The Executive of Northern Ireland has agreed to a £688m allocation of funds to progress public sector pay deals. This comes after a series of strikes by unions representing transport, teaching, health and civil service staff in recent months. The government had previously offered almost £600m as part of its £3.3bn package for devolution restoration. Finance Minister Caoimhe Archibald says it is now up to unions and employers to finalise negotiations and ensure workers are properly paid.
However, this funding will only cover one year and further negotiations will be required to ensure that recurring pay deals continue. It was also discussed how Stormont’s finances will look in 2024-25, with First Minister Michelle O’Neill saying that Northern Ireland parties will “continue the fight” with Treasury for additional tax and spending powers.
Many have welcomed the announcement in relation to public sector pay, including Gerry Murphy of the Irish Congress of Trade Unions (ICTU). However, some believe that this funding allocation may not be sufficient to settle all industrial disputes between unions and relevant departments.
It’s also worth noting that Stormont faces another financial “cliff-edge” in 2026, according to the Northern Ireland Fiscal Council. Public services may be impacted after the short-term elements of the government’s package are exhausted, and there may be a need to raise revenue or make cuts.
There is also a move towards a ‘needs-based’ funding of public services, based on the Welsh model, which recognises that it costs more to deliver public services in Northern Ireland and Wales of an equivalent standard to those provided in England. While the allocation will help move public service funding onto a more sustainable long-term footing, it does not address the short-term budget crisis
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