Written Ministerial Statement

Published on Thursday 21 January 2021.

 

Mr Murphy (The Minister of Finance): I wish to update the Members on the Executive’s agreement to the January Monitoring Round for 2020-21.  As with earlier monitoring rounds this year, has taken place alongside decisions taken to provide support in view of the COVID-19 restrictions now in place.

This is being done by written statement in order to confirm the relevant allocations for immediate use and provide members with as much notice as possible of the changes to public spending for the remainder of the financial year.  However, I will make an oral statement to the House next week which will provide the opportunity for Members to ask questions and raise specific issues.

 

COVID-19 Response

COVID Funding Available

The Treasury has announced an increase in the amount of Covid funding guaranteed to the Executive in 2020-21 to £3 billion, providing an additional £200 million Resource DEL.  While discussions with Treasury continue on flexibility to carry this forward to next year this amount has not been allocated as part of this round.

Departments have declared reduced requirements against previously announced allocations and details are provided in the tables accompanying this statement.  This provides £219.2 million Resource DEL for allocation.  £10.5 million Financial Transactions Capital reduced requirements were also declared, however as this allocation had been provided from Executive funds this is dealt with outside of COVID-19 support.

Allocations made to departments previously included amounts which have now been provided to the Executive from other sources, as such £66.6 million Covid funding can be returned to for reallocation.

Latest forecasts of Regional Rate income show that £46.4 million previously provided for rate relief measures will not now be required, reflecting a reduced cost rather than a reduction in the support being provided.

My statement on 23 November noted that £150 million was set aside for longer term rates support, in view of the additional £200m now available, which the Executive should be able to carry forward to next year, I have made the £150 million available for allocation now.

The total amount of Covid Funding available for allocation now is £509.8 million.

 

COVID Bids

Departments have submitted Covid-19 Bids totalling £215.6 million Resource DEL, details are provided in the tables to the statement.  In addition the Department for the Economy and the Department for Infrastructure have confirmed that they will require the amounts previously held centrally for support to business and the transport sectors.

While these bids factored in restrictions that came into effect on 26 December, Ministers are considering what further support can be provided to those most in need.  While further proposals are developed it is important that the Executive provides the immediate support needed by businesses and individuals and has therefore moved to agree allocations to all bids submitted so far.

 

COVID Allocations

Allocations announced today are shown in Table F to the statement.

The Department for the Economy will receive £94.5 million for Research and Development, replacement of European Social Fund funding in this year and various schemes supporting Tourism and hospitality, small businesses and Company Directors.

This along with the £60 million previously held centrally provides the Economy Minister with £154.5 million to provide much needed support to individuals and businesses in this financial year.

The Department of Education will receive £7.5 million to continue the response to Covid 19 in schools, to extend the Lost Learning Programme to special schools.

The Department of Finance will receive £101.6 million, £100 million will extend the Financial Assistance Scheme in view of the new restrictions, and to help the newspaper sector £0.6 million will provide rate relief. 

The Department for Infrastructure will receive £12.1 million for COVID support including DVA lost income

 

Non-COVID Transactions

Departments have identified £93.9 million Resource DEL, £55.7 million Capital DEL and a total of £12 million Financial Transactions Capital reduced requirements. 

Factoring in changes to centrally held funding there is £110.7 million Resource DEL, £46.4 million Capital DEL and £55.7 million FTC of non-Covid funding available for allocation in January Monitoring.

Departments bid for £98.2m Resource DEL, £24.2 million Capital DEL of non-COVID related pressures in January Monitoring.

Treasury has provided funding in relation to Protocol costs, Expected Credit loss, Accrued Annual Leave and Project Stratum so bids for these will be met from additional funding from Treasury.

The remaining pressures of £58.4 million Resource DEL, £18.1million Capital DEL and £0.004 million Financial Transactions Capital will be met in full. Details of these allocations are shown in Table G to the statement.

Allocations include £9.7 million to DfE for Higher Education Quality Research and FE colleges pay remit and £45 million to DfI to support the Driver and Vehicle Agency and Translink.

 

Outcome

After meeting all departmental bids and amalgamating COVID and non-COVID funding, £346.4 million Resource, £28.3 million Capital and £55.7 million FTC remains unallocated.

I have encouraged Executive Ministers to continue to work on further ways to utilise additional funding in this financial year and further allocations are anticipated next week.

In addition I have requested increased flexibility to carry forward COVID funding from Treasury and await the outcome of that request.