Debate contribution: Public Expenditure: Outcome of Chancellor's Statement

Debate contribution by Dr Caoimhe Archibald on 4 November 2024.

MLA

Dr Caoimhe Archibald

Party at the time

Sinn Féin

Date

4 November 2024

Type

Debate contribution (made as a minister)

Business

Ministerial Statement

Heading

Public Expenditure: Outcome of Chancellor's Statement

Assembly identifier

Official Report component 4625284

Read the official Assembly record

Text

I thank the Member for his question. In my commentary since the Budget was announced, I have acknowledged the additional funding for public services. It goes some way towards showing a different approach. However, as I have outlined, it does not meet the significant pressures that we face this year and that will likely continue into next year. Table 2 in the annex that accompanies the statement shows that the business rates Barnett consequential is -£79·66 million, because the British Government reduced the rates relief that is available to businesses in those sectors in England. Unfortunately, therefore, we have no additional funding to allocate for business rates support. I, however, have brought proposals to the Executive to set out a more strategic short-, medium- and long-term approach to our rating system. I very much recognise the pressures that are on businesses and certain sectors and that those pressures come from different angles, which does not help. I am committed to working with businesses to look at how we can support them.

I thank the Member for his question. As I said in my opening remarks, the pause should never have happened in the first place; it was hugely unhelpful. However, I am glad that common sense has prevailed and the right decision has been made to unpause the funding commitment. When the funding was in jeopardy, we — all of us — stood up, side by side and shoulder to shoulder. We fought, we lobbied and we made an evidence-based case to the British Treasury on the need for all four of our city and growth deals to develop our economy, create prosperity and address the regional balance. The Member will be aware of the need for that in his part of the region. The strength of collaboration and enthusiasm has been immense across the board from all political representatives, from colleagues in local government, from our council delivery partners, from educational institutions and from industry, and I thank Members for their unwavering support. City and growth deals are a key driver in boosting economic development and delivering regional balance and are a catalyst for further investment and opportunities. The un-pausing will allow both growth deals to move forward to development of their outline business cases, and I look forward to signing the heads of terms of the Mid South West growth deal on behalf of the Executive later this week.

I concur with the Member on the difficulty that those increases will pose for many businesses and for those who deliver services on behalf of the Executive and Departments. We understand that funding will be provided to cover the costs of the public sector, but we do not believe that it will cover the arm's-length bodies or the other organisations that provide services on behalf of the Executive. We will seek further clarity on that from Treasury, making the point clearly, as the Member did, about the difficulty that the increases will pose.

The Executive have prioritised public-sector pay since they came back in February. The first action that I took as Finance Minister was to propose £688 million to settle public-sector pay disputes that had been going on for some time. The Member will be aware that Departments have identified £770 million of pressures, which include the pay review body recommendation costings. We now have £600 million to allocate. From my perspective, it is really important that we recognise and properly reward our public-sector workers. I would like to see speedy movement — that is the best way to put it — from Departments. In my role as Finance Minister, I will engage with my trade unions on pay deals in the coming days. I recognise that pressures on pay and other elements will still be a challenge for Departments. Obviously, they will have to decide how they manage those.

I remind the Member again about the difference between the opening budget lines and the out-turn at the end of the year and that the Department of Health got an uplift in its budget this year in line with that of other Departments — greater in some respects. Clearly, there are huge pressures on health. That is recognised across the board. As I have said in relation to the general funding package, the funding that has been announced is a recognition of the underfunding of our public services, and it will be for the Executive to agree their way forward in relation to the Budget in 2025-26. Health has been a priority for the Executive since they came back, and it is clearly a priority in the Programme for Government. The Budget will reflect the Programme for Government in allocating funding to Health.

It is my intention that October monitoring will happen very soon. My officials are working at pace to ensure that it is delivered as soon as possible and had a lot of the preparatory work already done in advance of the Budget statement last week. I hope to bring proposals for allocations to the next Executive meeting. The funding envelope for 2025-26 has been announced, and, again, it is my intention to publish a draft Budget by early December, subject to Executive agreement, to allow time for a full consultation before a final Budget is agreed by the Executive, prior to the start of the next financial year.

893 words. Text as published by the Northern Ireland Assembly.

Assessment

Not flagged

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Assessed 21 October 2026 at 11:27 UTC by jev-1.13.0 (requested as typesafe/jev) under rubric 2026.10-r9, methodology 1.9.

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