28 April 2021
St Helena Government (SHG) has received confirmation of a Financial Aid Settlement of £31.79 million from the UK Government (UKG) – a flat line budget in cash terms when compared to the core financial aid budget for the 2020/21 financial year. This is a one-year settlement for the financial year 2021/22 and is Year Three of the three-year Memorandum of Understanding (MOU) signed with the UKG for 2019/20-2021/22.
Commenting on this year’s Settlement, Financial Secretary Dax Richards said:
“This is a very good outcome for St Helena given the current economic climate in the UK and recent announcements of a reduction in the UK Aid budget. SHG would like to thank the UK Government for its continued investment in and support to St Helena. Special thanks are extended to all those who have worked tirelessly behind the scenes to achieve this positive result for the Island.”
SHG Directors and senior officials will now work with Elected Members to reprioritise the Budget based on the Settlement to prepare a ‘balanced’ budget, after which the draft Budget will be presented to Executive Council and Legislative Council for approval.
Further details on the Budget will be published in due course as part of the Financial Secretary’s Budget Speech.
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28 April 2021