Written Ministerial Statement

The content of this written ministerial statement is as received at the time from the Minister. It has not been subject to the official reporting (Hansard) process.

Department of Finance - 2020-21 COVID-19 Allocations

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Published on Thursday 24 September 2020.

Mr Murphy (The Minister of Finance):

Introduction

This statement sets out further allocations aimed at addressing the evolving COVID-19 situation and the Executive’s response to recovery

FUNDING AVAILABLE

Since the Statement to the Assembly on June Monitoring, further funding of £762.2 million has been made available to the Executive as a result of the COVID-19 response in England.  This includes funding made available through the Barnett formula as well as £600 million which formed the UK Government’s guarantee announced on 24 July 2020.  This guarantee provides a minimum of £2.2 billion to the Executive for 2020-21 for its COVID-19 response and is provided now to avoid a drip-feed of further Barnett and the associated planning difficulties such a drip-feed would produce.  Full details of Barnett funding is set out at Table A.

The Department for Communities has surrendered £4 million of COVID-19 funding in relation to its Supporting People programme.  In addition, as a result of recent departmental assessments some £30.9 million Capital DEL has been made available for reallocation.

The Executive had previously held £2.2 million for its contribution to a Ferry Operator scheme run by the Department for Transport in England.  Latest indications are that the cost will be £0.35 million, thereby releasing £1.85 million for reallocation

FURTHER ALLOCATIONS

13 August

Due to the evolving situation and the need to provide support as expediently as possible the Executive allocated £123 million of funding on 13 August.  This set of allocations included funding to enable schools and Further Education facilities to safely reopen, provide apprenticeship places and support social enterprises.  A full list of August allocations is set out at Table B.

11 September

Further limited allocations were made on 11 September, reflecting the urgency of providing support for Higher Education places and additional PPE for the education sector as schools re-opened.  Details of these allocations are set out in Table C.

24 September

Further allocations have now been agreed by the Executive after considering its COVID recovery plan.

Given the concerns around waste management and the need to meet pressures resulting from increased landfill and waste management costs DAERA have been allocated £11.4 million to support these key services.

Local councils have been at the forefront of vital recovery services despite being placed into financial stress by income reduction. Councils will also play a key role in economic recovery and in recognition of that £40 million has been allocated to the Department for Communities to support key local council service provision.

Given the severe impact on the arts sector and the need to provide appropriate support for the reopening of venues, and introduction of Covid measures, in the face of dramatic losses of revenue £29 million has been allocated to the Department for Communities for cultural recovery. This is in addition to £4 million which was previously allocated for the Cultural Resilience Fund and means that an additional £33 million has been allocated to the sector which plays a key part in economic recovery.

The Executive recognises the need for further support for businesses and in recognition of the ongoing hardships faced the Department for the Economy has been allocated £8.5 million for assistance to business, £8.4 million for skills and youth training, £9.9 million for tourism support, £5.8 million to University R&D, £1.9 million for air route support and £1.4 million for Energy.  These should all help spur the economic recovery.

The Executive has allocated £8.0 million to schools with a further £1.0 million for pre-schools, enabling them to maintain safe practices and £0.2 million in respect of Special Education Need mainstream and pupil support.

Given the winter pressures identified by the Department for Infrastructure and the need to ensure that key transport corridors are accessible during the winter months the Executive has allocated £5 million for this important economic support network.

FTC funding of £80 million has also been agreed for the Ulster University Belfast campus project.

Full details of allocations are set out in Tables D&E.

CENTRAL FUNDING

Following the allocations set out above £54.8 million of the funding previously set aside for Transport and PPE remains.  Departments have not identified any further PPE requirements therefore it is proposed to combine the Transport and PPE funding, along with £0.4 million of general funding into one pot of  £55.2 million. This will be held pending proposals from the relevant departments on support for sectors which have so far fallen through the gaps.

The additional £600 million that formed part of the UK guarantee is held centrally pending the Department of Health’s assessment of costs for 2020-21.

OUTCOME

The outcome of these sets of allocations is that the Executive retain £55.2 million for further sectoral support and £600 million pending the Health assessment.  There is also a small Capital overcommitment of £0.5 million which will be managed as part of the monitoring process.

Further decisions on funding will be made following the Department of Health assessment of need and proposals from departments on further sectoral support.

Full details are included in the tables provided with this Statement.

INDEX OF TABLES

COVID-19 Treasury Funding

Table A Barnett Consequentials / UK Guarantee

Executive Allocations

Table B August Allocations

Table C 11 September Allocations

Table D 24 September Resource Allocations

Table E 24 September Capital Allocations

Table A – Barnett Consequentials / UK Guarantee

Table B – 13 August 2020 Allocations 

Table C – 11 September 2020 Allocations

Table D – 24 September 2020 Resource Allocations

Table E – 24 September 2020 Capital Allocations