Debate contribution: Budget Bill: Second Stage

Debate contribution by Ms Diane Forsythe on 18 February 2025.

MLA: Ms Diane Forsythe
Party at the time: Democratic Unionist Party
Date: 18 February 2025
Type: Debate contribution
Business: Executive Committee Business
Heading: Budget Bill: Second Stage
Assembly identifier: Official Report component 4806474

Text

I record my sincere thanks to the Department of Finance Budget officials who regularly and comprehensively brief our Finance Committee on departmental finance and the wider Budget process. They do an excellent job, and we on the Finance Committee want to support their good work and ensure that other Committees are able to conduct the same quality of scrutiny of their Department's accounts. It is concerning that so many other Committees have concerns about the lack of detail on aspects of their Department's finances. On the Department of Finance accounts specifically, I thank the Finance Minister and his predecessor, Dr Caoimhe Archibald, who, with the support of their officials, have led by example through their professionalism in returns, their management of balanced budget targets and their provision of detailed projections, including highlighting in this week's Committee papers the specific additional cost to the Department of Finance core of the increase in employers' National Insurance contributions. I encourage the Minister, from his central position of oversight, to share how they did that and ask other Departments to follow suit to provide more complete and meaningful budget projections to help Committees in their scrutiny. As I noted yesterday, it is unacceptable that we do not have clear sight of the total cost of the increase in employers' National Insurance contributions. I welcome the Minister's opening remarks, in which he committed to writing to the Finance Committee and working with us to clarify the progress on that. The Minister said that the problem is that Treasury has not yet said how much it will provide, but we need to see clarity on the total cost. How much is it, and how much has the Minister asked Treasury for? We welcome it once again that, in the forthcoming 2025-26 year, we will go forward with a draft Budget and a draft Programme for Government, and we aim to have those aligned. It is our hope and expectation that all parties and Ministers will support the Budget Bill. As we look into the new financial year, we need to make sure that all Departments take steps to ensure that they deliver value for money within the allocations provided. Steps need to be taken to ensure that projects are delivered on time and within budget. The recent Audit Office report highlighted the £2·45 billion overspend on major capital projects, about which there are serious questions to be answered. Comments have been made on the issue, but I do not feel that the blame is being laid solely at the feet of civil servants. There has been a failure to follow up on significant recommendations that span six years, and there are responsibilities for everyone here. An overspend of £2·45 billion on major capital projects is a serious amount of money, and we really need to be seen to address that for the confidence of the public. In the Department of Finance, we see the increasing cost of public-sector sick pay. It cost £44 million in 2023-24 and is set to increase this year. With individual Departments saying that it is a Department of Finance issue to manage sick leave and the Department of Finance having no targets to reduce or investigate cultures, it is of huge concern and needs to be addressed. We need to value our Civil Service staff and understand what is happening there. Another significant issue is the level of uncollected rates debt in Northern Ireland, which my colleague Paul Frew mentioned. The proposal to remove reliefs from those who already pay their rates is out for consultation. That will squeeze them further to raise £2 million or £4 million on those items. On the other hand, over £115 million worth of prior years' rates bills have still not been collected, and £65 million worth of rates bills were written off in the past five years. Rather than increasing taxes further for hard-pressed families and businesses who already pay, why not focus on collecting the huge outstanding bills that would increase revenue substantially more? Those are just some of the concerning issues that need to be addressed. Every Department needs to demonstrate its work to reduce the waste of resources. We support the progression of the Budget Bill today, but we do so with our eyes wide open to the real financial challenges that we face. We need to move forward with a collective approach in the Assembly and from our Ministers to send a strong message to ratepayers that we are committed to facing the financial pressures that lie ahead and to delivering front-line services.

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

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