Stormont Finance Minister outlines £700m funding gap facing departments

The finance minister has warned of 'grave consequences' that Stormont departments have budget pressures totalling £767m.

Caoimhe Archibald told the Assembly while the Executive expects £500million in Barnett consequentials from the London government, there is "little hope" of more money.

Ms Archibald has also told Executive ministers to take urgent action to ensure they do not overspend this year, as that will also bring a financial penalty for the budget.

"The Executive is committed to speak with one voice and will continues to make the case for additional funding for public services," she told MLAs.

"But the reality is with the prime minister and chancellor at pains to warn of a painful budget coming in October, there is little hope of additional funding being providing outside Barnett consequentials and the barnet formula will not deliver the additional funding we need."

Of the £767m total budget pressure, 90% is in health, education and justice. More than half is needed for public sector pay.

Should Stormont fail to balance its books a previous offer from the government to write off a £559m debt will be rescinded.

all ministers will have to play their part by living within their budget once this funding is provided.“Not doing so would have grave consequences for future funding.“Any overspend would come off next year’s budget, and even more concerningly, Treasury has been explicit that not living within budget would result in the Executive having to repay the £559 million that Treasury had agreed to write off, making an already difficult financial situation even worse.“While I, along with my Executive colleagues, will continue to make the case for adequate funding of our public services, I remain hugely concerned that the ramifications of not living within budget this year would represent a potentially disastrous outcome for the Executive and our public services.“At the Executive meeting last week, I outlined to my ministerial colleagues the need for urgent action to be taken.“Collectively, we must ensure a balanced budget is delivered.“I am currently meeting with individual ministers to discuss the budgetary challenges and collectively, as an Executive, we will need to chart a way forward.“I will continue to make the case to the British Government that more funding is needed for public services to support our workers, families, and businesses; and will be raising this at a meeting with the Chancellor later this week.“Difficult times require courageous leadership.”Ms Archibald will be joined by First Minister Michelle O’Neill and deputy First Minister Emma Little Pengelly for the meeting with Chancellor Rachel Reeves in London on Thursday.

Stormont minister says government winter fuel payment cut 'the wrong move'

It comes as the government saw off a challenge to its plan to cut the winter fuel payment for millions of pensioners across the UK.

A total of 348 MPs voted against a motion on Tuesday, urging the government to delay implementing cuts for around 10million pensioners.There were 228 MPs who voted in favour of the motion.

The winter fuel payment is an annual tax-free winter sum worth between £200 or £300. Under the plans, the winter fuel allowance for pensioners will be limited to only those claiming pension credit or other means-tested benefits.Sir Keir Starmer has justified the plans to help "secure the foundations" of the economy, but backbench MPs, union leaders, and the opposition have all called on the government to reverse its decision.

Stormont's Communities Minister Gordon Lyons explained the devolved administration had no choice but to follow Westminster in making the cut to Northern Ireland pensioners.

He said he was "strongly opposed" to the government's move.

"To those who glibly say the Executive could make a different decision, I would ask them 'what would they cut, or what services would they postpone?' he said.

"It is simple not credible to claim the government have left the Executive with any other choice."

Mr Lyons warned the cut will have “serious consequences” for the wellbeing of older people across Northern Ireland. It is thought around 250,000 could be affected in Northern Ireland.

Mr Lyons said: “This was a totally unexpected announcement from the new Government in Westminster.“It was not mooted by the government before now, it was not part of their manifesto and indeed, only a few months ago when the Prime Minister was leader of the opposition, he said that the winter fuel payment should be maintained.“Therefore, it came as a surprise to us all, that the Government would announce the removal of this important benefit and I can confirm that my department was given no prior notice of the planned change.”The Communities Minister said the principle of parity means that social security benefits in Northern Ireland are paid at the same rates and with the same conditions of entitlement across the UK.He added: “The estimated additional cost to the block grant of maintaining universal entitlement to a winter fuel payment in Northern Ireland for winter 2024/25 is £44.3 million and this does not even include any additional delivery or staffing costs.“In addition, it is estimated that an appropriate IT system to deliver universal winter fuel payments in Northern Ireland could cost between £5 million to £8 million for development and a further 20% of the development spend per annum for support and maintenance.“Therefore, for the Executive to even consider breaking parity on this decision by the Labour Government would require significant cuts to Northern Ireland’s already struggling public services.”

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