Debate contribution: Budget 2025-26

Debate contribution by Ms Sian Mulholland on 19 May 2025.

MLA

Ms Sian Mulholland

Party at the time

Alliance Party

Date

19 May 2025

Type

Debate contribution

Business

Executive Committee Business

Heading

Budget 2025-26

Assembly identifier

Official Report component 4968677

Read the official Assembly record

Text

I rise as an Alliance spokesperson for communities. While the total of £940·9 million resource DEL, £270 million capital DEL and £48·1 million in financial transactions capital provides substantial funding, critical challenges remain. The Department's earmarked resource funding of £184·1 million meets key needs, including, as mentioned before, the benefit delivery staffing and the universal credit services, which are essential for vulnerable individuals. However, the £98·6 million shortfall in non-ring-fenced resource DEL poses a serious risk to service delivery, and we have to examine whether that funding gap will hinder the Department's ability to meet demand. Capital funding remains another area of concern. The £270 million allocated falls £161·3 million short of the Department's request, potentially limiting investment in infrastructure projects that are vital for community development. While the full allocation of £48·1 million in financial transactions capital is welcome, we have to assess whether that will sufficiently support long-term improvements and investment. Despite the urgency and significance of proposed changes to the disability welfare payments, no budget line has been allocated to address their impact, and the Minister has indicated that he will rely on in-year monitoring. That omission is really concerning, as those reforms will undoubtedly be the most pressing issue facing vulnerable citizens in our society in the coming year, with potentially devastating consequences. The full scope and breadth of the cuts remain unclear, and the Department's failure consistently to collect vital data, such as how many individuals receive four points in a single element of the personal independence payment (PIP) assessment, leaves us, as policymakers and legislators, in the dark about how those changes will unfold. Without that robust financial planning and clear data, the repercussions could be even more far-reaching, risking the well-being of thousands who rely on disability support. Equally troubling is the lack of forward investment in the Executive's anti-poverty strategy, which the Minister's Department is responsible for leading on. Tackling poverty should be at the heart of the Government's agenda, but the strategy has been left without any necessary funding to drive meaningful change. Again, it has to rely on in-year monitoring. My concern is that, without dedicated financial backing, efforts to reduce poverty and provide essential services to those in need will remain stagnant, further entrenching inequality. The absence of those committed resources in the Budget threatens to undermine any improvement of living standards and support for communities most affected by economic hardship. Whilst maintaining the discretionary support grants at £25·5 million provides stability for those facing financial difficulties, the broader financial landscape remains constrained. With a £17 million funding gap, the Department is left navigating those severe limitations, restricting opportunities for new investment and reinforcing the urgency that we need for robust financial planning. Whilst the Minister says that employment is the best way out of poverty and I acknowledge that employment can be a crucial factor in economic stability, it is misguided to claim that it is the best route out of poverty. It is not just a matter of job availability; it is about deeply entrenched systemic inequalities, institutional barriers and a lack of social protections for the most vulnerable that we see not being addressed in the Budget. A truly effective approach to tackling poverty requires us to prioritise equitable access to healthcare, which was mentioned, and housing, education and welfare support to ensure that individuals are not left behind. When we remove those structural barriers and offer meaningful social protections, such as the removal of the two-child limit, people can move out of poverty with dignity rather than being forced into precarious employment. Economic justice demands a much broader and more inclusive approach. Housing is a fundamental pillar of our society. A reliable and appropriate living situation directly impacts on physical and mental well-being. The housing crisis persists and remains one of the most pressing issues facing our communities. While £100 million has been earmarked in the Budget for social housing, that is a significantly inadequate amount, leaving a £161·3 million funding gap that will hinder progress in meeting the growing demand. The allocation for new-build social homes that will allow for around 1,000 new starts falls well below the target of 2,000, reinforcing concerns that too many families and individuals will continue to face housing insecurity through the Budget. Furthermore, homelessness prevention measures, although receiving an additional £3·7 million, still lack the necessary investment to truly tackle the root causes of housing instability. Without comprehensive, forward-thinking funding, the housing crisis will simply deepen. Having a housing supply strategy is useful, but, when it is not backed by adequate resources and funding lines in the Budget, it will not allow us to meet the challenges that we face. Although investment in arm's-length bodies such as the Arts Council, Libraries NI and National Museums NI is a positive step in maintaining public engagement with the arts, culture and heritage, significant barriers remain. Funding constraints continue to limit the ability of arts organisations to plan for long-term sustainability, deliver ambitious and innovative projects and sustain operations in the face of rising costs. Inflation, pay pressures and a lack of dedicated investment for sector-wide growth create instability, making it difficult for artists, cultural practitioners and heritage organisations to thrive. Accessibility and inclusion in the arts require meaningful long-term support, yet financial limitations often prevent expansion into underserved communities. Without strategic, long-term and sustained funding — not a one-year Budget — Northern Ireland risks losing vital cultural assets that enrich our society and contribute to economic growth. If we are to truly build a fairer and more inclusive Northern Ireland, we have to prioritise investment in the services and strategies that protect our most vulnerable. While the Budget provides critical funding for the Department for Communities, it is insufficient in key areas. It leaves too many gaps that threaten progress. We have to demand long-term strategic solutions that address poverty, housing insecurity, employment barriers and the sustainability of our cultural and heritage organisations.

993 words. Text as published by the Northern Ireland Assembly.

Assessment

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Assessed 21 October 2026 at 12:38 UTC by jev-1.13.0 (requested as typesafe/jev) under rubric 2026.10-r9, methodology 1.9.

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