Department of Finance predicts £1billion Stormont overspend in Northern Ireland

Stormont's Department of Finance is predicting a potential budget overspend for Northern Ireland of over £1billion this year.

In a financial briefing to key business and political leaders the Finance Department says despite recent cuts across department spending of £980m, Northern Ireland is still on course to overspend by £1.04bn during 2023-2024.

Around £590m is needed for public sector pay awards.

And the Stormont departments in general need £450m more to continue to deliver public services.

Stormont departments have been asked by the Secretary of State to look at ways of raising more money.

The revenue raising measures which are being considered include domestic water charges and increased tuition fees.

The Permanent Secretary for the Department of Finance Neil Gibson said: "The public sector needs to think differently about how it works and consider new ways to respond to increasing demand, deliver public services and provide better outcomes.

“My department has launched two consultations, one seeking views on other aspects of fiscal sustainability that could be considered alongside revenue raising options and the other consulting on a range of domestic and non-domestic rates relief."

He continued: “I think most viewers will recognise the sort of cuts that have been coming through and you will have seen that in your public services.

"We have had over just close to a billion pounds of cuts taken by permanent secretary colleagues and myself to try and live within the numbers we have but there’s a limit to how far civil servants’ powers go.

"There are decisions that can only be taken by politicians in order to make some of the scale of choices that would be required to deliver that level of cuts."

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