‘Unprecedented’ Budget not enough to make up for austerity – Archibald

Stormont has been allocated a level of funding unprecedented outside the coronavirus pandemic, but it will not undo the damage of 14 years of austerity, the Northern Ireland Assembly has heard.

Finance Minister Caoimhe Archibald said the autumn Budget saw Stormont allocated an additional £609.3 million of Resource DEL (departmental expenditure limits) and £30.4 million Capital DEL for 2024-25.

She said it is on top of the £308.9 million of additional Barnett consequential, making a total of £918.2m in additional Resource DEL funding in 2024-25.

While Ms Archibald described the level of funding as “unprecedented outside of Covid”, it reflects the reality of the impact of 14 years of austerity policies on public services.

Addressing the Stormont Assembly on Monday following Wednesday’s Budget announcement, Ms Archibald said the scale of current pressures is “so severe”, it will take “time and significant further investment to turn the tide and undo the damage caused” by austerity.

“The extra funding falls short of what is needed and is not sufficient to meet the trajectory of overspend that departments have indicated for this year,” she said.

“This will inevitably mean departments having to take decisions to live within budget.”

The Budget announcement also included the unpausing of funding for the Mid South West and Causeway Coast and Glens growth deals which was welcomed around the chamber.

However, Ms Archibald revealed that the funding does not include the costs of a number of exceptional items, including the major data breach by the PSNI which could cost up to £240m.

She told MLAs that it had been hoped the costs could be funded by a reserve claim on the Treasury, but she added it has been indicated that those costs should be covered by the settlements for Northern Ireland.

“Given the level of in-year funding provided to the Executive in this autumn Budget, the Chief Secretary to the Treasury has indicated that while further conversations are possible, the Treasury position is that in the first instance, these should be funded from the settlements announced,” she said.

“It is my clear view, however, that these items would be unaffordable given the existing pressures facing departments and, therefore, I would be seeking to negotiate for a reserve claim.”

Ms Archibald concluded her remarks to MLAs saying that the reality is that public services remain stretched.

“The level of funding announced last Wednesday still not does plug the current gap,” she said.

“We will need to see continued investment over the coming years to help transform public services

“As an Executive we have committed to taking a more strategic, longer-term approach to the budget process with the Executive Budget Sustainability Plan published earlier this month.

“We are committed to transformation and reform to help our services become more sustainable and efficient going forward.

“The multi-year spending review coming in spring will give us the ability to plan on a longer-term basis.

“My immediate focus is on allocating the funding for 2024-25 before quickly turning our attention to the 2025-26 budget which I intend to bring to the Executive in the coming weeks.”