Following restoration, decisions on the Northern Ireland budget will be for the Executive to make. Clearly established mechanisms such as the end year flexibility mechanism and the in-year monitoring process will enable them to deal with any emerging issues in the forthcoming budget.
On 11 April the Minister said that there were “emerging financial pressures” in respect of the reform programme, including the review of public administration, rates and water charges. On 23 March, all the parties in Northern Ireland were informed that there were no unfunded liabilities. Will the Minister tell us which is correct, what is the quantum of the deficits, and what will be the impact on the Northern Ireland budget and the Chancellor’s package for Northern Ireland?
There are certainly unfunded liabilities for the future, as is always the case in any budget circumstance. The incoming Executive and the incoming Finance Minister, the hon. Member for Belfast, East (Mr. Robinson), will have an opportunity to examine the position in-year. I can tell my hon. Friend, however, that thanks to this Labour Government—[Interruption.]
Order. There is a great deal of noise in the Chamber. It is unfair to Members who are present for Northern Ireland questions.
Thanks to this Labour Government, expenditure is twice what it was in real terms when the Government came to power in 1997. My right hon. Friend the Chancellor has secured not just a real-terms budget increase for the comprehensive spending review—which will ensure that we spend well over £9 billion a year in Northern Ireland—but an extra £100 million for Northern Ireland, along with a commitment to £1 billion of infrastructure each and every year for the next 10 years. There will be difficulties in connection with, for instance, the RPA, but they can be managed in-house by the Government, and I am sure that the incoming Executive will do a very good job.