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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“That includes Treasury-earmarked funding for city deals, the Windsor framework, the inclusive futures fund and An Ciste Infheistíochta Gaeilge. <BR /> <BR />As is the case with resource DEL, oversight bodies are allocated funding at the amounts approved by the Audit Committee. Funding those items means that there is £2·3 billion, £2·4 billion, £2·4 billion and £2·3 billion remaining for previous Executive commitments and additional allocations. There are a number of areas in which the Executive have made previous commitments. They include Strule, city and growth deals and flagship projects. Flagship projects include £1·1 billion for the A5, of which £527 million is being provided by the Irish Government.”
“Transformation and reform should also form part of each Department's approach. I encourage Ministers to work closely with their arm's-length bodies to ensure that the same level of care, consistency and good practice is applied across the wider public sector. <BR /> <BR />I turn now to capital. Departmental capital budgets are developed using a zero baseline. The spending review provided funding across a four-year period from 2026-27 to 2029-2030, and my proposals are across the same time frame. Treasury funding in each respective year of the Budget period is supplemented with funding from the Irish Government, giving £2·4 billion, £2·5 billion, £2·5 billion and £2·4 billion respectively across the Budget period.”
“It is essential that our public-service workers are appropriately rewarded. As pay awards reflect ongoing costs, they should not rely on in-year funding that may not be available at the same level in future years. Therefore, the Budget has been prepared on the basis that any appropriate pay awards, including those anticipated from pay review bodies, are factored into each Department's budget plans from the start of the financial year. To ensure that public-sector workers receive the pay awards that they deserve over the Budget period, Departments will need to continue strengthening the efficiency with which public services are delivered. Departments retain full flexibility to determine how best to achieve that, but effective workforce planning and accurate paybill forecasting will be important components of the work.”
“That is because we do not yet know what the quantum of any overspend will be. It is also my intention to press Treasury to allow us to repay any overspend over a longer period to minimise the detrimental impact that an immediate reduction would have on public services.”
“I propose that the remaining funding be used to increase departmental general allocations. <BR /> <BR />In developing my proposals, I have not included the impact of any overspend in 2025-26.”
“However, due to the requirements of section 64 of the NI Act 1998, that funding cannot be included at this stage. I anticipate that a settlement letter will be received from the Secretary of State in time for that funding to be included in the final Budget. I have, however, included indicative allocations for that funding in my proposals. <BR /> <BR />As the cost of welfare mitigations will increase across the Budget period due to the removal of the two-child cap, I have proposed funding of £9·4 million, £9·7 million and £2·2 million to the Department for Communities respectively. I have also set aside £10 million in 2026-27 to further enhance support to businesses. I intend to bring forward proposals to the Executive on how that funding could be utilised to enhance support through small business rates relief.”
“As the funding available is so limited in 2026-27, I propose to only provide general allocations to Education, Health, Infrastructure and Justice. Recognising that all Departments will face inflationary pressures, general allocations are provided for all Departments in the subsequent two years. In proposing those general allocations, I considered the bids submitted by each Department, including the potential equality impacts and the Programme for Government information provided. Providing the funding as a general allocation gives Ministers the flexibility to use the funding, along with their baseline funding, in line with their Department's priorities. <BR /> <BR />The autumn Budget provided the Executive with an additional £132 million, £89·3 million and £2·2 million.”
“<BR /> <BR />Given the Executive’s shared commitment to transforming public services and ensuring long-term stability, it is important to invest beyond the £235 million provided through the restoration package to drive meaningful transformation. I have therefore recommended that the Executive provide £95 million in resource DEL over the three-year period to support projects recommended by the public-sector transformation board (PSTB). I also propose that the Executive create a strategic reserve to help them to respond effectively to any issues that may emerge over the Budget period. My proposals include setting aside £200 million in 2027-28 and £400 million in 2028-29 for that purpose. <BR /> <BR />Funding those items means that there is £114·7 million, £430·9 million and £714·2 million available for general allocation to Departments.”
