Budget 2021: Stormont finance minister plays down spending review impact

Conor Murphy is calling on Stormont to prioritise spending on the health service

NI's finance minister has played down expectations of significant extra money as a result of the UK spending review.

The chancellor's announcement on Wednesday will set the executive's spending limits for three years.

Conor Murphy said a multiyear budget "provides an opportunity to better plan and prioritise finances."

He said there was "little indication" that the government would "provide the investment needed to rebuild public services and spur economic recovery".

The amount of money available to Stormont and the other devolved administrations is set by the Barnett formula.

It is a population-based share of additional funding announced for England.

Budget day is Wednesday when Rishi Sunak will announce how much money he will take in taxes and what he will spend it on

On Sunday Chancellor Rishi Sunak said "strong investment in public services" would be at the heart of his plans for rebuilding the economy.

He said: "One of the elements of building a stronger economy is having strong public services, and you will see that next week - whether it's the NHS, which we've already taken steps to support significantly to recover from coronavirus, children, schools, skills, all of these things, policing and crime."

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Asked if he would raise public sector wages in line with inflation, the chancellor said: "That will be one of the things we talk about.

"Over the past year, we took a decision to have a more targeted approach to public sector pay," he continued, but added: "Going forward we'll have to set a new pay policy and that'll be a topic for next week's spending review."

Conor Murphy says a small rise in domestic rates will make little difference to Stormont's finances

Writing in the Irish News, Conor Murphy expressed scepticism about what the chancellor would deliver and again called on the executive to prioritise health spending on Stormont's budget.

He said: "While the indications are that the spending review outcome will not be good for the executive, a collective approach can produce a budget that finally brings down waiting lists on a sustainable basis."

Mr Murphy also said that increasing domestic rates, a locally controlled property tax, would not give Stormont much extra spending power.

"I would caution that a 1% increase in domestic rates generates less than £3m," he said.

"To put that into context, a 22% increase in domestic rates would be needed to pay for a 1% increase in the health budget."