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Heaton-Harris calls for decision on Stormont return as he unveils £3.3bn offer

The Northern Ireland Secretary said discussions with the DUP over the Windsor Framework have concluded.

Jonathan McCambridge
Tuesday 19 December 2023 08:06 EST
Northern Ireland Secretary Chris Heaton-Harris speaks to the media outside Hillsborough Castle where political parties held talks (Liam McBurney/PA)
Northern Ireland Secretary Chris Heaton-Harris speaks to the media outside Hillsborough Castle where political parties held talks (Liam McBurney/PA) (PA Wire)

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Northern Ireland Secretary Chris Heaton-Harris said it is time for decisions to be made on the restoration of Stormont powersharing as he outlined a £3.3 billion financial package offer for a returning Executive.

Mr Heaton-Harris said talks with the DUP over post-Brexit trading arrangements and financial discussions with Stormont parties had concluded.

The minister hosted Northern Ireland political leaders at Hillsborough Castle on Tuesday where he said the new financial package from the UK Government was a final offer.

It is disappointing that there will not be a new Executive up and running to take up this offer and deliver it for the people of Northern Ireland before Christmas

Chris Heaton-Harris, Northern Ireland Secretary

But DUP leader Sir Jeffrey Donaldson said he did not think the offer was enough to bring financial stability to Northern Ireland and added that negotiations over unionist concerns about trading arrangements would continue.

The unionist party previously signalled that there would be no deal to restore the Stormont institutions this side of Christmas.

The Government has been involved in separate talks processes with the DUP over the Windsor Framework and the four largest parties in the region about Northern Ireland’s budget crisis.

The powersharing institutions in Northern Ireland have been collapsed for almost two years.

Speaking after talks concluded, Mr Heaton-Harris said: “It is disappointing that there will not be a new Executive up and running to take up this offer and deliver it for the people of Northern Ireland before Christmas.

“However, this package is on the table and will remain there, available on day one of an incoming Northern Ireland Executive to take up.”

He added: “The UK Government has also held extensive talks with the Democratic Unionist Party (DUP) on the Windsor Framework over the last eight months.

“From our perspective, those talks, all the issues of substance, have reached a conclusion.”

Mr Heaton-Harris continued: “These financial talks have concluded and there is a financial package worth in excess of £3bn on the table should the Executive be restored.

“From our perspective the Windsor Framework talks, all issues of substance have effectively concluded, but we are always happy to answer concerns and questions on this.

“It is now the time for decisions to be made.”

The new Government package includes:

– up to £584m for public sector pay claims as a non-repayable reserve claim

– a new Welsh-style needs-based funding formula set at 124% in the Barnett formula from 2024-25

– to cover backdating of the funding formula, a £1.125 billion stabilisation fund will be concentrated into two years

– A Stormont budget overspend of £559 million will be deferred for two years and then written off when a returning Executive publishes and implements a fiscal sustainability plan

– A dedicated fund of more than £600m for a transformation plan, with at least £150 million ringfenced for transformation projects

– an extra £34 million to tackle hospital waiting lists in Northern Ireland

– £15 million to the PSNI to deal with impacts of a major data breach

– an enhanced investment zone worth £150 million will be created

– Northern Ireland’s annual capital borrowing limit will be increased over five years, worth an extra £135 million by 2028/29

Sir Jeffrey said: “In relation to the Windsor Framework, the Northern Ireland Protocol and the discussions we’ve been having with the UK Government, we are very clear, there is not yet agreement finalised on the issues of substance and we will continue to engage with the Government to get to the point where that agreement is reached.

“We are not for giving up, we want to get this right, it is important for the future of Northern Ireland within the United Kingdom that we secure the change that is required to restore our place within the United Kingdom and its internal market.”

On the financial package offered to restore Stormont, Sir Jeffrey said: “We will study the other aspects of the offer that has been presented by the Secretary of State, we will consider that.

“It remains our view that there is not yet a basis within that financial offer to deliver the financial stability that Northern Ireland needs in the years ahead.”

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