John O'Dowd
Upper Bann · Sinn Féin · Northern Ireland
“As I set out in response to the previous question, we have in place the vacant property rate relief scheme and the small business rate relief scheme, which are very successful. I set aside £10 million in the draft Budget for small business rate relief to be invested.”
“I am particularly keen to hear from those impacted by vacant commercial units and especially about how any phased increase can be implemented in a sustainable way that is fair, proportionate and sustainable within the tax system.”
“I outlined my intent to take that approach in my statement on 18 November, alongside the fact that reform of rating policy should support growth, make better use of property and ensure that the system is fair, proportionate and aligned with wider economic objectives.”
“The accelerator will operate alongside our highly successful Back in Business scheme, which has helped to bring over 100 vacant high street properties back into use since May 2024. Those issues have been the subject of considerable interest and comment in the Assembly, and it is right that we grasp the nettle now.”
“There are no circumstances in which a hard border would be good for the people of Ireland; it would not be good for anyone. Those who suggest that are being naive at best and dangerous at worst, in the sense of not understanding this society. <BR /> <BR />Rural communities along the border are one and the same.”
“This announcement represents the next step in that. That said, I also put on record my intention to strengthen support for small businesses. In that vein, £10 million has been set aside in the draft Budget to broaden the impact of the small business rate relief scheme in order to increase the number of businesses that can benefit from it.…”
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“While the reserve claim is very welcome and allows us some breathing space, the reality is that we have to pay it back: £80 million in 2026-27, then £120 million in each of the subsequent two years. That places further pressure on future-year Budgets, and when the Executive come to finalise those Budgets, that will have to be built into our calculations. It is vital that Departments balance their books. However, I accept that there is growing demand in the delivery of front-line public services. Ministers face significant challenges in delivering those services — in some cases to deliver the bare minimum — and balancing their books, so the balance has to be right. <BR /> <BR />The open-book process is an opportunity for the Treasury to better understand the challenges that we face. The Treasury will have its views.”
“The process will be firmly grounded in the principles of devolution and will respect Executive autonomy in making funding decisions. It is intended that the exercise will be completed by mid-March, with the outcome of the process supporting the Executive in their efforts to agree a multi-year Budget. The review will inform wider discussions on Budget sustainability and negotiations on the fiscal framework.”
“To strengthen our case for fair funding for public services, the Executive will work with Treasury to review the Executive's spending and pressures through an open-book review of departmental spending. That will support a fuller understanding of the significant challenges that we are facing. Locally, the demands being placed on public services are growing significantly while, at the same time, the cost of providing them is increasing. As such, that is an opportunity for the Treasury to gain a fuller understanding of the significant financial pressures that we, as an Executive, face in delivering public services. Each Department will have a crucial role in that work, as they are best placed to articulate the challenges in their areas.”
“If MLAs want more information on promoting that work in their community, I am happy to provide it. The people who attended the session that I observed got great value from it.”
“My Department has a dedicated digital inclusion outreach team, which promotes the use of online government services and provides free tailored training in libraries and community centres. Those sessions help individuals to build the digital skills, confidence and trust needed to engage effectively in today's digital world. I attended one of those sessions in my constituency, at which the training course was delivered to a group of older people. It was fascinating to watch and learn about the training, and to hear about the positive impact that it has had for many. <BR /> <BR />There is great concern about online scams. That is an issue for us all. People are deeply concerned about using services and being scammed out of their precious savings. I commend the work that is being done.”
“Work on inclusion and the need for access to cash is being carried out by the Treasury. I do not support the idea of a cashless society. The Member has pointed out a number of examples of where, when things go wrong, they can go dramatically wrong. It is important that cash remains part of our services, and that people can use it in shops and for whatever other services that they use. As I said to Mr Dunne, I will continue to engage with the Treasury on the matter. It is vital that the Treasury and others fully understand the needs and uniqueness of this place, hence why I am pushing for proper representation on the committee.”
“I think that the banking round table takes place every six months, so it is not a one-off event. We will continue to engage at that formal, structured level, but there is continued engagement at official level. As I said in my substantive response, I am preparing a response to the most recent report from the banking sector and to the Treasury programme around this, setting out my concerns, one of which is that we do not have representation on that group. The financial inclusion group is not inclusive: we need to correct that straight away so that people who are making decisions elsewhere fully understand the needs of this place. The engagement is ongoing; it is not a one-off.”
