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Letter to Treasury

Mackay expecting Scots boost from Belfast funding deal

Derek Mackay

Derek Mackay: ‘clearer criteria’

Finance Secretary Derek Mackay wants the Treasury to spell out what the extra funding offered to Northern Ireland will mean for Scotland’s budget.

He has written to Rishi Sunak, Chief Secretary to the Treasury, following the UK Government’s announcement of £2 billion funding for the Northern Ireland Executive. It follows the resumption of the assembly at Stormont.

Mr Mackay is keen to know what it means for the Scottish Government under the Barnett formula.

He says: “In particular, given the reference to £1 billion of Barnett-based investment guarantee, I would be grateful if you can confirm what additional investment Scotland will receive as part of the normal application of the Barnett formula”

Mr Mackay adds: “You will be aware that the Scottish Government fundamentally disagreed with the way additional funding was provided for Northern Ireland as part of the deal reached with the DUP in 2017, and that issue is yet to be resolved.

“I consider it important that the UK Government reconsiders its approach to exceptional funding allocations. There should be clearer criteria and better engagement with the devolved administrations in relation to such allocations, as well as a clearly defined dispute resolution process.”

Mr Mackay has requested clarification on the additional resources that will come to Scotland to enable it to be included in the Scottish Budget which he will present on 6 February.

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