The head of the Northern Ireland Civil Service (NICS) has invited Stormont party leaders to a meeting to discuss budget issues and the “governance gap” in the region.
Jayne Brady told the leaders the budget settlement for Northern Ireland “will inevitably cause enduring harm to public service delivery, society and the economy”.
Northern Ireland Secretary Chris Heaton-Harris recently set a budget for the region in the absence of devolved ministers at Stormont.
Several Stormont departments have since warned they are facing significant monetary challenges.
In her letter seen by the PA news agency, which was sent in advance of the local government elections, Ms Brady said the budget situation remains “extremely challenging”.
She added: “It remains the collective view of myself and permanent secretary colleagues that the budget outcome will inevitably cause enduring harm to public service delivery, society and the economy.
“The budget challenge is compounded by a governance gap.”
She said draft guidance issued by Mr Heaton-Harris did not materially change the limitations on civil servants to make decisions on funding issues.
She added: “That law leaves beyond departments’ powers some decisions – decisions that would ‘turn civil servants into ministers’.”
Her letter continued: “For some departments, remaining within budget allocations would require decisions which cannot be taken in the absence of ministers.
“This leaves the relevant accounting officers in the invidious position of having no lawful means to ensure full compliance with the duty to remain within budget limits.
“As a result, the spending trajectory currently exceeds the budget and this will remain the case until and unless ministerial decision-making is restored.
“Departments have carefully considered the budget allocations and an analysis of the decisions required, and the implications for public services will be provided at our next meeting.”
Ms Brady said that even if an Executive were to be established, it is “highly likely that the financial position would remain very challenging”.
She said: “An incoming Executive would be faced with a series of difficult choices, made all the more challenging because they would fall to be taken part-way through the financial year.
“Our engagement since the Assembly election has been constructive and has informed our collective next steps for further preparatory work towards the establishment of an Executive.
“All parties have indicated that they are keen to continue that engagement with the NICS.”
She concluded by inviting the party leaders to a meeting later this week.
