PRESENTATION

Making a Budget Submission

Finding your way around the Budget in Northern Ireland

•Combat Poverty Agency

•NICVA

•Comhairle

Introductions – about NICVA

“NICVA’s mission is to achieve progressive social change by tackling disadvantage through voluntary action and community development.  It is the representative body for the voluntary and community sector in Northern Ireland and has over 1,000 organisations in its membership.”

Introductions - what NICVA does …

Governance and Charity advice - set up/operation of a group

Funding Advice - advice on project planning, funding and grant-makers

Policy - training, facilitation, lobbying and representation, raising profile of sector

Europe - NICVA houses Europe Direct and a European library

Research - knowledge about the sector for researchers, policy makers, etc

Partnerships - representing the sector on committees, fora and working groups

Introductions – housekeeping information

• Fire alarms• Emergency exits• Assembly area• Toilets• Timetable and break times• Mobile phones

Agenda for today

10.30 Public Expenditure System in NI11.30 Break11.45 Making a budget submission12.30 Lunch1.30 Consultation on NI Budget and

Programme for Government4.00 Close

Structures in Department of Finance and Personnel

Supply 3

Supply 2

Supply 1

Strategic Policy Division

Rating Policy

Division

European

Division

Central Expenditure Division

Accountability &

Accountancy Services Division

Account NI

Central Finance Group

UK Public Expenditure Structure

UK Public Expenditure System

Funding Devolved Administrations

Priorities and Budget Process

Estimates

Monitoring

UK Public Expenditure Structure

Total Managed Expenditure (TME)

Departmental Expenditure Limits

(DEL)

Annually Managed Expenditure

(AME)

Resource Budget

Capital Budget

Resource Budget

Capital Budget

• UK Government’s approach to public expenditure is underpinned by the setting of the Fiscal Rules and the Code for Fiscal Stability:

– Golden Rule

– Sustainability Investment Rule

HM Treasury Fiscal Rules

• National Spending Review Process:

– Replaced the annual Public Expenditure Surveys

– Biennial reviews

– Sets firm plans for 3 years ahead

UK Public Expenditure System

Spending Review Coverage

05/0604/0503/0402/0301/0200/0199/00

1998 Comprehensive

Spending Review

06/07 07/08

Spending Review 2000

Spending Review 2002

Spending Review 2004

08/09 09/10 10/11

2007 Comprehensive

Spending Review

• Development of proposals

• HM Treasury proposals considered by Cabinet Committee

• Final decisions taken by Cabinet and announced by the Chancellor

National Spending Review

The Chancellor announces:

UK National Expenditure

Resource and Capital DEL allocations to Whitehall departments

Allocations for the Devolved Administrations – Scotland, Wales & Northern Ireland (determined by the Barnett Formula)

Outcome of National Spending Review,

Barnett Formula

• Unhypothecated consequentials ie spending in NI doesn’t have to mirror spend in England

• Based on population

Advantages of Barnett

• Avoids negotiations with HMT• Can be spent according to local need• Transparent and simple• Same for all devolved administrations

Disadvantages of Barnett

• Too simplistic • Not based on need• Ignores regional disparities

Funding Sources for Devolved Functions in Northern Ireland

Funding available from the application of the Barnett

formula

Peace

Borrowing (Reinvestment

& Reform Initiative)Regional

Rates

Priorities and Budget Process - Basis

Basis of Public Expenditure system in Northern Ireland:

• Good Friday Agreement– Strand 1, paragraph 20

• NI Act 1998– Sections 63 & 64– Executive right of initiative

Departments Expenditure: Current Expenditure 2006-07 and 2007-08

Regional Development

5%

Education21%

Employment & Learning

9%

Social Development

7%

Other13% Health

45%

Departments Expenditure: Investment 2006-07 and 2007-08

Regional Development

28%

Education25%

Employment & Learning

5%Social

Development12%

Other15%

Health 15%

In Year Monitoring

Traditionally 4 monitoring rounds a year

Assess current and future expenditure plans against plans agreed in the Budget

Opportunity to surrender resources and bid for additional resources

Recycles spare resources to urgent and unforeseen problems

End of Year Flexibility (EYF)

