The Northern Ireland Executive exceeded its budget by more than £500 million in 2023 and 2024. The Treasury covered the excess but classified it as serious mismanagement under its rules.

The Northern Ireland Fiscal Council forecasts a £450 million overspend for 2025/26. Future funding transfers from London will decrease to offset the debt.

Revenue from VAT and income tax in Northern Ireland covers 75 per cent of public spending. The shortfall equals 25 per cent of the region's GDP.

Public administration employment, including civil service and police, accounts for 7.7 per cent of total jobs in Northern Ireland. This compares to 4.4 per cent in England and 5.5 per cent in the Republic of Ireland.

Broader public sector jobs, including education and health, make up a third of employment in Northern Ireland. In England, they account for a quarter.

London transfers for public pay rises assume similar employment profiles across regions. Northern Ireland's higher public sector share means funding falls short of costs.

Northern Ireland provides water to consumers without charges, unlike other UK areas. Over 15 years ago, the Treasury stated that payers elsewhere would not subsidise free provision here. Non-charging requires reductions in other services.