Funding announced won’t undo the damage caused by austerity, says Finance Minister Archibald

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The Finance Minister has said that, whilst a Budget that prioritises the economy and public services is welcome, it will not ‘undo the damage caused by years of underfunding’.

Dr Caoimhe 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.

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“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.

Finance Minister Caoimhe Archibald said whilst a Budget that prioritises the economy and public services is welcome, it will not undo the damage caused by years of underfunding. CREDIT NI WORLDFinance Minister Caoimhe Archibald said whilst a Budget that prioritises the economy and public services is welcome, it will not undo the damage caused by years of underfunding. CREDIT NI WORLD
Finance Minister Caoimhe Archibald said whilst a Budget that prioritises the economy and public services is welcome, it will not undo the damage caused by years of underfunding. CREDIT NI WORLD

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.

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“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 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.”

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.

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"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.”