“Furthermore, I have been pushing the sector to roll out the banking hub concept at speed here in areas impacted by bank closures. Those hubs provide at least some level of in-person banking presence for affected customers. Rest assured that my officials and I will continue to press the banking industry and the regulatory authorities on those matters.”
“I reiterated my disappointment that the Financial Inclusion Committee set up to advise on the recently published financial inclusion strategy did not include a representative from the North. <BR /> <BR />My officials are now preparing a summary report to share with the Treasury and the Financial Conduct Authority (FCA), seeking appropriate action, given their respective responsibilities for banking and financial services.”
“I am deeply concerned about the impact of branch closures on local communities. I raised the issue directly with the industry at the banking round table on 3 December 2025. I pressed them on the importance of maintaining the branch network and access to cash and essential banking services here, especially for our most vulnerable citizens, who need in-person services. I also stressed the banking needs of small businesses and community and voluntary groups. <BR /> <BR />In addition, I stressed that cash access assessment criteria need to be appropriate and to reflect our particular circumstances here, including cross-border travel and commerce. In that regard, local representation on reserved matters that have had a significant impact here is essential.”
“In my opinion, it is clear that we have been underfunded for many years, and I think that that view is shared around the Executive table. We need to use our collective political resources to ensure that we are properly funded moving forward.”
“At the moment, the focus is on the open-book process. As I said, I would like to see that formally start in the next 24 hours or so. That will allow the Treasury to achieve a better understanding of the pressures that Executive Departments face in delivering public services, all of which are experiencing growing demand. The local growth fund, the PSNI data breach and other areas, such as VAT, are some of a wide range of areas on which we are engaging with the Treasury. All of that will form part of the discussions, but there will be a very tight focus on the open-book process in the next couple weeks. I want that to be completed, so that we can sit down at a political level and have serious discussions about how the Executive are funded to deliver public services.”
“The Treasury will have its views on things, but the quicker we go through that process, the quicker we will get to the political negotiations around how the Executive are funded.”
“The figures started to crystallise in November, and I corresponded with the Chief Secretary to the Treasury to set out the scale of those pressures and to ask for access to the reserve. Since then, I have engaged in intensive negotiations with the Treasury on behalf of the Executive. Throughout those discussions, I have pressed firmly for a longer repayment period to minimise the detrimental impact. The outcome of the negotiations was the reserve claim and the agreement that the repayment will be phased over three years. <BR /> <BR />This is a phased negotiation. I would like to see the open-book process start in the next 24 hours. Once that starts, that allows Executive Departments to firmly set out the challenges that they face.”
“Success has many parents, but failure is an orphan. I am of the view that, if people want to claim these things, fill your boots. We need to work collectively, particularly in the time ahead, to ensure that the Treasury fully understands the pressures that the Executive face and that, as a result of the open-book process, political engagement takes place at the highest level to ensure that the Executive are properly funded. <BR /> <BR />My engagement with the Treasury comprises regular meetings with the Chief Secretary to the Treasury. In each of those meetings, I constantly raise the issue of the pressures that our Executive face in delivering front-line public services.”
“To strengthen our case for fairer funding for public services, the Executive will work with Treasury to review their spending and pressures through an open-book review of departmental spending. That will support a fuller understanding of the significant challenges that we face.”
“I welcome the £400 million of reserve claim support provided by the Treasury. Securing Treasury agreement to spread repayments over three years is a positive outcome, as it helps to reduce the immediate pressures on public services. However, as that support falls short of the total forecast pressure facing the Executive, it is essential that we continue our collective efforts to reduce the remaining overspend. I remain committed to working with ministerial colleagues to manage the remaining pressures and to protect front-line services.”
“In any engagements that I have had with the current Chief Secretary to the Treasury (CST) and the previous CST, I have consistently raised the issue of VAT and the impact that it is having here, particularly considering the all-island nature of our economy, and the challenges that the difference in VAT rates present to businesses operating along the border.”
“The Member raises an important point: a lot of the pressures on our business sector and particularly on small and medium-sized businesses are the result of decisions made elsewhere around VAT, National Insurance contributions and other things. Those decisions are made elsewhere and imposed on us. I have been an advocate of fiscal devolution and bringing more powers back to this place so that we can make decisions based on the local environment in which our businesses operate. <BR /> <BR />On your specific question around VAT, the Economy Minister and I met Hospitality Ulster and the Food to Go Association — I think that that is the name of the organisation: I apologise if I have got it wrong — last month. Both of us have since corresponded with the Treasury in relation to lowering the VAT rate here under a pilot scheme.”
