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Northern Ireland Office

I thank the hon. Member for his intervention about the local growth fund. In our Committee session today, we grilled the Parliamentary Under-Secretary of State for Northern Ireland, who is sitting on the Front Bench, about this funding. On numerous occasions, we have noted our disappointment that the relevant Department has been able to shift the spending, but I am sure that the Secretary of State will give the hon. Member an explanation later.

Given the potential impact of having no agreed budget on the delivery of public services if the situation continues into the autumn, does the Secretary of State foresee a circumstance in which he would step up and step in to set a budget for Northern Ireland, should the Executive remain unable or unwilling to do so?

Linked to this are concerns about the Executive’s overspending and budget sustainability. At the end of the last financial year, the Government provided the Executive with a £400 million reserve claim loan to cover departmental overspends in health and education. That follows the £559 million Executive debt write-off by the Government in 2024 as part of the financial package accompanying the restoration of power sharing.

The Northern Ireland Fiscal Council warns that overspending is now becoming normalised, and it describes how repeated bail-outs

“could dull the Executive’s incentive to take difficult fiscal decisions”.

Overspending against available budgets by devolved Governments amounts to serious financial mismanagement, according to Treasury policy. Would the Secretary of State describe the Executive’s actions in the same terms?