Northern Ireland’s Stormont ministers are working towards reaching a budget agreement by the end of April. While departments will start the new financial year without a spending plan in place, a legal arrangement called “vote on account” means there is legal authority for continued spending until the budget is finalised. Despite the UK government’s £3.3bn financial package, the public services sector is not expected to see much in the way of respite according to finance director Brigitte Worth from the Department of Health.
Worth recently outlined a looming funding gap of approximately £1bn for the new financial year, attributing part of this to inflation and stating that the department requires an extra £400m annually to maintain the status quo. While Worth acknowledged that budget efficiencies could be found throughout the department, she also added that this would not provide the entirety of the spending gap, with at least some expenditures requiring upfront investment.
Health Minister Robin Swann echoed these sentiments, emphasising that there is no magic solution to the challenges facing the healthcare sector. Meanwhile, delegates from the Department of Justice have reported that they are in a critical situation given that their overall funding has risen by just 3% over the past decade, despite health spending increasing by more than 70% in the same timeframe. They added that further efficiencies are not a feasible option.
As part of the Stormont restoration financial package, £685m has been allocated to settle pay claims for 2023/24, but this will become a recurring cost that must be covered by departmental budgets without additional assistance from the government. While Stormont ministers are continuing to make the case that the funding formula should be improved, they are unlikely to make major headway soon
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