Submission to the Executive's Strategic Stocktake of the Budget Position for 2009/10 and 2010/11 : Together with the Minutes of Proceedings of the Committee

This report presents a co-ordinated submission by the Assembly statutory committees to the NI Executive's Strategic Stocktake of the Budget position for 2009/10 and 2010/11.

The Executive decided in March 2008 that a Strategic Stocktake would be undertaken in place of a comprehensive local Budget process for 2008/09.

The main emphasis of the Stocktake would be to assess the overall financial position in advance of the 2009/10 in-year monitoring process.

The terms of reference for the exercise indicated that it would include a review of departmental progress against plans, the identification of reduced requirements and emerging pressures for the next two years and proposals for addressing the pressures through adjustments to existing plans and priorities.

A range of budgetary concerns, both at a cross-cutting and a departmental level, arise from the submissions of the statutory committees and from the evidence presented by Department of Finance and Personnel (DFP) officials.

These issues have a particular resonance in the current economic and financial climate. In terms of strategic considerations, the following are highlighted in particular: doubt as to the reliability of information in departmental submissions to the Stocktake and, thus the evidence base upon which Executive decisions may be based; the failure by departments to fully address the Stocktake terms of reference, in identifying significant increased requirements without setting out how they will address these through adjustments to their existing plans and priorities; and, the potential for additional efficiency savings being required, in the context of possible slippage by departments in achieving existing efficiency targets; the budget implications of not achieving previously planned asset realisations. The following are also highlighted: doubt as to the capacity of departments to deliver accelerated capital expenditure, in circumstances in which they are required to raise their standard of financial management and performance generally; the need for clarity on the implications for departmental budgets of the Chancellor's Pre-Budget Report and of the outworking of the recent financial settlement between the Executive and Treasury; and, general concern at the range and quantum of new and emerging pressures on existing budget allocations which remain to be addressed.