Stormont faces £400m overspend ahead of budget - O'Dowd

John O'Dowd says he will be studying the details of Wednesday's budget very carefully

Stormont is facing a £400m overspend based on current financial commitments, according to Northern Ireland's finance minister.

John O'Dowd's department had previously estimated that day-to-day departmental "overcommitments" for this year were sitting at about £780m.

O'Dowd was speaking on the BBC's Sunday Politics programme ahead of Wednesday's budget.

Chancellor Rachel Reeves is expected to increase taxes and cut spending in the Autumn Budget on 26 November.

Reeves has said she will make the "necessary choices" for the economy, to bring down NHS waiting lists, the national debt and the cost of living.

O'Dowd said speculation and "confusion in messaging" ahead of the budget had been difficult for everyone.

He added that he would be looking closely to see how Reeves' statement impacts "both positively and negatively" on the Stormont executive's budget.

"I want to see a budget that supports workers and families, small and medium businesses, and ensures if there is going to be tax rises, that those with the broadest shoulders carry that burden," he said.

Rachel Reeves will deliver the Autumn budget on Wednesday

O'Dowd told the programme that the Stormont overspend changes from month to month.

"We started off this financial year with a very constrained budget, so departments were faced with significant challenges.

But we do have to be able to deliver our budget in a balanced way."

He added: "We await the returns each month from the various departments back into the centre and we examine very closely how their spending programmes are moving."

The £400m overspend does not include the money needed to cover the cost of compensation for Police Service of Northern Ireland (PSNI) officers affected by a major data breach.

The PSNI has already accepted liability for the breach, which occurred in August 2023, and talks over the settlement have been taking place for a year.

The incident involved the accidental release of some personal details of all 9,400 officers and staff.

Details of what could be offered to individuals have not been made public but the executive had requested help from the Treasury to cover costs of £119m. That money was turned down by the Treasury.

Meanwhile, the Labour government is looking at a range of options to help it raise more money.

Reeves has confirmed that both tax rises and spending cuts are on the table in the upcoming budget.