£800m cuts needed across Stormont departments according to Northern Ireland civil servants

Northern Ireland civil servants believe cuts of £800million may be needed across Stormont departments this year.

The detail has been published in the latest report from the Northern Ireland Fiscal Council, the body tasked with analysing Stormont's finances.

The Fiscal Council has considered the 2023-2024 budget for Northern Ireland delivered by the Secretary of State last week.

It highlights that the HM Treasury would normally have required a £297million overspend from last year to be repaid in full this year, but it has agreed to wait until 2025.

The Fiscal Council says this reduces the real-term cut to funding for resource spending this year from 5.5% to 3.2%.

The council said: "This will be tough to deliver - the NI Civil Service believes that Departments may still need to find £800m in cuts and additional revenues not to overspend again, given other budget pressures."

The Fiscal Council explains the financial challenges confronting NI Departments in 'part reflect inflation and pay pressures common across the UK' but it also says 'weaknesses in budget management specific to NI are exacerbated by the absence of an Executive.'

However the council says the pressures also reflect the ongoing squeeze on the Block Grant, the money which comes to Northern Ireland via Westminster.

The Northern Ireland Office has pointed out in recent weeks that NI gets more funding per head from the UK Government than in England.

But the Fiscal Council says the Government accepts a higher level of funding is needed in Northern Ireland because the number of people requiring public services and the cost of providing them is higher.

However, the council points out that while funding relative to need is on a level with what is recommended by experts right now, it is set to drop further.

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