The Democratic Unionist Party (DUP) broke off talks with the Tories about supporting their minority government as relations became strained over demands for £2 billion extra spending in Northern Ireland.
After losing her majority in the House of Commons, Theresa May is desperate to secure the support of the DUP’s 10 MPs, allowing her to pass key legislation including Brexit bills.
The £2 billion demand was made by the DUP this week and includes £1 billion to be spent on the National Health Service (NHS) and £1 billion on infrastructure.
Such was the disagreement over the amount, DUP negotiators in Belfast refused to pick up the phone to the prime minister’s team for 36 hours, The Telegraph revealed.
A source said: “They stopped answering their phones. It went on for 36 hours. Number 10 is putting in calls and they are not answering their phones.”
Spending per head in Northern Ireland is already far higher than in the rest of the UK, and according to calculations by the paper, the extra £2 billion works out as £1,100 per person in the province.
It could prove even more costly for the government, however, as the Barnett formula (the mechanism used to allocate public expenditure to the home nations) could trigger extra spending across the UK.
Typically, £1 spent in the Northern Ireland would require an additional £35 to be found for Scotland, England, and Wales.
.@NigelDoddsDUP concluding his response yesterday during the Queen's Speech debate: pic.twitter.com/QWEwuS0Mki
— DUP (@duponline) June 22, 2017
The prime minister surprised many by presenting her Queen’s Speech before securing a ‘supply and demand’ deal with the DUP, whereby they would agree to vote on key bills.
Without one, the tiny party could hold the government ‘to ransom’ every time their votes are required in the House of Commons for the next four years.
Despite the tension, a DUP MP said Thursday that there is a “very good” chance they and the Conservatives will agree on a parliamentary deal by next week.
Sir. Jeffrey Donaldson told the BBC that it was a case of “the sooner, the better”.
The prime minister has already dropped a manifesto claim to scrap the so-called “triple lock” protecting pensioners’ incomes – in line with the DUP manifesto – and the two parties agree on many key issues.
Both the Tories and the DUP want to protect the Union, fight terrorism, and, critically, fully deliver Brexit.
https://twitter.com/ianpaisleymp/status/876873824532402177
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