‘All conditions now in place’ to restore power-sharing in Northern Ireland, says minister

Published

2 years ago

January 30, 2024

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The government believes “all the conditions are now in place” for a return of power-sharing in Northern Ireland following a deal reached with the Democratic Unionist Party (DUP).

Northern Ireland Secretary Chris Heaton-Harris said he was looking forward to the “restoration of the institutions at Stormont as soon as possible” following a near two-year suspension by the DUP in protest against post-Brexit trade arrangements.

Politics latest: Stormont power-sharing deal struck

Mr Heaton-Harris, who said the deal represented a “significant development, denied the agreement was a “secret” deal in response to a question from Sky News.

Asked by deputy political editor Sam Coates what had changed, and whether there were going to be fewer checks on goods going from Great Britain to Northern Ireland, the minister replied: “There are some significant changes but you’ll have to wait until the… all-party talks are finalised.

“And when I publish the deal in parliament, everyone will see what it is.”

Pressed on whether there could be a deal on the basis of a “secret package?”, Mr Heaton-Harris said: “It’s not a secret package.

“It’s been a negotiation, and the negotiation has been between the Democratic Unionist Party and the UK government.”

The Northern Ireland secretary said all of the parties in Northern Ireland were not being briefed on the deal and that he would be in a position to reveal the details once they had been finalised.

Although he did not reveal specific details, Mr Heaton Harris confirmed a financial package of £3.3bn will be available to the incoming executive.

“I believe that all the conditions are now in place for the Assembly to return, and I look forward very much to the restoration of the institutions at Stormont as soon as possible,” he said.

He also praised DUP leader Sir Jeffrey Donaldson for his “leadership” and said it has “never been in doubt” that Sir Jeffrey’s “prime concern was to secure and reinforce Northern Ireland’s place in the union”.

In the early hours of this morning Sir Jeffrey said his party would restore power-sharing in Northern Ireland, subject to the UK government tabling and passing new legislative measures as agreed in negotiations.

Ministers are walking a tightrope to get Stormont up and running

Sam Coates

Deputy political editor

@SamCoatesSky

The government is walking the wobbliest of tightropes to try and get Stormont back up and running.

Northern Ireland Secretary Chris Heaton-Harris has just welcomed the DUP decision to go back into Stormont.

But he has done so on the basis of a deal that the other parties in Northern Ireland, MPs and the EU haven’t seen.

Indeed the people making the decision on Monday night – the DUP executive – haven’t seen it either.

Mr Heaton-Harris simply wouldn’t be drawn on specifics – was DUP leader Sir Jeffrey Donaldson right to say there would be no checks at all on goods from NI to GB? He simply said we’d have to wait to tomorrow to see the deal.

Why the secrecy – fear of DUP having second thoughts? Fear of the EU claiming this is a breach of the Windsor Framework?

Just because they’re delaying answers to these questions doesn’t mean we won’t get them.

He said the package of measures, once delivered, would provide the basis for the return of devolved government.

Power-sharing, the mechanism by which a Stormont executive is formed under the Good Friday Agreement, was collapsed by the DUP‘s refusal to allow a speaker to be nominated in 2022.

The DUP, which won fewer seats than the republican Sinn Fein party for the first time in 2022’s election, highlighted its opposition to Rishi Sunak’s Windsor Framework deal with the EU, which it argues has created a border down the Irish Sea, separating Northern Ireland from Great Britain – a contravention of its principles.

Speaking after Mr Heaton-Harris’s conference, Sinn Fein president Mary Lou McDonald said the re-establishment of the Northern Ireland Assembly had been “a long time coming”, but added: “We are very pleased we are at this juncture.”

She went on to say she was aware there further work to be done and that “society has really suffered from the absence of government over the last two years”.

“I very much welcome the fact that the DUP have moved to explicitly recognise and respect the outcome of that Assembly election, and we look forward to getting the job done.”

When the executive is restored, Sinn Fein vice president Michelle O’Neill is set to become Northern Ireland’s first nationalist first minister – which Ms McDonald described as “a mark, I suppose, of the extent of change that has occurred here in the north, and indeed, right across Ireland”.

Alliance Party leader Naomi Long also said she had “bittersweet emotions” following the announcement of the deal.

