision-making and meaningful reform are equally important if we are to build a stronger and more sustainable future.

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💷 The Failure to Agree a Budget

I began by questioning why the Northern Ireland Executive has once again failed to agree a budget.

I said I do not know whether this is a coordinated political plan or an example of incompetence on the part of Sinn Féin ministers. If it is a political strategy, then it is a very foolish one because the consequences are not confined to one section of society. When departments are left without agreed budgets, everyone suffers. Public services are affected, regardless of how people vote.

Whilst some may argue this supports the claim that Northern Ireland is not financially viable, I do not believe anyone should punish their own constituents in an attempt to make that argument.

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🤝 Budgets Can Be Agreed

Having previously served as Northern Ireland Finance Minister, I know from experience that agreeing budgets is never straightforward, particularly within a four-party Executive where every party has different priorities.

During my time as Finance Minister, the Treasury removed reserves worth around three per cent of the budget and imposed a further two per cent reduction after the budget had already been agreed. Despite those significant financial pressures, we worked together through consultation, compromise and negotiation to rewrite the budget and successfully agree a three-year financial plan.

That experience convinces me that today’s difficulties cannot simply be blamed on financial pressures alone. Political willingness to work together matters just as much.

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📊 Northern Ireland Has Been Historically Underfunded

I acknowledged the findings of the Northern Ireland Fiscal Council, which confirmed what many of us have argued for years—that Northern Ireland has been historically underfunded.

I also recognised the progress made after the DUP consistently argued that Northern Ireland’s funding should be based on need rather than solely on the Barnett Formula. That campaign resulted in increased recognition of Northern Ireland’s greater spending needs.

However, despite these improvements, there remains a significant historic funding gap which still needs to be addressed.

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🏛️ Additional Funding Must Deliver Reform

Whilst I believe Northern Ireland deserves fair funding, I also believe that simply handing over additional money without conditions would be the wrong approach.

If additional resources are provided, they should support reforms that improve public services, increase efficiency and reduce long-term expenditure.

Reform often requires investment at the beginning, whether that involves restructuring services, reducing unnecessary costs or modernising how government operates. However, that investment should leave Northern Ireland with better services and stronger public finances for years to come.

The objective should not simply be to spend more money but to spend it in ways that create lasting improvements.

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🌾 Funding Should Reflect Northern Ireland’s Needs

I also highlighted why funding based purely on population figures does not reflect Northern Ireland’s unique circumstances.

Agriculture provides one clear example. Northern Ireland has a much larger agricultural sector than many other parts of the United Kingdom, meaning expenditure in that area is naturally higher.

Similarly, higher levels of deprivation place additional pressure on health services.

These are precisely the reasons why Northern Ireland’s funding should continue to be based upon need rather than simply applying the Barnett Formula without recognising local circumstances.

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⚖️ Concerns Over Northern Ireland Office Spending

I raised serious concerns regarding the significant increase in Northern Ireland Office expenditure.

A large proportion of this increase is being directed towards the public inquiry into the murder of Pat Finucane.

Many families across Northern Ireland understandably feel this is deeply unfair when hundreds of other victims of terrorism have never received comparable investigations into the deaths of their loved ones.

The previous evening I had attended a memorial service remembering members of the Ulster Defence Regiment who were murdered during the Troubles.

🕊️ During the terrorist campaign:

* 🇬🇧 192 UDR soldiers were murdered while serving.
* 🇬🇧 A further 62 former members were murdered after leaving the Regiment.

Many widows and families continue to wait for the same level of investigation and attention that has been devoted to the Finucane case, which has already been the subject of multiple investigations, reviews and inquiries.

I believe this imbalance understandably causes considerable hurt among many victims’ families.

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👮 Funding Pressures on the Police Service of Northern Ireland

I also highlighted concerns surrounding the Independent Commission for Reconciliation and Information Recovery (ICRIR).

Whilst additional funding has been allocated to the Commission, there has been no equivalent increase for the Police Service of Northern Ireland.

The PSNI estimates that supporting these investigations costs approximately £24 million every year, placing even greater pressure on an already stretched policing budget that is projected to face a £58 million deficit this year.

Ultimately, this means fewer police officers available to serve communities across Northern Ireland.

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⚓ Supporting Trade Through Our Ports

Another major issue I raised was the importance of improving Northern Ireland’s trading links with Great Britain.

Following the disruption created by post-Brexit trading arrangements, a £10 million Ports Fund was agreed to strengthen trade routes across the Irish Sea.

I recently met representatives from the Port of Larne, who explained how this funding would allow them to:

✅ Widen loading ramps.

✅ Lengthen loading ramps.

✅ Accommodate larger vessels.

✅ Reduce transport costs.

✅ Improve efficiency.

✅ Create new shipping routes with Great Britain.

The Port itself is prepared to invest £10 million alongside Government support.

However, without the promised match funding, these important improvements may never happen.

I therefore asked the Secretary of State to clarify exactly what has happened to the Government’s commitment.

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🚢 Additional Costs on Shipping

I also warned that new carbon-related charges on shipping, due to take effect from 1 July, are expected to increase the cost of transporting goods across the Irish Sea by around 7%.

These additional costs come on top of the paperwork and bureaucracy already affecting trade between Great Britain and Northern Ireland.

The result is that transporting goods becomes more expensive and businesses become less willing to trade with Northern Ireland.

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💡 Rewarding Efficiency Instead of Waste

I also pointed to practical ways of improving Northern Ireland’s financial position.

My colleague, Communities Minister Gordon Lyons, has proposed tackling fraud within the benefits system to generate efficiencies and savings.

His proposal is straightforward: if Northern Ireland delivers genuine savings for the Treasury, then a proportion of those savings should be returned to the Northern Ireland Executive to help strengthen local finances.

I expressed disappointment that this proposal has not progressed and called upon the Secretary of State to support this approach with the Treasury.

Rewarding efficiency rather than waste would encourage better financial management while helping address pressures on public services.

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📈 Moving Beyond the ‘Begging Bowl’

I concluded by making clear that no unionist wants Northern Ireland to return to Westminster year after year seeking additional financial support.

Where genuine structural deficits exist, Government has a responsibility to recognise them.

However, additional funding should also be used wisely—supporting reform, encouraging efficiency, strengthening public services and creating the conditions for long-term financial sustainability.

My message to Government was clear:

✔️ Honour commitments such as the £10 million Ports Fund.

✔️ Work with Executive ministers to deliver meaningful reform.

✔️ Reward efficiencies where they are achieved.

✔️ Ensure Northern Ireland has the tools it needs to become more economically resilient.

🇬🇧 Northern Ireland deserves a funding system that reflects its needs, investment that delivers lasting value, and a Government committed not simply to managing financial pressures but to helping build a stronger, more prosperous and financially sustainable future.

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