The Westminster government is to give the NI Executive an extra £1bn to support the Stormont deal.
A further £1bn will be added to Stormont’s budget as an automatic result of spending plans for the entire UK.
The government said there will be “a rapid injection of £550m to put the executive’s finances on a sustainable footing”.
That will include £200m to resolve the nurses’ pay dispute.
The government said the financial package will “be accompanied by stringent conditions” contained within the Stormont deal, around “accountability for public spending” and the development of “sustainable public services”.
It added that the the deal includes strict financial conditions, such as the establishment of an independent fiscal council.
However, the government added there are no stipulations for extra revenue-raising by the executive.
Parties likely to be unhappy
A new joint board formed between the government and executive will oversee how the money is spent.
The Secretary of State Julian Smith said the money will “help transform public services in Northern Ireland, including ending the nurses’ pay dispute”.
He added that it “provides certainty to the executive and ensures much-needed reforms across health, education and justice can be delivered”.
However the Stormont parties are likely to be unhappy both about the size of the package and how it was announced.
Earlier on Wednesday, Finance Minister Conor Murphy said he was drawing up detailed costings and hoped to meet the Chancellor next week for further talks.
The financial package includes:
- The £1bn investment as a result of UK spending plans, which will include funding for infrastructure investment
- The “rapid injection” of £550m to Stormont’s budget, including £200m to end the nurses’ pay dispute and deliver pay parity over the next two years
- £60M of ringfenced capital to deliver a medical school in Londonderry, subject to executive approval
- £50M over two years to support the rollout of low-emission public transport
- About £245m to support transformation of public services, with money being released depending on the delivery of reform
- £140m to address Northern Ireland’s “unique circumstances”
It is not yet clear which spending commitments relate to the deal and which are the result of the automatic increases.