Budget ‘crucial and critical’ to Stormont finances, says minister

Stormont finance minister John O'Dowd has said Chancellor John Healey's Budget is "crucial and critical" to the power-sharing Executive amid Northern Ireland's ongoing budget stalemate.

Six months into the current financial year, Northern Ireland still has no agreed budget, with departments operating on contingency budgets of up to 95% of last year's spend.

Executive ministers have repeatedly argued that their main financial settlement from Westminster, decided through the Barnett formula, is not sufficient to fund public services given the region's relatively larger public sector workforce and political commitments to UK-wide pay parity.

Northern Ireland Secretary Sir Chris Bryant has been regularly engaging with Stormont parties and insisted there is no more money available beyond the £1.5 billion currently on the table.

Last week, DUP leader Gavin Robinson suggested a closing of the funding gap announced by Mr Healey could give Stormont ministers a "fighting chance" to balance its budget.

Stormont Finance Minister John O'Dowd speaking to the media (Claudia Savage/PA)

Asked what the Executive needs in the budget, Mr O'Dowd said they need to see "a fair and sustainable settlement".

"The money currently on the table is not sufficient for us to be able to move forward, pay our public sector workers, teachers and nurses etc, and sustain public services and grow our economy," he said.

"So I await the Chancellor's announcements, and I hope that he does now meet the needs of this society and indeed across these islands."

A number of Stormont departments have already outlined the difficult choices they face with operating on contingency budgets, for example schools being told to reduce non-essential expenditure amid a budget deficit of £143 million in the department of education.

Asked when the Executive would set a budget if the Treasury maintained its current position, Mr O'Dowd said: "We have to wait the outcome of today's announcements by the Chancellor, and to see if there is any Barnett consequentials, and the quantum of those Barnett consequentials, and then the Executive will have to sit down and make decisions on the way forward.

"But currently, we do not have sufficient funds to pay our public sector workers, teachers and nurses, and have sustainable public services moving forward, so there is a duty on the British government to fairly fund this place, and I hope today the Chancellor eventually does that."

Further pushed if the Executive would set a budget if no increase to the Barnett consequentials was announced, he said: "Those are decisions the Executive will have to make after today, but the announcements today are crucial and critical to the decision-making process of the Executive."