Update from Finance Minister on the Draft Budget

Date published: 15 February 2022

Updating MLAs, Minister Murphy set out legal advice he has received on how budgetary matters could be progressed in the absence of an Executive.

Minister Murphy said: "I have now received detailed legal advice and unfortunately it is not possible to deliver a Budget in the absence of an Executive. This means the health service will not receive the planned 10% increase in funding, nor will it benefit from being able to plan on a three-year basis.

“Since the Draft Budget went out to consultation an additional £300 million has become available for 2022-23. Regrettably, it is not possible to allocate this £300 million to areas such as skills, housing and policing until such times as an Executive is re-established.

"However I do intend to proceed to freeze both domestic and non-domestic regional rates next year, which will help with the rising costs faced by families and businesses. Unfortunately I cannot extend this to the three years as previously intended.

“I will also progress with the £50 million rate relief package to support a rates holiday for businesses. This will provide a three months rates holiday for retail, tourism, hospitality, leisure, childcare, newspapers and airports which are the sectors hardest hit by the pandemic. A one month rate holiday will be provided for all other businesses, except utilities and larger food stores.

“In these difficult circumstances I will continue to do my best to ensure funding for essential public services continues."