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Northern Ireland Departmental Spending Grant to Northern Ireland Government, and Northern Ireland Office funding Northern Ireland Government Day-to-day Spending (Resource DEL) Breakdown of changes to in-year budget, £m Northern Ireland Govt 3% of total Resource DEL Trends Increase in budget: +4% Since the original Spending Review settlement for 2018-19 was determined in 2015, the following changes have been made: •£285 million resource of “Barnett Consequentials” (£170 million from the Main Estimate and £115 from the Supplementary) – additional funding for NI, given because the UK Government has decided to allocate additional money for other parts of the UK, and needs to give NI an equivalent amount; and • £210 million arising from the Confidence and Supply Agreement. The Confidence and Supply Agreement is an agreement between the Conservative Government and 1 2 the Democratic Unionist Party (DUP) whereby the DUP agrees to support the Government in votes on supply, confidence motions and certain other finance related matters. In return, the UK Government has agreed to allocate the Northern Ireland Government specified additional funds over a five-year period. There was no additional draw down in the Supplementary Estimate Changes to in-year budget Long-term spending trends (£m, nominal) No new functions have been added to the NIO since the Main Estimate. The Supplementary Estimate shows a £411 million (3.8%) uplift. This includes £139 million transferred from capital, though the purpose of this is not clear from the memorandum. There is a £115 million uplift from Barnet Consequentials, a large portion of which (£43 million) is a result of the 2018 Budget. Other significant Consequentials include £26 million for changes to NHS pay. A further uplift of £42 million is included under the ‘Fresh Start’ initiative, including £25 million for the Social Security Agency to tackle fraud and error. 1 Initial budget as at Main Estimates 2018-19 (April 2018) 2 Final budget at Supplementary Estimates 2018-19 (Feb 2019) Northern Ireland Government Investment Spending (Capital DEL) Northern Ireland Govt 3 % of total Capital DEL Trends Breakdown of changes to in-year budget, £m Since the 2015 Spending Review settlement, the following changes have been made to the Northern Ireland Government’s 2018-19 investment budget: • £191 million resource of “Barnett Consequentials” – additional funding for NI, given because the UK Government has decided to allocate additional money for other parts of the UK, and needs to give NI an equivalent amount; and • £200 million arising from the Confidence and Supply Agreement. The Confidence and Supply Agreement is an agreement between the Conservative Government and the Democratic Unionist Party (DUP) whereby the DUP agrees to support the Government in votes on supply, confidence motions and certain other finance related matters. In return, the UK Government has agreed to allocate the Northern Ireland Government specified additional funds over a five-year period A breakdown is shown in the next 1 2 slide Long-term spending trends (£m, nominal) Reduction in budget: -5% In-year changes The Supplementary Estimate saw a £139 million decrease in the capital budget as a result of transferring capital funding to resource. As mentioned in the above slide, the purpose of this capital transfer was not made clear in the supporting memorandum. The capital transfer above was offset by increases related to Barnett Consequentials (£42 million), other Treasury funding (£13 million) and capital funding for the Fresh Start initiative £11 million. Taking account of the above, the net in-year change to CDEL is a £72 million reduction. 1 Final budget at Supplementary Estimates 2 Initial budget as at Main Estimates Northern Ireland Government Additional £1,000 million funds going to Northern Ireland as part of the Funds drawn down from the agreement between the Conservative Party and DUP in June 2017 £1,000 million The Confidence and Supply Agreement is an agreement between the Conservative Government and the Democratic Unionist Party (DUP) whereby the DUP agrees to support the Government in votes on supply, confidence motions In 2018-19 Main Estimate, £410 and certain other finance related matters. In return, the UK Government has agreed to allocate the Northern Ireland million was drawn down (£210 Government specified additional funds over a five-year period million resource and £200 million Amounts drawn-down and remaining capital): (£50m for 2 years) 450 • £80 million immediate health and Amounts remaining education (resource) 400 350 Amounts drawn down in 2018-19 • £30 million to address mental health Pressures in health 300 200 Amounts drawn down in 2017-18 and severe deprivation (resource) and education (£200m for 2 years) 250 Infrastructure • £100 million health transformation 200 development (resource) £'millions 150 100 • £200 million infrastructure (£100m for 2 years) 100(£10m for 5200 years) (£75m for 2 0 development (capital) 150 50 100years) 80 80 40 0 Support for 20 10 20 This leaves £570 million mentalInfrastructure health Health service Broadband Severe deprivation Mental health Pressures in health remaining in total pot. Development transformationBroadbanddevelopment (£20 million over 5 (£10 million over 5 Healthand education Service (£200 million over 2 (£100 million developmentover 2 (£75 million over 2 years) years) (£50 million over 2 years) years) years) Transformationyears) (£20m for 5 years) The 2018-19 Supplementary Amounts in brackets show what was initially agreed Estimate did not result in any additional draw downs on this pot. Target pockets of severe deprivation Northern Ireland Government The Barnett Formula Change (rise or fall) in Resource DEL budget determined by UK government Extra funding available Population share to the governments of Share of change related to Share of change related to (compared to England or DEVOLVED FUNCTIONS Scotland, Wales and functions RESERVED TO England and Wales or Northern Ireland (e.g., health) UK GOVERNMENT Great Britain) (may also be a (e.g., defence) spending cut) Northern Ireland compared to England: 2010 Spending Review: 3.45% 2015 Spending Review: 3.39% This reduction in population share will mean slightly smaller increases and decreases in funding for Northern These funds can be spent on Ireland from the Barnett Formula than would have ANY DEVOLVED FUNCTION resulted if the share had remained as before. Example: Extra NO CHANGE TO THE 75% relates to BLOCK GRANT Increase of £100m in UK Departments’ functions which are 3.39% £2.543m provided to Scotland, Resource DEL budget. devolved; 25% are UK (Northern Ireland’s to Northern Irish Wales and Northern population compared reserved functions. government Ireland to England).
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