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A £400 million UK loan to Northern Ireland is called a "de facto bailout" amid warnings of ongoing fiscal instability and lack of long-term solutions.
A £400 million UK Treasury loan to Northern Ireland is labeled a “de facto bailout” by the NI Fiscal Council, which warns it masks ongoing fiscal instability and risks normalizing repeated financial interventions.
Despite the loan, departments are projected to overspend by nearly £460 million in 2025-26, driven primarily by public sector pay, which remains a major strain due to a larger workforce and insufficient block grant increases.
The draft 2026-27 budget lacks consensus, with key parties opposing it, raising the risk no new spending plan will be in place before the next fiscal year.
The council cautions that without structural reforms, repeated support could undermine long-term fiscal responsibility.
Un préstamo de £ 400 millones del Reino Unido a Irlanda del Norte se llama un "rescate de facto" en medio de advertencias de inestabilidad fiscal en curso y falta de soluciones a largo plazo.