This paper focuses on the distinction between internal fees and charges income – payments made by one Executive department or public body to another – and external fees and charges income from outside government. While the Budget normally highlights the Block Grant and Regional Rates as the main funding sources, fees and charges are a significant additional stream — averaging a little over £1 billion a year in 2022–23 and 2023–24, higher than the revenue from the Regional Rates (averaging around £750 million). Our analysis suggests that slightly less than 20 per cent of this fees and charges income comes from internal flows between Executive departments, which do not add to the resources available for public services. The remainder - averaging around £860 million a year - comes from outside the Executive and this is higher than the Regional Rates income. Understanding this internal/external split is important for interpreting income trends and assessing genuine funding for public services in Northern Ireland.
You can read our paper here.