Financial package for the newly restored executive (Annex C)
All of the parties have raised the question of the future economic progress of Northern Ireland. The Governments are committed to working with all the parties to establish a platform for long-term economic stability and reform necessary for a newly restored Executive. In the context of restoration of the institutions, the Governments remain committed to ensuring the Executive has the capacity to provide quality public services, to continue the process of necessary reform, to plan for the future, to make the long-term capital investments to underpin the economic transformation of Northern Ireland, as well as bringing long-term benefits for the island as a whole.

In the context of the forthcoming Comprehensive Spending Review, the Chancellor agrees to meet all parties to consider proposals - including those from the Assembly subgroup on economic challenges facing Northern Ireland - that make the most of new opportunities arising from greater peace and stability.  We will also consider the potential for further North/South economic cooperation including proposals for joint investment initiatives. In the context of preparations for restoration, both Governments will work with the parties on these issues.

In response to the strongly expressed views of many in the NI community, the British Government will introduce a cap on domestic rates under the new capital values system and will examine the possibility of further rate reliefs for pensioners on lower incomes.