Northern Ireland

DUP accused of blocking Stormont budget over demand to plug EU funding hole in Diane Dodds' department

It is understood economy minister Diane Dodds has requested £45m be re-allocated to her department to make up for lost EU funding
It is understood economy minister Diane Dodds has requested £45m be re-allocated to her department to make up for lost EU funding It is understood economy minister Diane Dodds has requested £45m be re-allocated to her department to make up for lost EU funding

THE DUP has been accused of blocking progress of Stormont’s budget over a row surrounding the loss of EU funding within Diane Dodds' Department for the Economy.

A draft budget paper, which contains each department’s allocation for 2021/22, failed to make it on the agenda for the fourth successive meeting of the Executive on Tuesday.

A letter from finance minister Conor Murphy to the assembly's finance committee, seen by The Irish News, claims first minister Arlene Foster did not allow the paper to be tabled.

Mr Murphy told MLAs: “I have worked collegiately with ministers to address issues they raised but unfortunately I was not able to address a concern in relation to lost EU funding.”

It is understood the DUP has requested £45m be redistributed from other departmental budgets to Mrs Dodds' economy department.

Last week the former MEP told the assembly’s economy committee that her department is facing a £70m shortfall in April due to the loss of EU revenue streams.

Ms Dodds, whose party campaigned for Brexit, said EU funding had been worth around £100m per year to the Department for the Economy and its various arm’s length bodies, including Invest NI.

She revealed that the British government’s proposed replacement, the Shared Prosperity Fund, had offered only £11m.

Her most senior civil servant, Mike Brennan, said it was his view that Invest NI would have to stop writing new businesses as a result of the revenue hole.

According to the letter sent by Conor Murphy last night, the Sinn Féin minister had intended to secure Executive agreement for the draft budget proposals before Christmas.

He said he had requested that the paper be considered at the Executive on December 10, 15, 17 and again yesterday.

“Unfortunately the First Minister did not allow the paper on the agenda for the Executive to consider,” he said.

Stormont’s budget process is already running behind schedule because of the disruption of Covid-19.

The Executive had been due to introduce multi-year budgets in 2021/22 following January's New Decade, New Approach agreement, as part efforts to improve fiscal management at Stormont.

However, UK Chancellor Rishi Sunak instead moved to a one-year spending review in October.

Mr Murphy’s letter to the finance committee said: “The delayed spending review already shortened the period available to consult with the public and for departments to plan.

“The absence of Executive agreement this side of Christmas further reduces the time available for consultation and planning.

“This is a very regrettable situation and I hope that the draft budget will be permitted to be discussed by the Executive at the earliest possible opportunity in January.”