“However, there are a number of additional commitments that I have suggested for Executive-earmarked funding, reflecting Programme for Government priorities. Again, those are set out in more detail in the accompanying tables, but they include, among other things, £495 million for waiting lists and elective care to continue building on the progress made in helping to get patients the care that they need more quickly; £133·3 million to meet in full PSNI workforce recovery costs; £21 million for skills to help grow the economy; £15 million for Lough Neagh, recognising its importance and our desire to protect it; and £15 million for ending violence against women and girls (EVAWG).”
“After providing funding for departmental baselines, oversight bodies, RRI interest payments and statutory salaries, there remains £1·3 billion, £1·8 billion and £2·3 million to honour previous Executive commitments and provide additional allocations. The previous Executive commitments include areas such as agriculture; agrienvironment; fisheries and rural development; welfare mitigations; historical institutional abuse (HIA); truth recovery; and victims payments. They also include the early learning and childcare strategy, for which £195 million has been proposed to continue supporting working families with childcare costs. Those are set out in more detail in the tables alongside the statement. <BR /> <BR />Meeting those funding commitments leaves £0·5 billion, £0·9 billion and £1·4 billion across the Budget period.”
“That includes Treasury earmarked funding for security, the Executive programme on paramilitarism and organised crime, transformation, the Windsor framework, private schools VAT compensation, and debt advice. The resource DEL available to the Executive once those Treasury-earmarked items are provided for is £16·1 billion, £16·6 billion and £17·1 billion. That is supplemented with funding from the regional rates. <BR /> <BR />Each Department sought additional funding as part of the Budget. As I said, it simply was not possible to provide them with the amount requested. Due to the independent nature of the strategic oversight bodies, the budgets for the Assembly, the Audit Office and the Public Services Ombudsman are approved by the Audit Committee and have the first call on the funding available.”
“In total, the proposed regional rates will provide £771·6 million, £800·8 million and £830·5 million respectively in each of the three years. That is the case after accounting for reinvestment and reform initiative (RRI) principal repayments, which are a first call on the regional rate. <BR /> <BR />Turning to the detail of my draft Budget proposals, the spending review set the Executive's resource DEL envelopes for 2026-27 to 2028-29 and capital DEL envelopes for a further year to 2029-2030. My draft Budget proposals are for the same period. Starting with resource DEL, which funds day-to-day spending, the Treasury provided £16·3 billion, £16·8 billion and £17·3 billion in each year respectively across the Budget period.”
“You will appreciate that, in developing proposals on the regional rate, I needed to consider a number of conflicting pressures, including those across public services and for businesses and citizens. As I stated, the financial position across the Budget period is extremely constrained, whilst public services are facing increased demand and increased cost to deliver the services that citizens and businesses rely on. In seeking to strike the right balance, therefore, I set the proposed percentage increases to 3% for non-domestic rates and 5% for domestic rates. The proposals that I have put forward on the regional rate mirror what was agreed by the Executive and the Assembly last year. The proposals will generate an additional £250 million over the Budget period.”
“That will require a collective willingness across society to embrace change. That means harnessing technology, adopting innovative ideas and being prepared to consider options for raising additional revenue. <BR /> <BR />The autumn Budget is another illustration of why we need greater powers locally to ensure that our tax system takes account of our circumstances. Having greater fiscal powers would allow us to make different choices to spur economic activity or to generate income from public services in a fair and more progressive way. As part of that, my Department will intensify work to progress a full fiscal framework. <BR /> <BR />While income generation will form part of the wider budgetary sustainability, decisions must be based on the economic and social context and the need to deliver the public services that our citizens expect.”
“With demand for services outpacing available funding, continuing to do things as we always have done is not an option. The need for transformation and giving consideration to alternative and innovative approaches to service delivery has never been clearer. Each Minister must strive to improve efficiency in how our public services are delivered so that resources can be freed up and reinvested in the services that our citizens depend on. <BR /> <BR />However, government action alone will not be enough. It will require a whole-of-society approach as we work to build a more sustainable system of public services. It is important to acknowledge that improvements will require contributions from all of us. Change is essential if we are to improve our public services and deliver outcomes for everyone.”
