It was a privilege and honour to be nominated as finance minister back in February, since when I have consistently and openly called out the under-funding of our public services.
And the scale of the impact of that underfunding, and 14 years of austerity under the Tory government, was laid bare in the chancellor’s statement on July 29.
All departments have significant financial challenges, putting public services under huge pressure.
My focus in my first six months in office has been on working together with my ministerial colleagues to put the Executive’s finances on a more sustainable footing.
In February, the Executive agreed to keep the regional rate in line with inflation. The level set will go some way towards addressing the budget challenges we face while taking into account the acute pressures on our workers, families and businesses.
To support our town centres, we reinstated the ‘Back in Business’ scheme which gives businesses starting out a boost, helps support jobs and brings long-term vacant units back into use. We also reinstated the Rural ATMs scheme to ensure people have access to cash and help improve footfall in rural towns and villages.
Rates are an important source of funding in supporting public services bringing in some £1.5 billion of revenue each year. My department is developing short, medium and long-term policy rating proposals that will work for our own devolved tax system, aligning with the vision of growing our tax base and stimulating our economy.
As an Executive we have committed to looking at all options to deliver efficiencies, generate revenue, enhance borrowing powers and examine fiscal devolution. We are currently projected to raise an additional £80 million this year.
In April, we agreed the 2024/25 budget – a challenging but balanced one. It isn’t the budget we would have wanted to set, with demand for funding outstripping supply many times over but it demonstrates our determination to deliver.
Public services across many sectors are in critical need of investment and reform to ensure the quality and efficiency of service that citizens quite rightly expect.
Transformation is essential if the Executive is to put its finances on a sustainable footing. The restoration package provides £47 million each year, over a five year period for public sector transformation.
This funding will in no way tackle the magnitude of the issues at hand. But we are committed to using this funding as effectively as possible.
In May, following intensive negotiations we signed an interim fiscal framework securing a commitment from Treasury to review how the Executive is funded going forward. This is already making a difference with an additional £60 million being provided so far this year meaning additional funding for public services here.
This represents an important step towards a final agreed fiscal framework which is critical for long term sustainability.
My department will continue to work collaboratively with other departments to produce the Budget Sustainability Plan. But our ambitions span beyond the immediate future and longer term work will include a budget improvement plan and development of long-term financial plans.
The work of my department, of course, isn’t restricted to managing public finances. The department provides a range of professional services and business support systems which assist other departments and bodies to meet their objectives.
In these areas, we are modernising and embarking on exciting new ventures like Integr8, a programme which will harness the latest technology to transform how finance and HR services are delivered in the Civil Service.
It’s important we nurture the skills of existing staff. Recognising the importance of this, my department is currently working on developing a pay strategy to ensure we retain and attract talent. We need a dynamic, creative, innovative, inclusive workforce to be able to seize opportunities and respond to the challenges we face.
That’s why I’m pleased that one of my first acts in office was to secure agreement to a pay deal with the trade unions in the Civil Service and support other pay deals across the public sector.
While much has been achieved, there is plenty still left to do.
I will continue working together with my ministerial colleagues and ministers north, south, east and west to make a positive difference for the people we serve.
I will continue to collaborate with the community and voluntary sector, business organisations, trade unions and other groups on how we can best support them and how they can assist us in the transformation of public services.
I will advocate in the strongest possible terms for the proper funding of our public services and to have the backs of workers, families and businesses.
- Caoimhe Archibald is minister of finance at Stormont
