NI Executive To Receive £1.5 Billion From Budget

The Northern Ireland Executive will receive £1.5 billion for 2025-26, said Chancellor Rachel Reeves today at the announcement of the UK Budget.

Day to day spending will account for £1.2 billion of this, while £270 million will be used for capital investment.

This extra funding, through the Barnett formula, is included in the Northern Ireland Executive's £18.2 billion settlement for 2025/26, which is the largest in real terms for the country in the history of devolution.

The NI Executive will also get an additional £640 million in Barnett consequential this year.

Secretary of State for Northern Ireland Hilary Benn said: "This will provide a strong foundation for stability and growth, and sees the UK Government delivering real change for the people of Northern Ireland.

"We have also confirmed the UK Government's investment in Northern Ireland's City and Growth deals, which is a huge boost to communities in both rural and urban areas.

"The Mid South West and Causeway Coast and Glens Deals alone will receive a combined investment from the UK Government of £162 million and I look forward to seeing them progress and make a real impact now and in years to come. 

"Meanwhile, measures such as the Northern Ireland Enhanced Investment Zone, continuing support for Northern Ireland integrated schooling and the UK-wide investment of over £500m in digital infrastructure through Project Gigabit and the Shared Rural Network benefit people across Northern Ireland's communities.

"The increase to £37.8 million in funding for the Police Service of Northern Ireland through the Additional Security Fund, combined with £8 million for the Executive Programme on Paramilitarism and Organised Crime, underscores the UK Government's continuing and steadfast commitment to security.

"This budget is positive news for people across Northern Ireland, encouraging economic growth and enabling the conditions for a brighter future." The UK Government will also deliver on its pledge to not increase National Insurance, Income Tax or VAT on working people in Northern Ireland, meaning they will not see higher taxes in their payslip.

• The National Living Wage will increase from £11.44 to £12.21 an hour from April 2025. The 6.7% increase – worth £1,400 a year for a full-time worker – is a significant move towards delivering a genuine living wage.

• The National Minimum Wage for 18 to 20-year-olds will also see a record rise from £8.60 to £10 an hour.

• Working people will benefit from these increases, with there estimated to be around 100,000 minimum wage workers in Northern Ireland in 2023.

• The Chancellor has made the decision to protect working people in Northern Ireland from being dragged into higher tax brackets by confirming that Income Tax and National Insurance Contributions thresholds will be unfrozen from 2028-29 onwards. 

• The Chancellor is also protecting motorists by freezing fuel duty for one year - a tax cut worth £3 billion, with the temporary 5p cut extended to 22 March 2026. This will benefit an estimated 1.3 million people in Northern Ireland, saving the average car driver £59, vans £126 and Heavy Goods Vehicles £1,079 next year.

• To support pubs and smaller brewers in Northern Ireland, the UK Government is cutting duty on qualifying draught products by 1p, which represent approximately 3 in 5 alcoholic drinks sold in pubs. This measure reduces duty bills by over £70 million a year, cutting duty on an average strength pint in a pub by a penny. The relief available to small producers will be updated to help smaller brewers and cidermakers.

The Budget will ask businesses and the wealthiest to pay 'their fair share while making taxes fairer'. This will go directly towards fixing the foundations of the UK economy.

For more information regarding the breakdown of the Budget, click here.