Northern Ireland: Stormont House Agreement and implementation

The Stormont House Agreement of December 2014 included a range of potential changes for Northern Ireland. Devolution of corporation tax, flexibility in welfare reform implementation, the creation of an opposition in the Assembly and establishment of a number of bodies to consider elements of the legacy of the past, were contained in the Agreement.  It was accompanied by a package of almost £2 billion in support from the UK Government.  UK legislation is scheduled in autumn 2015 to implement some aspects of the Agreement.

This Note sets out the main provisions of the Agreement and looks at progress with implementation. The way forward for welfare changes in Northern Ireland, which was a main driver for the talks leading to the Agreement, continues to be unresolved.

The potential consequences of not implementing the Stormont House Agreement are difficult to identify in full, but ultimately these include failure to achieve a balanced budget for devolved government in Northern Ireland.