Northern Ireland's Draft Budget Sparks Controversy Amid Executive Deadlock
January 6, 2026
Sinn Féin calls for constructive engagement and reiterates the need for a statutory eight-week consultation to reach a final agreed budget by 1 April and implement a multi-year plan to transform public services.
The paper suggests a modest overall funding rise next year, with key departments facing limited uplifts in 2026/27 unless overspend issues are offset.
Increases in domestic and non-domestic rates are proposed to raise around £250 million, supporting social housing and water/wastewater projects, while 2026/27 features the smallest funding rise.
For now, Stormont parties remain divided after more than a decade without an agreed multi-year budget, with Sinn Féin, the DUP, and SDLP all weighing in as the process unfolds.
The eight-week consultation is framed as a statutory obligation intended to move toward a credible three-year budget that could transform public services.
O’Dowd invites parties to propose alternatives and emphasizes a statutory obligation to consult, aiming to finalise a three-year budget framework by 1 April 2026 through cross-party negotiation.
Northern Ireland Finance Minister John O’Dowd published a draft three-year budget for current spending and a four-year plan for capital investment, launching an eight-week statutory consultation amid an ongoing executive deadlock over multi-year funding.
The plan features major capital commitments, including over £1 billion for upgrading the A5 corridor, more than £100 million for the Casement Park redevelopment, and about £67 million for sub-regional stadia, all adjusted for inflation.
The resource plan allocates roughly £26 billion to health over three years and about £10 billion to education, with funding to boost police numbers and cover a compensation bill related to a 2023 data breach.
The DUP condemned the draft as deeply flawed, arguing it underfunds frontline services like education and fails to address pay pressures, while opposition figures dubbed it an unambitious ghost budget.
Officials warn of potential overspending this year of around £400 million, which could erode next year’s baseline if not resolved, and note only limited uplifts for most departments in 2026/27 if overspends persist.
Summary based on 6 sources
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Sources

Evening Standard • Jan 6, 2026
NI’s Finance Minister publishes draft budget despite ongoing impasse over plan
Oxford Mail • Jan 6, 2026
NI’s Finance Minister publishes draft budget despite ongoing impasse over plan
Chester and District Standard • Jan 6, 2026
NI’s Finance Minister publishes draft budget despite ongoing impasse over plan
Reading Chronicle • Jan 6, 2026
NI’s Finance Minister publishes draft budget despite ongoing impasse over plan