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Tuesday, 10 August 2010

Additional detail

Just back from the well attended Department of Finance and Personnel briefing to the voluntary and community sector organised by NICVA.  This is building on their work with the Cutting Carefully report.  The seven key points I took from the presentation:

  1. The Executive is reliant on the block grant for 92.2% of its expenditure.

  2. Increasing the regional rate by 1% raises £4 million of additional revenue.

  3. The revenue budget will most likely see real terms cuts of 2.7% per annum for the 4 years of the CSR but even more daunting  are the real terms cuts of 9.1%  per annum in capital budgets (36.4% cut in four years). 

  4. This has effectively killed the Investment Strategy for Northern Ireland with disproportionate impact across departments

  5. The scope to re-prioritise capital expenditure is limited by the existing contractual commitments

  6. This year the executive has already had to find £521m in cuts.

  7. If Annual Managed expenditure proves higher than expected this would require further cuts during the CSR period.
In broader terms other elements of civic society could learn from the approach NICVA has adopted.  The Trade Unions seem to be in denial, professional groups aren't saying much and the business sector representatives have made little substantive contribution.

Meanwhile John Simpson tackles the arguments around ring-fencing the health budget.

1 comment:

Lisa said...

Thanks for the mention Lee. Glad you found the meeting useful...

I've decided to try and keep the debate going on a blog. http://www.nicva.org/blog/debate-budget-cuts-gets-underway
Feel free to jump in anytime.
Lisa.