Northern Ireland Secretary says 'difficult decisions' must be taken as budget published

Northern Ireland Secretary Chris Heaton-Harris has published a budget for Northern Ireland along with an offer of "flexibility" on the repayment of a nearly £300m advance payment from Treasury.

He said "difficult decisions" would have to be taken at Stormont to live within the funding made available.

Mr Heaton-Harris added that the £297m owed to the Treasury, from an advance payment used to plug a financial hole in last year's Stormont budget, could be repaid using any future in-year funds allocated to Northern Ireland by the Government through the Barnett system process.

"With agreement from the Chief Secretary to the Treasury, flexibility has been granted on the repayment of the £297m overspend from the 2022-23 Budget," read Mr Heaton-Harris' written statement to Parliament.

"This will provide some protection to frontline public services in Northern Ireland from having to take the most severe reductions. However, difficult decisions remain in order to live within the funding available.

"To support this, I am committing any future in-year Barnett Consequentials for 2023-24 to repaying the reserve claim.

"Should this not amount to £297m, I will work with HM Treasury to reallocate funding from previously announced Northern Ireland funding packages, with the residual to be repaid in 2024-25."

The amounts allocated to the departments of health and education are broadly in line with the 2022/23 allocations.

Health will receive £7.3bn and education will get £2.58bn.

The departments of justice, finance and economy are among those facing reductions in their 2022/23 baselines.

The overall budget for capital projects is up slightly to £2.24bn.

"Despite the progress that has been made with the Windsor Framework, it is with considerable disappointment that I find it is necessary for me to once again step in and set a Budget for Northern Ireland for 2023-24," said Mr Heaton-Harris.

"The challenging budget position means that Northern Ireland departments need clarity on their budget allocations now to deliver a balanced budget. I will bring forward a Budget Bill in due course."

He added: "The UK Government has for many years recognised the unique challenges Northern Ireland faces.

"We have provided around £7bn in additional funding to Northern Ireland since 2014, on top of the Barnett-based block grant. The Northern Ireland budget per person is around 20% higher than equivalent UK Government spending in other parts of the UK.

"Yet, the level of public services offered are still not affordable and outcomes are not improving. We need the Executive back so that they can progress much-needed and long promised public service transformation."

Civil servants at Stormont have already been handed some extra powers to take decisions usually reserved for ministers and Chris Heaton-Harris has now introduced legislation that will seek to extend those powers beyond their current expiration date of June 5.

"The Government must also ensure that Northern Ireland departments can continue to operate," he said.

"That is why the Government has today introduced the Northern Ireland (Interim Arrangements) Bill to ensure ongoing governance in the short term, should Northern Ireland remain without ministers beyond June 5.

"The Bill continues the powers already afforded to permanent secretaries in Northern Ireland departments in the absence of an Executive. It also grants powers that will allow the UK Government to explore, with the Northern Ireland Civil Service, options for increasing budget sustainability including further revenue-raising in Northern Ireland.

"The right way for Northern Ireland to be governed is through locally accountable and elected government. But we have a duty to the people of Northern Ireland and in managing public funds to ensure Northern Ireland's finances can be put on a sustainable path.

"That is why these powers are deliberately focused on official advice and public consultation.

"The final decisions for any implementation are best taken by Northern Ireland's elected leaders. But we are taking these steps now to ensure that work progresses towards a more sustainable system in Northern Ireland that better reflects what is happening across the rest of the UK."

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