Timeline for Stormont revenue raising extended

The Government has extended the timeline for Stormont to raise £113 million of additional revenue, the Finance Minister has said.

Caoimhe Archibald said she had secured flexibilities from the Treasury on what had been a key precondition of the £3.3 billion package from London that accompanied the restoration of powersharing in Northern Ireland.

The Treasury had offered to write off almost £600 million of Stormont debt, conditional on the Executive raising the £113 million and producing a plan to deliver sustainable finances for the coming financial year.

Ms Archibald said the Executive has now secured an extension on both those issues.

Ministers in Belfast have argued that the region has been funded below need in recent years, so the £600 million should not be considered a “debt”, rather money the local administration should have been entitled to.

Last week, the Executive agreed to raise the regional element of rates bills in Northern Ireland in line with inflation (4%). Ministers would have needed to hike the regional rate by 15% to come close to raising the £113 million the Treasury had originally been requesting this coming financial year.

Outlining the outcome of initial discussions with the Treasury, Ms Archibald told reporters in Belfast: “We’re very clear that that debt accrued was on the basis we were being underfunded, so there shouldn’t be conditions attached to it.”

She added: “In setting out the concerns and challenges that the Executive face, they did agree that there would be flexibility on the timeframe to deliver a sustainability plan, which we are very keen to do in terms of delivering high-quality public services

“But also in relation to that revenue raising piece so there is flexibility in that timeframe beyond this financial year.”