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Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 5 May 2021
  6. Current session: 12 May 2021 to 19 April 2025
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Displaying 1063 contributions

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Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 12 November 2024

Ivan McKee

It is a lesson. The process that we go through is managing and predicting a large number of areas and a great number of unknowns, both on the revenue and the spend side. You have to make assumptions on those, otherwise you could not function. You have to do that in the context of reaching a balanced budget. We fine-tune some of that process on an on-going basis. There is no big lesson that you would learn. It is about looking at how accurate some of our assumptions were in the context of what we knew then and what we know now. That builds up our ability to make those assessments going forward.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 12 November 2024

Ivan McKee

There are significant pressures on health spending, as we have identified. It is of course a priority spend area as we seek to address challenges in health delivery. As I said, the biggest part of the consequentials that come through are passed on to the health service.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 12 November 2024

Ivan McKee

I do not have it to hand, but we will pull that number up.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 12 November 2024

Ivan McKee

Yes, we can.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 12 November 2024

Ivan McKee

As I say, the budget process is taking place and decisions will be made on portfolio spending allocations. You could go through probably every portfolio and make a case as to why they deserve more funding. In that regard, education is no exception.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 12 November 2024

Ivan McKee

I think that £200 million came out of that. The point is—

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 12 November 2024

Ivan McKee

That has been managed.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 12 November 2024

Ivan McKee

On top of that, we would have had to budget numbers earlier on to balance that budget, which was what we needed to do. That would have necessitated making more significant cuts in public services at the start of the year, in order to plan for what only became apparent through the year—which we did not know at the time would become apparent—which was the level of the public sector pay deals.

The reality is that we have not had to cut to the extent that we would have had to do in order to fund those; the cuts would have been much more significant in that sense. We have managed to fulfil those public sector pay deals, and we have done it without strikes in the health service, which has been the consequence of what happened down south.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 12 November 2024

Ivan McKee

We said that it was broadly in line with what we expected.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 12 November 2024

Ivan McKee

There is a slice of that. Again, not all the numbers are nailed down, but around £600 million will be for public sector pay. As I said, there is still uncertainty about the funding for the national insurance contributions, which we estimate will be around £500 million. We expect that there will be funding for that, but we are not clear how much it will be, when it will be and what it will cover.

You mention pensions contributions. The change in that was north of £300 million, and we can get the details on that. As I said, there are health consequentials coming through as part of that amount that we are committed to spend on health. It is clear that there are cost pressures there, with health inflation typically running higher than inflation across the rest of the economy. We can give you a more specific breakdown on that if you require it.