Late yesterday evening Finance Minister Conor Murphy launched the consultation process on the 2021/22 budget. It will only be a one-year budget as the Spending Review announced on 25 November 2020 does not allow for a multi-year settlement. This means that the Finance Minister is restricted in terms of what he can financially plan for in the 2021/22 financial year. When making his statement, and answering questions in the Assembly chamber the Finance Minister made some key points:
1. The Spending Review has not delivered the level of support that is needed to recover from Brexit and COVID-19.
2. A rates freeze for all households and business has been proposed.
3. £380 million is allocated to the Department of Health for COVID-19 response and vaccine support.
4. £30.6 million is designated for the Department of Education to support holiday hunger payments.
5. £0.7 million is given to the Department of the Economy for higher education.
6. £126.9 million will be held for further consideration as part of the final budget to respond to COVID-19.
7. The draft budget sets out £1.75 billion of capital spending to support the completion of the A5 and A6, and to support a building programme of 1,900 new homes.
8. Allocations have been prioritised to continue welfare reform mitigations, support health care staff and provide for Special Educational Needs.
9. Agreed financial packages, such as Confidence and Supply and New Decade New Approach Funding, is not allocated as part of the draft budget, as the Secretary of State has not confirmed these allocations.
10. The shared prosperity fund will not fully replace funding that came from the European Union.
The Draft Budget consultation document is now open for consultation and can be viewed here. Comments are requested by Thursday 25 February.