Health and education to receive majority of funding available in new draft budget

Stormont ministers have agreed to send a draft budget for the next financial year out for public consultation.

Ministers were unanimous in green-lighting the public feedback exercise as they met on Thursday to discuss the budget document prepared by Finance minister Caoimhe Archibald.

However, Ulster Unionist Health minister Mike Nesbitt expressed concern that the paper as it stands does not place sufficient emphasis on tackling Northern Ireland’s spiralling waiting lists.

The health and education sectors will receive the majority of the funding available, with the departments being allocated £8.4 billion and £3.2 billion respectively.

The budget has been drafted amid a challenging economic backdrop for the devolved administration in Belfast.

While the Executive received more from the UK Government’s autumn budget than it had been expecting, ministers are still facing a potential overspend of £180 million in the current financial year.

Failure to balance the overall Stormont budget for 2024/25 would potentially see the Westminster Government withdraw a previous offer to write off almost £600 million of debt owed to the Treasury.

The Treasury offer, made by the last government, to set aside the £559 million was conditional on the Executive delivering a balanced budget this financial year.

Northern Ireland Secretary Hilary Benn said government is about making choices with funding available – and looking at income generation.

“The funding that we have given for next year is the largest settlement for Northern Ireland in real terms since devolution occurred, and that is a very significant sum of money and it is for the Executive to determine priorities,” he told media in Belfast.

“All governments – Northern Ireland, the UK Government – have to deal with what they’ve got coming in, what they can raise and there are decisions that the Executive could take about income generation.

“Of course, because Northern Ireland has greater needs the funding is at 124% of the funding that is available in England. So a lot of money is going in and the 124% is what the Fiscal Council recommended as the right figure to meet the additional needs of Northern Ireland, which all of us understand.

“But government is about making choices and determining priorities and I am wholly confident that that is what the Northern Ireland Executive is going to do.”

First Minister Michelle O’Neill said the budget reflected the Executive’s priorities as outlined in its Programme for Government.

“Whilst the Executive received additional funding from the autumn budget, we still face a really incredibly challenging financial environment with bids from departments always far outweighing the funding that’s available,” she told reporters in Stormont Castle.

“But this draft budget itself reflects our Programme for Government commitments in doing what matters most and tackling the issues facing workers, families and communities here.

“Reflecting the priority that we place on health and the wellbeing of our people, it provides £8.4 billion for health and social care.

“To give our children and young people the best start in life, we’re providing £3.2 billion for education and providing funding to deliver more affordable childcare.”

The first minister said the budget had also placed a focus on providing funding to tackle violence against women and girls; to deliver more affordable housing; to invest in skills to create jobs; and to grow a sustainable economy.

“So, this is an executive determined to deliver, determined to continue to work together, determined to build upon the progress that we’ve made over the course of the last 10 to 11 months,” she said.

“Much, much more to be done. But despite the challenging circumstances, we have agreed this draft budget today.”

Deputy First Minister Emma Little Pengelly said the budget proposed ringfencing £50 million to enable the Executive to roll out further support around the provision of affordable childcare.

She said £332.5 million was being ringfenced for agriculture, the environment, fisheries and rural development.

Ms Little Pengelly said the budget would also deliver investment in wastewater infrastructure, to help to increase the supply of social, affordable and sustainable housing.

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