“It is important to reflect on the fact that we offer around £0·25 billion of support each year to small and medium-sized enterprises, including many hospitality groups. My officials recently completed a consultation on what further support we could offer the small business sector. I have set aside £10 million in the draft Budget specifically to support the small and medium-sized enterprise sector. Many of those businesses are in the hospitality sector, but there are others. Moves are afoot to continue our support for the small and medium-sized business sector, because it is the backbone of our economy.”
“I have refused nothing at this stage: let me send that clear message from the Chamber today. We have to look at Reval2026 in its entirety. While a lot of focus was on the hospitality sector and understandably so, Reval2026 was not solely focused on the hospitality sector. The retail sector, offices and other non-domestic ratepayers were involved, and all their voices deserve to be heard. You will have heard in recent times cinema owners, for instance, raise concerns around what impact it might have on them. While the Member may be solely focused on one sector, I, as Finance Minister, have to take on board the views of all sectors.”
“I appreciate that there are still questions for all the businesses, including those in hospitality, office, retail and manufacturing, that were reviewed as a result of Reval. Taking a bit of time to evaluate where we are going will have long-term benefit. I have not finalised what my next move will be, and I am open to suggestions.”
“I am considering the options at this stage. As I said, I am open to viewing and analysing any proposals that are brought to me. Our system is the same as that in England, Scotland and Wales when it comes to how we evaluate the rental value of premises.”
“I value our businesses and their contribution to the local economy and civil society. My focus remains on supporting our public services and local businesses and on growing our economy.”
“I met hospitality representatives on Thursday 29 January. I will look at any proposals for an alternative methodology that people want to offer. Such proposals need to be transparent and fair to every ratepayer and to meet the need to support public services and the wider economy. Stopping the Reval process allows space for the business sector to provide the much-needed evidence to allow a full examination of the issues raised. I am considering the most appropriate form of engagement to enable sectors to bring forward their information and evidence. Any further approach will be informed by that material and will aim to ensure that the rating system remains fair and transparent. <BR /> <BR />As Finance Minister, I am absolutely committed to supporting business growth and development.”
“With your permission, Mr Speaker, I will answer questions 3, 9 and 12 together. I may take slightly longer than normal. <BR /> <BR />As Members will be aware, on 29 January, I announced that I had stopped Reval2026, having listened to the concerns of businesses and elected representatives. Small and medium-sized businesses across all sectors are the backbone of our economy. The sustainable growth of our local economy is crucial to all our people. My decision to stop Reval2026 reflected the clear need to take stock and allow for constructive dialogue and engagement to ensure that any changes are implemented in a way that is fair, evidence-based, transparent and sensitive to the economic realities, positive and negative, that face non-domestic ratepayers. <BR /> <BR />The conversation has started.”
“The recruitment process is being evaluated, and the lessons that are learned from it will be built into future recruitment processes. I can say, however, that it has been a successful scheme. Unfortunately, I was not able to make it to the hotel where the recruitment exercise took place over a couple of days, but all the reports from the event suggest that the enthusiasm and excitement in the venue was palpable and that those who were applying for jobs were enthused by the process, as was my team. We have to build on and learn from that strategy. Everybody accepts that we have to speed up the recruitment process; in that exercise, we achieved that goal.”
“It depends on the recruitment process, but there is equivalence in the application process between someone's career pathway and their qualifications. We do not automatically rule people out because they do not have a university degree. There are other pathways into the Civil Service.”
“Recruitment of that size and scale had never been done before in such a short period. The pilot marks a shift away from running traditional annual recruitment campaigns towards taking a more agile and dynamic approach. My Department is now planning to run four further competitions in the coming months using that model. <BR /> <BR />Work is also under way to digitise key elements of the recruitment process, with further improvements to be delivered through the transition to the new integrated recruitment platform. That will provide enhanced automation, improved management information and greater end-to-end visibility, supporting faster decision-making and more timely appointments.”
“In this financial year, between April 2025 and January 2026, a total of 3,020 vacancies were filled. As part of the next Civil Service people strategy, my Department is taking forward several initiatives to standardise and streamline the recruitment process. Their key focus will be on reducing the length of time that it takes to fill vacancies across the Civil Service through implementing simpler, faster and more flexible recruitment processes. A key example of such an initiative is the pilot administrative officer competition to recruit staff in the north-west, which was launched at the end of October 2025. The first tranche of 155 successful candidates took up post at the end of January 2026, meaning that the end-to-end recruitment process was completed in around 12 weeks.”
