No additional Treasury funds for PSNI data breach
- Published
The Northern Ireland Executive is not currently in line to get one-off funding from the government to cover the costs of the PSNI data breach, the finance minister has said.
The Executive had been hoping to make a "reserve claim" for the costs which could be up to £240m.
A reserve claim is a call on a Treasury fund which exists to cover unforeseen, unavoidable and unaffordable spending pressures.
The minister told MLAs that the Treasury’s position is that in the first instance the costs should be covered by the Executive’s budget.
Unaffordable
Caoimhe Archibald was giving an update on the impact of last week’s Westminster budget.
Northern Ireland got an additional £660m for this year and a further £1.5bn next year.
Archibald told MLAs that the Executive was also hoping a reserve claim could be used for other one-off costs such as the PSNI holiday pay judgement.
She said: "It was anticipated that if these costs were to crystallise in 2024-25 that they might be funded by a Reserve claim.
"However, given the level of in year funding provided to the Executive in this Autumn Budget, the Chief Secretary to the Treasury has indicated, that while further conversations are possible, the Treasury position is that in the first instance, that these should be funded from the settlements announced."
She added that she still considers these items to be unaffordable and is still seeking to negotiate for a reserve claim.
Ring-fenced addition
The minister also confirmed that farming and fisheries subsidies will no longer be ringfenced but will have to be decided as part of Stormont’s budget process.
Before Brexit subsidies were paid directly from the European Union.
In the years since Brexit the UK's devolved governments received a ring-fenced addition to their usual Treasury funding to pay subsidies.
The government said that from next year that arrangement will no longer apply.
Archibald said: "Previously the Executive received a ringfenced allocations for both agricultural and fisheries support based on the level of EU funding in 2019.
"This £332.5m has now been included in the Executive’s baseline from 2025-26.
"It will therefore now be for the Executive to agree funding for agriculture as part of the budget process."