Public finances in ‘critical position’ as Stormont faces £660m overspend – Murphy

Sinn Fein’s Conor Murphy speaks to the media following a meeting with the new Secretary of State for Northern Ireland Chris Heaton-Harris in Dungannon, Co Tyrone. Picture date: Thursday September 8, 2022.

Northern Ireland's Finance Minister has warned that public finances are in a “critical position” with Stormont departments facing a £660m overspend.

Conor Murphy said he was writing to other ministers to prevent a breach of the block grant, the amount given by the treasury to fund public services in Northern Ireland.

He said departments’ forecasts of their resource expenditure for the financial year show a collective overspend of some £960 million.

Mr Murphy added that against this there is £300 million of funding available for allocation.

He said should the current trajectory continue the block grant would be breached which would mean any overspend could be taken from next year’s allocation.

Restoration of the Executive will enable us to work together to agree a multi-year budget.

A budget for 2022/23 had not been agreed by the Stormont parties prior to the ministerial executive imploding in February.

In the absence of a functioning Executive, departmental funding is being distributed using emergency arrangements on the basis of last year’s budget settlement.

Mr Murphy said: “With no budget to help departments plan, the Westminster government’s mini-budget not providing additional money for public services, and inflationary pressures, our finances are now in a critical position.

“While I appreciate it is hugely challenging for departments to operate in the absence of a budget, as ministers we have a collective responsibility to ensure that we live within the block grant.

A budget had not been agreed before the powersharing institutions collapsed in February (Liam McBurney/PA)

“I have written to ministers reminding them of the importance of ensuring spending remains within the overall budget provided to us.

“This is crucial, as any overspend may be taken from next year’s budget – making an already difficult financial position much worse.”

The minister continued: “Our citizens, businesses and public services need certainty.

“Restoration of the Executive will enable us to work together to agree a multi-year budget.

“It would also allow us to decide on the prioritisation and allocation of funding including support for households and businesses as well as a pay award for public sector staff.”