Every hospital, school, pension and benefit in Northern Ireland has to be paid for. One of the biggest questions in any debate about a united Ireland is simple: who pays? To answer it, we first need to understand how Northern Ireland is funded today.
Spending and taxes
According to the Office for National Statistics, in the year to March 2023:
- Public spending for Northern Ireland: about £36.0 billion
- Taxes and other revenue raised in Northern Ireland: about £21.5 billion
That leaves a gap of around £14.5 billion in a single year. The ONS found Northern Ireland had the highest net fiscal deficit per person of any UK nation or region.
These figures include a share of UK-wide spending, such as defence and interest on national debt. Some argue that part would not transfer to a united Ireland. Even allowing for that, spending here is still well above the taxes raised here.
How the money reaches Northern Ireland
Most public services here are paid for by a block grant from the UK Treasury to the Northern Ireland Executive at Stormont. The Executive decides how to spend it on health, education, roads and other devolved services.
- From 2026/27 to 2028/29, the Executive is due to receive an average of about £19.3 billion a year.
- Since 2024, a new needs-based funding floor means Northern Ireland receives at least 124% of equivalent spending per person in England, recognising its higher needs.
Separately, the UK pays for things not covered by the block grant, including state pensions, most benefits, defence and national security.
Why this is not something to be ashamed of
Many parts of the UK receive more than they raise, including Wales, Scotland and several English regions. That is how a union works: wealthier areas help support others, and everyone shares in the strength of one of the world's largest economies. Northern Ireland is not a burden. It is a full part of a country that pools its resources.
What it means for a united Ireland
If Northern Ireland left the UK, that support would end. The gap would have to be covered by:
- Higher taxes in a united Ireland,
- Cuts to spending in Northern Ireland, the Republic, or both,
- Borrowing, or
- some combination of the three.
Supporters of unity sometimes point to the Republic's strong tax receipts, much of them from a small number of multinational companies. But those receipts can change quickly, and no Irish government has set out how it would fund Northern Ireland's public services, pensions and benefits on day one or over the long term.
The question that needs an answer
Before anyone is asked to vote in a border poll, people deserve a clear, costed answer to one question: who pays? Until there is one, the funding that supports Northern Ireland's public services is best secured where it comes from today, within the United Kingdom.
