Stormont departments have 'reached the limit' of budget cuts, says top civil servant

Stormont departments have "now reached the limit" of what can be done to address budget pressures, the head of the Northern Ireland Civil Service has said.

Jayne Brady has written to Secretary of State Chris Heaton-Harris with an update on the current situation.

She says permanent secretaries, who have been running departments in the absence of a functioning Executive, have taken "approximately £1bn of challenging budget decisions".

Ms Brady outlines how "many of these were controversial, and would normally have required Ministerial or Executive consideration, as a matter of law".

She continues: "Notwithstanding those decisions, there remains an unfunded pay pressure of some £571m, and a further £437m of pressures requiring ministerial decisions.

"We have now reached the limit of what departments can do in order to address these issues.

"I should emphasise that the remaining governance gap does not stem from unwillingness to take difficult decisions.

"Instead, it stems from the judicial decisions of the highest court in Northern Ireland, and the law as made by Parliament.

"In any case, it is my view that we are now beyond the point in the financial year where such decisions are feasible, even if ministers were to return.

"In these circumstances, and despite accounting officers best efforts, an overspend on the overall budget now appears unavoidable."

A spokesperson for the Northern Ireland Office said the secretary of state remains focused on seeing the Executive restored.

“The secretary of state has received the letter from the Head of the Northern Ireland Civil Service, and is acutely aware of the challenges faced by departments and civil servants," they said.

“Our focus remains on Executive restoration and the Secretary of State will continue to engage with the parties over the coming weeks. 

“While action has been taken to ensure governance can continue, including through setting two Northern Ireland budgets, this position is not sustainable.

"Executive restoration is crucial for local politicians to take strategic decisions on an affordable and deliverable Programme for Government.

“In the meantime, the Secretary of State will continue to engage with the Northern Ireland Civil Service on the management of departmental budgets for this financial year, and working on budget sustainability including the implementation of revenue raising measures."

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