London Daily

Focus on the big picture.
Thursday, Nov 20, 2025

Northern Ireland’s civil servants: It’s up to UK ministers, not us, to fix fiscal crisis

Northern Ireland’s civil servants: It’s up to UK ministers, not us, to fix fiscal crisis

Top officials managing political vacuum in Belfast say NI budget bill leaves ‘a gap’ between what the British government wants and what they legally can do to stop red ink flowing at Stormont.
Northern Ireland’s senior civil servants told a parliamentary committee Wednesday it will be up to the British government, not themselves, to impose an estimated £800 million in spending cuts and tax hikes needed to balance the region’s debt-addled books.

Their warning — the first in public by officials who normally keep their views away from public microphones — follows a trio of reports Tuesday from the Northern Ireland Fiscal Council identifying a range of possible measures to bring red ink under control at Stormont, where a Brexit-related walkout by the Democratic Unionists has put cross-community government on ice and left civil servants effectively running the show.

The advisory body said Northern Ireland faced a 3.3 percent spending cut this year in real terms, taking account of inflation, unless more revenue could be found. One measure floated to balance the books includes the introduction of household water charges already levied elsewhere across the U.K.

The head of the Northern Ireland Civil Service, Jayne Brady, said the U.K. government bill setting out 2023-24 spending limits — due for its second reading next week in the House of Commons — doesn’t give her nine permanent secretaries the mandate to take many of the key decisions that will be required.

She said Secretary of State Chris Heaton-Harris’ guidance to the permanent secretaries likewise leaves “a gap” between what the government in Westminster expects them to do and what decisions they legally are permitted to take.

“It is our understanding, having read the guidance and the law, there will be decisions that will not be able to be fulfilled within that guidance,” Brady said. “That would require some level of ministerial direction. That’s the legal advice we have received. There is a gap.”

Brady said fixing Stormont’s finances would require hands-on decision-making from ministers, either Heaton-Harris and other Northern Ireland Office ministers or, potentially, locally accountable ministers if the collapsed Northern Ireland Executive can be revived.

Looming decisions on spending cuts to statutory public services or raising local taxes and charges “rightly should be made by ministers because we have no democratic provision to make those,” Brady said. Northern Ireland’s cross-community government fell apart last year because of obstruction by the DUP, the major British Protestant party. Power-sharing, the core goal of the region’s 1998 peace agreement, cannot legally function unless both the DUP and the largest Irish nationalist party, Sinn Féin, agree to participate.

Neil Gibson, the permanent secretary at Northern Ireland’s Department of Finance, told the committee that each department head was preparing detailed research and options on potential cuts and tax measures — advice prepared for Heaton-Harris or junior Northern Ireland Office ministers to pull the trigger, not themselves.

“We are making sure we have the relevant material for the NIO on each of those, what is the legal position on charging in this area, what legislation is required,” said Gibson, who noted that Heaton-Harris already had used such advice to raise Northern Ireland’s regional rates this year by 6 percent.

“Our job remains the same, to provide all the material for political decision-making to be taken on all of those revenue-raising options that are available,” Gibson said.

The Democratic Unionists, who deny any culpability in Northern Ireland’s fiscal crisis, issued a new plea for increased Treasury funding on the back of Wednesday’s testimony.

Senior British government officials have told POLITICO that an increased funding offer, potentially in the region of £1 billion, could be part of any agreement to revive a cross-community government at the Stormont Parliament Building overlooking Belfast. The DUP has indefinitely blocked power-sharing in protest against post-Brexit trade rules that make it easier for Northern Ireland to trade with the Republic of Ireland than with the rest of the United Kingdom.
Newsletter