“Together, those documents provide the information needed to inform discussions. I am in listening mode, and I want to collaborate in a constructive manner. I want colleagues, citizens, businesses and communities to bring forward suggestions so that we can find solutions and deliver a multi-year Budget that makes the best possible use of the limited resources available. The consultation seeks views on the prioritisation of funding and public service provision. Where there is a belief that additional funding should be allocated to a particular area, that should be accompanied by an explanation of how that should be funded. <BR /> <BR />We need to do things differently. It is important that we are honest about the scale of the challenges facing us.”
“Addressing that disparity will require adequate funding from Westminster for public services as well as substantive reform and meaningful transformation in how we design and deliver our public services. That must include a relentless focus on driving efficiency and responsibly generating additional income in a fair and equitable way so that we can provide sustainable services and secure better outcomes for the people whom we serve. <BR /> <BR />I have brought these proposals forward to seek the views of the people who use our services in order to help us to shape a multi-year Budget. Along with the written ministerial statement, I have published a fact sheet on my proposals. This oral statement provides further detail, and I intend to publish the usual draft Budget document later this week.”
“While the interim fiscal framework has avoided our falling below the 124% level of relative need, the loss of the £520 million stabilisation funding provided in the restoration package means that the uplift from the spending review, particularly in 2026-27, has been largely offset. In the context of our funding pressures, the contribution from the Irish Government through the Shared Island Fund is welcome. I look forward to working with the Irish Government to maximise that. <BR /> <BR />I fully recognise the scale of the challenges and pressures that all Departments and Ministers face. The delivery ambitions of Departments exceed the funding available for resource and capital budgets many times over. There remains a significant and unsustainable gap between our ambitions and the resources at our disposal.”
“<BR /> <BR />It is extremely disappointing how little additional funding is being provided to the Executive, despite the autumn Budget announced in Westminster resulting in increased taxes by amounts rising to £26 billion in 2029-2030. I welcome the £372·3 million of additional Barnett consequentials announced in the autumn Budget. Whilst it may sound like a substantial allocation, the reality is that, when taken over a five-year period, it falls far short of what is needed. I believe that the Chancellor could and should have gone further. The additional funding provided will not undo the damage caused by years of underfunding of our public services by successive British Governments and is insufficient to plug current and future funding gaps.”
“The proposals that I have put forward for consultation follow political engagement and have been developed against the backdrop of an exceptionally constrained financial position. They do not provide the level of funding that I would wish to see directed at our public services; instead, they reflect what is possible within the funding that is available. In that context, it has not been possible to provide any Department with the funding that it has requested. The continued underinvestment in our public services by the British Government means that both the resource and capital departmental expenditure limit (DEL) funding available is very constrained over the Budget period.”
“Thank you for the opportunity to make a statement on my proposals for a draft multi-year Budget. This will allow me to expand on the information provided in my written ministerial statement of 6 January and to further inform the consultation that was launched on that day. The consultation will run for eight weeks until 3 March and will inform the Executive’s decision on their Budget. In parallel, I will continue to engage with my Executive colleagues. <BR /> <BR />The spending review in June marked an important step forward, giving the Executive the ability to set the first multi-year Budget in over a decade. It is important that we grasp the opportunity to provide Departments with certainty and the ability to make long-term plans and to enable strategic investment that delivers lasting benefits for our economy, environment and society.”
“Go raibh maith agat, a Phríomh-Leas-Cheann Comhairle.”
“Before any Minister made a bid in the Budget process — all Departments have made such bids — that Minister and their accounting officer should have done a line-by-line review of their budget. Indeed, I would go further and say this: every Minister and their accounting officer should have regular engagement about their budget and go through it to satisfy themselves that what they spend public moneys on is effective and efficient and delivers the results that they want.”
“Fair play to the Member for thinking on his feet. It will go across a number of areas, including that raised by my colleague's question on sport that I just answered and the further ring-fencing of funding for tackling waiting lists. Almost £500 million has been set aside in the Budget for that. We have seen the success of that initiative in one year, and it is only right and proper that we continue that over the next three years.”
