Written Ministerial Statement

Published on Thursday 29 October 2020.

 

Mr Murphy (The Minister of Finance): I wish to provide Members with an update on the second monitoring round of 2020-21 which has taken place alongside decisions taken in response to the Executive’s new COVID-19 restrictions coming into effect.

 

COVID-19 Response

COVID FUNDING AVAILABLE

In response to COVID-19 the Chancellor, on 9 October, announced further measures which increased the amount of funding guaranteed to the Executive in 2020-21 to £2.4 billion.  This provided an additional £200 million Resource DEL for allocation.

The Health Minister has provided his assessment of the need within his department.  Of the £600 million held centrally £526.7 million is needed for rebuild, the full expected cost of PPE and the response to a second surge.  This leaves £73.3 million for other COVID pressures.

Departments have declared reduced requirements against previous COVID-19 allocations and details are provided in the tables provided with this statement.  This makes £25.6 million Resource DEL available for reallocation.

My Written Statement on 20 October provided details of financial support costing £35 million.  Since then the Executive has agreed an allocation to the Department of Education of £1.4 million to provide support to those who receive free school meals over the extended half term break.  The Executive has agreed the proposals brought forward by the Economy Minister for schemes to help the tourism and hospitality sectors and the recently self-employed and for a Business Support Scheme.  £60 million has been set aside and held centrally for these schemes.

The total amount of funding as a result remaining for allocation is £202.5 million.

I had previously advised that funding was being held centrally pending proposals from relevant department to provide support for other sectors.  From that funding £7.3 million has been allocated to the Department of Health to ensure that hospices can continue with the critical role they play in the delivery of health services.  £25 million has been earmarked for schemes to support the bus, coach, haulage and taxi industries with £19 million allocated to the Department for Infrastructure now and a further £6 million held centrally pending finalisation of costs.  £10 million previously set aside to provide support to the airport sector and £12.9 million for other sectors continues to be held while proposals are developed.

 

October Monitoring COVID-19 Bids

Departments have submitted COVID-19 bids totalling £213.4 million Resource DEL and £32.4 million Capital DEL, details are provided in Table F.

The Executive has decided that it would not be prudent to allocate all the available funding at this stage and is holding £100 million in reserve to provide support should it be necessary for further restrictions.

 

COVID-19 Allocations

Further allocations to provide immediate support have been agreed by the Executive and these are shown in Table H to this statement.

The Department for Communities will receive £36.5 million to provide £15 million for Local Council support in recognition of the lost income across council amenities and £15 million to provide support for all levels of sport.  £3 million to the Emergency Community Support Fund will ensure the voluntary community sector can continue their key role in providing direct community support while £3.5 million will provide much needed food packages to the vulnerable in our society.

In addition to the £60 million held for support schemes for Business, Tourism and the recently self-employed, the Department for the Economy also receives £2.8 million for the Further Education sector to continue the free school meals provision and in recognition of lost income.

The Department of Education will receive £49.4 million for a range of measures related to restarting education in a safe environment and using blended learning, and to respond to the changing circumstances brought about by COVID-19.

The Department for Infrastructure receives £10 million to help alleviate pressures as a result of lost income.

The Executive Office receives £3.1 million for the communications work it has taken forward as the Executive responds to COVID-19.

October Monitoring Funding

£28.1 million Resource DEL, £24.4 million Capital DEL and £115.2 million Financial Transactions Capital DEL was available to address the more routine pressures in October Monitoring. 

Central Issues

Changes to a number of central items have had a minor impact on the funding available, with £2.0 million Resource DEL and £1.2 million Capital DEL made available.

Reduced Requirements

Reduced requirements totalling £26.0 million Resource DEL, £30.8 million Capital DEL and £8.1 million Financial Transactions Capital DEL have been identified by departments.  However, two adjustments are necessary to these amounts to come to the amount available for allocation.  The Capital DEL amount for Shared Education is not available for reallocation bringing Capital DEL available for allocation to £24.4 million.  The Financial Transactions Capital easement against a COVID allocation due to the nature of that funding will be added to the overall FTC amount available for reallocation.

Full details of all reduced requirements are included in the tables provided with this Statement.