“There is a process whereby MLAs and so on in towns and villages can request that an assessment of their area be done in order to ascertain whether there is suitable access to cash in the vicinity. One of the purposes of my banking round tables has been to raise concerns, particularly, it has to be said, those of people in smaller towns in the border communities, where access has been limited and people feel that the system has not treated them fairly. I am particularly concerned that cross-border business and commerce activity is not taken into account when decisions are being made. I will therefore continue to engage with Link and others on the matter. If the Member requires any further information, my officials will be happy to share with him what MLAs can do.”
“My officials and I have regular engagement with the Financial Conduct Authority. The FCA attended my banking round table on 3 December 2025 to hear at first hand about local issues with access to cash. I also addressed the FCA's five-year strategy launch event in Belfast, at which I took the opportunity to reinforce the need for banking facilities to remain accessible to those who need them, particularly people in rural areas and vulnerable groups such as the elderly and those with limited digital skills.”
“Yes. Mr O'Toole has spoken to me briefly on that matter. I am more than happy to assist in any way that I can, within my Department's remit.”
“The focus of my banking round table in December last year was to bring together relevant stakeholders primarily to discuss access to cash issues for our local communities and how access to cash and other important financial services can be maintained locally. Those in attendance did not raise the financial conduct of individual banks. <BR /> <BR />The Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) have the regulatory authority and responsibility to ensure that firms that operate in the financial services industry do so ethically in all aspects of their operations. It is therefore for those bodies to ensure that appropriate governance is in place and that any concerns about conduct are investigated thoroughly.”
“If the Finance Minister is not funding public pay, how come police pay has been delivered; health pay has been delivered; Civil Service pay has been delivered; teachers' pay has been delivered; and, indeed, all pay across the public sector has been delivered?”
“<BR /> <BR />This crucial legislation is required to ensure that the day-to-day public services that we all rely on can continue to be delivered to citizens for the remainder of the financial year. On that note, I will conclude. I am happy to deal with any points of principle or detail of the Budget Bill that Members may wish to raise during the debate.”
“The consultation period closes on 3 March 2026. Once the Executive agree the 2026-27 Budget, it will be brought to the Assembly to consider the 2026-27 Main Estimates and associated Budget (No. 2) Bill. <BR /> <BR />While the majority of expenditure by all Departments is done under the authority of the statutory powers provided through legislation passed by the Assembly, some functions may rely on the sole authority of the Budget Act until appropriate legislation is in place. Table 5 of the spring Supplementary Estimates 2026-27 document sets out a summary of expenditure resting on the sole authority of the Budget Act. My Department has been proactive in liaising with Departments to reduce reliance on the sole authority.”
“<BR /> <BR />The Bill authorises the revised issue of £28,100,470,000 from the Consolidated Fund and the use of resources totalling £32,672,027,000 by the Departments and other bodies listed in schedule 1 to the Bill in the year ending 31 March 2026. The cash and resources are to be spent and used on the services listed in schedule 1. Those amounts supersede the amounts that were previously authorised by the Budget (No. 2) Act 2025. <BR /> <BR />The Bill includes a Vote on Account for 2026-27, as detailed in schedule 2, to allow Departments and bodies specified to deliver services into the early months of the incoming 2026-27 financial year. It is important to stress that that does not constitute setting a 2026-27 Budget. As Members are aware, I launched a consultation on the proposed draft Budget for 2026-27 on 6 January.”
“and I shall endeavour to keep to that direction. <BR /> <BR />The Bill will give effect to the spring Supplementary Estimates for 2025-26 and authorise the cash and use of resources on services to allow Departments and other public bodies to continue to operate for the remainder of the 2025-26 financial year. The Bill will also authorise the 45% Vote on Account for 2026-27 to enable Departments and public bodies to keep delivering public services in the 2026-27 financial year until the Main Estimates for 2026-27 and the associated Budget (No. 2) Bill have been prepared and authorised. Copies of the Budget Bill and the explanatory and financial memorandum (EFM) have been made available to Members. The spring Supplementary Estimates 2025-26 and Vote on Account 2026-27 were laid in the Assembly on 16 February 2026.”
