Northern Ireland Finance Minister issues draft multi-year budget proposals

John O’Dowd is encouraging the public to help shape the future of public services by sharing their views and ideas on his draft multi-year budget for 2026-2029/30

Finance Minister John O’Dowd launched his draft proposed 2026-2029/30 budget consultation today and has called on the public to share their views.

The minister called the commitment to launch a multi-year budget as “one of the biggest decisions we will take during this assembly mandate”. He added that he wanted to hear feedback from communities about the budget and the factors that were most important to people in Northern Ireland.

Minister O’Dowd said: “Setting a multi-year budget is one of the biggest decisions we will take during this Assembly mandate. A multi-year budget provides the opportunity to give departments the certainty they need for long-term planning and create the conditions to drive transformational change.

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“I want to hear the views and ideas of workers, families, businesses and communities. Your input will be vital in shaping the public services that matter most to you.

“Any spending increase in one area will inevitably mean a reduction in another. I want everyone to get involved and have their say. If you believe additional funding should be allocated to a particular area, please share your ideas including suggestions where that funding should be reallocated from.

“It is important that proposed ideas and solutions are put forward. I have made the same request to my Ministerial colleagues.”

In a media meeting this morning with Joanne McBurney, the Deputy Secretary Public Spending, officials noted that the proposal was: “a very difficult budget because of the finances.”

A spokesperson in the meeting added: “There is a finite amount of money available. The budget is difficult for the level of pressures compared to the level of funding available. Everyone has been asked to do what they can to bring down executive overspend.”

Highlighting the financial challenges, Minister O’Dowd added: “There is no doubt the ongoing under investment in public services by the British Government means that both the Resource and Capital DEL funding position remain extremely constrained.

“Our public services are facing increased demand and increased pressures with increased costs to deliver the services people rely on. In this context it is simply not possible to provide any department with the funding it has requested.”

Key takeaways from the mult-year budget proposals

The draft Budget sets out proposed Resource DEL allocations from 2026-27 to 2028-29 and proposed four year allocations for Capital DEL from 2026-27 to 2029-30 as follows:

• Department of Agriculture, Environment and Rural Affairs – £2,054.5m Resource DEL and £500.8m Capital
• Department for Communities – £2,826.6m Resource DEL and £1,339.9m Capital
• Department for the Economy – £2,496.3m Resource DEL and £1,048.7m Capital
• Department of Education – £9,950.7m Resource DEL and £1,221.2m Capital
• Department of Finance – £893.0m Resource DEL and £138.6m Capital
• Department of Health – £25,921.1m Resource DEL and £1,833.8m Capital
• Department for Infrastructure – £2,029.3m Resource DEL and £4,027.0m Capital
• Department of Justice – £4,598.3m Resource DEL and £470.5m Capital
• The Executive Office – £678.9m Resource DEL and £56.1m Capital

The multi-year budget would provide departments with day-to-day spending allocations over the next three years (2026-2029). Minister O’Dowd added: “I am proposing providing almost £26 billion to support our health service, including £495 million dedicated to cutting health waiting lists. And almost £10 billion would be provided for education.

“My proposals would also see the PSNI Workforce Recovery costs of £133.3 million met in full and increased funding towards ending violence against women and girls.”

Commenting on the proposed Capital allocations over the four years (2026-2030), Minister O’Dowd added: “I believe this Draft Budget focuses capital investment towards our Programme for Government commitments.

“Over £4 billion is proposed for infrastructure projects including funding for the A5, A6 and Belfast Transport Hub which are vital to driving economic growth and enhancing connectivity.

“I am proposing £441.7 million for the building of new social homes with £433.7 million for water infrastructure to unlock capacity and enable the construction of more new homes.

“To better support our children and young people with Special Educational Needs, I am proposing £24 million specifically for the SEN schools’ estate.”

The consultation will run from 6 January 2026 to 3 March 2026, people who want to respond can visit the website here.

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