14/08/2026

Executive Seeks Urgent Meeting With Prime Minister Over Funding Squeeze

The Executive has asked new Prime Minister Andy Burnham for an urgent face-to-face meeting to secure a fair funding settlement, warning that mounting pressures on Northern Ireland's public finances threaten the transformation of public services.

In a letter signed by all ministers, the Executive says the current funding framework is inadequate, hindering economic growth and the delivery of high-quality services. It references recent talks at Hillsborough and reiterates the Executive's commitment to a balanced, sustainable budget, provided there is a funding envelope that enables reform.

The letter cites the work of Professor Holtham and analysis by the independent Fiscal Council indicating Northern Ireland is not funded on a comparable basis to Scotland and Wales. It argues that parity with Wales would add £1 billion a year to the Executive's budget, while parity with Scotland would deliver around £3 billion annually — a level the Executive says would be transformative for social and economic outcomes.

Ministers also express frustration at decisions imposed from London without local agreement, highlighting the Local Growth Fund's capital-heavy profile as poorly aligned with local needs. They call for urgent resolution of the Victims' Payments funding position, which entered dispute resolution in 2022.

The Executive presses for agreement on a fair funding model and a full Fiscal Framework, noting talks have stalled over the past year. It points to barriers such as Housing Executive borrowing powers and access to the National Wealth Fund, given the different structure of public service delivery in Northern Ireland.
News Image
Ministers insist the Executive must have a formal role in shaping future UK Government funding streams that impact devolved responsibilities, so investment reflects local priorities and respects devolution. While introductions have been made with the Chancellor and further information shared after June's Hillsborough talks, they stress the urgency of concluding the work. In the absence of an agreed budget, departments are being forced into short-term decisions that undermine effective planning and delivery.

They add that sustainable public finances cannot be achieved by the Executive alone and require joint delivery with the UK Government. The letter requests an early in-person meeting to build a relationship based on trust, mutual respect and genuine partnership.

First Minister Michelle O'Neill said: "We have repeatedly made the case to the British Government for a fair and sustainable funding package, but our calls have consistently not been met. People here deserve high-quality public services, but we cannot deliver the transformation they need without the necessary investment.

"The people we represent should not be left paying the price for a failure to properly fund public services here. We need action and we need it urgently."

Deputy First Minister Emma Little-Pengelly said: "When we spoke to the Prime Minister following his appointment, we were very clear about the urgent need to resolve these issues.

"Transforming our public services and delivering real change for the people of Northern Ireland is our priority but we cannot do this alone. We are committed to working with the UK Government to deliver economic growth across the UK, securing a funding envelope that enables us to invest in our public services and secure better outcomes for everyone living here."

Related Northern Ireland News Stories
Click here for the latest headlines.

05 February 2024
Executive Calls For Urgent Talks On Long-Term Funding Stability
The Executive has written to the Prime Minister Rishi Sunak to call for an urgent discussions on long-term funding stability to deliver public services.
06 February 2025
SDLP Slams Executive Failure To Reform Public Services
The Executive cannot hide from its failure to reform public services in Northern Ireland, the leader of the SDLP has said. Claire Hanna made the comments following a speech by Secretary of State Hilary Benn in Belfast on Tuesday.
04 March 2026
Finance Minister Welcomes £390m Funding Boost While Warning of Financial Pressures
Finance Minister John O'Dowd has responded to the Spring Forecast statement, welcoming an additional £390 million in funding for the Executive while cautioning that the region's finances remains under significant strain.
12 February 2026
Treasury Greenlights £400m Funding Boost For Public Services
The Executive has successfully secured a £400 million reserve claim from the Treasury to bolster public services and support government departments through the 2025/26 financial year. Following rigorous negotiations, the Treasury agreed to the funding under an arrangement that allows the Executive to repay the sum over a three-year period.
13 June 2025
NI Secures Additional £600m For Public Services
Finance Minister John O'Dowd has announced a significant agreement with the UK Treasury, which will deliver an additional £600 million for public services in Northern Ireland. This latest allocation brings the total additional funding secured through negotiations with the Treasury to £1.3 billion.