‘Highly probable’ Department of Justice will overspend its budget – official

The Department of Justice is likely to overspend its budget in each of the coming three years, according to a senior official.

It comes as Stormont faces what Finance Minister John O’Dowd has described as an “exceptionally constrained financial position”.

No department was handed the level of allocation it requested in the draft three-year budget.

Last week it was confirmed that the Treasury is providing Stormont with a reserve claim of £400 million for 2025/26 which will be repaid over three years in recognition of its significant financial challenges.

Richard Logan, finance director at the Department of Justice, said the department, which funds the PSNI, Prison Service and Courts Service has faced “years of underinvestment”.

He described estimated budget pressures of £101 million in 2026/27, £141 million in 2027/28 and £215 million in 2028/29.

Around 50% of these annual pressures related to the cost of pay awards.

“The impact of such shortfalls in funding would be catastrophic for the justice system in Northern Ireland, and considering the magnitude of the pressures remaining, it is difficult to see how the department would manage to live within its resource budgets over the next three years,” he told MLAs.

“Nearly 75% of the total department pressures are for PSNI and prisons, however, there are also significant pressures being reported by the Courts and Tribunal Service and Legal Services Agency.”

He added: “The level of remaining pressures will be extremely challenging if not an impossible position to manage.

“It is highly probable that the department could overspend its resource budget in each of the next three years.

“Extremely difficult decisions and prioritisation in service provision will be required to minimise the remaining pressures.

“This will inevitably involve consideration of issues such as the level of services that can be delivered, staff numbers, pay awards and major capital plans.”

Committee chairman Paul Frew described a “bleak” picture.

He asked Mr Logan whether he believes all spending areas within the department will be able to meet their statutory functions.

Mr Logan said they have issued draft indicative allocations to all their business areas, to outline their pressures and what they would have to do to live within them.

“Whenever we get those returns, we will know what the impact truly is,” he said.