2000 Spending Review
18 July 2000
SR2000/NI
Boost to Northern Ireland public services
Northern Ireland is set to receive a substantial rise in resources as part of the Spending Review announced by the Chancellor Gordon Brown today. This means extra funding for both the Northern Ireland Executive and the Northern Ireland Office, including funding to deliver commitments to implement Good Friday Agreement reforms.
Additional resources over the next three years have been made available for the Northern Ireland Executive to invest in modern public services. The increases over the 2000-01 baseline are £361 million in 2001-02, £667 million in 2002-03 and £988 million in 2003-04. This is new money that the Executive is free to spend on its own priorities.
In addition, extra funding has been provided over the next three years for the Northern Ireland Office to meet the Government's commitments to implementing the Good Friday Agreement reforms.
Commenting, Peter Mandelson, Secretary of State for Northern Ireland, said:
"This is excellent news for everyone in Northern Ireland. It gives the Northern Ireland devolved administration the resources to deliver improved services and prosperity for all the people of Northern Ireland. I expect the Northern Ireland administration will make its own announcements in due course about its detailed spending plans.
"The extra funds for the Northern Ireland Office also show our commitment to providing modern, effective and accountable public services which meet the needs of the whole community in Northern Ireland. Taken together, the extra money is a practical demonstration of the Government's commitment to securing a peaceful, prosperous and inclusive future for Northern Ireland."
The EU PEACE II programme will be fully additional to the Northern Ireland Executive's budget. PEACE II is a unique European Union programme that aims to promote peace and reconciliation in Northern Ireland through projects which focus on urban and rural regeneration, employment, economic development, social inclusion and cross border development. This exceptional public expenditure treatment is part of the Government's commitment to securing lasting peace and prosperity in Northern Ireland and ensuring that the PEACE II programme delivers benefits to the whole community.
Notes for editors
- Budgets for the Northern Ireland Executive and the Northern Ireland Office are set separately. Three year plans for both are announced today. The Northern Ireland Executive's budget is determined by the Barnett formula alongside the budgets for Scotland and Wales. The Northern Ireland Office budget is set in direct negotiations with the Treasury.
- The devolved administrations' budgets continue to be determined within the United Kingdom framework of public expenditure control. Responsibility for United Kingdom public expenditure allocation remains with the Treasury. The general principles for determining budgets were set out in the Statement of Funding Policy.
- The Northern Ireland Office covers the delivery of law and order and criminal justice services. These responsibilities are not devolved to the Northern Ireland Executive. The funding announced today will cover the implementation of the Good Friday Agreement reforms of policing and the criminal justice system. In addition the Northern Ireland Office has received funding for the police ombudsman, the Human Rights Commission, the Equality Commission, Victims of the Troubles and reform of the criminal injuries compensation scheme.
- Budgets have been set in resource terms consistent with those of UK departments.
- For further information, please contact the Northern Ireland Office press office on 020 7210 6470.