Research from Labour, in consultation with the respected House of
Commons Library, suggests that if the Tories’ sweetheart deal with the DUP
goes ahead and rises as is rumoured to £2 billion, then it could mean that
£68 billion in government funding being denied to the rest of the UK.
Under the Barnett Formula an increase of £2 billion in funding for
Northern Ireland would normally imply additional public expenditure in England
of £59 billion, with Scotland getting an additional £6 billion and Wales
£3 billion.
However, following such a drastic change in extra
budgetary spending for Northern Ireland, the Conservatives have
decided to not adopt an approach even similar to the Barnett Formula to
increase funding across the board. Nor have they explained if this
increase will be funded by borrowing, tax rises or spending cuts at the UK
level.
John McDonnell MP, Labour’s Shadow Chancellor, said:
“The coalition of chaos that was set up yesterday risks
increasing division in our society by easing austerity in one part of the UK
alone.
“We need to see an end to austerity throughout the UK not just in
Northern Ireland, and not just to prop up Theresa May and her failed
government.
“Labour’s fully costed alternative programme of government stands
ready to provide Britain with the leadership that will truly end austerity, and
unite all nations and regions in our country.”
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