PRESS RELEASE : Secretary of State writes to NI Civil Service on sustainable public finances [June 2023]
The press release issued by the Northern Ireland Office on 14 June 2023.
The Secretary of State for Northern Ireland has today (Wednesday 14 June) written to the Permanent Secretaries of all Northern Ireland Civil Service departments to request information and advice on a range of measures.
The Secretary of State for Northern Ireland Rt Hon Chris Heaton-Harris MP has today (Wednesday 14 June) written to the Permanent Secretaries of all Northern Ireland Civil Service departments to request information and advice on a range of measures that could generate further public revenue locally, or otherwise improve the sustainability of public finances in Northern Ireland.
Using new powers provided through passage of the Northern Ireland (Interim Arrangements) Act 2023 for the first time, the Secretary of State has requested information on measures such as domestic water charges, drug prescription charges, and tuition fees.
All of these may be options available to a restored Executive to help to make the budget more sustainable and to ensure public services in NI are affordable on an ongoing basis.
Secretary of State for Northern Ireland Chris Heaton-Harris said:
“Public finances in Northern Ireland are not currently on a sustainable footing.
“The UK Government stands ready to work with a restored Executive, but we have a responsibility to ensure the delivery of public services and management of public funds can continue in its absence.
“I remain firmly of the view that the right people to take these decisions are locally elected and accountable Ministers sitting in a fully functioning devolved government.
“I once again call on the Executive to get back up and running so that they can progress much needed and long promised public service transformation and address the systemic issues that are facing public services in NI.
“Simply spending more is not the answer to transforming NI’s public services and does not serve the best interests of the people of NI.”
In the 2021 Spending Review the Government announced that the total block grant for the Northern Ireland Executive would be £15bn per year, on average, over the next three years. This is the largest settlement since devolution in 1998.
The UK Government has provided around £7bn in additional funding to Northern Ireland since 2014, on top of the Barnett-based block grant. Northern Ireland Executive public spending per person is around 20% higher than the equivalent UK Government spending in the rest of the UK.
Through this commission, the Secretary of State is seeking to ensure that work progresses towards a more sustainable budget position in Northern Ireland that better reflects the balance between locally generated revenue and UK Government funding that is happening across the rest of the United Kingdom.
The Secretary of State will continue to engage with Northern Ireland Civil Service departments on the detail of their responses.Any final decisions for implementation should be taken by Northern Ireland’s elected leaders.
