Murphy warns swingeing cuts doing ‘irreparable’ and ‘lifelong’ damage to young and vulnerable

The former Finance Minister described Budget 2023-24 as ‘punitive’ and warned cuts across education, health and other sectors would have long term repercussions.

“We are working with people who are struggling to get support for special educational needs for their kids and programmes that will help children who struggle at school. All of these things have been damaged.

"We also hear from a senior level in the civil service that the damage that is being done could be irreparable, that there is a cohort of kids in particular, and also people who are vulnerable waiting on hospital procedures, that this could be lifelong damage that is done as a consequence of this,” he said.

Speaking during a visit to Derry on Friday Mr. Murphy told the ‘Journal’ he does not believe the needs of the people of the North are being met through the Block Grant and the Barnett consequentials.

The latter refers to the Six Counties being allocated more money each time the British Government increases government expenditure in Britain-only.

Mr. Murphy referred to report by the NI Fiscal Council last September which estimated the relative ‘need’ for spending in the North may be about 20% higher than England.

“I think the evidence from the Fiscal Council shows our full level of need here isn't being met and if that had been met over the past number of years we wouldn't have a hole in the budget. We would have had sufficient money to meet some of the challenges.

“As part of the discussion in terms of restoring an Executive, financial discussions with the British Government, have to be about plugging the immediate gaps in terms of the provision of public service.

“But also into the medium term the formula by which we receive Block Grant assistance from Britain is not actually meeting the needs that are here. There is evidence of that.”

He described Budget 2023-24 – set by Secretary of State Chris Heaton-Harris in the absence of an Executive – as ‘punitive’ pointing to the decision to use any forthcoming in-year Barnett boosts to pay down a £297m hole in the Stormont finances.

“They could have dealt with that in a more pragmatic way which didn't allow it to damage investment in public service but they chose to ask for a full repayment of that and to not allow us any additional money from Britain that comes over the course of the year. That is all going to pay off the debt. It was a bad budget and then they added further punitive measures on top of the bad budget.”

Mr. Murphy said the resurrection of a locally accountable Executive is vital.

“One thing we've seen over the past number of years, if anybody needed evidence, is that the British government don't care about what happens to people here.

"They don't care about people who are struggling in their lives. They will take political decisions that will have disastrous consequences for young people, children, elderly, people waiting on hospital treatment, all of those people will have a worse position now as a consequence of that.”

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