Stormont finance minister John O’Dowd has written to the chancellor of the exchequer seeking an urgent meeting on the Northern Ireland Executive’s need for a 2026-27 Budget and “fair and sustainable funding”.
Northern Ireland Executive ministers have been unable to agree a budget for the current financial year, with departments operating on contingency budgets since April.
Ministers across the four-party Executive have consistently argued that they need more money from the Treasury to address a funding crisis in public services.
In his letter to the chancellor John Healey, O’Dowd said: “The absence of an agreed Budget for 2026-27 is creating significant uncertainty for departments and placing increasing pressure on the delivery of our public services. It is also forcing short-term decision making at a time when longer-term, strategic choices are required.
"It is imperative that an agreed budget is put in place as soon as possible. This can only happen, though, after agreement has been reached with the Westminster government around a fair and sustainable funding outcome."
O'Dowd said the Executive has "engaged extensively with Westminster to ensure there is a clear understanding of the scale of the financial challenges we face and the impact they are having on public services".
“Given the seriousness of the situation, urgent progress is now required," he added. "I am calling on the chancellor to engage directly with the Executive and take the necessary steps to deliver a funding settlement that enables us to set a sustainable Budget, drive transformation and deliver better outcomes for our people.”
Asked about the letter, a UK government spokesperson said: "The UK government has provided the Northern Ireland Executive with its largest real-terms settlement since devolution, totalling an average of £19.3bn a year over the next three years, as well as almost £390m in additional funding over the Spending Review period.
"The lack of a budget is extremely concerning and is having an impact on the Executive's ability to plan effectively and deliver public services for citizens.
"The government is working with the Executive to help them get agreement on a budget. However, the Executive needs to come forward with a plan for how it intends to manage its finances, agree a multi-year budget, and transition towards fiscal sustainability."