“It is vital to secure Royal Assent to the Bill by the end of March 2026 to ensure that Departments and other bodies can continue to access the cash and resources required to continue to deliver services for the remainder of the 2025-26 financial year. I am grateful to the Finance Committee for confirming that, in line with Standing Order 42, the Budget Bill can proceed under accelerated passage, and I thank the Committee for its support. In addition, the suspension of Standing Order 39(2) has been requested to facilitate prompt passage of the Bill. <BR /> <BR />Standing Order 32 directs that the Second Stage debate:”
“Following agreement of the final Budget position by the Executive on 11 February 2026, Departments and other bodies prepared their spring Supplementary Estimates on the basis of that Budget position. The Assembly's agreement of the Executive final Budget for 2025-26 allows me to bring the Budget Bill to the Assembly to seek legislative authority for the expenditure of Departments and other bodies for the remainder of the financial year. <BR /> <BR />There is a short window between the January monitoring position being agreed by the Executive, Estimates being produced and the Budget Bill completing the full legislative process.”
“This Second Stage debate follows the Assembly's approval yesterday of the final expenditure plans for Departments and other public bodies, as detailed in the spring Supplementary Estimates 2025-26. The Assembly also approved the Vote on Account for 2026-27, enabling Departments to utilise resources and access the cash necessary to continue to deliver services until work on the 2026-27 Main Estimates and the associated Budget (No. 2) Bill has been completed. <BR /> <BR />As Members will be aware, Departments are operating under the authority of the Budget (No. 2) Act 2025, which authorised the 2025-26 Main Estimates.”
“Go raibh maith agat, a Phríomh-Leas-Cheann Comhairle.”
“I beg to introduce the Budget Bill 2026 [25/22-27], which is a Bill to authorise the use for the public service of certain resources for the years ending 31 March 2026 and 2027 (including, for the year ending 31 March 2026, income); to authorise the issue out of the Consolidated Fund of certain sums for the service of those years; to authorise the use of those sums for specified purposes; and to authorise the Department of Finance to borrow on the credit of those sums.”
“<BR /> <BR />Unless there are any further comments or points of relevance from Members that I have missed, I will draw my remarks to a close.”
“If that is a measure to go by, you seem to enjoy it, which is fair enough. I am not in any way disparaging anyone who is British — I have no difficulty with anybody declaring their nationality in that way — but the BAFTAs were last night and you did not win an award for acting, in a sense. You always have to bring the issues down to culture wars, but I will not get into a culture war with you. <BR /> <BR />The fact of the matter is that we have provided open, transparent funding for all our society, including the most vulnerable and the marginalised. Any Government or any Executive should be proud of the fact that they are working with and protecting the marginalised. It is certainly something that I will wear as a badge of honour, not as a criticism.”
“On 22 January, the Executive approved the Economy Minister's paper on the planned thematic allocation of the £150 million enhanced investment zone funding from the Government. I understand that that now awaits Whitehall ministerial approval and launch. <BR /> <BR />I have already responded to Dr Aiken. FTC is now being provided to the Executive on the basis of net, which means that we do not have to repay it until it reaches a certain amount. In my opinion, that incentivises the willingness — I hope — of Departments to use FTC more and more, and that is a good step on the way forward for the Executive. <BR /> <BR />Mr Gaston, I do not know whether it is great to be British or not. I am Irish, right? I am sure that it is great to be British. I am not demeaning it. You seem to enjoy it, anyhow.”
“Philip McGuigan said that the challenges facing health are real. Everybody accepts that, but huge work has been done in the Health Department in facing up to its budgetary challenges and delivering change. Again, I refer to the massive change in accessing timely healthcare appointments. A lot more has to be done — I am not suggesting that anybody can rest on their laurels — but the work that has been carried out by senior officials and staff in the Department and in front-line healthcare has to be commended and acknowledged. <BR /> <BR />I touched on the issue of repairs to potholes etc and the funding that has gone towards that and to NI Water. <BR /> <BR />Mr Brett asked about enterprise investment and raised issues about the progress on our enterprise investment zones.”
“I also add that, over this last year, we have identified an additional £49 million for disability adaptations. That, again, makes real differences to people's lives, yet we have still a lot more work to do in that area. <BR /> <BR />I have referred to Mr Mathison's comments on the Budget and how the reserve claim will be repaid etc.”
“It will take a collective effort from everyone — not only the Executive parties but everyone in the Chamber — to move that forward and deliver the changes that we all want to see. <BR /> <BR />I turn to comments from other Members, such as the Deputy Chair of the Committee. I thank the Committee for its work on the motions before us today and the work that we will do tomorrow. As I said, we face challenges both in delivering a Budget and in delivering one without incurring an overspend. They are huge, but, working collectively, we can do this. <BR /> <BR />Mr Gildernew referred to the challenges faced by many, particularly those who interact with the Department for Communities and the services that that Department brings to the most vulnerable in our society.”