 

ALLOCATIONS

Departments submitted bids totalling £132.6 million Resource DEL and £23.0 million Capital DEL. I have allocated October Monitoring funding of £28.0 million Resource DEL and £36.0 million Capital DEL.

The Department of Education receives £12.8 million for schools maintenance and to fund pressures within the Education Authority including Special Educational Needs.

In addition to the £534.0 million required from the centrally held funding I am providing a further £6.3 million non Covid funding to the Department of Health.  This will allow for the implementation of the Review Body on Doctors and Dentists Remuneration recommendations.

The Department of Justice receives £4.5 million to provide certainty as we approach the end of the Transition period and exit the EU.

I have allocated £4.1 million to the Northern Ireland Assembly Commission for increased costs in relation amended determination for Member’s allowances.

I am allocating £0.3 million to the Executive Office for the Social Investment Fund. 

Turning to Capital DEL I am allocating £32.4 million to the Department of Health for COVID related costs.  There is no specific COVID funding for capital works so this allocation is from the general October Monitoring funding. 

The Department for Infrastructure will receive £3.6 million to fund an increased level of enabling works for the Belfast Transport hub and essential road maintenance.

I have allocated £1.1 million Capital DEL to the Department of Justice for PSNI.

Ring-fenced Financial Transactions Capital Funding

Allocations of ring-fenced Financial Transactions Capital totalling £39.3 million have been made to the Department for Communities in this round for Co-Ownership pending the Office for National Statistics decision on the classification of Registered Housing Associations in Northern Ireland. £32.2 million to the Executive Office will provide £30 million for the next tranche to the Investment Fund.

Ring Fenced Resource DEL

Allocations have been made to the Department of Education £0.1 million and £1.8 million to the Department for the Economy for increased depreciation costs in the Further Education Sector.

Flexibility

Departments in this round had full flexibility to reallocate internal budgets to meet emerging pressures.  The outcome of this is shown in the tables to this statement.

 

October Monitoring Outcome

At the conclusion of October Monitoring all Resource DEL funding has been allocated and Capital DEL is overcommitted by £12.7 million.  This level of overcommitment is manageable at this stage of the year. The Executive continues to work to provide support to those that need it as a result of COVID-19 and I will continue to keep the Assembly informed of funding for further measures as this is agreed.

 

INDEX OF TABLES

2020-21 October Monitoring:

Table A Previously Notified Reduced Requirements for information

Table B Reduced Requirements

Table C COVID-19 Reduced Requirements

Table D Proposed Reclassifications

Table E Departmental Non-COVID Bids

Table F COVID-19 Bids

Table G October Monitoring Allocations

Table H COVID-19 Allocations

Table I Ring-fenced Resource Expenditure

Table J Administration Costs

Table K Departmental Outcome by Spending Area

Table A Previously notified Reduced Requirements

Previously Notified Reduced Requirements for Information (£ millions)

Totals may not add due to roundings

 

Previously Notified COVID Reduced Requirements for Information (£ millions)

Totals may not add due to roundings

 

Table B OCTOBER Monitoring Reduced Requirements (£ millions)

Department	DESCRIPTION	Non Ring Fenced  Resource	Capital	FT     Capital
DAERA	Capital Projects Slippage due to COVID-19		-5.9
DfC	Building Successful Communities Slippage due to COVID-19		-0.8
	City Deal Projects		-0.2
	Housing Association Grant Repayments		-2.2
	IT Development		-0.3
	Mitigation Measures	-3.0
	Public Realm Slippage due to COVID-19		-1.0
	Supporting People - IT Equipment		-1.7
	Welfare Reform	-3.4
TOTAL  DfC		-6.4	-6.2
DfE	Higher Education - Learning & Teaching			-8.1
	Insolvency Services Fees CFER	-0.0
	Presbyterian Mutual Society		-9.4
	RHI - Legal Costs	-0.7
TOTAL  DfE		-0.7	-9.4	-8.1
DE	Education Authority - Capital Receipts		-0.7
	Fresh Start Post-Primary		-1.1
	Fresh Start Primary		-5.9
TOTAL  DE			-7.7
DoF	Accommodation Services	-1.0
	Project Delays and Capital Receipts		-1.0
TOTAL  DoF		-1.0	-1.0
DoH	Agenda for Change - Pay	-6.3
DfI	Consolidated Fund Extra Receipt	-0.0
DOJ	Northern Ireland Courts and Tribunal Services		-0.0
	PSNI		-0.0
TOTAL DOJ			-0.0
TEO	Capital Projects		-0.5
	Historical Institutional Abuse Inquiry	-10.0
TOTAL  TEO		-10.0	-0.5
FSA	Community Activities / Events reduced due to COVID-19	-0.2
	Nutrition Work affected by COVID-19	-0.3
	Recruitment Delays due to COVID-19	-0.1
TOTAL  FSA		-0.5
NIA	Recruitment Delays	-0.8
NIAO	Training, Travel and Additional Receipts due to COVID-19	-0.4
TOTAL REDUCED REQUIREMENTS		-26.0	-30.8	-8.1

