3 June 2026
SDLP Leader of the Opposition Matthew O’Toole has said the threat posed to public sector pay and pensions – as well as public service delivery - by the Executive’s failure to agree a Budget shows how serious the situation has become.
He was speaking after the Finance Minister and his Permanent Secretary gave evidence to Stormont’s Finance Committee on Wednesday.
The Permanent Secretary Neil Gibson confirmed to members that the legal limit on spending in the absence of Executive agreement – 95 per cent of last year’s cash Budget – would include so-called AME spending, which includes welfare spending.
John O’Dowd also revealed that there is no live negotiation with the Treasury over the Budget and that the Chief Secretary to the Treasury had not even responded to his request for a meeting.
South Belfast MLA Matthew O’Toole said:
“During questioning the Permanent Secretary of the Department of Finance confirmed to me that public sector payments, welfare payments and pensions could be threatened by the Executive’s failure to agree a Budget. Whatever the Finance Minister says this shows how serious a situation he and his colleagues have created.
“The lack of Budget and the Executive’s breach of their legal obligations means that departmental budgets are currently capped at 5% less than last year, effectively imposing worse austerity than any British Government ever has.
“It was the same old story from the Finance Minister today who refuses to grasp the gravity of the situation facing him. He complained the Labour Government is a shambles, but in the same breath abdicated all responsibility to them.
“Anyone watching Finance Committee today could be forgiven for thinking this is a minor issue we are dealing with. The failure to agree a Budget could devastate public services and the Finance Minister’s attitude is shocking.”