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Health unions have been engaged in discussions about potential strike action if a resolution is not found to pay the money soon. Stormont's major source of funds is the "block grant" it receives from the Treasury every year. Increases to the block grant are worked out using the population-based Barnett formula. Additional spending on public services in England means an equivalent amount is added to Stormont's budget, but it is up to the executive to decide where that money is spent. O'Dowd said the executive had already made commitments on health pay, and said he wanted to ensure any tax rises announced in the budget lead to using that money for "frontline services".