“Yes. In keeping with the original agreement, my draft Budget keeps an inflationary uplift in Department for Communities funding of £12·6 million for the Affidea Stadium and £21·5 million for Windsor Park. As I have said many times in the Chamber and elsewhere, sport is a good thing. Supporting communities and organisations to deliver sports in high-class, proper facilities enhances not only sport but the community and, indeed, the local economy.”
“I am committed to supporting sporting organisations across the board, Casement Park being one of those. Considering the lengthy delays to Casement Park, it is only right and proper for there to be an inflation-based increase in Executive funding for Casement Park, as proposed in the draft Budget.”
“Yes, on both issues. I am more than happy to lay a letter in the Library or to follow whatever process there may be to inform Members of the progress that is made. That includes progress on supporting our small and medium-sized enterprises to access the procurement process for government and local government.”
“Quite substantive work has been carried out in that area in the past year. Work was first commissioned under my predecessor. Staff who work in procurement in my Department have been very effective and efficient in producing new guidelines and documents for the Executive for approval, and we have seen a number of those documents go to the Executive for approval. The most recent have been about reducing bureaucracy in the community and voluntary sector. We will continue to review and engage, but significant progress has been made on the matter.”
“It has been given consideration by the Treasury and others. There are a number of ways of looking at how agriculture is included in the equation, but the Treasury did make a commitment to us at the time of the conclusion of that phase of our discussions that the Holtham review would remain on the table.”
“Now that the autumn Budget has passed and the Christmas period is over, I have tasked my officials with engaging with the Treasury on opening up discussions on a full fiscal framework. The Member is aware of the relatively successful engagement that we had with the Treasury on the Holtham review and other matters. It is now time for us to open up discussions on a full fiscal framework, as was committed to at the time.”
“With any tax strategy, there will always be winners and losers, but we want to ensure that the vast majority, if not all, of our family farms in the region are protected. In this instance, the changes will protect, quite significantly, the vast majority of our family farms here. The farming sector will continue to engage with representatives here. Should further issues arise, I am more than happy to make representations to the Treasury, if required.”
“Yes. It is an important U-turn by the Chancellor and the Labour Government that came about following extensive pressure from the farming community, politicians across the Chamber and politicians in Chambers elsewhere. It is unfortunate that we have regular U-turns from the Labour Government. Instead of U-turns, we need a new economic and financial strategy from them, but this has been a welcome development.”
“The Deaths, Still-Births and Baby Loss Bill, which will enable my Department to make regulations to establish a baby loss certificate scheme, completed its Final Stage in the Assembly on 2 December and now awaits Royal Assent. It is important that the detail of the scheme be shaped to the needs and expectations of families here. I am extremely grateful to the more than 1,000 people who took the time to respond to the consultation, the report of which has been published. <BR /> <BR />Once the Bill receives Royal Assent, the required regulations to specify the details of the scheme will be brought forward as soon as possible. Should the regulations pass smoothly through the Assembly, I hope that the scheme will come into operation by the end of this financial year.”
“It would be hugely significant, particularly in relation to capital. As Members will be aware, it takes a significant amount of time to plan and deliver capital projects. The longer the period of time over which you have to do that, the better that will be for financial planning. It would have a hugely positive impact. A multi-year Budget is good at any time, but, when facing the severe financial constraints that we face, it would allow us to manage the situation better.”
“We are, understandably, straying into the next item of business; it is a topical issue. The borrowing powers are there to be used as a top-up. You would like to see them almost as additional finances on top of what should be a proper capital allocation from Westminster, but we are using the maximum borrowing powers when it comes to capital in order to maximise delivery on the ground.”
“I think that the Member underestimates the organisations, the sectors and the public out there. I think that they understand perfectly well what a draft Budget is.”
“I was hoping for clarity on what a "ghost Budget" is. I simply do not understand what the term means. I know that there are people who believe that they have seen a ghost, but I have never met anybody who claims to have seen an SDLP alternative to the Budget. <BR /> <BR />I have published a draft proposal, which is now out to consultation. In parallel with that, I will work with my Executive colleagues on how to move forward and obtain a multi-year Budget. That is my objective. That should be the objective of all of us in the Chamber. We should work collectively. There will, obviously, be disagreements and different emphases will be placed on where things should land etc, but we should all work collectively to deliver a multi-year Budget.”
