Theresa May’s £1bn spending package to Northern Ireland could be slashed if Ulster parties fail to return power-sharing
THE £1bn spending package Theresa May has promised to Northern Ireland as part of her deal with the DUP could be slashed if Ulster parties fail to return power-sharing today.
Northern Ireland Secretary James Brokenshire warned there will be “serious implications” if the parties fail to agree an arrangement to return the devolved government by 4pm today.
And a senior government source said there needs to be a power-sharing executive - which broke down six months ago - for the money to be spent.
They suggested most of the spending would still go ahead without a deal to restore power sharing - but decisions on how and where to spend it would be made by the Westminster government and not politicians in Ulster.
Another source said there would be “huge questions marks” over the spending package agreed with the DUP earlier this week if talks fail today.
A DUP source said the party was confident of agreeing a deal with Sinn Fein in time for tomorrow’s crunch deadline because the Republican party had “750 million reasons to back the deal” - referring to half of the overall £1.5 billion funding package.
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The remaining £500 million relates to previously announced spending plans, which would be handed over to Stormont to decide how to spend.
Northern Ireland faces the prospect of direct rule being imposed from Westminster - or another snap Assembly election - if the parties fail to find an agreement today.
Mr Brokenshire warned: “Obviously there would be profound and serious implications in that context.”