NI’s latest draft budget “difficult'' says Finance Minister
Last updated 18th Jan 2021
The draft budget announced today by the Finance Minister, Conor Murphy, includes £1.75 billion pounds capital allocation.
Funding has been set aside to deliver the A5 and A6 and a new mother and children's hospital, as well as £538 million pounds for the response to Coronavirus.
- £380 million to the Department of Health for COVID-19 response and vaccine support.
- £30.6 million to the Department of Education to support families on low incomes through holiday hunger payments.
- £0.7 million to the Department for the Economy for higher education places following the uncertainty that surrounded the A level results earlier in the summer.
- The £126.9 million pounds of Covid-19 funding will be held for further consideration as part of the final budget.
There is also funding to enable work to start on Casement Park in West Belfast.
However, Mr murphy said he does not have enough funding following the spending review to deliver economic recovery.
He said: “it is difficult and effectively a standstill of our 2020-21 budget position.
“With increased demands on public services and taking account of inflation, it will be a challenge merely to deliver existing services at their current levels.
“I recognise for most departments the draft budget outcome represents flat cash settlement, which will mean effective reductions once increased costs and demands on services are taken into account.
“Choices will have to be made, public services will have to be prioritised.''
The Minister also said Northern Ireland’s Secretary, Brandon Lewis, has not confirmed several previously agreed financial packages worth £254.4 million pounds in the 2021/22 financial year.
These include funding from the confidence and supply deal, city deals and New Decade, New Approach money.
He said this meant they could not be formally allocated as part of the draft budget.
He added: “I hope that the Secretary of State will confirm these important funds in time for them to be incorporated into a final budget in the coming weeks,''
Mr Murphy said a small amount of additional funding has been made available to continue welfare reform mitigations, fund Agenda for Change pay, help pupils with special educational needs.
He said capital spending will also involve infrastructure, including the school’s estate as well as delivering the New Decade, New Approach
priority to increase investment in social housing.
He also announced that the regional rate would be frozen.
He added: “While the Executive has the option to increase revenue through the regional rates, we recognise the impact Covid-19 has had on households and businesses.
“This financial year we reduced business rates by 18% and froze domestic rates.
“Next year we intend to freeze the regional rates for both households and businesses.
“I would urge councils to play their part and do the same in respect of their district rates.
“I also intend to provide £150 million pounds of additional business rates support in 2021-22.''
A consultation on the draft budget has launched today until February 25.