On 05 September 2024, the Northern Ireland Executive agreed a draft Programme for Government 2024-2027 entitled ‘Our Plan: Doing What Matters Most’. This is open for consultation until 04 November 2024.
For payroll professionals, it is important to note two things:
- Northern Ireland is part of the UK and therefore what happens there does impact us
- Since the reformation of devolution in Northern Ireland, this is a Plan for the remaining three years, not the usual Programme over the course of the Executive and Assembly
The Plan does outline that the nine immediate priorities are providing better support for children and young people, enabling affordable childcare, growing the economy, increasing housing supply and tackling homelessness, taking care of everyone by improving Health and Social Care services (the NHS-equivalent), protecting the environment and improving water quality and making communities safer. These come under the heading ‘what matters most’.
However, the section ‘Funding Our Plan’ is, perhaps, the most important as the consultation details how demand is outstripping supply (of funds). Therefore, the Executive proposes the following, which may impact the devolution settlements in Wales and Scotland:
- Examining fiscal devolution to this part of the UK, something contained in the Labour Party’s 2024 Manifesto. The Manifesto also promised a new Scottish fiscal framework and an update to the Welsh one
- ‘Working in partnership’ with the UK Government in Westminster. Again, the 2024 Manifesto said it would adopt collaborative approaches with the devolved nations
- A ‘fair funding settlement’, perhaps reference to the often criticised Barnet formula which is the way funding is allocated to the devolved nations now
- The need for ‘multi-year budgets’, i.e. allocating monies in advance so that Northen Ireland can plan with certainty for years in advance
For Bookkeepers
Northen Ireland has a few revenue-generating powers. Scotland and Wales do have these powers, albeit they are different (think Scottish Income Tax and the Welsh Rates of Income Tax). Northern Ireland does not have a fiscal framework with the UK, unlike the ones in Scotland and Wales that are planned to be updated. This is incorrect and is something that is overdue anyway in this devolved nation.
Further, any change in the way that funds are allocated to Northern Ireland via the ‘Barnet consequential‘ would have to result in a change to allocations for Scotland and Wales.
Northern Ireland's First and Deputy First Ministers (Michelle O'Neill and Emma Little-Pengelly) have met with UK Chancellor Rachel Reeves ahead of the UK Budget on 30 October 2024. Given this meeting and the Manifesto commitments, maybe Rachel Reeves will make changes – something else to look for on 30 October.