Key Economic Policy Documents

• Economic Vision for Northern Ireland

• Investment Strategy for Northern Ireland

• Budget

• Priorities and Budget

Summary

UK Public Expenditure System

Funding Devolved Administrations

Priorities and Budget Process

Estimates

Monitoring

Budget Submission guidelines1) Keep the submission short and simple, with an

executive summary of one page.2) Set out the following in clear and accessible

language:-What the issues are-How they are manifesting themselves-How they could be addressed-How much this would cost.

3) Backed up by evidence.4) Aware of the constraints of the budget process.

The Budget Submission

The Budget SubmissionThere are a number of questions a group should consider

before starting the budget submission process:

1. What does the group want to achieve by making a budget submission?

2. Are there other, more effective ways to achieve these objectives?

3. Are the resources in place?4. Are there other groups who will be communicating the

same message? How can you work with these groups?

Budget Submission Budget Submission guidelines (continued)5) Show how it benefits wider public interest.6) Make sure the proposal fits with existing Government

priorities and commitments.7) Show how the proposal can assist the Government in

bringing these policies to fruition.8) Be aware of what other groups in your field are

seeking from the budget process and from the Government.

The Budget Submission The bottom line

Government is looking for ideas that are:• Innovative• Will address problems identified• Will help them realise their policies and commitments• Will not cost the earth• Will not damage them politically• Will be popular with the public.

The First Quarter: Researching the Submission

January – March

The early months of the year should be used for

Discussing and planning the budget submission and the

accompanying campaign.

(a) Preliminary discussion questions• Do you want to become involved in the consultation

process only?• What do you want to achieve from a budget submission?• What kind of campaign will be conducted?• Does your group have necessary resources?• Are there other policy or influencing spaces outside of

the budget process?

The First Quarter: Researching the Submission

The First Quarter: Researching the Submission

(b) Research Phase• Begin building your case.• Conduct research into existing government policies

and commitments.• Start networking.• Forge links with larger organisations.• Start making contacts with key civil servants in

relevant departments.• Identify journalists and reporters.

The First Quarter: Researching the Submission(c) Consider the Spending Review• To what extent do the priorities in the three-year

Spending Review reflect the needs of the region?• Do the allocations to Departments and programmes

properly reflect the priorities?• What reallocation of resources would be appropriate?• Are there key areas where spend is not effectively

utilised?• Are there emerging priorities which will need to be

factored in?

The Second Quarter: Finalising the Submission

April – JuneBy April, a group should have a draft of their budget

Submission prepared, and a timetable for the campaign.

The draft should be circulated for comment among group

Members and other interested bodies.

The submission should be finalised by June as the pre-

Consultation phase is an important part of the annual

budget process.

The Third Quarter: Using the Submission

July - SeptemberKey Target audience for the submission:

• Relevant civil servant in the department responsible• Advisors to the relevant Minister• MLAs• MPs• Local council members• Central party offices and their policy officers

The Third Quarter: Using the Submission

Engaging the media:• It helps if you have a relationship already established

with a journalist.• Be conscious of your launch date. Are there other

planned launches or events that will overshadow your event?

• What is interesting or new about what you have to say? The media won’t cover it unless it is newsworthy.

• Avoid being too aggressive.

The Final Quarter: Consultation on the Submission

October - December• Meetings held around the region by the DFP.• Groups should still be in follow-up mode.• Link in once more with journalists for possible

additional coverage.

Further information - contacts

Lisa McElherron NICVA Policy Development ManagerE-Mail: lisa.mcelherron@nicva.org Tel: 028 9087 7777

Jonny Currie NICVA Policy Development OfficerEmail: jonny.currie@nicva.org Tel: 028 9087 7777

Web Sites: www.nicva.org | www.communityni.org