NI secretary says funding alone will not solve financial challenges

Funding alone "will not solve" the many financial challenges Northern Ireland faces, the secretary of state has said.

Chris Heaton-Harris was speaking as MPs debated a budget bill for this financial year.

In the absence of Stormont ministers, civil servants have been under pressure to find hundreds of millions of pounds in savings.

Mr Heaton-Harris said those "difficult decisions" would rest with departments until power-sharing is restored.

The executive collapsed in February 2022 due to the DUP's opposition to post-Brexit trade rules in Northern Ireland.

The absence of a functioning government has left civil servants taking some decisions, with others remaining reserved for Northern Ireland secretary.

Mr Heaton-Harris also said political discussions need to now happen with Stormont parties about future finances for Northern Ireland.

For months, parties have been holding discussions with the head of the Northern Ireland Civil Service, Jayne Brady, about priorities for an incoming executive.

It has emerged Ms Brady wrote to the Northern Ireland secretary last week, to inform him about those discussions and urge him to convene political negotiations.

Mr Heaton-Harris said: "I encourage the people of Northern Ireland to urge politicians to return to the executive: the difficulties Northern Ireland departments face are as a result of tough decisions not being taken by elected representatives, not just this year but successive years previously.

"Funding alone will not solve these issues, we need strong and responsible leadership, we need the executive back."

Mr Heaton-Harris told MPs: "It is now the time to bring forward political discussions. I know each party will require a little time to do that within their own political committees."

He said any discussions would also need to involve revenue raising measures for Northern Ireland.

MPs were also told that the government will not push ahead with the remaining stages of the budget bill until after Parliament's summer recess, meaning the start of September.

Mr Heaton-Harris said that "presents the opportunity for parties to come together and take their own budget legislation" through Stormont.

Democratic Unionist Party (DUP) MP and former Stormont finance minister Sammy Wilson said the budget for this year was "inadequate" and that even if the executive was restored, public services would continue to suffer.

"Some of problems are so deep, money needs to be spent to make the reforms, so it's in some ways a vicious circle," he said.

Social Democratic and Labour Party (SDLP) leader and Foyle MP Colum Eastwood accused the Northern Ireland secretary of using the budget as a tactic to pressure the DUP to return to power-sharing.

"He's swung and missed the DUP and hit the most vulnerable people in our society," said Mr Eastwood.

"If he is serious about getting the DUP back to work, it is long past time that a time limit is put on this nonsense - have your discussions but we need to be back in government," he added.

"If that doesn't happen, we can't have direct rule by the back door."

Alliance deputy leader and North Down MP Stephen Farry said he recognised the executive was not a "silver bullet" but that having devolved government was fundamental to having democratic accountability.

"It allows us to plan ahead," he said, warning that without investment there could be no transformation or reform of public services.