“The engagement that we have had has proven beneficial for the banking sector and others when it comes to understanding the unique needs of this place. There has to be a greater understanding of this place at Whitehall level, and I am pushing very strongly for better representation from this place on various committees etc. I also want to see a better understanding of the cross-border element in that regard and to ensure that, when LINK, for instance, carries out assessments of communities' needs, the needs of cross-border communities are better understood than they currently are.”
“I also stressed the banking needs of our small businesses and our community and voluntary groups. In addition, the need to understand and accommodate the level of business and consumer transactions across the border with the South of Ireland and vice versa was highlighted.”
“I thank the Member. On 3 December, I hosted a banking round table with representatives from the banking and finance industry, trade unions, business bodies and the consumer and community and voluntary sectors. It provided an important platform to discuss the issues and developments that are most crucial to accessing cash and services here, including the new access to cash rules; banking hubs; and digital and financial inclusion. I pressed the banking sector on the importance of maintaining the branch network, access to cash and essential banking services in our local communities, especially for our most vulnerable citizens, who need in-person services.”
“I do not have specific details with me on what engagement there has been between my officials and the Department for Communities in recent times, but I will be happy to update the Member on that. If further discussions are required, I am more than happy to task officials with that.”
“Since the amendment to the building regulations, there has been an almost 100% increase in provision, with 81 local Changing Places toilets now registered with the Changing Places Consortium, although we have no specific breakdown of how the change to building regulations has contributed to that.”
“My Department introduced a new requirement for Changing Places toilets in local building regulations that came into effect on 30 June 2022. That was an important step for inclusion and equality. Increasing the number of Changing Places toilets will make our public places more accessible and have a significant positive impact on the lives of disabled people, their carers and their families. <BR /> <BR />At the time, the Department assessed that there were around 42 Changing Places toilet facilities locally. It was also estimated that the new requirement could lead to the installation of 12 additional Changing Places toilets each year following a transition period to allow projects to progress from design through to construction and completion.”
“I will go into more detail on those matters when I make my statement on the draft Budget after Question Time. When any Minister is preparing their budget, staff pay awards should be budgeted in at the start of the year, rather than waiting to see whether in-year funding becomes available.”
“The level of cooperation and engagement between the Department of Health and my Department has been an exemplar of how to do things.”
“The draft Budget that I have put forward provides almost £26 billion in resource DEL funding for the Department of Health over the three-year Budget period. Excluding earmarked amounts, that would mean the Health budget receiving over 52% of available resource DEL funding each year. Given the priority placed on waiting lists in the Programme for Government, I am also proposing to extend the £165 million funding package made available in the 2025-26 budget for a further three years. That would see almost half a billion pounds dedicated to cutting waiting lists. The funding ring-fenced for waiting lists in 2025-26 is already delivering results, as evidenced by the reduction in waiting times. Of course, there is still more to do.”
“Yes, there was extensive engagement at official level with the small business sector before the proposals went out to consultation. Obviously, their voices will be important in the consultation responses.”
“The consultation paper puts forward costed options that focus on two main areas of the small business rate relief scheme. The first is an uplift in the valuation threshold for the scheme so that properties with a slightly higher valuation can be brought into the scheme. The second area is to enhance the level of reductions provided by the scheme to provide greater support for businesses.”
“As I said, I cannot discuss Executive business, but I will say this: I like to think of the matter as still being under discussion rather than being blocked. There is a potential landing zone for agreement on these matters. We have to look at other ways of raising funds. It is a relatively small amount, but implementing the proposals and redirecting the funding to where I would like it to go will make a positive difference to our small and medium-sized enterprises.”
“<BR /> <BR />The draft Budget proposals that I have put forward include a proposal that £10 million be held centrally for 2026-27 to provide support for small businesses. That would see additional support provided through the small business rate relief scheme, helping small businesses provide vital employment to support workers, families and communities. <BR /> <BR />I want to make changes for April 2026. The timescales that I am working to will allow that to happen. As Members are aware, Executive agreement will be required before any changes can be implemented.”