Northern Ireland's political leaders have delivered a stinging critique of the UK Government's latest Budget, labelling it a profound missed opportunity to address the ongoing cost of living crisis.
A Budget of Disappointment for Northern Ireland
First Minister Michelle O'Neill led the criticism, stating that the financial plan unveiled by Chancellor Rachel Reeves on Wednesday 26 November 2025 lacked the real action needed to bring down household bills. She expressed deep concern that, as a consequence, many people across the region would now be confronting higher tax bills in the year ahead.
While Ms O'Neill acknowledged that the removal of the controversial two-child cap on benefits represented welcome progress, she asserted that Prime Minister Sir Keir Starmer and the Chancellor had ultimately failed to deliver a budget that offers genuine support to families and workers struggling with soaring costs.
Stormont's Financial Squeeze
The view from the Stormont Executive was echoed by its Finance Minister, John O'Dowd. He confirmed that the Northern Ireland Executive is set to receive an extra £370 million to spend over the Spending Review period. However, he immediately highlighted a critical shortfall, revealing that a mere £18.8 million of this total would arrive in the current financial year.
Mr O'Dowd was blunt in his assessment, stating this amount falls far short of what is needed to sustain the delivery of frontline public services. He welcomed the uplift in the minimum and living wage but warned that the freezing of income tax thresholds would directly hit working families, leaving them with less disposable income.
The minister identified several key areas where the Budget fell short:
- No support for the hospitality industry via a reduction in VAT.
- A lack of measures to stimulate local economic growth.
- A failure to ensure those with the broadest shoulders carry more of the financial burden.
This, he argued, strengthened the need for fiscal devolution in Northern Ireland, pledging that his department would intensify work on this goal.
Contrasting Views and Future Plans
In a contrasting perspective, Northern Ireland Secretary of State Hilary Benn described the Budget as really good news for the region. He pointed to the scrapping of the two-child benefit cap, increases to pensions and the minimum wage, and Government-funded reductions to energy bills as direct help for families.
Mr Benn emphasised the £1.7 billion extra provided to Northern Ireland in the past two years, on top of the new £370 million, framing it as a significant amount of money for the Executive to prioritise.
Meanwhile, Finance Minister O'Dowd confirmed that the Chancellor's announcement was the final piece of the puzzle needed for him to finalise the first multi-year budget Stormont has seen in recent years. He plans to bring a draft budget to his Executive colleagues before Christmas, calling it the biggest decision this administration will make in its current mandate.
The criticism was also supported by DUP MP Sammy Wilson, who called it a bad Budget for working people, highlighting how the frozen tax thresholds would drag more individuals into paying tax or into a higher tax bracket.
