Stormont's finances facing further pressure

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Stormont's finances facing further pressure
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The public spending premium that Northern Ireland gets over the rest of the UK is shrinking, a spending watchdog has warned

For historic reasons, Northern Ireland has higher government spending per head than other parts of the UK

For historic reasons, Northern Ireland has higher government spending per head than other parts of the UK.That is happening for a combination of technical reasons and the end of temporary additional funding Northern Ireland received as the result of various political deals. The executive's spending on public services is largely financed by a core block grant from Westminster, which evolves according to the Barnett Formula.

But because spending per head was much higher in Northern Ireland when the formula was introduced, it means those cash increases are less in percentage terms.The Fiscal Council has reviewed various studies on what spending premium is needed for the devolved nations to deliver equivalent public services to those provided in England.

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