Stormont's Finance Minister has declared that the UK Government's latest budget fails to deliver sufficient investment for Northern Ireland's public services and economic growth.
Limited Immediate Funding for Frontline Services
While Chancellor Rachel Reeves confirmed an additional £370 million for Northern Ireland over the spending review period, Finance Minister John O'Dowd revealed that only £18.8 million would arrive in the current financial year. Speaking from the Department of Finance at Clare House in Belfast on Wednesday evening, Mr O'Dowd stated this amount "falls far short of what is needed to support the delivery of frontline public services."
The minister did welcome several budget measures, including the removal of the two-child limit for universal credit, which he said would "help lift thousands of children out of poverty here." He also praised increases to both the minimum wage and living wage as "important steps that will support our lowest-paid workers."
Concerns Over Economic Growth and Taxation
However, Mr O'Dowd expressed significant concerns about the budget's impact on working families and economic development. "Freezing income tax thresholds will hit working families who will have less disposable income to spend in our local businesses," he warned.
The minister noted particular disappointment that calls to support Northern Ireland's hospitality industry through VAT reduction went unanswered. "There was little in the Budget to support economic growth," he added, emphasising that the spending plan "strengthened the need for fiscal devolution."
Multi-Year Budget Plans and Government Response
Looking forward, Mr O'Dowd confirmed he is finalising Northern Ireland's first multi-year budget in recent years, which he plans to present to Executive colleagues before Christmas. "It's the biggest decision, I think, this Executive and Assembly will make in this mandate," he told media in Belfast.
In contrast, Northern Ireland Secretary of State Hilary Benn described the budget as "really good news for families, for public services and businesses" in the region. He highlighted that Northern Ireland had received £1.7 billion extra in the past two years, plus the recent £370 million announcement.
DUP MP Sammy Wilson joined criticism of the budget, calling it a "bad Budget for working people" and highlighting that freezing tax thresholds would drag more people into higher tax brackets.
The Executive now faces crucial decisions about spending priorities and potential revenue raising as it prepares to allocate the limited additional funding through the December Monitoring Round.
