Northern Ireland Secretary Chris Heaton-Harris has instructed senior civil servants at Stormont to provide information on revenue raising measures such as domestic water charges, drug prescription charges, and tuition fees.
Mr Heaton-Harris confirmed he had written to permanent secretaries in the region on “measures that could otherwise improve the sustainability of public finances in Northern Ireland”.
He also reiterated his call for the Stormont Executive to be restored so that “systemic issues” facing public services in Northern Ireland could be addressed.
The DUP is blocking the devolved institutions in Belfast in protest at post-Brexit trading arrangements, and the party has insisted it will not return to Stormont until it secures further legislative assurances from the UK Government around sovereignty and trade.
Senior civil servants are currently running public services in the region in the absence of devolution.
They have estimated that Stormont departments need hundreds of millions of pounds in extra funding to maintain public services at their current level this year.
Hundreds of millions more would be needed to settle a series of public sector pay disputes in the region.
Mr Heaton-Harris confirmed on Wednesday he had used new powers provided through passage of the Northern Ireland (Interim Arrangements) Act 2023 for the first time to request information and advice on the revenue raising measures.
His letter said he had asked for information on measures such as such as introducing domestic water charges and drug prescription charges, and increasing tuition fees.
There is currently no charge to the public for medical prescriptions in the region and Northern Ireland students who study at local universities currently pay £4,630 a year in tuition fees, compared with a maximum of £9,250 to study in England.
Mr Heaton-Harris suggested these measures could help to make public services in Northern Ireland more affordable, but stressed that he wanted devolved ministers to make decisions on public finances.
Mr Heaton-Harris said: “Public finances in Northern Ireland are not currently on a sustainable footing.
“The UK Government stands ready to work with a restored Executive, but we have a responsibility to ensure the delivery of public services and management of public funds can continue in its absence.
“I remain firmly of the view that the right people to take these decisions are locally elected and accountable ministers sitting in a fully-functioning devolved government.
“I once again call on the Executive to get back up and running so that they can progress much-needed and long-promised public service transformation and address the systemic issues that are facing public services in Northern Ireland.
“Simply spending more is not the answer to transforming Northern Ireland’s public services and does not serve the best interests of the people of Northern Ireland.”
Mr Heaton-Harris set a deadline of the end of June for the information to be provided by civil servants. In the 2021 Spending Review the Government announced that the total block grant for the Northern Ireland Executive would be £15 billion per year, on average, over the next three years.
The Government has provided around £7 billion in additional funding to Northern Ireland since 2014, on top of the Barnett-based block grant.
A Government statement said that the Northern Ireland Executive public spending per person is around 20% higher than the equivalent UK Government spending in the rest of the UK.
It added: “The Secretary of State is seeking to ensure that work progresses towards a more sustainable budget position in Northern Ireland that better reflects the balance between locally generated revenue and UK Government funding that is happening across the rest of the United Kingdom.
“The Secretary of State will continue to engage with Northern Ireland Civil Service departments on the detail of their responses. Any final decisions for implementation should be taken by Northern Ireland’s elected leaders.”
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