For the first time in its 103-year history, Northern Ireland has a nationalist leader. Sinn Féin’s Michelle O’Neill became the First Minister on Saturday, ending the two-year boycott by the Democratic Unionist Party (DUP) – republican and unionist support is required for the power-sharing executive. The UK government’s ploy to convince the DUP to return to the executive involved billions of pounds and various constitutional assurances. But with the Stormont executive coming out of its freeze, so are its problems.
The region has been hit by budget deficits, inflation and a series of strikes. There are recruitment problems in the police and issues with basic infrastructure such as the water supply. Funding was thus central to last week’s deal. The new fiscal offer means the Barnett formula, which calculates money for the devolved administrations, could be amended to reflect the region’s greater need. Northern Ireland would receive £124 for every £100 spent in England – a change that will have great implications for future funding.
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