Northern Ireland Budget (No. 2) Act 2025: Simplifying the Numbers

The Northern Ireland Assembly has passed the Budget (No. 2) Act 2025, detailing financial allocations for the year ending 31 March 2026. This legislation authorizes the use of resources and sets financial limits for various departments and public bodies across Northern Ireland. Here's a simplified breakdown of the key points:

Total Budget and Resource Allocation:

• Total Authorized Spending: £30.77 billion
  • Current Purposes: £27.89 billion
  • Capital Purposes: £2.88 billion

Key Department Allocations:

1. Department of Health: £9.22 billion for health services, including hospitals, public health, and social care.
2. Department for Communities: £7.52 billion for social security, housing, and community services.
3. Department of Education: £3.93 billion for pre-school, primary, and secondary education services.
4. Department for Infrastructure: £1.67 billion for roads, transport, and water services.
5. Department of Justice: £1.99 billion for justice services, including courts and policing.

Special Allocations:

• Public Health and Safety: Funds are allocated for ongoing response to the COVID-19 pandemic and other emerging health issues.
• EU Exit and Transition: Several departments have allocations to address changes resulting from the UK's exit from the European Union.
• Climate and Environment: Investments in green growth, climate change initiatives, and sustainable development are prioritized.

Borrowing and Financial Management:

• The Department of Finance is authorized to borrow up to £13.72 billion, to be repaid by the end of the fiscal year.
• Income from various sources, including EU funds, shared island funds, and departmental services, will be used to support budgetary needs.

Supplementary Details:

• Income Utilization: Departments can use income from specified sources for designated purposes, ensuring financial flexibility within defined limits.
• Oversight and Accountability: The Northern Ireland Audit Office will continue to monitor and audit financial activities to ensure transparency and efficiency.

The Budget (No. 2) Act 2025 sets the financial framework for Northern Ireland's public services, aiming to support health, education, infrastructure, and community development while adapting to post-Brexit changes and ongoing public health challenges.