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<p>In the absence of a functioning Executive, it is for NI civil servants to allocate
cash under s59 of the Northern Ireland Act 1998. This situation has led to understandable
concern and uncertainty among businesses and those relying on public services alike.
Since April the Secretary of State for Northern Ireland has therefore worked closely
with the Head of the Northern Ireland Civil Service (NICS), in conjunction with the
NICS Board, to keep under review how to provide ongoing assurance around the Budget
in the absence of an Executive.</p><p> </p><p>As a result the Secretary of State has
made two Written Statements on NI finances, on 24 April and 19 July. These have set
out indicative Budget positions and departmental allocations. These seek to enable
Permanent Secretaries to plan and prepare to take more detailed decisions on cash
allocations. These allocations do not reflect input or decisions from the UK Government
nor do they constrain the future ability of an incoming Executive to adjust its priorities.</p><p>
</p><p>These statements did not replace the ultimate need for a formal Budget for
Northern Ireland. The exercise of s59 powers cannot be sustained indefinitely. Accordingly,
the Secretary of State’s statement on 19 July reaffirmed that the UK Government remains
prepared to take forward legislation at Westminster to give authority for the expenditure
of Northern Ireland departments should an Executive not be restored in the autumn.</p><p>
</p><p>It should be for a new Executive to make swift decisions on its Budget to make
use of the spending power available to it, and it remains our overriding priority
to see a new Executive in place as soon as possible.</p><p> </p><p> </p>
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