“I am pleased that we are now potentially in a position to see the restoration of the institutions and to be able to actually start doing all of our jobs after a two-year block on that,” she said.

“I admit I am still slightly stinging from the fact that we have lost that two years, that the damage that has been done can’t simply be undone.”

Under the Good Friday agreement, Northern Ireland operates under a power-sharing model where at least two parties agree to govern together to form a government.

The executive is made up of the job of first minister and deputy first minister.

Following the 2022 election result, in which Sinn Feinn emerged as the largest party, Ms O’Neill is set to be first minister while the DUP will pick the deputy first minister.

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Chancellor admits tax rises and spending cuts considered for budget

Published

15 hours ago

October 15, 2025

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Chancellor admits tax rises and spending cuts considered for budget

Rachel Reeves has told Sky News she is looking at both tax rises and spending cuts in the budget, in her first interview since being briefed on the scale of the fiscal black hole she faces.

“Of course, we’re looking at tax and spending as well,” the chancellor said when asked how she would deal with the country’s economic challenges in her 26 November statement.

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Ms Reeves was shown the first draft of the Office for Budget Responsibility’s (OBR) report, revealing the size of the black hole she must fill next month, on Friday 3 October.

She has never previously publicly confirmed tax rises are on the cards in the budget, going out of her way to avoid mentioning tax in interviews two weeks ago.

Cabinet ministers had previously indicated they did not expect future spending cuts would be used to ensure the chancellor met her fiscal rules.

Ms Reeves also responded to questions about whether the economy was in a “doom loop” of annual tax rises to fill annual black holes. She appeared to concede she is trapped in such a loop.

Asked if she could promise she won’t allow the economy to get stuck in a doom loop cycle, Ms Reeves replied: “Nobody wants that cycle to end more than I do.”

She said that is why she is trying to grow the economy, and only when pushed a third time did she suggest she “would not use those (doom loop) words” because the UK had the strongest growing economy in the G7 in the first half of this year.

What’s facing Reeves?

Ms Reeves is expected to have to find up to £30bn at the budget to balance the books, after a U-turn on winter fuel and welfare reforms and a big productivity downgrade by the OBR, which means Britain is expected to earn less in future than previously predicted.

Yesterday, the IMF upgraded UK growth projections by 0.1 percentage points to 1.3% of GDP this year – but also trimmed its forecast by 0.1% next year, also putting it at 1.3%.

The UK growth prospects are 0.4 percentage points worse off than the IMF’s projects last autumn. The 1.3% GDP growth would be the second-fastest in the G7, behind the US.

Last night, the chancellor arrived in Washington for the annual IMF and World Bank conference.

‘I won’t duck challenges’

In her Sky News interview, Ms Reeves said multiple challenges meant there was a fresh need to balance the books.

“I was really clear during the general election campaign – and we discussed this many times – that I would always make sure the numbers add up,” she said.

“Challenges are being thrown our way – whether that is the geopolitical uncertainties, the conflicts around the world, the increased tariffs and barriers to trade. And now this (OBR) review is looking at how productive our economy has been in the past and then projecting that forward.”

She was clear that relaxing the fiscal rules (the main one being that from 2029-30, the government’s day-to-day spending needs to rely on taxation alone, not borrowing) was not an option, making tax rises all but inevitable.

“I won’t duck those challenges,” she said.

“Of course, we’re looking at tax and spending as well, but the numbers will always add up with me as chancellor because we saw just three years ago what happens when a government, where the Conservatives, lost control of the public finances: inflation and interest rates went through the roof.”

Blame it on the B word?

Ms Reeves also lay responsibility for the scale of the black hole she’s facing at Brexit, along with austerity and the mini-budget.

This could risk a confrontation with the party’s own voters – one in five (19%) Leave voters backed Labour at the last election, playing a big role in assuring the party’s landslide victory.

The chancellor said: “Austerity, Brexit, and the ongoing impact of Liz Truss’s mini-budget, all of those things have weighed heavily on the UK economy.

“Already, people thought that the UK economy would be 4% smaller because of Brexit.

“Now, of course, we are undoing some of that damage by the deal that we did with the EU earlier this year on food and farming, goods moving between us and the continent, on energy and electricity trading, on an ambitious youth mobility scheme, but there is no doubting that the impact of Brexit is severe and long-lasting.”