'Horrific' budget for Northern Ireland could be delivered next week

A budget for Stormont departments could be announced as early as next week, UTV understands.

Assembly officials have submitted details of what they believe is needed to keep their departments running in the next financial year in the absence of a functioning executive.

It is now up to Chris Heaton-Harris to decide where funding is allocated to.

UTV Political Editor Tracey Magee said sources have indicated it could be "horrific".

The Northern Ireland Office has said decisions still need to be taken.

"Everyone knows when this budget comes, it is going to be tough," said Tracey Magee.

Earlier this week, a leaked Government paper revealed how revenue-raising measures such as water charges and higher tuition fees should be the focus of future Stormont budgets.

A leaked Northern Ireland Office briefing paper estimates the devolved executive is losing £700 million a year by failing to charge for services like domestic water supply, prescriptions, domiciliary care, transport for the over-60s and having significantly lower university tuition fees than England.

Savings through workforce efficiencies in the civil service should also be considered, the NIO document says.

The paper was prepared for Northern Ireland Secretary Chris Heaton-Harris, who has responsibility for setting Stormont's budget this financial year in the absence of devolution.

When local ministers left office last year, Stormont was facing a £600million black hole.

Civil servants were forced to make a range of in-year savings and the Treasury provided a £300m advance down-payment on the current financial year's block grant to help bridge the financial gap.

However, with that £300m having to be recouped in this financial year, the picture looks even more bleak ahead of the 2023/24 budget.

The sensitive briefing paper, which has been seen by UTV, estimates that £345m could be generated by introducing domestic water charges, while raising tuition fees could bring in an additional £145m a year.

The document says Northern Ireland is receiving 21% more per head of population than England for the period 2022-25.

But it adds that political instability at Stormont and a failure to undertake major public service reform has created the devolved administration's financial woes.

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