The Northern Ireland Executive has unveiled its draft budget for the 2025/26 financial year, setting the stage for public consultation. With a total budget allocation of £19 billion, this plan earmarks substantial resources for the health and education sectors, reflecting the government’s commitment to addressing pressing community needs.
Of the total budget, approximately £16 billion is designated for day-to-day spending, while £2 billion is allocated for capital investments. Notably, the proposed budget indicates a 9% increase in day-to-day spending compared to the previous financial year, showcasing a concerted effort to enhance funding in key areas.
As part of the budgetary strategy, the executive plans to raise the regional rate, which impacts household rates bills by 5% and businesses by 3%. This adjustment is expected to add approximately 60p per week to the average household’s rates.
The draft budget details the allocations for each department as follows:
Health: £8.793 billion
Education: £3.6 billion
Infrastructure: £1.566 billion
Justice: £1.506 billion
Communities: £1.248 billion
Economy: £1.007 billion
Agriculture, Environment and Rural Affairs: £716 million
Finance: £271 million
Executive Office: £253 million
These figures comprise both operational and capital funding. During a press conference, First Minister Michelle O’Neill highlighted the budget’s commitment to addressing violence against women and girls, stating, “This draft budget reflects our programme for government commitments to tackle the issues facing working families and communities here.”
Deputy First Minister Emma Little-Pengelly emphasised a significant increase in funding for childcare, doubling the budget to £50 million. Furthermore, she noted that the executive has committed to safeguarding funding for agriculture, the environment, and rural development despite the challenging fiscal environment.
Finance Minister Caoimhe Archibald pointed to an allocation of £100 million for housing and over £105 million for Northern Ireland Water and wastewater infrastructure. She expressed hopes that this draft budget would mark the last one-year budget, paving the way for multi-year budgeting in the future. “Collectively, we have worked together to allocate resources to where they are needed most,” Archibald stated.
A significant portion of the day-to-day budget is directed towards health, with an 8.3% increase from the previous year’s allocation. However, Health Minister Mike Nesbitt described the budget as “challenging,” acknowledging the need for improvement in various areas. He noted the disconnect between the budget and the government’s programme, particularly concerning waiting lists, which he felt were not adequately addressed in the draft proposals.
The opposition, led by Matthew O’Toole from the SDLP, urged the health minister to take a more proactive approach in addressing the health service’s needs, asserting that clarity on long-term plans was essential for tackling critical issues such as waiting lists.
Environmental concerns also surfaced, with Environment Minister Andrew Muir expressing disappointment at the limited funding for addressing ongoing issues in Lough Neagh, particularly the persistent problem of blue-green algae. Despite this, he welcomed the funding earmarked for agriculture and rural development, indicating a focus on improving sustainability.
As the public consultation phase begins, stakeholders will be keenly assessing the budget details, especially regarding potential changes to the overall funding landscape for essential services in Northern Ireland.
In summary, the Stormont budget for 2025/26 aims to prioritise health and education amid a backdrop of financial challenges. With public consultation underway, the executive will seek to refine the proposals to better meet the needs of the community while ensuring fiscal responsibility.
