Recommendations & Conclusions
3 items
4
Recommendation
1st Report - Funding and delivery of pu…
Accepted
Northern Ireland must have appropriate funding now to transform its public services in the medium term. In recent years, Northern Ireland has received one-off funding packages to alleviate short-term problems. This well-intentioned resourcing has done little to help Northern Ireland plan and invest strategically for long-term public service transformation. We …
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Northern Ireland must have appropriate funding now to transform its public services in the medium term. In recent years, Northern Ireland has received one-off funding packages to alleviate short-term problems. This well-intentioned resourcing has done little to help Northern Ireland plan and invest strategically for long-term public service transformation. We note, however, that the Executive has more than the ring-fenced £235 million at their disposal which they could spend on transformation, but it has failed to do so. In the case of the Executive restoration package, funding has been diverted to day-to-day spend. Despite Government reassurances, the public sector, and community and voluntary sector are still concerned about upcoming increases in National Insurance contributions. The Executive, public service providers and, most importantly, service users need longer-term funding settlements to enable better long-term planning, implementation and outcomes. With the political institutions stabilised, funding needs to follow suit. We also note some evidence which seems to demonstrate that the siloed nature of NI Executive Departments works against joined-up government and collective responsibility. The cohesion of government structure in the Executive and between the Departments in Northern Ireland will need to be enhanced in the medium-term if the funding and delivery of public services is to be more efficient and effective in the future. (Conclusion, Paragraph 61) 36
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Government response AI summary
The government committed £235 million to the Transformation Fund, ringfenced for public service transformation, and has already allocated £129m to six projects, with plans to allocate the remaining funds soon.
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Northern Ireland Executive
Northern Ireland Office
5
Recommendation
1st Report - Funding and delivery of pu…
Accepted
The Government must provide stable, sustainable, multi-year funding as part of future budget settlements, to enable the Northern Ireland Executive and service providers to plan for long-term public services transformation. (Recommendation, Paragraph 62) Raising revenue
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The Government must provide stable, sustainable, multi-year funding as part of future budget settlements, to enable the Northern Ireland Executive and service providers to plan for long-term public services transformation. (Recommendation, Paragraph 62) Raising revenue
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Government response AI summary
The government confirmed multi-year funding for the Spending Review period until at least 2028-29, aligning with the recommendation for stable, sustainable funding for Northern Ireland.
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Northern Ireland Executive
Northern Ireland Office
6
Conclusion
1st Report - Funding and delivery of pu…
Accepted
In the longer-term, one way in which Northern Ireland could reduce its reliance on the vagaries of the Block Grant, Barnett formula and short-term funding would be to raise more revenue itself. That is, of course, easier said than done. The introduction of water charges (for example) may be politically …
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In the longer-term, one way in which Northern Ireland could reduce its reliance on the vagaries of the Block Grant, Barnett formula and short-term funding would be to raise more revenue itself. That is, of course, easier said than done. The introduction of water charges (for example) may be politically difficult, but the public elect politicians who are expected to make difficult decisions and therefore the discussion should not be avoided. Such reform may take time to implement practically—delaying any increased revenue which could be collected and spent. Further fiscal devolution, with the Executive taking control of currently centralised tax and revenue-raising levers, may offer a different way forward if Northern Ireland takes control of, and responsibility for, increased fiscal powers which enable it to broaden its tax base and generate increased revenue. That the Government and the Executive are both willing to enter into these negotiations speaks to a welcome stability in Northern Ireland’s institutions, which can only benefit the funding and delivery of public services more generally in Northern Ireland. (Conclusion, Paragraph 73)
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Government response AI summary
The government has agreed with the Northern Ireland Executive to immediately begin negotiations on a full Fiscal Framework, including discussions on Northern Ireland Housing Executive borrowing and the Holtham Review, aiming for long-term financial sustainability.
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Northern Ireland Executive
Northern Ireland Office