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Finance Minister John O’Dowd has introduced a draft multi-year budget covering 2026 to 2029/30, describing it as a potential path forward for Northern Ireland’s public spending. The adoption of this budget would mark the first such plan in over a decade, enabling Stormont departments to engage in longer-term financial planning. O’Dowd emphasized the importance of a three-year budget, stating, “The prize is a three-year budget. That three-year budget will allow us to transform our public services moving forward.” However, the proposed plan has yet to gain approval from the other parties within the executive.
Expressing openness to discussions, O’Dowd said he was ready to collaborate with other ministers to finalize the budget by April 1. He acknowledged the financial constraints faced, noting, “It was simply not possible to provide any department with the funding it has requested.” According to the draft for 2026/27, only four departments—education, health, justice, and infrastructure—are set to experience slight budget increases. The draft does not currently account for potential overspending this year, with recent indications from Health Minister Mike Nesbitt and Education Minister Paul Givan that their departments are facing budgetary pressures, particularly related to staffing and pay awards.
The draft budget outlines allocations for various departments over three financial years, with health receiving the largest share of the resource budget at £25.9 billion and £1.3 billion in capital. Other departments such as education, infrastructure, justice, communities, economy, agriculture, the executive office, and finance also received specified resource and capital figures. Additionally, O’Dowd highlighted specific funding initiatives, including earmarking £495 million for hospital waiting lists and £24 million for special educational needs schools over the next three years. The budget also includes inflation-linked uplifts, such as £52.4 million for Casement Park redevelopment and additional funds for sub-regional football stadiums. Proposals also call for £441 million towards building social homes and £433 million for water infrastructure, alongside a suggested regional rate increase of 5% annually.
The health sector’s situation remains a key concern, with £165 million proposed annually over three years to address waiting lists and elective care. While the department is expected to see nominal yearly increases of around 0.8% to 1.9%, these figures exclude inflation, raising questions about the feasibility of achieving pay parity for health workers. The funding plan does mention the building of a specialist mother and baby unit, signaling a commitment to finally open the long-campaigned-for facility in 2026/27, although detailed plans have yet to be released.
Criticism of the budget has come from various political quarters. SDLP assembly member Matthew O’Toole described it as “an unambitious ghost budget, bereft of vision,” accusing the plan of lacking the necessary resources or strategic vision to improve health services, infrastructure, and housing. The DUP also distanced itself from the draft, stating it “is John O’Dowd’s budget,” and highlighting concerns about its failure to prioritize frontline services such as education. The party called for a revised proposal that places public services first, ensures efficient use of taxpayers’ money, and better supports families and communities across Northern Ireland
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