New Attempt to Agree Stormont Budget at Hillsborough Castle
Northern Ireland Secretary Hilary Benn stated that the meeting's purpose was to discuss financial pressures and provide support to reach a budget agreement.
A renewed effort will be made on Thursday to agree on a Stormont budget when local parties meet government ministers at Hillsborough Castle.
There had been anticipation that Stormont could approve a multi-year budget in January for the first time in over a decade, but this did not materialize.
Since the start of the financial year in April, public services in Northern Ireland have been operating under contingency budgets.
Senior officials have cautioned that some services may face cuts if a budget is not agreed upon by the end of this month. Local ministers have indicated that additional funding from central government is necessary before they can finalize an agreement.
Who Will Be at the Meeting?
The talks are scheduled to take place at Hillsborough Castle on Thursday.
Secretary of State Hilary Benn has invited the Northern Ireland Executive parties to the castle for discussions.
Lucy Rigby MP, the Chief Secretary to the Treasury, will also attend. She is the Treasury minister responsible for relations with the UK's devolved governments.
A spokesperson for Benn stated he had been "engaging regularly with the Northern Ireland Executive regarding its failure to agree a multi-year budget." They added that the meeting's purpose was to "discuss the exact scale of the financial pressures the executive is facing, and to offer support to enable them to agree a budget."
What Do Local Ministers Want?
Local ministers assert they require additional funding to agree on a viable budget capable of addressing financial pressures, including public sector pay deals.
Their principal argument is that Northern Ireland is underfunded compared to Scotland and Wales.
They have received some backing from the Northern Ireland Fiscal Council, an independent budget watchdog.
Last month, the council reported that Scotland and Wales currently receive funding above their assessed needs, while Northern Ireland is at or slightly below its assessed funding requirements.
The council stated it was "mathematically possible" that Stormont could receive between £1 billion and £3.5 billion extra annually if funded comparably to the other devolved administrations.
However, it cautioned that such additional funding is "only one of the options available to Treasury, and it does not seem the most likely."
Multi-year Budget 'Not-Sufficient' - Deputy First Minister
Stormont officials have been instructed on spending without an agreed budget.
Front-line services are described as being in a "crisis situation" without a budget, according to Long.
What Has the Treasury Said?
The Treasury recently completed an "open book" review of Stormont's finances following an overspend of £400 million last year by the executive.
The review identified various areas where local ministers could make decisions to increase revenue or reduce costs.
It suggested there could be up to £3 billion extra annually for public services if ministers raised rates, introduced water charges, and reduced thousands of jobs.
The review also indicated that reducing the civil service to the size of England's equivalent could save nearly £400 million per year.
However, it noted this example was "illustrative" and did not consider all caveats.
The review was controversial, with the Fiscal Council questioning some of its specific conclusions.
The tone of the review implies that the Treasury expects Stormont to implement some reforms in exchange for any additional funding.
How Did We Get to This Point?
Finance Minister John O'Dowd has called for a multi-year budget to enable Stormont departments to plan long-term.
The Finance Minister, Sinn Féin's John O'Dowd, submitted his budget proposals to executive colleagues on Christmas Eve and released them for public consultation in early January.
The goal was to agree on a multi-year budget for the first time in over ten years.
"A multi-year budget provides the opportunity to give departments the certainty they need for long-term planning and create the conditions to drive transformational change,"O'Dowd said.
However, the draft was rejected by other parties, with Deputy First Minister and Democratic Unionist Party (DUP) member Emma Little Pengelly describing it as "deeply flawed."
Sinn Féin later reached a consensus with other parties that additional funding from Westminster would be necessary before passing a budget.
What Is Stormont's Opposition Saying?
Matthew O'Toole, leader of the Social Democratic and Labour Party (SDLP) at Stormont, emphasized the severity of the budget situation.
"The seriousness of our budget chaos can't be overstated,"O'Toole said.
He added that key programs were already being delayed or cancelled and that layoffs were imminent.
"These talks have to lead to concrete progress on a budget and not simply window dressing,"O'Toole stated.
- O'Dowd hits back at Treasury budget report
- Water charges and rates increase could help Stormont 'raise £3bn a year'
- Treasury to give Stormont £400m in a bid to balance department budgets
