To ask the Minister of Finance for an update on the Proposed Draft Budget 2026-29/30.

Mr O'Dowd

With the Speaker's permission, I will answer questions 2, 10 and 12 together. The Executive need sustainable long-term funding that allows us to plan, invest and deliver. I have made and continue to make the case, including through ongoing engagement with the Secretary of State, for fairer funding for public services and the investment required to grow our economy. In my engagement with both the Treasury and the Secretary of State, I have highlighted that, while the interim fiscal framework has supported our funding close to our 124% level of need, evidence has shown that we are not funded fairly when compared with Wales and Scotland. If the Executive were funded to the same levels, it would mean an additional circa £1 billion and £3 billion per annum respectively. Funding for the Executive has managed to meet levels of need only through the provision of one-off packages in recent years, which is not a sustainable or equitable position. The Executive recognise that we have a role to play in improving efficiency in how we deliver public services, but we need to be properly funded to enable transformation to take place.

Mr Frew

I thank the Finance Minister for his answer. He outlined the levels of need. What has he actually asked of the Treasury? Can he put a figure on that? Given that he is having difficulty agreeing a Budget with his Executive colleagues, could he release capital to, at least, allow new builds to commence?

Mr O'Dowd

I have outlined to the Secretary of State and, in writing, to the Treasury that, when I compare our funding package with those of Scotland and Wales, as I said in my substantive answer, I see that, while Scotland is funded in the region of £3 billion over its level of need and Wales is funded in the region of £1 billion over its level of need, we are funded at need. I have said to the Treasury that it needs to examine those figures and ensure that this place is properly funded going forward. However, it is clear from the figures that we are not being fairly funded and that those who pay taxes here are not getting a fair return on their taxes. In relation to the release of capital, my permanent secretary has written to all permanent secretaries across Departments to set out an estimated funding package over this period of time, and capital is within that. Departments can release certain amounts of capital for projects, particularly those that are Executive flagship projects and others for which contracts have been committed to.

Ms Ennis

Minister, not for the first and probably not for the last time, the British Government have characteristically been more preoccupied with their own leadership wrangles in Westminster than with ensuring a fair funding package for the Executive here. Can you outline what engagement you have had with the British Government and how you plan to engage with them going forward on the issue?

Mr O'Dowd

I have had several meetings with the Secretary of State on the matter. The Executive have also corresponded with the Secretary of State and the Treasury, and, in the last number of days, we have received a response from the Secretary of State to our Executive position. We will have to study that response and respond in due course. There has been distraction as a result of the ongoing wrangles within the Labour Party, and there now needs to be a focus from the British Government on the issue. They need to come and sit with us, have a proper discussion and engage with us on the needs of public services here and how we properly fund public services and support our economy to levels that are comparable to Scotland and Wales.

Mr O'Dowd

In the absence of a Budget, as the Member will be aware, we are currently operating on 45%, as set out in the Vote on Account. If we still have not set a Budget by the end of July, the permanent secretary of the Department of Finance can issue permission to Departments to spend 95% of last year's total Budget and cash holdings. The preferred option is to agree a Budget, but, for that Budget to be agreed, it will have to be properly funded and resourced by the British Government.

Mr O'Toole

Minister, can I just double-check a point of fact? You have just confirmed that if the Executive do not or will not agree a Budget — we all want the UK Government to engage with you; they are in chaos at the minute, so whether they are focusing or not is anyone's guess — there will be an automatic 5% cut imposed by the Executive on public services. Is that a fact?

Mr O'Dowd

I would not put it in the same context in which you put it — as being a fact — but the procedures are clear: up until the end of July, we have 45% Vote on Account, and, after that, the permanent secretary can give permission for 95% of last year's Budget and cash to be spent. That will result in less spending power for Departments this year. I am fully focused on ensuring that we get proper funding from the British Government that will allow the Executive to set a Budget that will not only make our public services sustainable but allow us to carry out the programme of transformation that is required.