Department for the Economy Board minutes 2024 - 25 January 2024

Agenda Item

Actions Arising from Discussion

Action Owner and Current Position (to be completed prior to the next Board Meeting)

Agenda Item 1: Board Register of Interests/ Conflicts

No new interests declared.

Agenda Item 2: ODT Agenda

Board members convened a Programme Board meeting.

Agenda Item 3: Minutes of Previous Meetings

Minutes of the November and December meetings were approved without amendment.

Agenda Item 4: Strategic Issues

Ian Snowden presented.

Political Situation

• There is no clarity if or when an Executive might be restored.
• Assume that things will continue as they have for the foreseeable future.

Current Budget 2023/24

• The NICS overspend has decreased from £450m to £280m/£330m but doesn’t include debt from the previous year or pay increases.

Public Sector Pay Awards

• The cost of NICS public sector pay awards was discussed. DoF to produce options for NICS pay.

Budget 2024/25

• There is a lot of pressure.
• NICS Board meet tomorrow re how to approach the budget exercise this year.

Capital Projects

• NIO have produced a report on capital projects. Ian Snowden will be part of a sub-committee to take this forward.

Agenda Item 5: Budget Discussion

Sharon Hetherington presented: -

• Current year unanticipated RDEL pressure of £2.9m. Part funding has been found and this is now £1.5m. everyone is asked to review expenditure to the end of the year to identify any easements and genuine pressures that cannot be avoided.
• It is hoped the 2022/23 accounts will be certified by mid-February.
• NI Protocol bid of £300k for this year has been rejected. There have been no decisions on 2024/25 funding. DfE should seek to do more work on bids to increase the likelihood of acceptance going forward.

2024/25 budget

(Name redacted) presented: -

• DoF asked Departments to model three scenarios, flat cash (a real terms 5% reduction), flat cash + 2% baseline reduction (7% real terms reduction) and flat cash + 5% baseline reduction (10% real terms reduction).
• New inescapable pressures in 2024/25 were discussed. Pay, price and loss of ESF are the main factors.
• Options of how DfE would live within a flat cash settlement were discussed.
• A breakdown of 2023/24 funding available for other purposes in 2024/25 was presented.
• Funding scenarios to limit impact on DfE’s programmes were discussed. No decisions have been made regarding these.
• It was highlighted that modelling of reductions must also be considered within the confines of what DfE can legally achieve/ deliver.
• DoF has asked for bids and these were listed, taking into account previous Executive and Government commitments.
• Capital is set from a zero based budget, therefore all bids from business areas had been submitted to DoF.

Agenda Item 6: Papers for Approval

Revised Approach to Skills Strategy Governance

• Louise Watson presented a paper which proposes a refreshed approach to the implementation of the Skills Strategy. ‘Skills for a 10x Economy’ to (i) more closely align with the objectives of the 10x Economic Vision and (ii) reposition implementation to enable greater flex and responsiveness for emerging and future needs, while keeping momentum on delivery of wider ‘business as usual’ skills provision in NI.
• AP – a timescale for this is to be clarified.
• The Board endorsed the revised approach outlined.

Louise Watson

Agenda Item 7: Papers for Discussion

Update on DfE Processes to manage the new Trading Environment

• Shane Murphy provided an update on the establishment of the Systems and Processes Branch and an overview of the programme of work they will undertake to support DfE officials in developing and embedding a managing divergence function within the Department.
• AP – there is awareness of this within the Department, we need to make those outside the Department aware.

Shane Murphy

Agenda Item 8: Board Operating Framework Review

(Name redacted) presented: -

• The Board Operating Framework has been reviewed and updated. Comments on how the Board meetings have been operating were invited.
• Meetings could be a lot more purpose oriented.
• There is less of a performance challenge than 10x demands.
• Need more on strategy.
• Need to be more selective about the agenda.
• Need to forward look as well as retrospective.
• Board can be a critical friend when policy is being developed before it goes to a Minister.
• There is an opportunity for the Delivery Committee to be reshaped to a ‘10x Delivery Committee’ to monitor performance. They could provide a 1-page dashboard. Both they and the Board should have sight of how the Department is performing. It was noted that too much monitoring and detail of performance may not be helpful.
• Options of e.g. 1 Board meeting being business as usual, the next being about change, transformation and strategy – or having 1 strategy meeting in 3 were discussed. There are difficulties with these approaches. AP – options to be discussed with Ian Snowden.
• It was noted that page 11 of the Board Operating Framework doesn’t mention 3^rd year assessments and we could mention partnership agreements in page 13.

(Name redacted)

Agenda Item 9: Annual Evaluation of the Performance of the Board

• (Name redacted) explained that we have 3-year cycle of Board evaluation. Years 1 and 2 are self-assessment, year 3 is independent assessment. The next assessment, due to report in a year, is due to be an independent assessment.
• It was agreed that as Business Consultancy Service from DoF completed the last on that a new approach would be best. Possible options would be to approach Internal Audit, Strategic Investment Board or procure an external consultant. How Whitehall do this could be considered. AP – contact Corporate Services Directors to see what their Departments have been doing.
• It was felt that having a third Non-Executive Board member would be beneficial.

Michelle Bell

Agenda Item 10: Risk Management

(Name redacted) presented: -

• Corporate Risk Appetite categories were discussed and whether these were contradictory.
• Due process is followed though behaviours of people within these processes are relevant.
• SMT should be involved in the conversation to add value.
• AP – a workshop of risk appetites and behaviours to be arranged with SMT.

(Name redacted)

Agenda Item 11: Any Other Business

There was no other business.