{"id":1966,"date":"2016-05-24T14:58:16","date_gmt":"2016-05-24T14:58:16","guid":{"rendered":"https:\/\/factcheckni.org\/?p=1966"},"modified":"2022-03-02T11:12:34","modified_gmt":"2022-03-02T11:12:34","slug":"how-dependent-is-stormont-on-westminster-subvention","status":"publish","type":"post","link":"https:\/\/factcheckni.org\/topics\/economy\/how-dependent-is-stormont-on-westminster-subvention\/","title":{"rendered":"How dependent is Stormont on Westminster subvention?"},"content":{"rendered":"\n

The claim is true up until the 1930s. But data show that Northern Ireland has run a fiscal deficit since 1966. The most recent figure, from 2013-14, is a subvention of \u00a39.2 billion. <\/strong><\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

The UUP\u2019s 2016 manifesto<\/a> states: \u201cThere was a time when we were net contributors to Her Majesty\u2019s Treasury, now Stormont is dependent on an annual \u00a311 billion subvention from Westminster every year.\u201d<\/p>\n\n\n\n

This claim is based off Professor Bob Rowthorn\u2019s research<\/a>, which describes how when Northern Ireland was created<\/a> it was seen as \u201can integral and self-supporting component of Britain\u2019s Imperial system\u201d, generating a fiscal surplus. Thus a regular \u201cImperial Contribution<\/a>\u201d was paid by the province, until the economic crises of the 1930s.<\/p>\n\n\n\n

Northern Ireland residents pay taxes directly to the UK Government<\/a>. The UK Government then allocates the funding to its departments and the devolved administrations. The taxes generated within Northern Ireland are considerably less<\/a> than the level of funding received from HM Treasury \u2014 the shortfall made up by a subvention.<\/p>\n\n\n\n

Figures published by Ulster University\u2019s Conflict Archive on the Internet<\/a> (CAIN) show how subvention rose from the period of 1966-1993. Subvention was first recorded as costing \u00a352 million annually (\u00a3489 million in 1992 prices), rising to \u00a33.34 billion by 1996-97.<\/p>\n\n\n\n

Further figures are provided by the Net Fiscal Balance report<\/a>, produced by the Department of Finance (UK). The latest estimate, for 2013-14, is a fiscal deficit of \u00a39.2 billion.<\/p>\n\n\n\n

HM Treasury is responsible<\/a> for managing and implementing UK fiscal and macroeconomic policy, as well as determining public expenditure allocations across the UK regions. As a result, Northern Ireland\u2019s Budget, along with that for Scotland and Wales, continues to be determined within the framework of public expenditure control in the UK.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Northern Ireland Annual Fiscal Deficit (\u00a3m)<\/strong><\/p>\n\n\n\n

