Funding announced won’t undo the damage caused by austerity - Archibald

Date published: 30 October 2024

Commenting Minister Archibald said: “While there appears to be a genuine attempt to protect public services and invest in infrastructure, the harm done by austerity was never going to be reversed by one Budget. I welcome the commitments to capital spending and to the need for the broadest shoulders to carry the heaviest load.

“But there is no doubt the taxation increases on business will prove challenging for many small businesses. While the National Insurance employer contribution increase is lower than some had speculated, this will be cold comfort to those businesses impacted.”

The Executive will receive Barnett consequentials in 2024/25 of £609 million in Resource DEL and £30 million in Capital.

Dr Archibald added: “While this is welcome for our public services, it still won’t address all the pressures departments have identified this year. That means challenging decisions will still have to be made.

“Now that we have certainty about our finances for this year, I intend to move quickly to seek agreement with Ministerial colleagues for how the additional funding will be allocated in the next Monitoring Round. Once agreed, each department will have to take action to live within their allocated funding envelopes.”

The £609 million in Resource DEL from 2024/25 will be rolled forward into 2025/26.  In addition, the Executive will receive in 2025/26 £601 million in Resource DEL and £266 million in Capital.

The Minister said: “The amount of money involved here reflects the state of public services as I have been pointing out since I took up post. The £431 million of the extra funding we are receiving over these two years for our public services is a result of the Interim Fiscal Framework I negotiated in May.

“This equates to a real terms uplift of 1.3% in Resource DEL compared to 2024/25 but given the continued pay and inflationary pressures and growing demands on our services, this still represents challenges for the Executive and highlights the need for transformation of our public services.”

Welcoming the reinstatement of funding for the two paused Growth Deals, the Minister said: “The announcement that funding for both the Causeway Coast and Glens and Mid South West Growth Deals has been lifted is welcome but this is something that should not have happened in the first place. I am glad common sense has prevailed and the right decision has been made to allow these game-changing Growth Deals to proceed in both regions. These Deals are a key driver to boost economic development and deliver regional balance.”