Related Articles

0:00
0:00
Close
Trump and Mamdani to Meet at the White House: “The Communist Asked”
Nvidia Again Beats Forecasts, Shares Jump in After-Hours Trading
Wintry Conditions Persist Along UK Coasts After Up to Seven Centimetres of Snow
UK Inflation Eases to 3.6 % in October, Opening Door for Rate Cut
UK Accelerates Munitions Factory Build-Out to Reinforce Warfighting Readiness
UK Consumer Optimism Plunges Ahead of November Budget
A Decade of Innovation Stagnation at Apple: The Cook Era Critique
Caribbean Reparations Commission Seeks ‘Mutually Beneficial’ Justice from UK
EU Insists UK Must Contribute Financially for Access to Electricity Market and Broader Ties
UK to Outlaw Live-Event Ticket Resales Above Face Value
President Donald Trump Hosts Saudi Crown Prince Mohammed bin Salman at White House to Seal Major Defence and Investment Deals
German Entertainment Icons Alice and Ellen Kessler Die Together at Age 89
UK Unveils Sweeping Asylum Reforms with 20-Year Settlement Wait and Conditional Status
UK Orders Twitter Hacker to Repay £4.1 Million Following 2020 High-Profile Breach
Popeyes UK Eyes Century Mark as Fried-Chicken Chain Accelerates Roll-out
Two-thirds of UK nurses report working while unwell amid staffing crisis
Britain to Reform Human-Rights Laws in Sweeping Asylum Policy Overhaul
Nearly Half of Job Losses Under Labour Government Affect UK Youth
UK Chancellor Reeves Eyes High-Value Home Levy in Budget to Raise Tens of Billions
UK Urges Poland to Choose Swedish Submarines in Multi-Billion € Defence Bid
US Border Czar Tom Homan Declares UK No Longer a ‘Friend’ Amid Intelligence Rift
UK Announces Reversal of Income Tax Hike Plans Ahead of Budget
Starmer Faces Mounting Turmoil as Leaked Briefings Ignite Leadership Plot Rumours
UK Commentator Sami Hamdi Returns Home After US Visa Revocation and Detention
UK Eyes Denmark-Style Asylum Rules in Major Migration Shift
UK Signals Intelligence Freeze Amid US Maritime Drug-Strike Campaign
TikTok Awards UK & Ireland 2025 Celebrates Top Creators Including Max Klymenko as Creator of the Year
UK Growth Nearly Stalls at 0.1% in Q3 as Cyberattack Halts Car Production
Apple Denied Permission to Appeal UK App Store Ruling, Faces Over £1bn Liability
UK Chooses Wylfa for First Small Modular Reactors, Drawing Sharp U.S. Objection
Starmer Faces Growing Labour Backlash as Briefing Sparks Authority Crisis
Reform UK Withdraws from BBC Documentary Amid Legal Storm Over Trump Speech Edit
UK Prime Minister Attempts to Reassert Authority Amid Internal Labour Leadership Drama
UK Upholds Firm Rules on Stablecoins to Shield Financial System
Brussels Divided as UK-EU Reset Stalls Over Budget Access
Prince Harry’s Remembrance Day Essay Expresses Strong Regret at Leaving Britain
UK Unemployment Hits 5% as Wage Growth Slows, Paving Way for Bank of England Rate Cut
Starmer Warns of Resurgent Racism in UK Politics as He Vows Child-Poverty Reforms
UK Grocery Inflation Slows to 4.7% as Supermarkets Launch Pre-Christmas Promotions
UK Government Backs the BBC amid Editing Scandal and Trump Threat of Legal Action
UK Assessment Mis-Estimated Fallout From Palestine Action Ban, Records Reveal
UK Halts Intelligence Sharing with US Amid Lethal Boat-Strike Concerns
King Charles III Leads Britain in Remembrance Sunday Tribute to War Dead
UK Retail Sales Growth Slows as Households Hold Back Ahead of Black Friday and Budget
Shell Pulls Out of Two UK Floating Wind Projects Amid Renewables Retreat
Viagogo Hit With £15 Million Tax Bill After HMRC Transfer-Pricing Inquiry
Jaguar Land Rover Cyberattack Pinches UK GDP, Bank of England Says
UK and Germany Sound Alarm on Russian-Satellite Threat to Critical Infrastructure
Former Prince Andrew Faces U.S. Congressional Request for Testimony Amid Brexit of Royal Title
BBC Director-General Tim Davie and News CEO Deborah Turness Resign Amid Editing Controversy
×