I propose to take Questions Nos. 926, 927 and 928 together.
I refer to Parliamentary Questions No. 45284/26, 45287/26 and 45288/26 regarding the development of a multi-annual budgeting framework for the health service.
The development of a multi-annual budgeting framework represents a significant reform, and a substantial programme of preparatory work is underway to support its development.
The Government is proposing legislative amendments to the Health Act 2004 to provide the necessary statutory basis to enable expenditure determinations and associated planning to be carried out on a multi-year basis. Importantly, the legislation will not prescribe the duration, structure or detailed operation of a future multi-annual budgeting framework. Rather, it will provide the enabling statutory basis to support its introduction at the appropriate time. The framework is being developed as a single multi-annual framework.
It remains the intention to be in a position, subject to Government decision and the overall fiscal position, to introduce a multi-annual budgeting framework for the health service for Budget 2027. However, the timing of its introduction will depend on system readiness and on establishing a stable and sustainable expenditure position.
The focus is on developing a robust multi-year framework based on integrated forecasting and planning. This brings together top-down expenditure projections and bottom-up service planning, underpinned by consistent assumptions on key cost drivers such as demographics, pay and inflation, while ensuring the framework can manage demand pressures, price shocks and other risks over time and maintain overall expenditure discipline. There has also been engagement on strengthening the technical underpinning of this work, including consideration of input from bodies such as the ESRI and the Department of Finance.
The model and supporting framework are being developed so that, where conditions allow, Government approval can be sought to proceed with the introduction of multi-annual budgeting for Health.