A University think tank is warning that Stormont is facing an "extremely challenging financial outlook".
The warning came as Ulster University’s Strategic Policy Unit (SPU) published its first paper, A Focus on Public Sector Transformation, emphasising the urgent need for reform to address Northern Ireland’s mounting financial pressures.
Against a backdrop of deteriorating public services and an unsustainable fiscal outlook, the paper highlights the importance of prioritising transformation within the public sector to ensure resources are used more efficiently and outcomes are improved.
The SPU, which is headed up by former Alliance Party deputy leader Stephen Farry and North Down MP Stephen Farry and former Stormont SPAD Jodie Carson, warns that relying solely on a revised fiscal framework or additional revenue-raising measures will be insufficient to tackle Northern Ireland's financial challenges without a greater commitment to systemic change.
The report identifies several key interventions the Northern Ireland Executive could consider, including a stronger focus on prevention such as exploring the possibility of ring-fencing spending for preventative measures, as previously advocated by the think-tank Demos.
Other potential interventions include introducing financial practices that consider environmental sustainability and a zero-based budgeting pilot which would involve evaluating budgets from scratch to ensure every expense is justified alongside developing an Artificial Intelligence (AI) Strategy.
Speaking about the report, Professor Jodie Carson, Co-Director of the SPU, stressed the urgency of transformation.
“The Executive faces an extremely challenging financial outlook. While the recent financial package and the interim fiscal framework are welcome, public finances in NI remain unsustainable, and outcomes from public services continue to deteriorate," she said.
"Transformation, including prioritising spending on prevention and early intervention, is particularly vital, even in a tight financial environment.”
Her colleague, Professor Stephen Farry, echoed these sentiments, outlining potential pathways for reform: “There are a number of options the Executive could consider, including enhanced prevention, green budgeting, a zero-based budgeting pilot, and the strategic deployment of technology. Greater resources should be allocated to transformation, and it must become a cultural and practical priority across all areas of government.”
Professor Carson concluded by noting the SPU’s ongoing commitment to exploring these themes further. “We aim to delve deeper into the recommendations of this report over the coming months," she said.
For all the latest news, visit the Belfast Live homepage here and sign up to our politics newsletter here.