Civil Service head warns of difficulties over Stormont budget

Sir Malcolm McKibbin said there was only a “small window of opportunity” for politicians to strike a budget before the start of the financial year.

Sir Malcolm has written to all civil servants setting out the way ahead if a new Executive is not formed by April.

In such circumstances, the permanent secretary at the Department of Finance has powers to allocate a limited proportion of the block grant.

The head of the civil service said: “Political talks have started this week and these will take place in parallel with the implementation of the legislative processes leading to the formation of the Assembly and Executive.

“During this time our job, as civil servants, is to continue to deliver public services. We cannot determine political priorities nor do we have the authority to set a budget.

“However, we will continue to deliver on previously agreed priorities until such times as political direction is given to change this position.

“From our perspective one of the most difficult and pressing issues is the absence of the 2017/18 budget as the Executive did not agree this before the Assembly was dissolved.

“There is a small window of opportunity to allow a new Executive to agree a budget and put it to the Assembly before the start of the new financial year, provided that agreement can be reached very quickly.”

Sir Malcolm said if the civil servants took over spending controls for the coming year the aim would be to ensure “business as usual”.

But he warned there would be some things they would be unable to do.

“For example, we will not be able to launch any new programmes, projects or policies which would require ministerial or Executive endorsement,” he said.

“Departmental accounting officers will also have to be prudent and aim to avoid committing to new patterns of expenditure which would go beyond what they might reasonably expect to be allocated in a budget for 2017/18 once this is agreed.”

He said the Civil Service would continue to work on the last Executive’s draft Programme for Government and the supporting strategies to “ensure that they are available for consideration by incoming ministers”.

Sir Malcolm added: “It is also important that we continue to look for ways to work across government and across sectors to deliver the best possible outcomes for the public.

He said senior civil servants recognised that “uncertainty is difficult to manage”.

“We remain totally committed to supporting the devolved institutions and the impending political discussions,” he wrote.