Total may not add due to roundings

 

Table C OCTOBER Monitoring COVID Reduced Requirements (£ millions)

DEPARTMENT	DESCRIPTION	Non Ring Fenced  Resource	Capital	FT     Capital
DfE	COVID-19 - Business Support Grant Schemes	-16.3		-7.0
DE	COVID -19 - Childcare Support Scheme	-9.1
DfI	COVID-19 - Airports	-0.2
TOTAL REDUCED REQUIREMENTS		-25.6		-7.0

Totals may not add up due to roundings

Table D OCTOBER Monitoring Reclassifications (£ millions)

DEPARTMENT	DESCRIPTION	Non Ring Fenced  Resource	Capital
DOJ	PSNI - Road Safety Camera Income	-0.1	0.1
TOTAL RECLASSIFICATIONS		-0.1	0.1

 

Table E OCTOBER Monitoring Non-COVID BIDs Submitted (£ millions)

DEPARTMENT	DESCRIPTION	Non Ring Fenced  Resource	Capital	FT     Capital
DAERA	Common Market Organisation	1.0
DfC	Northern Ireland Co-Ownership Housing Association Scheme			39.3
DfE	Expected Credit Loss	9.0
	Further Education - End Year Flexibility	0.8
	Higher Education - University's Quality-related Research	8.1
	Invest NI - Grant Assistance	6.0
	Project Stratum		6.1
TOTAL DfE		23.9	6.1
DE	Childcare Strategy	0.5
	EA Pressures including Special Education Needs	25.1
	Education Transformation Programme	2.4
	Non-Teaching Pay (2019 & 2020 - Contractual Costs)	17.0
	Rates	2.2
	Schools Maintenance	4.0
	Teaching Pay (2019 & 2020 - Contractual Incremental Costs)	15.0
	Voluntary Exit Scheme	2.5
TOTAL DE		68.6
DoH	Critical Health Service Provision	15.0
	Elective Care	1.5
	General Capital Pressures		6.7
	Non-Agenda For Change Pay Pressures	6.3
	Palliative and End of Life Care	1.5
TOTAL DoH		24.3	6.7
DfI	Belfast Transport Hub		1.6
	Brexit Staff	1.3
	Holiday Pay	1.6
	Planning Portal		1.0
	Roads - Works and Street Lighting		6.5
	Winter Service	3.0
TOTAL DfI		5.9	9.1
DoJ	PSNI EU Exit	4.5	1.1
NIA	Member's Staff Costs	4.1
TEO	Financial Transactions - Capitalised Interest			2.2
	Northern Ireland Investment Fund			30.0
	Social Investment Fund	0.3
TOTAL TEO		0.3		32.2
TOTAL Non-COVID BIDS SUBMITTED		132.6	23.0	71.5
Totals may not add due to roundings

