AQO 1866/22-27 Oral question to the Minister of Finance

To ask the Minister of Finance to outline the staff and financial support that has been provided to Professor Holtham’s independent review of Northern Ireland's level of need.

Asked by Andrew McMurray MLA on 27 March 2025

  • Answered
  • Oral
  • Answered in the Chamber
Tabled
27 March 2025
Answer due by
7 April 2025
Answered
7 April 202511 days after tabling
Department
Department of Finance
Priority question
No

Answer

Answered in the Assembly Chamber on 7 April 2025. Extract from the Official Report (Hansard), including any supplementary questions:

Mr O'Dowd

With your permission, Mr Speaker, I will answer questions 7 and 12 together. I am pleased that Professor Holtham is conducting an independent review of our level of need. That work is essential if we are to make the case to the British Government for a higher relative need factor to be included in our funding arrangements. Professor Holtham's review is ongoing, and I expect a report from him later this month in order to inform phase 2 of the spending review, which is due to conclude in June 2025. Officials in my Department are providing technical and administrative support to Professor Holtham as he requires it. It is essential that the Executive are funded fairly and sustainably to enable us to deliver the public services that our people deserve. That is my focus and the purpose of the work.

Ms Flynn

Thanks very much. Will the Minister explain why the 124% needs-based factor should be amended?

Mr O'Dowd

It is the general view of Executive colleagues that, while it is welcome that we now receive funding at 124%, the level of need here is greater than that and that Professor Holtham's review is timely, given the spending review. It is clear that we have been underfunded for many years. I am old enough to remember that, when we used to call for more funding, we were accused of going to Downing Street with a begging bowl in our hand. It has been proven that we were, in fact, correct all along: we were underfunded. If we are to drag our public services up to an appropriate level, we need the funding to do that. We need that funding to support those working in our public services who, despite all the pressures that are thrown at them daily, go above and beyond the call of duty to help our citizens.

Mr McMurray

Is a few months really sufficient time for a review that is so fundamental to our public finances?

Mr O'Dowd

Yes, it is. The time frame is set not by us but by the terms of the spending review. The work that has been carried out across various reports, including the work of the Fiscal Council, provides a good platform for Professor Holtham to work on. He will have access to all the data and will come to independent conclusions. The time frame is not ideal, but it is achievable.

Mr Gaston

I certainly welcome the appointment of Mr Holtham to identify the up-to-date level of need for Northern Ireland, given his work in the Assembly in the past. As part of Mr Holtham's review, will he take submissions from parties or, indeed, MLAs?

Mr O'Dowd

No. It will be largely a desk-top review of data and provisions. It will not be that type of review. The time frame would not allow for that. It will really be about accessing papers and data to bring forward the report.

Official sources