Understanding the Budget Act (Northern Ireland) 2025: A Financial Roadmap

The Budget Act (Northern Ireland) 2025, approved by the Northern Ireland Assembly, sets out the financial framework for the region for the fiscal years ending March 2025 and 2026. This guide simplifies the dense legislative content into key takeaways, ensuring you understand how public resources will be allocated and managed.

Key Features of the Budget Act 2025:

1. Resource Allocation for 2025:

   • The total authorised resource use for 2025 is £31 billion, with £28.15 billion earmarked for current purposes and £2.88 billion for capital projects.
   • Major departments like Health, Education, and Infrastructure are among those receiving significant funds to continue their services and projects.

2. Resource Allocation for 2026:

   • For 2026, the resource use is capped at £13.97 billion, with a focus on maintaining essential services and infrastructure development.

3. Consolidated Fund:

   • The Department of Finance is authorised to draw £26.54 billion for 2025 and £12.15 billion for 2026 from the Consolidated Fund to finance government operations.

4. Borrowing Powers:

   • The Department of Finance can borrow up to £13.27 billion for 2025 and £6.07 billion for 2026, providing flexibility to meet unforeseen financial needs.

5. Excesses Management:

   • The act addresses excess spending from the previous year, specifically for the Department for Communities and the Northern Ireland Assembly Commission.

6. Supplementary Provisions:

   • Sections on interpretation clarify terms used throughout the act, ensuring clarity in financial management and reporting.

Financial Highlights by Department:

• Health: With over £7.8 billion for current purposes in 2025, health services will continue to be a priority, focusing on hospitals, community care, and response to emerging health issues.

• Education: Allocated £3.16 billion for 2025, the focus remains on school services, youth programs, and educational infrastructure.

• Infrastructure: Receives significant capital funding to maintain and develop roads, public transport, and environmental projects.

• Communities: Over £920 million is designated for social security, housing, and community development, emphasizing support for vulnerable groups.

Conclusion:

The Budget Act (Northern Ireland) 2025 aims to balance resource allocation across various sectors, ensuring the continuity of essential services while promoting infrastructure and economic development. This financial roadmap highlights the government’s commitment to managing public funds prudently to support the well-being and growth of Northern Ireland.