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Extra Stormont funding in Spring Statement for public services

John CampbellEconomics and business editor, BBC News NI
Getty Images One pound coins and £5, £10, £20 & £50 notes.Getty Images
The announcement came as part of the Chancellor's Spring Statement

The Northern Ireland Executive is to receive an additional £380m for public services over the next three years, the Treasury has said.

The money is largely NI's share of new funding announced for special education in England.

Stormont ministers will have to decide how to use the money and are not required to spend it on special education.

The finance minister welcomed the money but said significant financial pressures remain.

PA Media John O'Dowd is talking to the media. He's wearing a black suit with a blue shirt and patterned tie. The blue backdrop says Northern Ireland Executive. PA Media
O'Dowd said it was essential to "grasp the opportunity presented now to set a multi-year budget"

John O'Dowd said he is continuing to make the case to the UK government to restore the "stabilisation fund" - additional one-off funding which accompanied the restoration of devolution in 2024.

The Executive recently received what was effectively a £400m loan from the Treasury to prevent an overspend in this financial year.

That loan is due to be paid back in three tranches: £80m in the coming financial year, £160m in 2027 and £160m in 2028.

The new money could potentially cover most of those repayments.

Most of the new money - £228m - will be available to spend in the new financial year which starts next month.

There will then be £5.6m available in 2027/28 and £144.9m in 2028/29.

The announcement came as part of the Chancellor's Spring Statement.

Stormont ministers are yet to agree a planned three-year budget which should take effect next month.

It was published in draft form by the finance minister in January.

However, the draft has been rejected by other parties with the Deputy First Minister, Emma Little Pengelly, describing it as "deeply flawed."

If a budget cannot be agreed by the start of the financial year in April there are well established procedures which will roll forward the previous year's funding and allow ministers to keep spending.

EPA Hilary Benn walking. He is carrying a red file. He is wearing glasses, a brown and cream coat, a blue shirt and a red tie. He has grey hair.EPA
Hilary Benn said the money is "good news for Northern Ireland"

Secretary of State for Northern Ireland Hilary Benn said: "This is money the Northern Ireland Executive can use to deliver transformation of public services, fiscal stability and economic growth.

"I encourage the Northern Ireland Executive to use this as an opportunity to agree to a multi-year budget and take the necessary steps to deliver long-term budget sustainability."

O'Dowd said: "While significant challenges remain, it is essential we grasp the opportunity presented now to set a multi-year budget.

"I will continue to work in partnership with ministerial colleagues to find a way forward to enable strategic investment that delivers lasting benefits for workers, families and businesses."