Northern Ireland’s Level of Need - An Independent Review
Date published:
Professor Gerald Holtham’s independent review on Northern Ireland’s level of need considers the evidence on whether the needs-based factor applied to Northern Ireland’s funding is appropriate. The needs-based factor is applied through the Barnett formula to account for relative need and is a key factor in determining how much funding Northern Ireland receives from the UK Government through Barnett consequentials.
Professor Holtham has considered whether the 124%, applied as a result of the Interim Fiscal Framework, is the best estimate of Northern Ireland’s relative need for public spending or whether new evidence would indicate a different estimate.
Professor Holtham’s concludes that updated data and analysis suggests an initial comparable level of need of 123%, but, given the UK Government’s removal of the ringfence on farm and fisheries support, agriculture should also be considered as part of the level of need assessment. Including agriculture, Professor Holtham estimates that the range for Northern Ireland’s level of need lies between 126% and 132%, with his central estimate at 128%.