  Year<\/th>  Nominal<\/th>  Adjusted
(2014\u00a3)<\/th><\/tr>
1966-67<\/td>\u00a352<\/td>\u00a3973<\/td><\/tr>
1967-68<\/td>\u00a363<\/td>\u00a31,149<\/td><\/tr>
1968-69<\/td>\u00a374<\/td>\u00a31,284<\/td><\/tr>
1969-70<\/td>\u00a374<\/td>\u00a31,217<\/td><\/tr>
1970-71<\/td>\u00a388<\/td>\u00a31,355<\/td><\/tr>
1971-72<\/td>\u00a3126<\/td>\u00a31,758<\/td><\/tr>
1972-73<\/td>\u00a3181<\/td>\u00a32,346<\/td><\/tr>
1973-74<\/td>\u00a3312<\/td>\u00a33,671<\/td><\/tr>
1974-75<\/td>\u00a3389<\/td>\u00a33,845<\/td><\/tr>
1975-76<\/td> \u00a3565<\/td>\u00a34,233<\/td><\/tr>
1976-77<\/td>\u00a3620<\/td>\u00a33,879<\/td><\/tr>
1977-78<\/td>\u00a3688<\/td>\u00a33,624<\/td><\/tr>
1978-79<\/td>\u00a3848<\/td>\u00a34,096<\/td><\/tr>
1979-80<\/td>\u00a3944<\/td>\u00a33,949<\/td><\/tr>
1980-81<\/td>\u00a31,090<\/td>\u00a33,739<\/td><\/tr>
1981-82<\/td>\u00a31,064<\/td>\u00a33,215<\/td><\/tr>
1982-83<\/td>\u00a31,149<\/td>\u00a33,174<\/td><\/tr>
1983-84<\/td>\u00a31,305<\/td>\u00a33,439<\/td><\/tr>
1984-85<\/td>\u00a31,489<\/td>\u00a33,727<\/td><\/tr>
1985-86<\/td>\u00a31,536<\/td>\u00a33,611<\/td><\/tr>
1986-87<\/td>\u00a31,593<\/td>\u00a33,618<\/td><\/tr>
1987-88<\/td>\u00a31,570<\/td>\u00a33,415<\/td><\/tr>
1988-89<\/td>\u00a31,698<\/td>\u00a33,513<\/td><\/tr>
1989-90<\/td>\u00a31,757<\/td>\u00a33,445<\/td><\/tr>
1990-91<\/td>\u00a32,018<\/td>\u00a33,681<\/td><\/tr>
1991-92<\/td>\u00a32,436<\/td>\u00a34,110<\/td><\/tr>
1992-93<\/td>\u00a33,296<\/td>\u00a35,320<\/td><\/tr>
1993-94<\/td>\u00a33,505<\/td>\u00a35,517<\/td><\/tr>
1994-95<\/td>\u00a32,895<\/td>\u00a34,467<\/td><\/tr>
1995-96<\/td>\u00a33,340<\/td>\u00a35,020<\/td><\/tr>
 \u2013<\/td> <\/td> <\/td><\/tr>
2002-03<\/td>\u00a36,197<\/td>\u00a38,261<\/td><\/tr>
2003-04<\/td>\u00a36,218<\/td>\u00a38,177<\/td><\/tr>
2004-05<\/td>\u00a36,461<\/td>\u00a38,322<\/td><\/tr>
2005-06<\/td>\u00a36,525<\/td>\u00a38,208<\/td><\/tr>
2006-07<\/td>\u00a36,682<\/td>\u00a38,212<\/td><\/tr>
2007-08<\/td>\u00a36,639<\/td>\u00a37,867<\/td><\/tr>
2008-09<\/td>\u00a38,718<\/td>\u00a310,113<\/td><\/tr>
2009-10<\/td>\u00a310,291<\/td>\u00a311,547<\/td><\/tr>
2010-11<\/td>\u00a39,956<\/td>\u00a310,673<\/td><\/tr>
2011-12<\/td>\u00a39,634<\/td>\u00a310,029<\/td><\/tr>
2012-13<\/td>\u00a39,459<\/td>\u00a39,601<\/td><\/tr>
2013-14<\/td>\u00a39,160<\/td>\u00a39,160<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Source: Net Fiscal Balance reports (Department of Finance (UK)).<\/p>\n\n\n\n

Image: “Fifties” by William Warby is licensed by CC BY 2.0<\/em><\/p>\n\n\n\n

\n\n\n\n

FactCheckNI is Northern Ireland\u2019s first and only dedicated independent fact-checking service and a verified signatory<\/a> to the International Fact-Checking Network’s Code of Principles<\/a>. You can learn more about about FactCheckNI<\/a>, our personnel<\/a>, what our article verdicts<\/a> mean, and how to submit a claim<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

The claim is true up until the 1930s. But data show that Northern Ireland has run a fiscal deficit since 1966. The most recent figure, from 2013-14, is a subvention of \u00a39.2 billion. The UUP\u2019s 2016 manifesto states: \u201cThere was a time when we were net contributors to Her Majesty\u2019s Treasury, now Stormont is dependent on an…<\/p>\n","protected":false},"author":2,"featured_media":22637,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[25,27],"tags":[178,274],"acf":[],"yoast_head":"\nHow dependent is Stormont on Westminster subvention? - FactCheckNI<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/factcheckni.org\/topics\/economy\/how-dependent-is-stormont-on-westminster-subvention\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How dependent is Stormont on Westminster subvention? - FactCheckNI\" \/>\n<meta property=\"og:description\" content=\"The claim is true up until the 1930s. 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