To ask the Minister for the Economy, pursuant to AQW 6555/17-22, to specifically outline (i) which areas of funding for COVID-19 response measures were ring-fenced; (ii) where reallocations of £23.7 million originated from; and (iii) where they were directed to in order to fund emerging pressures.

(i) The Department for the Economy has received a total of £481.6 million Resource DEL funding from the Executive for COVID-19 response measures. All of this funding is ring-fenced.

In May 2020, £410.0 million was received relating to schemes to assist businesses experiencing financial hardship as a result of the COVID-19 pandemic, with the overarching aim being to protect jobs and prevent business closures. £68.1 million of this funding was surrendered as it was not required based on the uptake of the schemes. £1.4 million was also received for student hardship. These schemes are ring-fenced.

As part of the June monitoring process £4.7 million was allocated to my Department for four COVID-19 interventions in Invest NI and Higher Education, each of these is ring-fenced. In respect of the COVID SME Process & Organisational Improvement Grant £1.2 million was surrendered at October monitoring as demand was less than originally anticipated.

In August and September 2020, as a result of the Chancellor’s Summer Economic Update, my Department received urgent allocations for six initiatives totalling £26.3 million. Three for Apprenticeship schemes; two for Further Education relating to the provision of a safe learning environment and the additional cost of free school meals; and one for Higher Education to meet increased student numbers as a result of the policy change in respect of awarding A-level results in 2020. Each of these six initiatives is ring-fenced.

More recently, in the COVID-19 Allocation Exercise agreed on 24 September 2020, £39.2 million was allocated to my Department for 23 initiatives grouped into eight categories:

Assistance to Business - £8.5 million;

Skills and Youth Training - £8.35 million;

Tourism £9.85 million;

Stimulating Air Access Restoration – £1.85 million;

Energy Strategy - £1.35 million;

University Research - £5.8 million;

Provision of a safe learning environment in Higher Education - £2.5 million; and

Provision of a safe learning environment in Further Education not funded in earlier exercises - £1.0 million.

For this most recent funding, as detailed in AQW 6555/17-22, the Executive approved the ability to exercise flexibility across similar initiatives within the same category of funding. For previous funding there is no flexibility to reallocate funds across the various COVID-19 response measures.

(ii) and (iii) In addition to the allocations from the Executive detailed above, as noted in AQW 6555/17-22, £23.7 million of funding was reallocated from the budget of my own Department, as part of June monitoring, to address emerging COVID-19 budget pressures. This funding is not ring-fenced. These reallocations originated from areas where Reduced Requirements as a result of COVID-19 were identified, and also from an assessment to determine if anything could be reduced or stopped to address priority COVID-19 pressures. The funding was mainly re-prioritised from Invest NI and Higher Education. More details on the pressures which were met from the reallocations are detailed on pages 25 and 26 of the Finance Minister’s June Monitoring Statement at the following link:

https://www.finance-ni.gov.uk/publications/year-monitoring-public-expenditure-2020-21