The Secretary of State shakes his head, but he knows the figures. In the next financial year, public spending in Northern Ireland will increase by 3.6%; public spending in England will increase by 6%. The disparity between what we get and what we need, and between what we get and what other parts of the United Kingdom get, continues to grow. That compounds the difficulties.
Some £297 million is scheduled to be taken out of our allocation this year and next. We are supposed to be grateful for the fact that it will not be taken out this year, and that the cut will be spread over two years. There is a projected overspend this year of £500 million, and a deficit of £575 million from public pay awards. That is £1.4 billion before we even start. I do not say that to be boring or over-detailed. Do I even care whether the Government agree with those figures? Not really, but people who should share our aspiration for a positive return to devolution when the circumstances are right need to recognise that there is nothing positive about the consequences of this budget—nothing positive at all. I am not an Assembly Member, but I suspect precious few will wish to take responsibility for the austerity and cuts that this Government have provided. That is why I say that people have just about had enough. They are not unfamiliar in Northern Ireland, despite how frustrating it is, with political discord. They understand the challenges in devolved Government. It is not lost on people, when we have just celebrated 25 years of the Good Friday agreement, that, for 40% of those 25 years, devolution did not operate. In fact, the majority of the time that it did operate was when the DUP and Sinn Féin were leading it, but the people of Northern Ireland are not unfamiliar with the frustrating circumstances that we find ourselves in. However, they want to hear a bit of realism.
When the Chairman of the Northern Ireland Affairs Committee, the hon. Member for North Dorset (Simon Hoare), who is not with us today, was batting back and forth with me in January on need and the Northern Ireland Fiscal Council, he dismissed those points. In fairness to him, we corresponded thereafter—it is not often I praise him, by the way—and he took my initiative. He talked to his colleagues and got Committee agreement to hold an inquiry on these financial issues. The evidence sessions have been useful, highly illuminating and will be in our best interests. That is why I say people want to see realism. They want to see us working together.
Yes, we will disagree about different methods and different ways of doing things, but we should recognise that, when there is a core problem, we need to work on the core solution. When there is a deficiency in how we are funded in Northern Ireland, we need to work to address that. When we need more resource simply to stand still—not to provide luxuries, but to provide essential services that people need and rely upon in Northern Ireland—we will do that collectively if needs be, but the Government should not sit back and wait for some collective ask. They know the facts and they have ignored the facts for month after month.
I am delighted to hear the Secretary of State say that they will now engage in the discussion on need. That is a departure from what the Northern Ireland Office has been saying for months. It is not a departure for Government in policy terms, given what has gone through in Wales previously, and it should not all be one-size-fits-all. We need to ensure that we invest not only in the financial aspects of how we deliver for people in Northern Ireland, but in Northern Ireland itself.
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