Budget to run departments providing vital public services falls by 0.4% despite runaway inflation, says DfI

The Department of Finance said the 2023/24 Budget announced by the Secretary of State Chris Heaton-Harris will see departments receive £14.2bn resource and £2.2bn capital. This compares to £14.3bn resource and £2.1bn capital in 2022/23.

The total amount allocated to Departmental budgets will reduce by 0.4%.

The Department said this does not fully reflect the extent of the pressures facing individual departments due to inflation, rising costs, increasing demands and pay pressures.

An analysis by DfI shows that although the Non Ring-fenced Resource Departmental Expenditure Limit (DEL) Budget has fallen from £14,269,100,000 in 2022/23 to £14,212,000,000 in 2023/24 (-0.4%) some departments have received increased allocations.

Department of Health: £7,300,900,000 (+0.3%).

Department of Education: £2,576,500,000 (-2.5%).

Department of Justice: £1,156,700 (-2.3%).

Department of Communities: £861,600,000 (+1.6%).

Department of Economy: £772,000,000 (-1.3%).

Department for Agriculture, Environment and Rural Affairs: £579,800,000 (2.8%).

Department for Infrastructure: £523,400,000 (0.4%).

The Executive Office: £181,800,000 (16.0%).

Department of Finance: £147,500,000 (-17.5%).

DfI also referenced the commitment by the Secretary of State to divert any forthcoming monies directed to the North as a result of future increased expenditure in Britain – under the Barnett formula there has to be a matching increase here – to pay off a £297m overspend from last year.

"The UK Government’s decision to not impose repayment of the £297 million reserve claim in 2023/24 recognises the extremely challenging financial position this would have presented for Departments at the beginning of the financial year.

"Any Barnett consequentials received during the 2023/24 financial year, up to the amount due will not be provided to Northern Ireland instead they will be offset against the reserve claim repayment.

"While the quantum of Barnett consequentials is not yet known this would mean that any extra funding for UK wide initiatives such as national pay agreements would see Northern Ireland not receiving the equivalent share of funding via the Barnett formula.

“If any future in year Barnett consequentials in 2023/24 do not amount to £297 million, previously announced Northern Ireland funding packages will also be reallocated to repay the reserve claim, with the residual to be repaid in 2024-25,” the Department stated.

Chris Heaton-Harris sets Budget for 2023-24 and says future Barnett boosts will be used to pay £297m debt