DEPARTMENT	DESCRIPTION	Non Ring Fenced  Resource	Capital
DfC	Community Wellbeing Support	0.5
	Digital Divide	1.0
	Emergency Community Support Fund	5.0
	Food Packages	3.5
	Fuel Poverty/Winter Warmth	2.0
	Local Councils	25.0
	Sport	25.0
TOTAL DfC		62.0
DfE	Assistance to Business	2.9
	Assistance to Tourism	0.9
	Free School Meals	0.3
	Further Education Lost Income	2.5
	Project Spring	1.0
	Support for Universities	7.2
TOTAL DfE		14.8
DE	Response Boarding Schools	1.3
	Response Childcare Sector Funding Support September - December	14.3
	Response Education Authority	8.8
	Response Holiday Food Payments - October & December	4.1
	Response Pathway Fund	0.5
	Response Preparatory Schools	0.8
	Response Restart Programme Initial Staff Costs	0.5
	Response School Meals	8.3
	Response School Uniform Grants	3.7
	Response Schools Maintenance	2.4
	Response Voluntary Grammar, Grant Maintained Integrated Lost Income	0.6
	Restart C2K - Standards and Learning	0.5
	Restart Childcare	2.8
	Restart Cleaning and Maintenance	1.1
	Restart Non-Statutory Pre-School Settings	1.8
	Restart School Meals: Free School Meals and Lost Income	8.2
	Restart Schools	12.4
TOTAL DE		72.1
DoH	Response and Rebuilding		32.4
DfI	Bus Coach Haulage and Taxi	25.0
	Crumlin Road Gaol Lost Income	0.2
	DVA Lost Income	12.0
	Parking Changes Lost Income	3.7
	Lost Passenger Income	20.0
	Planning Application Fees Lost Income	0.1
	Rathlin Ferry Lost Income	0.3
TOTAL DfI		61.3
TEO	Executive Communications	3.1
TOTAL COVID BIDS SUBMITTED		213.4	32.4

Totals may not add due to roundings

 

Table G OCTOBER Monitoring Allocations (£ millions)

DEPARTMENT	DESCRIPTION	Non Ring Fenced  Resource	Capital	FT     Capital
DfC	Northern Ireland Co-Ownership Housing Association Scheme			39.3
DE	EA Pressures including Special Education Needs	11.8
	Schools Maintenance	1.0
TOTAL DE		12.8
DoH	Non-Agenda For Change Pay Pressures	6.3
DfI	Belfast Transport Hub		1.6
	Roads – Works and Street lighting		2.0
TOTAL DfI			3.6
DoJ	PSNI	4.5	1.1
NIA	Member's Costs	4.1
TEO	Financial Transactions - Capitalised Interest			2.2
	Northern Ireland Investment Fund			30.0
	Social Investment Fund	0.3
TOTAL TEO		0.3		32.2
TOTAL ALLOCATIONS		28.1	4.7	71.5

Totals may not add due to roundings

 

Table H COVID-19 Allocations (£ millions)

DEPARTMENT	DESCRIPTION	Non Ring Fenced  Resource	Capital
DfC	Emergency Community Support Fund	3.0
	Food Packages	3.5
	Local Councils	15.0
	Sport	15.0
TOTAL DfC		36.5
DfE	Free School Meals	0.3
	Further Education Lost Income	2.5
TOTAL DfE		2.8
DE	Response Childcare Sector Funding Support Sept - Dec	8.5
	Response Education Authority	5.9
	Response Pathway Fund	0.5
	Response Restart Programme Initial Staff Costs	0.5
	Response School Meals	8.3
	Response School Uniform Grants	3.7
	Response Schools Maintenance	0.8
	Response Voluntary Grammar, Grant Maintained Integrated Lost Income	0.2
	Restart C2K - Standards and Learning	0.5
	Restart Childcare	2.8
	Restart Cleaning and Maintenance	1.1
	Restart Non-Statutory Pre-School Settings	1.8
	Restart School Meals: Free School Meals and Lost Income	4.8
	Restart Schools	10.0
TOTAL DE		49.4
DoH	Assessment of Health Costs	526.7
	Hospices	7.3
	Response and Rebuilding		32.4
TOTAL DOH		534.0	32.4
DfI	Bus Coach Haulage and Taxi	19.0
	Passengers Lost Income	10.0
TOTAL DfI		29.0
TEO	Executive Communications	3.1
TOTAL COVID-19 ALLOCATIONS		654.9	32.4

Totals may not add due to roundings