Finance Minister Caoimhe Archibald warns of ‘difficult decisions’ after Chancellor's statement

Northern Ireland’s Finance Minister has warned of “difficult decisions” but pledged to continue to fight for resources.

Caoimhe Archibald’s comments came after Chancellor Rachel Reeves spoke about the potential impacts of addressing a £22 billion funding black hole.

Ms Reeves told Parliament that public sector workers are in line for a pay rise but 10 million pensioners will lose out on winter fuel payments in an attempt to fill the hole in the public finances.

She also set out “immediate action” to address the shortfall by £5.5 billion, with the rest of the gap to be addressed in a budget on October 30.

Northern Ireland’s finances are already under pressure, with all departments complaining of underfunding.

Ms Archibald said it is too early to determine the full implications of Monday’s announcement for the Executive.

“However, we know the Executive is facing significant financial pressures,” she said.

“All departments are going to need to take difficult decisions to live within the funding available.

“The Interim Fiscal Framework Agreement I negotiated has resulted in an additional £60 million being provided so far this year and will increase the Barnett received for the remainder of this year.

“As an Executive we have committed to playing our part to look at all options to deliver efficiencies, generate revenue, enhance borrowing powers and examine fiscal devolution.

“We are currently projected to raise an additional £80 million this year.”

Ms Archibald added: “I have been clear of the need for further investment in public services.

“I will continue to fight for the proper funding of our public services and to have the backs of workers, families and businesses here.”

She also welcomed a commitment to produce multi-year spending reviews going forward.

Ms Archibald said: “While it is disappointing the October budget will only cover 2025-26, multi-year settlements from spring 2025 will enable long-term planning for the management of our resources and for service delivery.

“But without sufficient funding this will be futile.”

She added: “The Chancellor today set out the scale of the challenges, what we need to hear is commitment to a change of tack that will see our public services properly funded and much-needed investment in infrastructure.”

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